NOTES ON THE LIFE-CYCLE OF STATE-LED INDUSTRIALIZATION

For the last half century, a large proportion of the developing world and all of the socialist world relied on state-owned enterprises to ac celerate industrial production and investment. That strategy, which ma y be labeled ''state-led industrialization'', is now in tatters, with dozens of countries undertaking programs of massive privatization. The theoretical literature is helpful in explaining the collapse of state -led industrialization, but it does not address more adequate early pe rformance of the strategy in the 1950s and 1960s. The historical exper ience suggests the need for a dynamic approach to state-led industrial ization. This paper offers several hypotheses for a dynamic theory.