The Political Economy of Industrial Policy in the Middle East and North Africa
In this paper, authors examine the political economy and consequences of industrial policy in the MENA region. How can the features of MENA’s industrial policy be explained? And what accounts for the fact that, against world trends, industrial poli...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/745501503559844813/The-political-economy-of-industrial-policy-in-the-Middle-East-and-North-Africa http://hdl.handle.net/10986/28426 |
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okr-10986-284262021-04-23T14:04:48Z The Political Economy of Industrial Policy in the Middle East and North Africa Nabli, Mustapha K. Keller, Jennifer Nassif, Claudia Silva-Jáuregui, Carlos POLITICAL ECONOMY INDUSTRIAL POLICY COMPETITION POLICY COMPETITIVENESS TRADE FACILITATION TARGETS WASHINGTON CONSENSUS EXPORT-LED GROWTH PRIVATE ENTERPRISE OIL WEALTH STATE ENTERPRISES ISLAMIC FINANCE STRATEGIC CROPS LOBBY POWER In this paper, authors examine the political economy and consequences of industrial policy in the MENA region. How can the features of MENA’s industrial policy be explained? And what accounts for the fact that, against world trends, industrial policies in MENA countries didn’t followed the evolutionary path of industrial policies of other countries? Unlike in many other regions, industrial policy in MENA developed within the context of the region’s strong ‘social contract’ between the government and its people. Although industrial development was an objective, it at times took a backseat to the more important goals of social transformation and economic redistribution, which influenced not only the types and success of industrial policies adopted, but also critically influenced the balance of power among interest groups. Section two of the paper provides the theoretical framework for understanding the experience with industrial policy. Starting with a brief survey of the arguments used to justify industrial policy interventions, and drawing on various strands of the literature it provides a review of the various mechanisms and arguments which help understand the factors which determine the emergence and type of industrial policies observed and how they change. Using this framework section three reviews the experience of MENA countries during the 1950s to the 1970s and the emergence of state-dominated vertical industrial policy, where traditional/sector selective and sector specific policies have been used extensively. Section four attempts to explain the failure for industrial policy to change during the 1980s and 1990s. While the developing world has moved toward more market oriented policies and production systems that are dominated by the private sector and rely on market signals, MENA has maintained much of the old style industrial policies and high state intervention in the economy that characterized much of the developing world in the past. The final section five makes concluding remarks on the likely directions of industrial policy in the region. As internal and external forces shape the way industrial policies can be used in the globalized economy, the MENA region’s old style of industrial policy will need to adjust. The ultimate path of change will be determined greatly by each country’s initial conditions and individual political economy factors. 2017-09-28T18:57:31Z 2017-09-28T18:57:31Z 2006-03 Working Paper http://documents.worldbank.org/curated/en/745501503559844813/The-political-economy-of-industrial-policy-in-the-Middle-East-and-North-Africa http://hdl.handle.net/10986/28426 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Middle East and North Africa Middle East North Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
POLITICAL ECONOMY INDUSTRIAL POLICY COMPETITION POLICY COMPETITIVENESS TRADE FACILITATION TARGETS WASHINGTON CONSENSUS EXPORT-LED GROWTH PRIVATE ENTERPRISE OIL WEALTH STATE ENTERPRISES ISLAMIC FINANCE STRATEGIC CROPS LOBBY POWER |
| spellingShingle |
POLITICAL ECONOMY INDUSTRIAL POLICY COMPETITION POLICY COMPETITIVENESS TRADE FACILITATION TARGETS WASHINGTON CONSENSUS EXPORT-LED GROWTH PRIVATE ENTERPRISE OIL WEALTH STATE ENTERPRISES ISLAMIC FINANCE STRATEGIC CROPS LOBBY POWER Nabli, Mustapha K. Keller, Jennifer Nassif, Claudia Silva-Jáuregui, Carlos The Political Economy of Industrial Policy in the Middle East and North Africa |
| geographic_facet |
Middle East and North Africa Middle East North Africa |
| description |
In this paper, authors examine the
political economy and consequences of industrial policy in
the MENA region. How can the features of MENA’s industrial
policy be explained? And what accounts for the fact that,
against world trends, industrial policies in MENA countries
didn’t followed the evolutionary path of industrial policies
of other countries? Unlike in many other regions, industrial
policy in MENA developed within the context of the region’s
strong ‘social contract’ between the government and its
people. Although industrial development was an objective, it
at times took a backseat to the more important goals of
social transformation and economic redistribution, which
influenced not only the types and success of industrial
policies adopted, but also critically influenced the balance
of power among interest groups. Section two of the paper
provides the theoretical framework for understanding the
experience with industrial policy. Starting with a brief
survey of the arguments used to justify industrial policy
interventions, and drawing on various strands of the
literature it provides a review of the various mechanisms
and arguments which help understand the factors which
determine the emergence and type of industrial policies
observed and how they change. Using this framework section
three reviews the experience of MENA countries during the
1950s to the 1970s and the emergence of state-dominated
vertical industrial policy, where traditional/sector
selective and sector specific policies have been used
extensively. Section four attempts to explain the failure
for industrial policy to change during the 1980s and 1990s.
While the developing world has moved toward more market
oriented policies and production systems that are dominated
by the private sector and rely on market signals, MENA has
maintained much of the old style industrial policies and
high state intervention in the economy that characterized
much of the developing world in the past. The final section
five makes concluding remarks on the likely directions of
industrial policy in the region. As internal and external
forces shape the way industrial policies can be used in the
globalized economy, the MENA region’s old style of
industrial policy will need to adjust. The ultimate path of
change will be determined greatly by each country’s initial
conditions and individual political economy factors. |
| format |
Working Paper |
| author |
Nabli, Mustapha K. Keller, Jennifer Nassif, Claudia Silva-Jáuregui, Carlos |
| author_facet |
Nabli, Mustapha K. Keller, Jennifer Nassif, Claudia Silva-Jáuregui, Carlos |
| author_sort |
Nabli, Mustapha K. |
| title |
The Political Economy of Industrial Policy in the Middle East and North Africa |
| title_short |
The Political Economy of Industrial Policy in the Middle East and North Africa |
| title_full |
The Political Economy of Industrial Policy in the Middle East and North Africa |
| title_fullStr |
The Political Economy of Industrial Policy in the Middle East and North Africa |
| title_full_unstemmed |
The Political Economy of Industrial Policy in the Middle East and North Africa |
| title_sort |
political economy of industrial policy in the middle east and north africa |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/745501503559844813/The-political-economy-of-industrial-policy-in-the-Middle-East-and-North-Africa http://hdl.handle.net/10986/28426 |
| _version_ |
1764466762199334912 |