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Accepted Paper:

Unintended Policy Spaces in Industrial Development: Bandwagoning or Breaking Loose?  
Daniel Esser (American University)

Paper short abstract:

Amid lessened pressure on industrializing countries to comply with global norms, the paper explores whether reciprocal support for industrial policies delivers for countries in the shadows of regional economic powers. Its comparative analysis focuses on Paraguay, Kyrgyzstan, Nepal, and Mongolia.

Paper long abstract:

The ongoing spatial reconfiguration of global capitalism has arguably lessened institutional pressure on industrializing countries to comply with global norms. At the same time, new tactical alliances among ‘late-late’ industrializers appear more viable than before. The recent example of India and South Africa jointly arguing their case against the extension of the World Trade Organization’s e-commerce moratorium is emblematic of this trend. But what is the evidence that reciprocal support for industrial policies also delivers for countries in the shadows of regional economic powers? This paper explores the extent to which recalibration in the global division of labor and power (GDLP) since the 2008 global financial crisis has helped hitherto sidelined national policymakers implement measures that further their domestic industrial interests. It compares collaborative industrial policy initiatives of four small, landlocked countries located in the geographical vicinities of four of the five BRICS: Paraguay (bordering Brazil), Kyrgyzstan (a former part of the Soviet Union), Nepal (bordering India), and Mongolia (bordering China). Data are drawn from national governmental sources, the World Bank, UNCTAD, the World Economic Forum, and annual reports of the United Nations’ specialized agency devoted to promoting industrial development, UNIDO. The paper’s—preliminary—findings suggest that second-tier actors in regional power blocs commonly remain tied to industrial policy agendas of their larger neighbors, yet important exceptions from this pattern exist. The paper concludes with concrete recommendations for national actors seeking to leverage fortuitous policy spaces to forge effective country-specific industrial development trajectories during the 2020s.

Panel P01a
Paradigm maintenance or shift? Questioning the reinvention of development for the 2020s I
  Session 1 Thursday 1 July, 2021, -