It seems there is a pessimistic view about the need and effectiveness of industry policy in an era of unprecedented globalization. The discussion about industry policy has been mostly on the fiscal, credit, and tariff measures, which are generally designed to favor particular activities....

Indonesia continues to bear the scars of the 1997 financial crisis, with the highest open unemployment rate in Southeast Asia. The orthodox interpretation is that the post-crisis era is typified by overly generous labor legislation granting higher minimum wages and other provisions; the rise in...