What's New in the New Industrial Policy in Latin America?

Thumbnail Image
Files in English
English PDF (1.1 MB)
English Text (122.77 KB)
Latin America was an aggressive practitioner of industrial policies (IP) in the years 1950-1980. During much of the period the general practice was in line with the then mainstream thinking in development economics. Significant growth, industrialization and modernization took place, but serious flaws in concept and execution of the IP caused them to fail as a vehicle for economic catch-up with rich countries in an era of an expansive world economy. A very serious Latin American external debt crisis in the 1980s, coupled with the ascendance in international discourse of arguments for retrenchment of the State in economics and life, contributed to a pendulum swing in the region to the policies of the so-called Washington Consensus. Major structural adjustments and reforms designed to bring the free market forward and push back the market governance of the State dominated the 1980s and 1990s. In recent years, however, countries in Latin America have witnessed a renaissance in the deployment of systematic IP. This paper explains why IP have emerged and why they are a necessary step for the more profound structural change needed to drive sustained high rates of growth. Based on illustrated cases which we think reflect the current state of affairs in the region, the paper highlights the nature of the shift to a more proactive state promotion of industrial and services upgrading, as well as the important new characteristics of the current outbreak of IP which are different from the ones of the past and offer hope for greater success. It also identifies a legacy of some bad habits which linger and need to be addressed with urgency if the new trend is to be successfully consolidated.
Link to Data Set
Devlin, Robert; Moguillansky, Graciela. 2012. What's New in the New Industrial Policy in Latin America?. Policy Research Working Paper; No. 6191. © World Bank, Washington, DC. License: CC BY 3.0 IGO.
Report Series
Report Series
Other publications in this report series
  • Publication
    Refugee Education Financing
    (Washington, DC: World Bank, 2024-04-11) Hopper, Robert
    This paper, along with its accompanying data, provides the first comprehensive analysis on financing for refugee education in low- and middle-income countries. By compiling and scrutinizing data on host government financing, foreign aid contributions, and philanthropic giving, a consolidated and quantified overview of all major sources of financing for refugee education in low- and middle-income countries is produced. This data is then analyzed to reveal key trends and patterns in refugee education financing, existing financing gaps, and potential biases in financing allocations. These findings are explored in the 10 facts and findings outlined in this paper, and summarized in Box 1 below. It is hoped that this dataset and analysis will help to improve the understanding of financing for refugee education in low- and middle-income countries and inform future discussion and debate on refugee education financing.
  • Publication
    COVID-19 Increased Existing Gender Mortality Gaps in High-Income Countries More Than in Middle-Income Countries
    (Washington, DC: World Bank, 2024-04-10) Beegle, Kathleen; Demombynes, Gabriel; De Walque, Damien; Gubbins, Paul; Veillard, ,Jeremy
    Men die at higher rates in nearly all places and at all ages beyond age 45. Using World Health Organization excess mortality estimates by sex and age groups for 75 countries in 2020 and 62 countries in 2021, this paper analyzes how patterns of excess mortality varied by sex and age groups across countries during the COVID-19 pandemic and their association with country income level. In 2020, the pandemic amplified the gender mortality gap for the world, but with variation across countries and by country income level. In high-income countries, rates of excess mortality were much higher for men than women. In contrast, in middle-income countries, the sex ratio of excess mortality was similar to the sex ratio of expected all-cause mortality. The exacerbation of the sex ratio of excess mortality observed in 2020 in high-income countries declined in 2021, likely as a result of the faster rollout of vaccination against COVID-19.
  • Publication
    Leveraging Growth Regressions for Country Analysis
    (Washington, DC: World Bank, 2024-04-10) Wacker, Konstantin M.; Beyer, Robert C. M.; Moller, Lars Christian
    This paper shows how growth regressions can be useful for analyzing a country’s growth performance. Growth regressions describe changes in key macroeconomic variables that countries typically experience during their growth process. Such partial correlations facilitate comparative analysis, can usually be linked to policies, and can hence be informative from a policy perspective. Against this background, the paper introduces a new data set of growth correlates spanning more than 150 countries from 1970 to 2019. Additionally, it presents several econometric reference models and details their application for country-level growth analysis. Two distinct metrics highlight infrastructure and human capital as exhibiting the strongest correlations with growth.
  • Publication
    Do Patients Value High-Quality Medical Care ? Experimental Evidence from Malaria Diagnosis and Treatment
    (Washington, DC: World Bank, 2024-04-05) Lopez, Carolina; Sautmann, Anja; Schaner, Simone
    Can information about the value of diagnostic tests improve provider practice and help patients recognize higher quality of care In a randomized experiment at public clinics in Mali, health providers and patients received tailored information about the importance of rapid diagnostic tests (RDTs) for malaria. The provider training increased provider reliance on RDTs, improving the match between a patient’s malaria status and treatment with antimalarials by 15–30 percent. Nonetheless, patients were significantly less satisfied with the care they received, driven by those whose prior beliefs did not match their true malaria status. The patient information intervention did not affect treatment outcomes or patient satisfaction and reduced malaria testing. These findings are consistent with highly persistent patient beliefs that translate into low demand for diagnostic testing and limit patients’ ability to recognize improved quality of care.
  • Publication
    Understanding the Links between Diet Quality, Malnutrition, and Economic Costs
    (Washington, DC: World Bank, 2024-04-05) Siekmans, Kendra; Fracassi, Patrizia; Kato, Tomoko; Seow, Ti Kian; Carter, Diana; Horton, Susan; Dizon, Felipe; Shibata Okamura, Kyoko
    Understanding the economic costs attributable to unhealthy diets is crucial to inform health and agrifood investments in low- and middle-income countries experiencing nutrition transition. To review the current evidence on the association between diet quality and economic costs in low- and middle-income countries, this paper first conducted a literature search to identify studies that include a dietary exposure, nutrition, or health outcome, and a cost estimate. Given the limited studies in terms of life stage groups represented, a second search was conducted for systematic reviews and meta-analyses of observational studies, with effect size estimates for the risk of nutrition or health outcomes associated with diet quality. Of 21 studies (search 1), most were based on the Global Burden of Disease model and estimated the fraction of diet-related noncommunicable disease outcomes attributable to individual or groups of dietary risk factors. The search found 82 systematic reviews and meta-analyses (search 2) that estimated the burden of malnutrition associated with dietary risk factors. Low dietary diversity was associated with increased risk of undernutrition and anemia in pregnant women and children. Dairy consumption was protective for low birthweight, child obesity, and diabetes and hypertension. Low animal source food intake increased the risk of anemia and zinc deficiency during pregnancy. Unhealthy food consumption, including ultra-processed foods and sugar-sweetened beverages, increased the risk of overweight/obesity, diabetes, and hypertension. Healthy dietary patterns were protective during pregnancy for maternal and birth outcomes, and for diabetes and hypertension in adults. The results highlight gaps in quantifying the contribution of diet quality to multiple forms of malnutrition and noncommunicable diseases.
Journal Volume
Journal Issue
Associated URLs
Associated content