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Abstract

This article tries to draw lessons from Chile for Zambia on innovative industrial policy and strategies that lead to industrial transformation and job creation. The creation of quality jobs for the increasingly skilled youth requires significant efforts. Industrial policy has been argued to have the potential to contribute to the creation of employment through support for new and old initiatives in the economy. In the case of Zambia, the economy has mainly been dominated by the mining sector, where the creation of jobs has been very small, whereas the comparator country Chile developed an institutional framework for industrial policy that addressed market failures and encouraged innovation concentrated in specific sectors. These were attainable given the country’s existing or potential comparative advantage and therefore had strong growth prospects and impacted on job creation. The study finds that Chile provides a rich experience that Zambia can learn from in creating labour intensive job opportunities especially for youths.

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