In this paper, we present the normative concept of green industrial policy, which we define as en... more In this paper, we present the normative concept of green industrial policy, which we define as encompassing any policy measure aimed at aligning the structure of a country’s economy with the needs of sustainable development within established planetary boundaries. We elaborate on why we need green industrial policy, how it differs from conventional industrial policy, why it is faced with significantly bigger challenges, and how these can be met. What and how we produce and consume is largely shaped by markets. However, markets fail to solve many of the environmental challenges we are facing. Therefore, we need governments to intervene, thus reclaiming the primacy of public policy in setting and implementing societal objectives. While safeguarding the sustainability of human life on our planet makes green industrial policy a highly normative undertaking, the economic case for green industrial policy is strong as well – the success stories of such ‘green’ frontrunners as Germany and D...
The transformation toward sustainability calls for profound renovation of economic structures, te... more The transformation toward sustainability calls for profound renovation of economic structures, technologies, and institutions. The concept of green energy policy, which we define as encompassing any policy measure aimed at aligning the structure of a country’s energy sector with the needs of sustainable development within established planetary boundaries, is critical to this end. We elaborate on why the state needs to play an eminent role in driving the green transformation in general and that of the energy sector in particular, why this brings about coordination challenges with nonstate actors, and how these can be met. We illustrate these aspects with energy policy examples from countries of the global South and, where illustrative, North. In particular, we argue that green energy policy success is subject to three conditions: effectiveness, efficiency, and legitimacy. These conditions can be achieved by facilitating societal agreement on the direction of change, forging change al...
The United Arab Emirates (UAE) is keen to make a transition to a knowledge-based economy driven b... more The United Arab Emirates (UAE) is keen to make a transition to a knowledge-based economy driven by innovative industries and entrepreneurship. But it can achieve this goal only if it builds a strong knowledge base in the fields of science, technology, and engineering (STE). Women can play an important role in this transformation if they contribute their intellectual might to
As the United Arab Emirates (UAE) moves towards a knowledge-based economy, maximising the partici... more As the United Arab Emirates (UAE) moves towards a knowledge-based economy, maximising the participation of the national workforce, especially women, in the transformation process is crucial. Using survey methods and semi-structured interviews, this paper examines the factors that influence women's decisions regarding their degree programme and their attitudes towards science, technology and engineering (STE). The findings point to the importance of adapting mainstream policies to the local context and the need to better understand the effect of culture and society on the individual and the economy. There is a need to increase interest in STE by raising awareness of what the fields entail, potential careers and their suitability with existing cultural beliefs. Also suggested is the need to overcome negative stereotypes of engineering, implement initiatives for further family involvement at the higher education level, as well as the need to ensure a greater availability of STE university programmes across the UAE.
Since the 1980s, international production patterns have fundamentally changed, creating opportuni... more Since the 1980s, international production patterns have fundamentally changed, creating opportunities for developing countries to integrate into global value chains (GVCs). Morocco, which is among the first countries in the Middle East and North Africa to pursue an export-led economic policy, has used this opportunity, among others, to develop an automotive supplier industry, which became one of the country’s industrial lead-sectors. This paper analyses how industrial policy and industry-level dynamics contributed to the emergence of an automotive supplier industry. We find that, although Morocco achieved its overall goal of establishing such an industry, this industry remains limited to low-value activities. With the aim of deepening the level of integration into GVCs and acquiring a dynamic competitive advantage in the automotive sector, the nature and objective of industrial policy in Morocco has changed in the past couple of years. Instead of focusing primarily on its labour-cost advantage to attract lead-firms to localise in Morocco, decision-makers currently are taking a more systemic approach to industrial policy, focusing on fostering synergies across sectors, creating ecosystems for different parts of the value chain, and using targeted support measures for enhancing workforce capabilities and competencies. We find evidence for a tendency towards the co-design of policy measures by public and private stakeholders, which, if it persists, could lead the way towards a more effective industrial policy. The main challenge for the future of the automotive sector in Morocco lies in a stronger inclusion of local firms in the value chain and a gradual shift towards higher value added. This will require a stronger focus on developing advanced technological skills and a higher level of investment in research and development.
In this paper, we present the normative concept of green industrial policy, which we define as en... more In this paper, we present the normative concept of green industrial policy, which we define as encompassing any policy measure aimed at aligning the structure of a country’s economy with the needs of sustainable development within established planetary boundaries. We elaborate on why we need green industrial policy, how it differs from conventional industrial policy, why it is faced with significantly bigger challenges, and how these can be met. What and how we produce and consume is largely shaped by markets. However, markets fail to solve many of the environmental challenges we are facing. Therefore, we need governments to intervene, thus reclaiming the primacy of public policy in setting and implementing societal objectives. While safeguarding the sustainability of human life on our planet makes green industrial policy a highly normative undertaking, the economic case for green industrial policy is strong as well – the success stories of such ‘green’ frontrunners as Germany and D...
