Episode 29 From Bananas and Pineapples to iPhones: A New Framework for Industrial Policy

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Episode 29 From Bananas and Pineapples to iPhones: A New Framework for Industrial Policy

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Low-income countries target an average of 13 industries in their development plans—compared with just 5 in high-income economies. Yet many lack the fiscal space for large subsidies. In this episode we explore what’s new about industrial policy today. Rather than trying to “pick winners,” the emerging framework focuses on matching policy tools to a country’s fiscal space, market size, and institutional capacity—and managing a portfolio of risks. From Costa Rica’s shift from bananas to pineapples to India assembling the latest iPhones, the discussion highlights how countries can upgrade industries and move up the value chain using a more pragmatic approach to development. Generated with AI using wondercraft.ai and guided by our experts. Read more at: https://www.worldbank.org/en/publication/industrial-policy-for-development

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