If we want an industrial policy to create decent sustainable work, then we need a developmental state. Such a state must:
make sustainable employment creation its top priority with all levels of government committed to this.
have an expansionary fiscal policy. It must set aside resources to support new economic activities
lower its real interest rates to equal or be lower than its main trading partners and ensure that its development finance institutions like the IDC “support its initiatives.”
protect its domestic industries with tariffs
direct its spending on infrastructure:
– To reduce the cost of living for workers (by cross subsidising municipal services, giving bigger subsidies to commuter transport and densifying housing);- To support the development of agriculture and food processing- To support retail services and industrial production in historically black areas.