Industrial policy has entered the economic mainstream—endorsed by the World Bank and pursued in different forms, from Washington to Brussels to Bangkok. Yet, this revival has largely decontextualised the concept from the underlying political economy that made it work.
This brief traces industrial policy back to its origins in the East Asian developmental states, where success rested not on subsidies and tariffs alone but on specific, often coercive political, social and economic bargains.
It argues that industrial policy's relevance today depends not on implementing a decontextualised version of that East Asia postwar experience, but on clearly defined objectives, acknowledgement of underlying state capacity, and a willingness to bear the real trade-offs it demands.
Read now: https://www.orfonline.org/research/recontextualising-industrial-policy-lessons-from-the-east-asian-developmental-state
orfonline.org
Recontextualising Industrial Policy: Lessons from the East Asian Developmental State
The revival of industrial policy often overlooks the political bargains behind East Asia’s success. This brief explains why strategies must reflect local conditions.
September 8, 2026 199 2
