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A Global Race for Industrial Supremacy: Lessons and Alternatives
In recent times, the U.S. has made headlines with its ambitious industrial policies, notably the Bipartisan Infrastructure Law, the CHIPS & Science Act, and the Inflation Reduction Act, allocating a staggering $2 trillion over the next decade. However, this American pivot is not an isolated event. Across the globe, nations are recalibrating their industrial strategies, signaling a new age of economic competition. As these policies unfold, it’s crucial to examine their implications, the current solutions they offer, and potential alternative approaches.
First, let’s turn our gaze to Europe. The European Union, traditionally seen as a bureaucratic behemoth, is demonstrating renewed vigor in fostering economic growth. While it grapples with decentralized fiscal structures and strict rules on government subsidies, the EU has initiated the €723 billion Recovery and Resilience Facility (RRF) in 2021. Aimed at mitigating the pandemic’s economic fallout and advancing digital transformation, this was a bold step, albeit with some operational inefficiencies due to its decentralized allocation approach.
