economy
A Pillar of the Economics Establishment Admits That It Was Wrong
In a new report, the World Bank thinks better of its old free-market absolutism.
TL;DR
- The World Bank, previously a proponent of the "Washington Consensus" against industrial policy, has reversed its stance.
- A new report by the World Bank concludes that industrial policy, when done right, is an essential tool for economic success.
- This reversal is informed by a reevaluation of the "Four Asian Tigers" and the economic rise of China.
- The bank now suggests targeted support like subsidies and training programs, rather than tariffs, for industrial development.
- Emphasis is placed on good governance to prevent corruption and avoid "picking winners."