Industrial policy has returned to government agendas across the developed and developing world. While the US Inflation Reduction Act has shocked America's Asian and European trading partners, the Biden administration's signature climate-change legislation is just the latest in a series of recent policies that seemingly fly in the face of World Trade Organization rules.
At a time of growing economic and political uncertainty, it is hardly surprising that governments are increasingly embracing industrial policy. Massive government intervention, after all, underpinned East Asia's "economic miracle" between the 1960s and 1990s.
