The world requires inoculation against statist policies
No country could be a more vivid example for the G20 than India of the damaging effects of industrial and trade policies that continue to handicap the ingenuity of millions
In just over a week, the heads of G20 nations will meet in New Delhi. Along with issues such as climate change and sovereign debt, the global pandemic of industrial policy initiatives deserves to be on the agenda. From Magdeburg in east central Germany, where Intel was reportedly given subsidies of €7 billion to build a semiconductor factory, to a Taiwanese battery factory near Dunkirk in France lured by subsidies of €1.5 billion to the Micron Technology factory in Gujarat, more than two-thirds of which will be financed by the central and state governments, subsidies in the name of fostering strategic industries have gone viral. These examples are just from announcements made in May and June.