Will the New Industrial Policy Work?
Prompted by climate change and the rise of China, industrial policy has made an unlikely return to government agendas. While the challenges facing humanity clearly require increased state intervention, policymakers need to learn from past failures and provide companies with the right balance of support and discipline.
SEOUL – Industrial policy has returned to government agendas across the developed and developing world. While the US Inflation Reduction Act has shocked America’s Asian and European trading partners, the Biden administration’s signature climate-change legislation is just the latest in a series of recent policies that seemingly fly in the face of World Trade Organization rules.