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Post-2008 British Industrial Policy and Constructivist Political Economy: New Directions and New Tensions
Authors:Martin Craig
Institution:1. The Department of Politics, University of Sheffield, Elmfield, Northumberland Road, Sheffield, S10 2TU, UKmartin.craig@shef.ac.uk
Abstract:The article serves to introduce a number of recent changes in the practices and rationale of British industrial policy since 2008. I observe a shift towards a stronger role for the government and for agencies of industrial policy in the provision of industrial finance, and towards an increasingly discretionary and strategic approach to industrial policy intervention, both of which stand in tension with the neoliberal ‘coordinative discourse’ that continues to structure macroeconomic policy in the post-2008 context. I suggest that this tension is indicative of the emergence of two competing ‘crisis diagnoses’ in government after 2008; one reflecting the neoliberal coordinative discourse that structured economic policymaking prior to 2008, the other at odds with this neoliberal crisis diagnosis. I argue that constructivist analytical frameworks on crisis and political–economic change are insufficiently developed to accommodate these findings. I therefore reflect upon some conceptual and empirical implications that the findings raise for a constructivist analysis of economic policy in the post-2008 context in Britain, before concluding that a more contingent, contested and, crucially, incomplete process of re-alignment in the ideas that structure economic policymaking is underway in Britain than is generally acknowledged.
Keywords:constructivism  constructivist political economy  constructivist institutionalism  industrial policy  British industrial policy  British economic policy  ideational change  coordinative discourse
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