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Category: Development

Can Industrial Policy Save the US Economy? (Updated)

In honor of Labor Day, and because the national unemployment rate stands at a disheartening 9.1 percent, I wanted to discuss this article in last week’s New York Times Magazine:

“Over the last two years, the federal government has doled out nearly $2.5 billion in stimulus dollars to roughly 30 companies involved in advanced battery technology.

For decades, the federal government has generally resisted throwing its weight — and its money — behind particular industries. As the former White House economic adviser Lawrence Summers put it, America’s role is to feed a global economy that’s increasingly based on knowledge and services rather than on making stuff. The conviction in Washington was that manufacturing deserved no special dispensation. Even now, as unemployment ravages the country, so-called industrial policy remains politically toxic.”

Why Do NGOs Go Where They Go?

That is the title of a forthcoming paper by Jennifer Brass in World Development. Here is the abstract:

“Using Kenya as a case study, this paper provides preliminary evidence of the factors influencing nongovernmental organizations (NGOs) to choose their locations within a country. Interpreting the findings from a range of models evaluating 4,210 organizations in 70 districts, and drawing on in-country interviews with NGO leaders and workers, government officials, and politicians, it finds that sub-national NGO location corresponds to an area’s objective level of need, as well as the convenience of the location for accessing beneficiaries, donors, and elite goods. Contrary to dominant theories of African political economy, political factors like patronage appear to have little or no significant influence.”