Institutions for Industrial Policy
Abstract
We propose an institutional architecture for the successful implementation of industrial policy inspired by the Asian Miracles—Japan, Korea, Taiwan Province of China, Singapore, and Hong Kong SAR. The key institutional arrangement is a leading agency, accumulating sector-specific knowledge through continuous experimentation and feedback from markets, to design the sector- and context-appropriate package of policies, which is a priori unknown, and coordinate its implementation. We also postulate a 4A model of institutional features of the leading agency: Ambition-Agency, Autonomy, Accountability, and Adaptability. We draw strong parallels with the rise of independent central banks, inferring concrete steps to achieve these characteristics.
Fields of Study & Subjects
Asian Industrial and Economic Development
Herbal Medicine and Trade Cooperation
Social Policy and Reform Studies
Publication details
- Journal / source
- IMF Working Paper
- Publisher
- International Monetary Fund (IMF)
- Volume
- 2026
- Issue
- 063
- Pages
- 1–1
- Publication date
- 1 March 2026
- Language
- EN