"The global economy is undergoing a fundamental shift. After decades of free-market orthodoxy and neoliberal globalization, we’re witnessing the return of industrial policy — but this time with a twist. Major economic powers — especially the United States, China, and the European Union — are now explicitly intertwining their economic strategies with national security concerns. This isn’t just a policy adjustment. It represents a wholesale transformation of how major powers approach economic development and competition.
These three economic giants are implementing distinct approaches to industrial policy while pursuing similar objectives: technological leadership, supply chain security, and national economic sovereignty. What we’re seeing is the emergence of a new economic nationalism, one that is reshaping the global economic order.
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The crucial point is this: neomercantilism — the idea that countries should actively use industrial and trade policies to generate trade surpluses and enhance competitiveness — has always viewed economic power and national security as inseparable. So, what we’re witnessing today isn’t the invention of something entirely new, but rather the resurrection of ideas that were temporarily suppressed during the neoliberal era of the 1980s onwards.
During that period, international organizations effectively outlawed industrial policy through structural adjustment programmes and free trade agreements. The Washington Consensus reigned supreme. But the 2008 financial crisis, rising inequality, climate change pressures, supply chain vulnerabilities exposed by COVID-19, and intensifying geopolitical tensions have collectively demolished faith in free-market orthodoxy. Industrial policy is back. And it’s back with a vengeance."
https://www.theglobalcurrents.com/p/industrial-policy-returns-as-a-weapon
#IndustrialPolicy #EconomicNationalism #Nationalism #Protectionism #PoliticalEconomy