The main purpose of industrial policy is to speed up the process of structural change towards higher productivity activities. This paper builds on our earlier writings to present an overall design for the conduct of industrial policy in a low- to middle-income country. It is stimulated by the specific problems faced by South Africa and by our discussions with business and government officials in that country. We present specific recommendations for the South African government in the penultimate section of the paper.
Ricardo Hausmann, Dani Rodrik & Charles F. Sabel,
Reconfiguring Industrial Policy: A Framework with an Application to South Africa,
Harvard University Center for International Development Working Paper No. 168; Harvard Kennedy School Faculty Research Working Paper No. RWP08-031
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