The core of a policy for accelerating economic growth is a
combination of knowledge accumulation and diversification of the
productive structure. These two dimensions are the focus of the present
article, which examines industrial policy experiences during the import
substitution industrialization period; highlights the policies currently being
applied in Latin America and the Caribbean and offers a typology of the
strategies underlying them; presents the main lines of action and policy
instruments; and analyses issues of policy implementation and impact.
The thesis is that, while policymaking capabilities have improved, a great
deal of work is still needed on implementation and on the development of
effective impact evaluation methodologies. Proper evaluation will show
whether industrial policies have a role to play in the region.