Peking University, Nov. 19, 2016:On the afternoon of November 9, 2016, Professor Justin Yifu Lin and Professor Zhang Weiying attended a seminar held by National School of Development of PKU. Professor Lin and Professor Zhang held different opinions about industrial policy.
Lin emphasized the importance of industrial policy and the role of government in economy, while Zhang argued that industrial policy was a great hindrance to the development of economy. They have been debating on the function of industrial policy for 21 years, and this seminar was the first time for them to debate with each other face to face.
Professor Justin Yifu Lin: The Capable Government
Professor Lin began his speech with the illustration of the definition of industrial policy. He pointed out that economies of thirteen economic entities continued to develop with the support of industrial policy after the Second World War. The government's investment played an important role in technological innovation, so it was unwise to give up industrial policy totally. He argued that economists should discuss about the underlying reason for the success or failure of industrial policy and help the government to make efficient policies.
In this seminar, Professor Lin emphasized the importance of a capable government in the development of economy. The capable government and the efficient market are indispensable factors in comparative advantages of a country.
The speech delivered by Professor Lin Yifu
Professor Zhang Weiying: The Self-governing Market
Professor Zhang Weiying noted in the beginning of his speech that he held different economic theories with Professor Lin Yifu. In his opinion, limits of human being's cognizant capacity and the twist of incentive system led to the failure of industrial policy. As a centralized decision, industrial policy was less likely to succeed than decentralized decisions made by entrepreneurs.
He also explained why the government should not make industrial policy and pointed out that Professor Lin Yifu's opinion had logical flaws.
The speech delivered by Professor Zhang Weiying
This seminar was hosted by Professor Huang Yiping, vice president of PKU national school of development. Professor Justin Yifu Lin and Professor Zhang Weiying discussed on the function of industrial policy and answered questions put forward by the audience in the free discussion section. This seminar and the heated debate promoted the further discussion on industrial policy and showed PKU's academic spirit of seeking harmony in diversity.
The free discussion
Written by: Hu Rong
Edited by: Xiao Yunyun
