ABSTRACT
This article examines the industrial policy as a developmental institution required for the development of the latecomer economies by comparing the case studies of Brazil and South Korea. Despite the uniqueness of the economies in analysis, it is emphasized that industrialization, as a development strategy, forms a regular pattern while it is a fundamental developmental institution. It is argued that this was not considered in the "new developmental" propositions, which reinforce the importance of the industry to the National economic development, but value the exchange rate policy as the main instrument of the industrial policy, whose validity is considered restricted, while the developmental institutions, as the active industrial policy, are developed to establish a consistent economic development in the long term and with structural change.
Keywords:
developmentalism; industrial policy; Brazilian economy; south Korean economy.