This podcast episode provides a comprehensive analysis of industrial policy, critically examining the balance between discipline and growth while addressing the political and economic factors that influence its effectiveness. Chibber emphasizes the risks of unproductive monopolies created through subsidies, resulting in inefficiency versus the successful competitive pressures enforced by East Asian countries. Throughout the discussion, he highlights the challenges posed by domestic firms' political power, the importance of capital access, and the lessons that can be gleaned from China’s approach to industrial policy. Ultimately, Chibber advocates for a more democratic, transparent, and accountable industrial policy that effectively engages workers and the public for sustainable growth.
