NEVA MAKGETLA: SA is relaunching industrial policy, but what does that mean?
In order to implement effective industrial policy, the state needs to be clear about the factors that make investment and growth unprofitable
It doesn’t exactly dominate the news cycle, but the current effort to relaunch SA’s industrial policy has major ramifications for economic policy. If it results in a substantive upgrading in how SA conceptualises and implements industrial policy, it has the potential to lift the economy into inclusive growth.
Industrial policy is notoriously hard to pin down — except in terms of what it isn’t. It isn’t the Washington Consensus, which holds that the state should get fiscal and monetary policy right, then let the business decisions structure production based on market signals.