INDUSTRiAL POLiCY
Development requires a complementary and coordinated effort and input of both the private and the public sector
In the Scrabble analogy:
If words represent the different products,
-Private goods (products), are like the consonants. The private sector is-organized based on information (prices), incentives (profits) and resource mobilization (finance).
-Public goods are the vowels - publicly provided inputs (infrastructure, rules, regulation, knowledge) to enable the private sector's production. Since it doesn't have prices and profits, industrial policy's role is to facilitate the provision of public goods through creating the missing information, incentives and resources elements
For example, cars can't be made by the private sector if roads, traffic lights, cops and engineering studies are not provided by the government
