## Industrial Policy Coverage in IMF Surveillance— Broad Considerations

_Policy Papers, March 11, 2024_

## Source details

**Canonical URL:** [Industrial Policy Coverage in IMF Surveillance— Broad Considerations](https://www.imf.org/en/publications/policy-papers/issues/2024/03/11/industrial-policy-coverage-in-imf-surveillance-broad-considerations-546162)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2024/03/11/industrial-policy-coverage-in-imf-surveillance-broad-considerations-546162/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2024/03/11/industrial-policy-coverage-in-imf-surveillance-broad-considerations-546162/index.json)
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## Bibliographic details
- Published: March 11, 2024
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798400266683.007

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### Overview
- Aim: Provide a conceptual framework and guiding principles for the coverage of Industrial Policy (IP) in IMF surveillance.
- Core emphasis: Cover IP in IMF surveillance when it is deemed macro-critical and/or has the potential to generate significant cross-border spillovers.
- Components of the paper:
  - Proposes a working definition of industrial policy.
  - Discusses objectives and main instruments of IP.
  - Provides a brief review of academic literature on IP.
  - Discusses four broad sets of considerations for assessing IP.
  - Discusses specific IP aspects (trade-related IP, green IP, SEZs, SOEs).
  - Provides examples of IP coverage in Article IV consultations.

### Working definition, objectives, and instruments
- Proposes a working definition of Industrial Policy (IP).
- Discusses IP objectives and main instruments (as presented in the paper).
- Provides a brief review of academic literature on IP.

### Four broad sets of considerations for assessing IP
- Justification
- Design
- Cost-benefit assessment
- Implementation

### Criteria for IMF surveillance coverage
- IP should be covered when:
  - It is macro-critical.
  - It has the potential to generate significant cross-border spillovers.

### Specific aspects of industrial policies covered
- Trade-related IP
- Green IP
- Special Economic Zones (SEZs)
- State-Owned Enterprises (SOEs)

### Examples of Article IV coverage
- Country examples cited for IP coverage in Article IV consultations:
  - China
  - Euro Area
  - Indonesia
  - Saudi Arabia
  - United States

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## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2024/english/ppea2024008.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2024/english/ppea2024008.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2024/03/11/industrial-policy-coverage-in-imf-surveillance-broad-considerations-546162_