[OPE-L] 'Policy Space' for Development

From: glevy@PRATT.EDU
Date: Wed May 02 2007 - 21:01:29 EDT

----- Original Message -----
From: GDAE Announce
Sent: Wednesday, May 02, 2007 3:35 PM
Subject: The Case for Policy Space

Relevance of 'Policy Space' for Development:
Implications for Multilateral Trade Negotiations

RIS Discussion Paper #120

 Nagesh Kumar and Kevin P. Gallagher

There remains a compelling case for policy intervention to foster
industrial development in the global South, according to a new paper from
an Indian research institute co-authored by Kevin P. Gallagher and Nagesh
Kumar.  The authors note that developed countries have consistently
deployed industrial policy, performance requirements, soft intellectual
property regimes, subsidies, government procurement, and regional economic
integration among other policies in their own processes of
industrializations.  Many of these policies were successfully emulated by
the newly industrializing economies in East Asia to build internationally
competitive modern industries despite the lack of apparent comparative
advantage.  A development-friendly outcome of the Doha Round of World
Trade Organization negotiations would provide flexibility from the
intellectual property restrictions and investment obligations to
facilitate rather than inhibit the transfer of technology to developing
countries.  This would give them the policy space they need to pursue
industrial development.

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