In this book the recent experience of ECLAC in the design of industrial policy and technical support to the governments of two Central American countries, El Salvador and Guatemala, is presented. A complete approach was followed to identify in detail, the constraints faced by each link in the value chain. Intervention strategies for strengthening the value chains that showed a participating character (public-private) and drive structural change in the countries of the region through increased productivity and value added, with special emphasis on small producers.

This publication presents the recent experience of the Economic Commission for Latin America and the Caribbean (ECLAC) in respect of industrial policy design and technical assistance for the Governments of two Central American countries: El Salvador and Guatemala. It adopts a value chain approach to identify in detail the restrictions facing these chains, both as a whole and at each of their links. Strategies aimed at strengthening value chains are participatory (public-private) and act as a driver of structural change by boosting productivity and value added, especially among small producers.

This book underscores the need for a rural industrial policy that promotes a structural change based on innovation, greater value added and better employment and living conditions, all in harmony with the environment.

Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.

The publication attempts to define the concept of industrial policy, to review certain relevant historical experiences, and to examine the current state of the art of industrial policy in Latin America. First section presents introductory notes regarding the importance of manufacturing in the development process. The second section defines the concept of industrial policy and its scope. The third section discusses industrial policy’s raison d’être. The fourth section provides an overview of the principal features of industrial policy at various historical times and places. The fifth section focuses on industrial policy in Latin America, presenting a balance of progresses and obstacles, and examining measures to overcome implementation problems, while the sixth section concludes.

Promoting industrial value chains in developing countries is a promising approach to foster economic development, create jobs and induce inclusive growth while addressing social and environmental issues. However, such promotion requires understanding of the status of development in the value chain and the complex linkages among its actors and with the socio-political environment. This publication assists analysts and decision makers in obtaining a complete picture of the status quo in a given value chain using rapid data collection and analysis methods. This type of diagnostic is useful at any point of value chain development: at the outset, when choosing the value chain, during the analysis phase and later during implementation, monitoring, evaluation and adjustment.

Industrialization supported by industrial hubs has been widely associated with structural transformation and catch-up. But while the direct economic benefits of industrial hubs are significant, their value lies first and foremost in their contribution as incubators of industrialization, production and technological capability, and innovation. The Oxford Handbook of Industrial Hubs and Economic Development adopts an interdisciplinary approach to examine the conceptual underpinnings, review empirical evidence of regions and economies, and extract pertinent lessons for policy reasearchers and practitioners on the key drivers of success and failure for industrial hubs. This Handbook illustrates the diverse and complex nature of industrial hubs and shows how they promote industrialization, economic structural transformation, and technological catch-up. It explores the implications of emerging issues and trends such as environmental protection and sustainability, technological advancement, shifts in the global economy, and urbanization.