Reindustrialization: politics and economics
A comprehensive industrial policy means full production and the transfer of resources to growth industries through a development bank rather than a reconstruction finance corporation. Former Senator Stevenson defines these and other policy suggestions in an interview. He prefers a conditional financing that promotes restructuring instead of bailing-out ailing industries with adjustment subsidies or trade restrictions. An independent institution could provide capital for industrial development in the areas of new products and processes - for firms in growth sectors and for essential public services - and be kept free of political pressure. Funds could be offered contingent upon restructuring agreements. (DCK)