Eighty years after the International Monetary Fund and the World Bank were created to stabilize the global economy in the wake of World War II, the role of those organizations and the guiding principles behind their creation has largely fallen out of fashion. The I.M.F. and World Bank were designed to embrace a new system of economic order and international cooperation, one that would stitch the world economy together and allow rich nations to help poorer ones through trade and investment. But today, those who espouse such "neoliberal" notions of open markets are increasingly lonely voices. They could soon become even more isolated if former President Donald J. Trump is re-elected. Mr. Trump is promising to upend the rules of international commerce by ratcheting up the kind of trade wars and protectionist policies that characterized his first term.

We propose a deep learning framework, DL-opt, designed to efficiently solve for optimal policies in quantifiable general equilibrium trade models. DL-opt integrates (i) a nested fixed point (NFXP) formulation of the optimization problem, (ii) automatic implicit differentiation to enhance gradient descent for solving unilateral optimal policies, and (iii) a best-response dynamics approach for finding Nash equilibria. Utilizing DL-opt, we solve for non-cooperative tariffs and industrial subsidies across 7 economies and 44 sectors, incorporating sectoral external economies of scale. Our quantitative analysis reveals significant sectoral heterogeneity in Nash policies: Nash industrial subsidies increase with scale elasticities, whereas Nash tariffs decrease with trade elasticities. Moreover, we show that global dual competition, involving both tariffs and industrial subsidies, results in lower tariffs and higher welfare outcomes compared to a global tariff war.

India's new industrial policy which will be rolled out in the coming months will have a deep focus on technology and innovation to boost manufacturing and economic growth. Sources in Niti Aayog, the government's policy thinktank, told FactorDaily that while Make In India was focussed largely on programs and schemes, the industrial policy will look at the long-term development of manufacturing and create employment. The industrial policy, which the Department of Industrial Policy and Promotion and Niti Aayog is working on will be built in a way that Indian manufacturing is future ready, and that cannot be done without technology. "The idea is to prepare for future industries. For example, the way fintech, artificial intelligence and internet of things are converging (towards) manufacturing," said one source.

Sometimes you've got to admire the shamelessness of Libertarian-loving Silicon Valley -- a region that does its best to keep the government at bay and avoid paying taxes yet doesn't hesitate for a second to ask that same government for help when it runs into trouble. Such is the moment we've reached with the development of artificial intelligence. To accelerate their AI industries, governments around the world are formulating aggressive industrial policies, including investment, technology roadmaps, and regulations. Silicon Valley, home to many of the current AI giants, has looked around and said "Gulp." Worried that their dominance is under siege from all sides, U.S. tech companies dutifully trotted to the White House this week for a summit on AI policy. And so began an awkward dance in which all players tried to reconcile a cultish devotion to the free market with the possibility of developing a more centralized approach -- despite its whiff of soul-killing socialism.

Photo by Kamal Kishore NEW DELHI: The government is expected to provide incentives for use of frontier technologies like artificial intelligence and robotics in the new industrial policy that is likely to be unveiled soon, sources said. Besides, the industries would also be encouraged to adopt green technologies to promote cleaner environment. The proposed policy, the draft of which has been released by the commerce and industry ministry for consultation with various stakeholders, will completely revamp the Industrial Policy of 1991. The world is talking about industrial revolution 4.0 that includes artificial intelligence, robotics, deep learning and Internet of Things and incentives and there is a need to promote adoption of these modern technologies, which are capital intensive, according to government sources. "The ministry is holding consultation with states also on the new policy to see their best practices. It will be released soon," they added.

If Beijing has its way, the future of artificial intelligence will be made in China. The country laid out a development plan on Thursday to become the world leader in A.I. by 2030, aiming to surpass its rivals technologically and build a domestic industry worth almost $150 billion. Released by the State Council, the policy is a statement of intent from the top rungs of China's government: The world's second-largest economy will be investing heavily to ensure its companies, government and military leap to the front of the pack in a technology many think will one day form the basis of computing. The plan comes with China preparing a multibillion-dollar national investment initiative to support "moonshot" projects, start-ups and academic research in A.I., according to two professors who consulted with the government about the effort. The United States, meanwhile, has cut back on science funding.

While the world watches anxiously for signs of US President Donald Trump's next move vis-a-vis China, Chinese leaders remain focused on the next stage of their country's ongoing economic transformation. What they do should interest everyone ― especially US policymakers. China's industrialization process, like that of other successful East Asian economies, has combined profit-led investment, active industrial policy, and export discipline. But that approach has its limits, exemplified in the numerous developing countries that have attempted to climb the same development ladder, only to become stuck on the middle rungs or even to fall back, owing to what Harvard University economist Dani Rodrik has called "premature deindustrialization." China hopes to avoid this fate, with the help of "China Manufacturing 2025" (CM2025), a roadmap released by Premier Li Keqiang in 2015 to guide the country's industrial modernization.