Comments on “New Thinking on Industrial Policy: Country Case Studies of Successful and Unsuccessful Industrial Policies — The Return of Industrial Policy in Brazil”

Abstract

I am grateful for the opportunity to comment on this paper discussing industrial policy and Brazil’s economic development. Over the past ten years, Brazil has made remarkable progress in achieving macroeconomic stability and high growth, while at the same time markedly reducing poverty. Indeed, over the period 2004–10 growth more than doubled to over 4.2 percent (from about 1.9 percent during the period 1996–2003), while inflation fell sharply from a peak of 15 percent in 2003 to an average of 3 to 5 percent during 2004–10. Most remarkably, poverty declined from 35 percent in 2000 to 22 percent in 2009. The paper draws appropriate attention to the role that industrial policy has played in fostering growth and to the need for sound principles of implementation to effect the expected results.