Abstract This paper provides a critical analysis of the World Bank’s new thinking on industrial policy. After outlining the changing perspectives on industrial policy put forward by the World Bank over the last three decades, we argue that the bank’s economists have taken one step forward...

This paper was prepared for the joint ICTSD – GP International Dialogue entitled, Making Special & Differential Treatment More Effective and Responsive to Development Needs, held 6 & 7 May 2003, in Chavannes-de-bogis, Switzerland.