infant industry

Infant Industry Argument

A policy position stating that new industries developing in a country need government protection. That is, the infant industry argument states that a government must subsidize these industries and/or protect them through tariffs. Proponents of this argument note that several East Asian tigers used this policy following World War II with a great deal of success. Critics maintain that these policies are capital intensive and not all states can afford them. It could also lead to retaliatory moves in countries to which a country seeks to export. See also: Import-substitution industrialization.

infant industry

a newly established industry developed either by private-enterprise interests or set up by governments, often in DEVELOPING COUNTRIES, as part of their INDUSTRIALIZATION programmes. New industries are often subsidized by the government and/or protected from import competition in the hope that in due course they can exploit economies of scale and thus eventually withstand foreign competition. Infant industries are often cited as a legitimate’ area for the application of PROTECTIONISM, but policy in this area is often open to abuse. See ECONOMIC DEVELOPMENT.
References in periodicals archive ?
The infant industry approach came to be embedded in the international trading system that evolved in the post-Second World War era.
When it started the IT-BPM [information technology and business-process management] industry was very much an infant industry, and the motivation back then with IBPAP [Information Technology and Business Process Association of the Philippines] was to give publicity to the industry,' Canadian Chamber of Commerce in the Philippines (CanCham) President Julian Payne said during the media launch of the event.
These unprincipled demeanors adversely affect our national steel industry, as our industry can be coined as an infant industry.
Infant industry type arguments might have inspired the adoption of liberal access policies apart from any price subsidy.
The infant industry argument had traditionally led our government to use high import tariffs to protect domestic producers from foreign competition.
Moreover Hussain states that the infant industry needs protection as the consumption of the steel in the country as against the size of the gross domestic product has been quite low at 30 kilogram per year which has been par to Nigeria.
A top government official this week condoned the meteoric rise in the prices of chicken and dairy, saying on a public platform Namibians will have to foot the bill for the trade ministry's Infant Industry Protection policies.
The Research Department of the International Organization of Securities Commissions (IOSCO) today published a Staff Working Paper entitled Crowd-funding: An Infant Industry Growing Fast.
So concludes the International Organization of Securities Commissions (IOSCO) in a February 2014 working paper "Crowed-funding: An Infant Industry Growing Fast.
And our next to-do is for Tses Glass to apply for the Infant Industry Protection to ensure a sustainable manufacturing and operation," states Simon Kapenda, Co-founder and Managing-Director of Tses Glass.
INFANT INDUSTRY The proposed allowance for shale gas, subject to consultation for three months, would reduce the tax payable on income from shale production to 30 from 62 percent for oil and gas.
Many economists and lawyers feel that it is time to review the international liability regime which came into being decades ago when nuclear power was an infant industry and may have needed subsidies.

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