Política industrial : una propuesta de política a la luz de la tensión entre fallas de mercado y fallas de gobierno

In this policy paper, we review the market failures that justify industrial policy, empirical evidence of successes and failures, criticism from public choice theory and different government failures that hinder the implementation of intervention policies. Finally, we make a series of recommendations regarding the institutional framework needed to carry out successful productive development policies. Our first point is that the emphasis should be on public policy promoting entrepreneurship and production processes, rather than policies aimed at specific sectors. Second, we argue that an optimal institutional framework for public policy is one that has the ability to balance the market failures that justify active policies, with government failures that increase the costs of implementation. The evaluation exercise of these dilemmas requires technical capacity to assess market failures and shield the political process to minimize government failures.