In a systemic view of industrial development, governments play a crucial role in driving change in the system underpinning the broader process of structural transformation of an economy from low to increasingly higher productivity activities. Industrial policies are instrument in facilitating the transformation and ensuring that industrialization can effectively serve as an engine of growth. Given that the presence of suitable policy frameworks and supportive institutions are indispensable for initiating and sustaining industrialization, governments have a significant responsibility in managing these processes.
To accomplish this, government institutions with a mandate in industrial development must establish and enhance their capabilities in industrial policymaking processes. Many countries lack the capacity to produce, use and systematically act on evidence to formulate strategies and design industrial policies, and to subsequently implement, monitor and evaluate these. Furthermore, ministries mandated to develop these policies frequently outsource the delivery of industrial strategies and policies, neglecting the importance of developing and accumulating policy capacities.
Effective policymaking at any stage of the policy process and for any policy requires access to reliable, comprehensive, up-to-date and—to the extent possible—unbiased information on the current status quo. For industrial policymaking, this means conducting a thorough examination of the industrial sector in terms of its performance and impact on socio-economic and environmental issues. This diagnostic process is crucial throughout all stages of the policy cycle (design, implementation and monitoring and evaluation (M&E)).
The EQuIP toolkit provides crucial evidence to inform various aspects of the policymaking process while at the same time, develops the capacities of analysts and policymakers in the respective countries. Designed for medium- to long-term support, it builds capacity, increasing countries’ independence in terms of policy development.