Empirical review on

A Lesson for EthiopiaFrom the Brazilian experience, general lessons can be drawn. First, industrial policy is an essential component of a nationwide line of attack towards sustainable development, just as policies on infrastructure, schooling and science and technology are indispensable. Second, once political most important concern is placed on industrial policy, full commitment and close assistance among pertinent ministries and agencies are necessary, as is interaction with the confidential sector, provided that roles, compromises, benefits and counterparts are explicitly agreed and made public. Third, the significance of policy implementation cannot be underestimated: public agencies must have well-defined goals and household tasks as well as efficient technical competences and negotiating skills. Moreover, the ease of use of the necessary instruments to put into practice policy is of key importance, in particular the presence of an efficient and effective development bank to provide long-term financing for economic transformation.