We argue that the turn to industrial policy can play a vital role in reconnecting finance to the real economy—but only if industrial policy is seen holistically as a comprehensive economic development strategy, and not just as a way to onshore the making of particular widgets.
Thus, the attaching of conditions to industrial policy loans and grants should be seen as a normal part of development lending (as it is at World Bank and elsewhere) - not a distraction. @lenorepalladino and @Isabel_Estevez_ have been really sharp on this. rooseveltinstitute.org/publications/t…
We conclude on the value of a "public option for private equity" in the industrial policy space, including through a National Investment Authority. This can help get around capacity constraints in existing federal agencies, and revives and improves on best practices from FDR era.
Movement towards NIA-like institutions can happen even in divided government, as the 1932-33 genesis of the Reconstruction Finance Corporation shows. politico.com/news/magazine/…
This is the result of a 4 year review since the beginning of the Biden administration, which has been evaluating whether various Chinese policies comport with US trade laws.
Fantastic panel @HarvardMWC on lessons we can learn from global experiences with industrial policy, with @rodrikdani @straightedge @myrto_kaloup and @rohlamba.
Myrto talking Chinese shipbuilding excess capacity. Has 50-70% market share today.
@Rohan_Sandhu Myrto says Chinese shipbuilding not efficient when taken on their own, but had clear benefits in terms of outward exports / lowering transportation costs / enhancing military capacity. nber.org/papers/w26075
NEW from me @RooseveltFwd: How Biden's comments on US Steel's tie up with Japan's Nippon company indicate what a Foreign Policy for the Middle Class might look like in practice. rooseveltforward.org/2024/04/03/bid…
The idea of reorienting foreign economic policy to build labor power and combat inequality was articulated by @JakeSullivan46 @jennifermharris and others in a series of essays and reports in 2019-20. foreignpolicy.com/2020/02/07/ame…
This doesn't mean that traditional diplomacy has to die out. Indeed, as @dimi and @KanaInagaki report, even after Biden's comments, the US and Japan are slated to make the biggest upgrade to their alliance in 60 years. ft.com/content/df9999…
BREAKING from @AP: @Energy agency announces $6 billion to slash emissions in industrial facilities.
@JenMcDermottAP @anniesartor @SecGranholm @alizaidi46 and me on why this is game changing, and could allow the US to catch up/ lead on industrial decarb. apnews.com/article/climat…
The mix of projects funded here is exciting, including a range of technologies to be deployed by US leader @CLE_CLF, and even projects by Sweden's SSAB. energy.gov/oced/industria…
"EVEN IF YOU’RE CONVINCED that unionized labor is sclerotic and expensive and an impediment to production, cutting them out creates the very real risk of losing the coalition necessary to sustain green industrial policy."
@ddayen responds to @ezraklein. prospect.org/economy/2023-0…
I am sympathetic to Klein's wish to live in a society with more corporatist labor arrangements.
https://t.co/5jiumaovWrnytimes.com/2023/07/16/opi…
Want government that builds super fast, without the pesky guardrails of civil society input, local government consultation, or environmental or safety permitting?
The last 70 years of development economics has been technocrats & engineers slowly learning that you can't wish away politics and institutions. If your developmental strategy can't work politically and institutionally, it can't work.
That's why @ddayen's framework @TheProspect of A Liberalism That Builds Power is so useful. If you try to Either/Or your way through economic development or (countervailing) power-building, you could end up with neither. prospect.org/economy/2023-0…