Thread by François Valentin
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- Apr 17, 2023
- #Politics #Laboureconomics
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Great event on how the UK is approaching the question of industrial policy in the age of great power competition.
The challenges ahead are pretty huge.
Interesting to contrast with what’s happening in Brussels. Some thoughts:
The challenges ahead are pretty huge.
Interesting to contrast with what’s happening in Brussels. Some thoughts:
Remarkably we talked relatively little about the US or China
It’s a more inward-looking conversation:
The EU seems to focus more on the distorsions created by China and the US
In the UK there’s a sense they need to get their house in order first.
It’s a more inward-looking conversation:
The EU seems to focus more on the distorsions created by China and the US
In the UK there’s a sense they need to get their house in order first.
So what were the UK’s flagged weaknesses:
fledging productivity
loss of momentum in avant-garde sectors where the UK had a leg up
a « folklore » around competition and the market that stopped thinking on industrial policy
Public policy two steps behind
fledging productivity
loss of momentum in avant-garde sectors where the UK had a leg up
a « folklore » around competition and the market that stopped thinking on industrial policy
Public policy two steps behind
This was far from a gloomy post-mortem but let’s look at these one by one
Productivity is indeed recurring issue. It’s been stagnating for more than a decade
And on top of that, London inflates productivity numbers, with most of the UK far behind.
Productivity is indeed recurring issue. It’s been stagnating for more than a decade
And on top of that, London inflates productivity numbers, with most of the UK far behind.
Not quite a post-mortem as we will see later but let’s look at these one by one
Productivity is a huge issue. It’s been stagnating for more than a decade.
And on top of that, London inflates productivity numbers, with most of the rest of the UK far behind.
Productivity is a huge issue. It’s been stagnating for more than a decade.
And on top of that, London inflates productivity numbers, with most of the rest of the UK far behind.
2nd weakness: The UK had a leg up on a few of the most avant-garde sectors, but it’s a frustrating story of not keeping that edge
The UK was crucial in the emergence Offshore wind, but didn’t protect its supply chains
Sense that on EV UK could already be out of the game.
The UK was crucial in the emergence Offshore wind, but didn’t protect its supply chains
Sense that on EV UK could already be out of the game.
3rd weakness: the "folklore" around competition in the UK.
In other words the idea that markets would in the end always provide the best option. In the current context there's a sense that means competing with your hands tied
In other words the idea that markets would in the end always provide the best option. In the current context there's a sense that means competing with your hands tied
4th weakness: public policy that's off the mark
Too often goes through the lens of the treasury, that's not the department that should be handling those questions.
Too often goes through the lens of the treasury, that's not the department that should be handling those questions.
Wrapping up here but this was very insightful too when we talk about those big economic numbers:
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Richard Jones @RichardALJones
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Apr 17, 2023
I enjoyed this evening's @ukonward event on industrial strategy, a lot of consensus amongst the panel on (a) the need for industrial strategy, and (b) some of the necessary ingredients for the situation the UK finds itself in. This is a good summary thread...