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This paper summarizes the findings of the recent Inter-American Development Bank book Two to Tango: Public-Private Collaboration Productive Development Policies, based on case studies of 25 productive development policies (PDPs) in five countries and discusses an additional example from Peru. One finding that emerges from those studies is that governments could not make policy in isolation and needed private sector involvement at every phase of the policy process. It is also found that the private sector generally collaborated in the design and implementation of PDPs without attempting to manipulate or capture them. In contrast to previous views of PDPs as static and best undertaken in isolation by governments, successful PDPs involve a dynamic and interactive process with ample and continuous private sector participation.
Jamaica seems to be a puzzling case for economic growth: despite the structural reforms implemented in the last three decades and adequate investment levels, real GDP per capita is roughly the same as in 1970. The disappointing performance of this economy suggests that productive development policies (PDPs), including first-generation reforms, have not been enough to create a better environment fo ... (View publication)
Even as Trinidad and Tobago seeks productive diversification away from the energy sector, the process underlying the country’s productive development policies (PDP) is in a state of transition from state-directed industrial policy to a newer approach with extensive private-public participation. This study explores the main characteristics of four PDPs in Trinidad and Tobago and reviews them follow ... (View publication)
It takes two to tango: Strong public-private collaboration is key for discovering and implementing effective productive development policies to bring out the best in existing economic activities and to foster economic transformation. The 25 Latin American cases analyzed in this volume show how and why many public and private partners are dancing smoothly while others stumble or follow different dr ... (View publication)
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