The Economics of MIDP and the South African Motor Industry

The Motor Industry Development Program (MIDP) is widely regarded as a major success of South Africa's post-apartheid trade and industrial policies. The program was introduced in 1995, has been modified and/or extended several times, and is currently scheduled to continue until 2012. A DTI-funded review, the third since the programs inception, is now under way and is considering further adjustments to and possible extensions of the program after 2012. At the same time high-level discussions are under way in several ministries and agencies about future industrial policy strategies for South Africa. The MIDP's success makes it an obvious model for new approaches to industrial policy, and in particular for increased emphasis on sectoral strategies and interventions.