ABSTRACT
New developmentalism surfaced in the late 1980s and 1990s. Scholars, who could be termed new developmentalists, challenged the neoliberal interpretation of why and how countries like Japan, Korea and Taiwan succeeded in attaining catch-up growth when they did. In so doing, they proffered industrial policy as an alternative policy agenda to structural adjustment. Industry, particularly manufacturing, was viewed by developmentalists as special because unlike other sectors it is subject to dynamic efficiencies including, inter alia, increasing returns, technological learning and skill acquisition that result in productivity increases and higher wages (Chapter 6 and below).
