Productivism: New Industrial Policy and New Thinking in Global Economic Governance

The global economy is grappling with deep structural strains. Decades of reliance on market liberalization and globalization have left many countries with fragile employment growth, industrial hollowing-out, and widening inequality. At the same time, intensifying disputes over industrial policy and technology have eroded trust in multilateral institutions and pushed the global trading system into gridlock. This paper advances productivism as a framework for rethinking economic governance. Productivism underscores the joint role of states and markets in building productive capacity and expanding employment opportunities. Unlike neoliberal approaches that cast the state as a corrective actor, productivism views governments as integral market participants—designing institutions, shaping incentives, and aligning economic outcomes with broader social objectives. The analysis suggests that productivist strategies can foster domestic upgrading and social welfare while also easing international tensions. By promoting transparency in policy justification and creating mechanisms for cross-border coordination, productivism offers both a viable policy paradigm for national development and a practical foundation for rebuilding global economic governance.