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One of the most debated questions in the development literature is the role of government intervention in East Asia. This paper summarizes the debate on East Asian industrial policy. Due to the wealth of literature on this topic, this paper does not attempt to exhaustively evaluate every intervention, but to describe the main lines of discussion and their evolution. The goal is to make sense of what is relevant to the challenges currently faced by developing countries. The views expressed are those of the author and do not necessarily reflect official views of the World Bank One of the most debated questions in the development literature is the role of government intervention in East Asia. Between 1950 and 1995 eight East Asian economies1 achieved extraordinary rates of growth. Income per capita increased more than tenfold in Japan and the “Four Tigers ” during that period, and more than doubled in Malaysia, Indonesia and Thailand in
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