Rethinking Productive Development

Manuel Agosin Mariana Bassi Juan Blyde Gabriel Casaburi Jorge Cornick Gustavo Crespi Fernando De Olloqui Eduardo Fernández-Arias Alessandro Maffioli Christian Volpe Martincus Ugo Panizza Carlo Pietrobelli Alejandro Rasteletti Graciana Rucci Ernesto Stein Alberto Trejos Sergio Urzua Rodrigo Wagner

"The Washington Consensus its name notwithstanding was invented in Latin America. However, as this useful report shows, inadequate productivity growth since its adoption has forced the region's policymakers to reconsider whether the wholesale rejection of industrial policy was appropriate. The Inter-American Development Bank has long been at the forefront of this rethinking. The authors do a masterful job of not only surveying what is known about 'productive development policies,' but also laying out a policy agenda. Admirable in its analytical exposition, empirical detail, and policy discussion, this is a must-read for development economists and practitioners alike." - Dani Rodrik, Albert O. Hirschman Professor of Economics, Institute for Advanced Study, USA "Once the commodities boom is over, Latin America will have to discover new sources of economic growth. Tired orthodoxies will not do the trick, but the fresh thinking contained in this volume just might. It explains what went wrong with industrial policies in the 1960s, and what countries have to do differently this time around. First-rate. Should be required reading for policymakers around the region." - Andres Velasco, Former Finance Minister, Chile "This book is a must-read for policymakers and practitioners in the elusive world of effective industrial policies. A useful toolbox to think about a topic that is central to any government today." - Mauricio Cardenas, Minister of Finance and Public Credit, Colombia

• PART I: THE ROLE OF PRODUCTIVE DEVELOPMENT POLICIES 1. Rethinking Productive Development 2. A Conceptual Framework for Productive Development Policies PART II: SOUND POLICIES IN KEY AREAS OF APPLICATION 3. Investing in Ideas: Business Innovation Policies 4. The Start-Up and Scale-Up of High-Productivity Firms 5. Beyond the Classroom: Preparing People to Produce 6. Giving Credit to Productivity 7. All Together Now: Cluster-Based Policies 8. A World of Possibilities: Internationalization for Productive Development 9. Selecting Priority Sectors for Productive Transformation: An Elephant in the Room? PART III: INSTITUTIONS FOR SUCCESSFUL POLICIES 10. The Hard Part: Developing Public Sector Capabilities for Successful PDPs 11. Two to Tango: Public-Private Collaboration in Productive Development Policy