Rethinking Industrial Strategies and the State: A Global South Perspective

After decades of opposition and neglect in the context of a dominating neoliberal approach to markets and institutions, industrial policy has experienced a renaissance. In the wake of financial, climate, and health crises, setting a sound industrial strategy has emerged as an absolute policy priority. Yet contemporary industrial strategies remain bound by outdated frameworks and preconceptions. Those shaped by the Global North in particular fall short of addressing the unique challenges Global South countries face, including limited state capacity, dependence on volatile global markets, and colonial legacies. These factors necessitate a radical rethinking of industrial strategy. The article argues that to avoid reproducing the mainstream view of state intervention, industrial strategy should fundamentally rethink the role of the state—not as a market fixer, but as a capable and confident market shaper.