Industrial policy and development in the ASEAN countries

Abstract

This paper describes the evolution of industrial policy and development in each of the ASEAN countries, indicating also the general thrusts of recent industrial promotion policies in the region. Because trade policies form a part, and in the context of the ASEAN countries a major part, of the overall policy climate affecting the performance of manufacturing industries, the discussion of industrial policy inevitably includes the incentive effects of foreign trade regimes adopted. The discussion then shifts to the Korean industrialization experience from which some lessons are drawn that could provide guidance for ASEAN policymakers. This is followed by an examination of potential areas for industrial complementarity and trade expansion between the ASEAN countries and the Asian NICs, given the rising protectionism in the industrialized countries. The paper ends with some general remarks on the possibilities for promoting mutually beneficial development though trade in manufactures among the NICs and the "near-NICs" (including the ASEAN countries) under the constraint of continuing restrictions in access to industrialized country markets.