The centre of gravity has shifted to emerging economies and the key instrument that has led to this paradigm shift is Industrial Policy. This was said by the Director-General of the Department of Trade and Industry (the dti) Mr Lionel October. He was speaking at the launch of an Organisation for Economic Cooperation and Development (OECD) report on industrial policies that was hosted by the dti in Sandton today.
According to October, the report, which is titled Perspectives on Global Development 2013-Industrial Policies in a Changing World: Shifting up a Gear, emphasised the centrality of industrial policy in the emerging market economies. It analyses how industrial policies can contribute to the structural transformation of economies and put developing countries on sustainable paths of development and growth
“Another point that the document is emphasising is that the shift is not a cyclical one. It’s structural and therefore will permanently change the structure of our global economy. The report also makes it clear that Industrial Policy alone or the manufacturing sector cannot be the solution to the overall problem of unemployment and all of our economic challenges. It is clear that we need to look broader to the other sectors of our economy such as mining and agriculture, as well as to value added services and beneficiation to address our challenges,” said October.
He added that although there is still a long way to, South Africa has made good progress in terms of industrial policy. He identified automotives, textiles, film and Business Processing and Offshoring as the four sectors where SA has made significantly notable strides
The Deputy Director of the OECD Development Centre, Mr Carlos Alvarez said there is a new geography of trade which has resulted from the new partnerships that are established in the playing field, new opportunities, globalisation, new consumers, and new ways of doing things in the world economy.
In her presentation, Senior Economist at the OECD Development Centre, Ms Annalisa Primi said developing countries were implementing targeted policies to address multiple structural challenges that they are still experiencing. Some of the challenges she identified include shortage of skills, skills mismatch, access to finance for small and medium enterprises and infrastructure development.
Caption: OECD Development Centre Senior Economist, Ms Annalisa Primi; Trade and Industry Director General, Mr Lionel October; and OECD Development Centre Deputy Director Mr Carlos Alvarez..
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