Biden-era officials urge focus on hi-tech strategy, not a US manufacturing revival – South China Morning Post

Report on United States Industrial Policy and Sustainable Development Goals

1.0 Executive Summary

This report analyzes the current discourse surrounding United States industrial policy, drawing on perspectives from former Biden administration officials. It recommends a strategic focus on cutting-edge technologies over the wholesale reshoring of manufacturing. This approach is evaluated for its alignment with the United Nations Sustainable Development Goals (SDGs), particularly those concerning innovation, economic growth, and sustainable industrialization.

2.0 Strategic Industrial Policy Recommendations

Former administration officials, including Commerce Secretary Gina Raimondo, advocate for a targeted industrial policy. This strategy is presented as a necessary response to intensifying global competition, particularly in advanced manufacturing sectors such as AI, robotics, and biotech.

• Selective Intervention: Policy should be concentrated on sectors critical to national security and technological leadership, as exemplified by the CHIPS and Science Act of 2022.
• Focus on Competitive Advantage: Resources should be directed toward industries where the U.S. can establish or maintain a clear competitive advantage, rather than attempting to onshore manufacturing in sectors with low competitive potential.
• Rejection of Wholesale Reshoring: The goal of manufacturing “everything in America” is viewed as inefficient and contrary to strategic economic principles.

3.0 Alignment with Sustainable Development Goals (SDGs)

A strategic industrial policy focused on high-technology sectors demonstrates strong alignment with several key Sustainable Development Goals. This approach fosters a framework for sustainable and equitable long-term growth.

1. SDG 9: Industry, Innovation, and Infrastructure: By prioritizing investment in strategic areas like semiconductors, the policy directly supports the goal of building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation. It moves the industrial base towards higher-value, knowledge-intensive activities.
2. SDG 8: Decent Work and Economic Growth: A focus on cutting-edge technology sectors is conducive to creating high-skilled, high-wage employment. This contributes to sustainable economic growth and supports the objective of achieving full and productive employment and decent work for all.
3. SDG 12: Responsible Consumption and Production: Advanced manufacturing and high-tech industries often feature greater resource efficiency and potential for circular economy models. Concentrating on these sectors promotes more sustainable patterns of production compared to mass, low-margin manufacturing.
4. SDG 17: Partnerships for the Goals: The acknowledgment that the U.S. cannot and should not manufacture everything domestically underscores the importance of global trade and resilient international supply chains. This aligns with strengthening the global partnership for sustainable development.

4.0 Conclusion

The proposed industrial policy, which emphasizes strategic investment in high-technology and innovation, presents a viable path for U.S. economic and national security. Furthermore, its principles are fundamentally aligned with the global agenda for sustainability, supporting progress on SDG 9, SDG 8, SDG 12, and SDG 17 by promoting innovation, creating decent work, encouraging responsible production, and recognizing the necessity of global partnerships.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth

   • The article discusses national industrial policy, focusing on strategic economic growth by investing in “cutting-edge technologies” rather than wholesale manufacturing. This debate is central to shaping the future of work and economic productivity.

2. SDG 9: Industry, Innovation and Infrastructure

   • This is the most prominent SDG in the article. The entire discussion revolves around industrial strategy, promoting “advanced manufacturing and future industries like AI, robotics and biotech,” and specific legislation like the “Chips and Science Act of 2022” which aims to build resilient technological infrastructure and foster innovation.

3. SDG 17: Partnerships for the Goals

   • The article highlights the geopolitical context of industrial policy, mentioning “bilateral competition” with China and policy measures like the “ban on high-end chip sales to China.” These actions directly impact international trade, technology transfer, and global policy coherence.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article’s core debate about focusing on “strategic, cutting-edge technologies” like AI and biotech over traditional manufacturing directly relates to this target of achieving growth through technological upgrading and innovation.

2. Under SDG 9: Industry, Innovation and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization. The discussion about whether to “make everything in America” versus a more strategic industrial policy is a debate on the nature and scope of national industrialization.
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors, and encourage innovation. The “Chips and Science Act of 2022” is a direct policy instrument aimed at achieving this target by consolidating dominance in the strategic semiconductor sector and fostering research.

3. Under SDG 17: Partnerships for the Goals

   • Target 17.14: Enhance policy coherence for sustainable development. The article describes a high-level debate within US policy circles about the most effective and coherent industrial strategy, which has significant international implications for trade and technology competition.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Implied Indicators for SDG 8 and 9

   • Investment in strategic sectors: The article implies that the success of the proposed industrial policy would be measured by the level of investment and growth in “cutting-edge technologies” such as AI, robotics, biotech, and semiconductors.
   • Implementation of the Chips and Science Act: The act itself serves as a key policy indicator. Its successful implementation, measured by the growth of the domestic semiconductor industry, would be a direct measure of progress towards upgrading technological capabilities (Target 9.5).

2. Implied Indicators for SDG 17

   • Trade policies and regulations: The “ban on high-end chip sales to China” is a specific policy action that serves as an indicator of the US approach to international technology trade and competition. The impact of this ban on global supply chains could be a metric for assessing policy coherence and its effect on global partnerships.

4. Summary Table of SDGs, Targets, and Indicators

Source: scmp.com