Tuesday, April 17, 2012

Industrial policy in former Yugoslavia

Euobserver has an article ("Mass unemployment in the Balkans – a need to act") by Kori Udovicki and Gerald Knaus.

It compares how in former Yugoslavia the textile industry has shrunk while in neighboring Bulgaria it has exploded. The difference: Bulgaria has an - EU supported - industrial policy that promotes this kind of industry by encouraging foreign investment, providing targeted education, etc.. In contrast in former Yugoslavia the anti-communist aversion against any kind of industrial policy still dominates.

Ideology is nice, but it shouldn't cloud common sense. Copying best practices from other countries should be standard routine.

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