By Victoria Curzon Price (auth.)
ISBN-10: 1349166405
ISBN-13: 9781349166404
ISBN-10: 1349166421
ISBN-13: 9781349166428
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Example text
First, industrial policies do not usually take the form of easy-to- 36 Industrial Policies in the European Community measure outright subsidies, but of obscure non-tariff measures, the effects of which are harder to quantify than those of tariffs and much more elusive. Secondly, whereas tariffs are subject to a considerable amount of treaty law under the GATT and various regional trade organisations, industrial policy in general and subsidies in particular remain largely within the province of national sovereignty.
And their role in general policy formulation in modern government is widely considered to be substantial. 14 One can only salute and commend as exceptional the British Treasury's 'secret' paper in 1979 (duly leaked to the press), doubting the wisdom of the Government's spending another $1600 million on such worthy projects as the Rolls-Royce 535 engine, Airbus and a further consignment of subsidised ships to Poland. 15 Once more, the question is not so much whether and, if so, by how much economic efficiency is improved or impaired, but how large a state sector is compatible with the preservation of individual liberty.
An accumulation of ad hoc interventions does not add up to an 'industrial strategy' and may not even amount to an 'industrial policy'. Moreover, short-term measures are often in contradiction to long-term strategic objectives: job-preservation schemes, for instance, conflict with the improvement of productivity. The reason for straying temporarily from the straight and narrow long-term path is overriding political considerations. Elected govern- 34 Industrial Policies in the European Community ments are worried, as are their voters, with the here and now, not with the future.