How Growth Really Happens: The Making of Economic Miracles through Production, Governance, and Skills

Michael Best argues that countries need an economic framework that focuses on production, governance, and skills to achieve successful growth. He suggests that government should create the institutional infrastructures to support these elements and their interconnections, using case studies of transformative experiences to illustrate his alternative framework.

Format: Paperback / softback
Length: 320 pages
Publication date: 07 December 2021
Publisher: Princeton University Press

A groundbreaking study that reveals the keys to creating innovative, production-based economies for the twenty-first century

Economic growth has become a pressing challenge in today's world, and understanding the factors that drive successful expansion is crucial. In his groundbreaking book, Michael Best argues that we need an economic framework that emphasizes production, governance, and skills to achieve sustainable and inclusive growth.

This production-centric framework is the result of three interconnected journeys. The first involves Best's extensive visits to hundreds of factories around the globe, starting from his early days as the son of a labor organizer and continuing through his work as an academic and industrial consultant. The second encompasses a comprehensive survey of two hundred years of economic thought, from the pioneering ideas of Babbage to the contemporary insights of Krugman. The third involves a detailed exploration of historical episodes of successful and failed transformations, focusing on three core elements: the production system, business organization, and skill formation.

Best makes a compelling case that government should play a pivotal role in creating the institutional infrastructures that support these elements and their interconnections rather than subsidizing individual enterprises. By doing so, he advocates for a more holistic and sustainable approach to economic development.

The power and effectiveness of Best's alternative framework are demonstrated through case studies of transformative experiences that were once considered economic miracles. These include America's World War II industrial buildup, Germany's postwar recovery, Greater Boston's innovation system, Ireland's tech-sector boom, and the rise of the Asian Tigers and China.

How Growth Really Happens is a highly accessible and engaging book that is essential reading for anyone interested in advancing the crucial debates surrounding industrial policy, climate change, globalization, technological change, and the future of our world. It provides valuable insights and practical strategies for policymakers, business leaders, and individuals seeking to create a more prosperous and sustainable future.

Weight: 512g
Dimension: 156 x 233 x 24 (mm)
ISBN-13: 9780691227252