Development and Finance from issue 2010/3

László Szabó

Waiting for a Selective Industrial Policy

- Abstract -

JEL L-52

 

Experience of economic history shows that industrial development can be the most powerful engine of development in emerging economies. It is obvious that structural changes without a well-conceived industrial policy could lead to rather unforeseeable effects on the national economy in just one or two decades. We can find several examples of such consequences in Hungary based on the factors outlined above. In my opinion these have also contributed to the greater socio-economic problems which have been in the focus of attention over the past few years.  Therefore, the degree of spontaneity should be diminished in the future so that the balance of the expected structural changes can be shifted in a positive direction. To this end, a selective industrial policy made up of defensive and offensive elements is needed. By means of the defensive industrial policy, attempts should be made to slow down the shrinking of certain industrial branches. The offensive elements of the selective industrial policy should concentrate on increasing the marketability of ‘success branches’, improving their efficiency and increasing the Hungarian added value.


László Szabó, CSc in economics

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