Industrial Policy

The aim of this chapter is to give a brief overview of the historical arguments that have been used to argue for industrial policy in its widest sense, that is, that what a nation (or region) specializes in producing may be of key importance to the wealth and welfare of its inhabitants. Historically it has been generally agreed that symmetrical trade—trade in similar goods between nations at similar levels of technological development—has tended to be beneficial to both trading partners. In these cases, employing Ricardian trade theory has not been detrimental to the trading partners. This chapter explains the situations when Ricardian trade theory is not beneficial to one of the trading partners, and—at the same time—the economic mechanisms which have been identified as making industrial policy desirable. That manufacturing matters has, in various forms, been presented as a main reason for industrial policy, at least since England’s import-substitution policies during the 1400s: adding value to English wool by spinning it into woollen cloth and garments. This was mainly achieved by raising export duties on raw wool, making English wool cheaper for domestic manufacturers than for foreign ones. However, the reasons why manufacturing matters have varied. And that understanding has gone from intuitive inferences to scientific evidence. This chapter will historically present this process and the most common arguments for industrial policy over time.

England’s Maritime and Commercial Networks in the Late Middle Ages

This paper, basing its analysis on England’s national customs accounts between the thirteenth and fifteenth centuries, briefly examines England’s ports as commercial nodes (of which London was the busiest, with Hull, Southampton and Bristol becoming the main regional hubs by the fifteenth century), its shipping (which provided both liner and tramping services and sailed all year round), and its exports (which shifted from wool to woollen cloth over the period). It then focuses on the range of markets with which English merchants and ships had direct maritime contacts.

Gaddis of Himachal Pradesh

ABSTRACT Transhumant Gaddis who residing in the area Bharmour Tehsil in Chamba district of Himachal Pradesh are extremely backward. They spend summer in their permanent homes in Bharmour and cultivate their lands. In winter, they migrate to lower hills along with their sheep and goat in and around Kangra hills. Gaddis of Bharmour have been given the status of a Scheduled Tribe by the Government of India and are entitled to certain financial benefits. The important economic strategies of people in the mountain regions seem to be the utilisation of the different biotopes at various altitudes Economy of Gaddis is agro-postural. Land, Livestock and the considerable knowledge of the skills necessary to exploit them effectively are the principal economic resources. Supplementary but nonetheless of considerable importance, is the income from non-traditional resource. The cash value of the products of village artisans is relatively insignificant as compared with the return from agriculture and pastoralism but products themselves are vital to the village economy. Although, agriculture provides the bulk of the staple food Gaddis themselves give major importance to sheep and goat rearing. There is no weaver caste in the village as such, however spinning and weaving is done in every household in the village. This is an important supplementary occupation among the Gaddis and both men and women engage in it. The woollen cloth required for preparing their woollen apparel is woven by the people out of the wool spun by themselves. Gaddis maintain a short-term ecological, balance with the environment by migrations and winter dispersal, whereby the intensity of utilization of pastures is adjusted to the carrying capacity of the different pastures at the different period of time, while the long-term balance between flocks and pastures is beyond the control of Gaddis. The Gaddis also maintain an approximate economic and political balance with surrounding areas mediated through market exchange, and the institution of Panchayat and Biradari. For the present form of organization to persist, the Gaddis must be in demographic balance. Since the Gaddis are partial isolate with in the larger population of the area, the factors involved in this balance are both biological and social.

Historical Documents of Northwest Woollen Factory

Northwest Woollen Factory, sited in the Small North Gate of Taiyuan, has already become one of the largest woollen mills in the People’s Republic of China since it was planted in September 1934 with registered capital of 450,000 yuan, 58 staff and 664 workers. It covers 22,117 square meters, 7324 square meters of which are construction area. With 12 carding machines, 900 crude textiles, 6 combing machines, 2100 fine spinning frames and 123 power looms, it can produce woollen cloth, blankets, ceremonial dresses, gabardine, car blankets, bed blankets and so on. The net income in the first half year of 1937 is more than three million, and annual profit in 1936 is more than 78 million. It can produce 80,000 square meters Paris Merino, 13,608 kg handmade wool, 3,000 meters blankets each year. Products are mainly sold to Xi'an, Zhengzhou, Shanghai, Beijing and other big cities, and it has been one of the largest woollen mills in the Northwest's and one of the most famous in the country.