What are the strategies for industrial development?
There are various strategies which may enhance the climate for industrial development in different countries. An increasing emphasis in policy discussions is sustainable development; this is particularly important as the least developed nations are the ones likely to be most heavily impacted by climate change. Strategies for enhancing industrial development include:
- Protectionism: Erecting trade barriers to protect nascent industries from global competition can facilitate industrial development, but (1) may lead to retaliatory tariffs and (2) can lead to the development of high-priced goods and inefficient industries.
- Infrastructure development: Most industries rely on infrastructure such as transportation and power grids. A country striving toward industrial development should invest in these, or industries will choose to locate in other places with better infrastructure.
- Education: Modern industries rely on the use of skilled labor, and thus investment in education pays off by creating an appropriately skilled workforce.
- Regulatory Environment: The regulatory environment, including amount of corruption and ease of doing business, can be a help or hindrance to industrial development.