Working Papers

Industrial Policy in Guatemala: A Case of Policy Inertia under Changing Paradigms

AUTHOR(s): Cuevas, Mario , Lee, Sigfrido , Pineda, Bismarck
PUBLISHED: November 2010
RELATED TOPICS: Macroeconomics


This paper reviews productive development policies (PDPs) in Guatemala, focusing on the alleged justification of existing programs in terms of the market or government failures they are meant to address. An effort is made to identify how the different instruments complement or contradict each other and how these situations came to be. The main hypothesis throughout the paper is that there are non-trivial contradictions within the set of PDPs and its implementation framework that render policy instruments ineffective or inefficient, with evidence from several case studies. On this basis and in light of international practices, the study develops a broad set of recommendations for improving the design and implementation of Guatemala’s PDPs.

Related Research by JEL Codes:
(or click here to find research by JEL Codes)
  • Productive Development Policies in Argentina
    Working Papers
    IDB-WP-193 - January 2011

    In contrast to the limited impact of aggregate-level productive development policies (PDPs) in Argentina, micro-level PDPs in several sectors have proven highly successful. This study seeks to understand how these PDPs succeeded in a challenging environment, what kinds of mechanisms were generated to ensure adaptation and learning, and how these PDPs evolved. Of importance is not only policy desig ... (View publication)

  • Productive Development Policies in Panama: Self-Discovery and Coordination Failures
    Working Papers
    IDB-WP-172 - January 2011

    This document analyzes productive development policies in 5 case studies: i) promotion of export services ii) Promotion of export goods iii) promotion of free zones iv) subsidized credit for popular housing, and v) subsidized credit for agriculture. All cases present the history, justification as a function of the externalities to be resolved, public-private coordination processes and results. (View publication)

  • Productive Development Policies in Latin America and the Caribbean: The Case of Mexico
    Working Papers
    IDB-WP-168 - November 2010

    While Mexico has potential to grow rapidly, its economic growth has remained low for the past three decades. There is no consensus on the country’s development path or on how to achieve specific goals. Since the policy debate remains ideological and lacks pragmatism, productive development policies (PDPs) are often uncoordinated, redundant or even incongruent with each other. It is therefore impor ... (View publication)

Hello, Welcome to the IDB!

Please join our mailing list by simply entering your email below.