The rise of security-driven economic policy in industrial countries gives license to atavistic inward-looking policy thinking, infecting the framing of development strategies at a critical time in countries on the cusp of major developmental breakthroughs like India and Indonesia.
Geopolitics is changing the global economic policy landscape. Today’s backdrop of strategic competition and conflict has seen the return of industrial policy in advanced countries, driven by a security-based logic mixed with a second-best approach to the energy transition without a price on carbon.
There has been an explosion of trade interventions, industrial policies and subsidies, exacerbating the threat to the world economy posed by the widespread derogation from the global trade rules.
How should developing economies like India and Indonesia navigate this policy environment, where…
