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Industrial Policy in Guatemala: A Case of Policy Inertia under Changing Paradigms

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  • Mario Cuevas
  • Sigfrido Lee
  • Bismarck Pineda

Abstract

This paper reviews productive development policies (PDPs) in Guatemala, focusing on the alleged justification of existing programs in terms of the market or government failures they are meant to address. An effort is made to identify how the different instruments complement or contradict each other and how these situations came to be. The main hypothesis throughout the paper is that there are non-trivial contradictions within the set of PDPs and its implementation framework that render policy instruments ineffective or inefficient, with evidence from several case studies. On this basis and in light of international practices, the study develops a broad set of recommendations for improving the design and implementation of Guatemala’s PDPs.

Suggested Citation

  • Mario Cuevas & Sigfrido Lee & Bismarck Pineda, 2010. "Industrial Policy in Guatemala: A Case of Policy Inertia under Changing Paradigms," Research Department Publications 4694, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4694
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    References listed on IDEAS

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    1. Olarreaga, Marcelo & Lederman, Daniel & Payton, Lucy, 2006. "Export Promotion Agencies: What Works and What Doesn't," CEPR Discussion Papers 5810, C.E.P.R. Discussion Papers.
    2. Sanjaya Lall, 2013. "Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 785-829, November.
    3. Valpy Fitzgerald & Pablo Astorga & Ame R. Bergés, 2003. "Productivity Growth in Latin America during the Twentieth Century," Oxford Economic and Social History Working Papers _052, University of Oxford, Department of Economics.
    4. Ricardo Hausmann & Dani Rodrik & Charles F. Sabel, 2008. "Reconfiguring Industrial Policy: A Framework with an Application to South Africa," CID Working Papers 168, Center for International Development at Harvard University.
    5. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Pablo Astorga & Ame R. Bergés & Valpy Fitzgerald, 2003. "Productivity Growth in Latin America during the Twentieth Century," Oxford University Economic and Social History Series _052, Economics Group, Nuffield College, University of Oxford.
    7. Jean-Claude Berthélemy & Aristomene Varoudakis, 1996. "Policies for Economic Take-Off," OECD Development Centre Policy Briefs 12, OECD Publishing.
    8. Fernández-Arias, Eduardo & Blyde, Juan S. & Gill, Indermit S. & Monge Naranjo, Alexander & Neumeyer, Pablo A. & Fernández Valdovinos, Carlos G. & Pinheiro, Armando Castelar & Fuentes, J. Rodrigo & Hop, 2005. "Sources of Growth in Latin America: What Is Missing?," IDB Publications (Books), Inter-American Development Bank, number 279, November.
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    Cited by:

    1. Mario Cuevas & Sigfrido Lee & Maria Isabel Bonilla, 2011. "The Missing Foundations of Housing Finance: Incomplete Markets, Fragmented Policies and Emerging Solutions in Guatemala," Research Department Publications 4750, Inter-American Development Bank, Research Department.

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    More about this item

    Keywords

    Industrial Policy; Policymaking; Guatemala;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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