In this episode of the new IEA series, Economies Explained, Harrison Griffiths, International Programmes Manager, delves into the controversial topic of industrial strategies. As the new UK Labour government embraces the concept of mission-driven government, Griffiths exposes the potential pitfalls and hidden costs of such top-down economic planning. Drawing from historical examples and economic principles, he challenges the notion that government-led industrial strategies are the key to economic growth and prosperity.

Griffiths takes viewers on a global tour, examining industrial strategy experiments in countries like South Korea, Germany, and China. While these nations have seen periods of growth, our host reveals the unseen costs and long-term consequences of state intervention in the economy. From misallocated resources to concentrated economic power, Griffiths argues that even seemingly successful industrial policies often leave countries poorer than they would have been under free market conditions.

As debates around economic policy intensify in the face of global challenges, this video offers a timely and thought-provoking perspective on the limits of government-driven economic planning. Whether you’re a policy maker, student, or simply interested in understanding the forces shaping our economic future, this episode of Economy Explained provides valuable insights into why industrial strategies consistently fall short of their lofty goals.