Post-Neoliberal Industrial Strategy: Designing Sovereign, Human-Centric Economies in the Age of AI and Geopolitical Fragmentation (Augmented with Chatgpt 5.2)
- Leke
- 2 days ago
- 3 min read
Executive Summary
The post-1990 globalization paradigm—optimized for efficiency, liberalization, and capital mobility—is no longer sufficient to secure national prosperity. Three structural shifts demand a reorientation of industrial strategy:
Geopolitical fragmentation and supply chain weaponization
AI-driven automation transforming labor and value creation
Climate and systemic shocks redefining resilience economics
This paper argues for a Post-Neoliberal Industrial Strategy (PNIS) grounded in Industry 5.0 principles:
Human-centric production
Strategic technological sovereignty
Resilient supply ecosystems
Public-private mission alignment
Democratic AI governance
The objective is not autarky. It is strategic autonomy within interdependence.
I. The End of Efficiency-Only Globalization
The neoliberal model prioritized:
Just-in-time supply chains
Labor arbitrage
Deregulation and privatization
Financialization over industrial depth
Events such as the COVID-19 pandemic, semiconductor shortages, and energy crises exposed fragility.
Countries now openly deploy industrial policy:
United States — CHIPS & Science Act
China — Made in China 2025
Germany — Industrie 4.0 + green transition strategy
The shift is unmistakable: industrial capacity is national security.
II. From Industry 4.0 to Industry 5.0: The Strategic Upgrade
Industry 4.0 emphasized automation and digital efficiency.Industry 5.0 reframes production around:
Human augmentation
Sustainability
Societal value
This shift is essential in the AI era. Large-scale AI deployment will:
Restructure labor markets
Concentrate economic power in model owners
Increase productivity asymmetrically
Without deliberate policy, inequality accelerates.
III. The Pillars of Post-Neoliberal Industrial Strategy
1. Strategic Technological Sovereignty
Nations must secure capabilities in:
Advanced semiconductors
AI compute infrastructure
Energy storage
Critical minerals
This does not require isolationism. It requires:
Domestic capacity thresholds
Diversified alliances
Sovereign innovation funding
2. AI Governance as Economic Policy
AI policy is no longer purely regulatory. It is macroeconomic.
Key policy levers:
Public compute infrastructure
Open model research funding
Algorithmic accountability laws
Workforce retraining guarantees
Countries that treat AI governance as industrial policy will shape global value flows.
3. Resilience as Core Design Principle
Traditional KPIs: cost, margin, throughput.New KPIs: redundancy, recoverability, adaptability.
Resilient industrial ecosystems include:
Localized manufacturing nodes
Digital twins of national infrastructure
Shock-response simulation capability
Cybersecurity integration across supply networks
4. Public-Private Mission Alignment
Industrial policy fails when:
Government overcontrols
Markets dominate without direction
Effective PNIS requires:
Co-investment vehicles
Outcome-based procurement
Mission-driven R&D mandates
Clear sectoral prioritization
The model resembles strategic coordination more than command planning.
5. Human-Centric Productivity
Automation should augment labor, not eliminate dignity.
Policies required:
Lifelong learning accounts
Portable benefits
Worker participation in AI governance
Innovation dividends for displaced sectors
The legitimacy of industrial transformation depends on social inclusion.
IV. The Geopolitical Dimension
The world is transitioning toward blocs:
U.S.-aligned ecosystem
China-aligned ecosystem
Strategic middle powers
Countries like Canada, India, and Brazil must balance:
Access to markets
Sovereign capacity
Alliance positioning
The mistake would be passive neutrality.
Strategic clarity is required.
V. The Role of Cities in Industrial Redesign
National policy sets direction.Cities operationalize execution.
Metropolitan regions must become:
AI innovation hubs
Advanced manufacturing corridors
Talent densification ecosystems
Public-private experimentation labs
Urban economic clusters will determine national competitiveness.
VI. Risks of Inaction
If governments fail to adapt:
AI monopolies concentrate global power
Labor displacement accelerates unrest
Climate shocks compound fragility
Geopolitical leverage erodes
The next decade determines structural positioning for 50 years.
VII. Strategic Implementation Roadmap
Phase 1: Capability Audit
Map technological dependencies
Identify critical infrastructure gaps
Phase 2: Mission Definition
Define 3–5 national industrial missions
Align funding mechanisms
Phase 3: Institutional Modernization
Create AI-industrial coordination bodies
Reform procurement processes
Phase 4: Human Capital Reset
Expand STEM + transdisciplinary education
Fund workforce transition programs
Phase 5: International Alignment
Build strategic coalitions
Secure supply diversification agreements
VIII. Conclusion: Industrial Strategy as Democratic Renewal
Post-Neoliberal Industrial Strategy is not merely economic.
It is:
A legitimacy project
A sovereignty project
A social cohesion project
Industry 5.0 enables:
Human-machine collaboration
Sustainable production
Distributed innovation ecosystems
But only if designed intentionally. The question is not whether industrial strategy will return.
It already has. The question is who designs it — and for whose benefit.
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