This article contributes to the ongoing debate on the institutional preconditions for inclusive and sustainable development in the global periphery, countries that are in a subordinate position within global capitalism.

The authors argue that deliberations pertaining to the effectiveness, inclusiveness, and sustainability of economic development must take into account the political-economic contexts of specific peripheral countries. The article goes on to further conceptualize inclusive late industrialization processes and operationalize institutional setups for industrial policy to make it more useful from a policy perspective.