On productivism

‘Productivism’ refers to an approach that prioritises the dissemination of productive economic opportunities throughout the entire economy and segments of the labour force. It differs from what has come to be called ‘neoliberalism’ by assigning governments and civil society significant roles in achieving this goal. Productivism puts less faith in markets and is suspicious of large corporations. It emphasises production and investment over finance and the revitalisation of local communities over globalisation. It also departs from the Keynesian welfare state by focusing less on redistribution, social transfers, and macroeconomic management, and more on creating economic opportunity by working on the supply side of the economy to create good, productive jobs for everyone. This chapter relates the contemporary labour market problems of advanced economies to the dualism literature in economic development, which focuses on the divergence between ‘modern’ and ‘traditional’ segments within poor economies. It then highlights the nature of the new challenges and why established models of economic growth and Keynesian social welfare need to be updated. It describes new modes of industrial policy required to deal with these challenges and questions whether our governments are up to it. It also discusses how the elements of this new strategy are drawing support from both sides of the political spectrum. This chapter includes responses to Dani Rodrik by Jean Pisani-Ferry and Pierre-Olivier Gourinchas.

‘Productivism’ refers to an approach that prioritises the dissemination of productive economic opportunities throughout the entire economy and segments of the labour force. It differs from what has come to be called ‘neoliberalism’ by assigning governments and civil society significant roles in achieving this goal. Productivism puts less faith in markets and is suspicious of large corporations. It emphasises production and investment over finance and the revitalisation of local communities over globalisation. It also departs from the Keynesian welfare state by focusing less on redistribution, social transfers, and macroeconomic management, and more on creating economic opportunity by working on the supply side of the economy to create good, productive jobs for everyone. This chapter relates the contemporary labour market problems of advanced economies to the dualism literature in economic development, which focuses on the divergence between ‘modern’ and ‘traditional’ segments within poor economies. It then highlights the nature of the new challenges and why established models of economic growth and Keynesian social welfare need to be updated. It describes new modes of industrial policy required to deal with these challenges and questions whether our governments are up to it. It also discusses how the elements of this new strategy are drawing support from both sides of the political spectrum. This chapter includes responses to Dani Rodrik by Jean Pisani-Ferry and Pierre-Olivier Gourinchas.