Towards a New Economic Development Framework for the United States: The Challenge of the Developmental State Approach

Abstract

Abstract The paper seeks to frame a new economic development strategy for the United States while taking into consideration a range of impediments to the country’s recent macroeconomic performance. In constructing such a framework, special emphasis is being placed on three key themes: (1) a pragmatic discourse on the “appropriate” developmental policy action by the Federal government, (2) emphasis on strengthening local production lines, and (3) the importance of adopting a long-term perspective. The main focus of the paper is to describe what policy approach might be advisable to boost, rejuvenate, and reposition the production lines of the USA and make the country’s economy more dynamic by effectively employing explicit and thorough developmental state action: this argument is advanced here as a necessary framework for support of selected industries of high potential and achievability in the United States.