The Hard Part: Building Public Sector Capabilities

Abstract

This book argues that productive development policies (PDPs) are an important component of a successful development strategy. But designing and implementing successful PDPs is not easy. To begin with, the process requires a well-oiled learning mechanism to diagnose market failures amenable to policy intervention, and design sound policy initiatives. Furthermore, it is not enough to get the policy design right; the public sector as a whole and the agencies in charge of specific policies (which we will call productive development agencies or PDAs) must also have the right capabilities to implement them.¹