Across the world, industries remain a major source of formal employment. Supporting industry competitiveness has been an important part of the World Bank Group’s work for many decades. According to a recent IEG evaluation, between 2008 and 2014, the World Bank Group invested $21.6 billion (or nearly 6 percent of its portfolio) in supporting 881 industry-specific projects.
Improving industry competitiveness is key to enhancing growth and creating jobs in developing countries. The World Bank Group has been a key partner in promoting industry development, particularly through the work of IFC and MIGA, which support private sector investment in critical sectors, and the Bank Group’s sector-wide policy interventions.
Reactions to this trend are mixed. Development practitioners continue the long debate on the pros and cons of industrial policy based on the successes (or failures) of countries that implemented them. Irrespective of such debates, many developing countries continue to seek the World Bank Group’s support for specific industries.
Industry competitiveness can be enhanced through several different approaches including economy wide, industry specific, or a mix of economy wide with industry specific. This evaluation focuses on industry specific support and on four industries - agriculture, manufacturing, tourism, and information and communication technology.