The transformation toward sustainability calls for profound renovation of economic structures, te... more The transformation toward sustainability calls for profound renovation of economic structures, technologies, and institutions. The concept of green energy policy, which we define as encompassing any policy measure aimed at aligning the structure of a country’s energy sector with the needs of sustainable development within established planetary boundaries, is critical to this end. We elaborate on why the state needs to play an eminent role in driving the green transformation in general and that of the energy sector in particular, why this brings about coordination challenges with nonstate actors, and how these can be met. We illustrate these aspects with energy policy examples from countries of the global South and, where illustrative, North. In particular, we argue that green energy policy success is subject to three conditions: effectiveness, efficiency, and legitimacy. These conditions can be achieved by facilitating societal agreement on the direction of change, forging change al...
The United Arab Emirates (UAE) is keen to make a transition to a knowledge-based economy driven b... more The United Arab Emirates (UAE) is keen to make a transition to a knowledge-based economy driven by innovative industries and entrepreneurship. But it can achieve this goal only if it builds a strong knowledge base in the fields of science, technology, and engineering (STE). Women can play an important role in this transformation if they contribute their intellectual might to
As the United Arab Emirates (UAE) moves towards a knowledge-based economy, maximising the partici... more As the United Arab Emirates (UAE) moves towards a knowledge-based economy, maximising the participation of the national workforce, especially women, in the transformation process is crucial. Using survey methods and semi-structured interviews, this paper examines the factors that influence women's decisions regarding their degree programme and their attitudes towards science, technology and engineering (STE). The findings point to the importance of adapting mainstream policies to the local context and the need to better understand the effect of culture and society on the individual and the economy. There is a need to increase interest in STE by raising awareness of what the fields entail, potential careers and their suitability with existing cultural beliefs. Also suggested is the need to overcome negative stereotypes of engineering, implement initiatives for further family involvement at the higher education level, as well as the need to ensure a greater availability of STE university programmes across the UAE.
Since the 1980s, international production patterns have fundamentally changed, creating opportuni... more Since the 1980s, international production patterns have fundamentally changed, creating opportunities for developing countries to integrate into global value chains (GVCs). Morocco, which is among the first countries in the Middle East and North Africa to pursue an export-led economic policy, has used this opportunity, among others, to develop an automotive supplier industry, which became one of the country’s industrial lead-sectors. This paper analyses how industrial policy and industry-level dynamics contributed to the emergence of an automotive supplier industry. We find that, although Morocco achieved its overall goal of establishing such an industry, this industry remains limited to low-value activities. With the aim of deepening the level of integration into GVCs and acquiring a dynamic competitive advantage in the automotive sector, the nature and objective of industrial policy in Morocco has changed in the past couple of years. Instead of focusing primarily on its labour-cost advantage to attract lead-firms to localise in Morocco, decision-makers currently are taking a more systemic approach to industrial policy, focusing on fostering synergies across sectors, creating ecosystems for different parts of the value chain, and using targeted support measures for enhancing workforce capabilities and competencies. We find evidence for a tendency towards the co-design of policy measures by public and private stakeholders, which, if it persists, could lead the way towards a more effective industrial policy. The main challenge for the future of the automotive sector in Morocco lies in a stronger inclusion of local firms in the value chain and a gradual shift towards higher value added. This will require a stronger focus on developing advanced technological skills and a higher level of investment in research and development.
After independence, energy and food subsidies became a cornerstone of the social contracts in the... more After independence, energy and food subsidies became a cornerstone of the social contracts in the Middle East and North Africa (MENA) countries. Governments spent heavily to reduce poverty and strengthen their own legitimacy. However, as government rents faded, subsidy spending became financially unsustainable and foreign donors pressed for reforms. Yet, reform has been challenging for all the governments as subsidies affect all consumers, therefore raising the risk of government delegitimisation. Several publications have analysed the subsidy reforms of various MENA countries, but few have systematically analysed their impacts on the prevailing social contracts. This paper shows that reforms in a key policy field such as subsidy spending can affect the nature of social contracts profoundly and distinctly, depending on the reform strategy. It assesses the reform processes that took place in Morocco, Egypt and Iran primarily between 2010 and 2017, thus before the United States once more tightened sanctions against Iran and before the COVID-19 pandemic broke out. We argue that governments applied distinct strategies to reduce subsidy spending without provoking major social unrest to reforms, with the effect that the social contracts of the three countries changed in quite different ways. Morocco’s government removed most subsidies, especially those that predominantly benefitted the middle-class. It explained the need for reforms, engaged in dialogue with society and implemented some compensatory measures for the poor. Thereby it succeeded in preserving substantial features of its prevailing social contract. The Egyptian government, in contrast, dismantled subsidy schemes more radically but without systematic information and consultation campaigns. Also, its compensatory measures remain limited, which shows that the government no longer relied on social benefits as a means of legitimisation. Instead, by using repression and a narrative of collective security, the emerging social contract has been transformed from being a provision to being a protection pact. Finally, Iran replaced subsidies with a generous quasi-universal cash transfer scheme, which was more cost-efficient and egalitarian. Even if inflation and external shocks eroded these benefits, the reform paved the way to a more inclusive social contract, at least for a couple of years. Lessons learnt from past social transfer reform strategies will be all the more interesting for MENA governments once they embark on post-COVID-19 reconstruction strategies, which are likely to compensate households for financial losses made during the COVID-19 crisis and help them make a new start in economic terms.
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