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A guest lecture by Professor Ilias Alami of Cambridge University.

Co-sponsored by CIPSS.

´¡²ú²õ³Ù°ù²¹³¦³Ù:Ìý As competition intensifies for electric vehicles, transition minerals, and clean energy, many developing economies are designing state-led projects to foster green industrialization. Financing these strategic green industrial ambitions is a challenge. In addition to limited fiscal powers, developing economies face a series of financing and policy space constraints related to their subordinate position in the global financial and monetary system. "International financial subordination" not only makes sovereign borrowing unreliable, it also drastically increases the cost of capital for renewables energy infrastructure and green industrialization projects, therefore impeding projects of green transformation. In the face of these financing and policy space constraints, developing countries are experimenting with 3 types of strategies to finance green industrial ambitions: (1) Strategies of "new state capitalism," which involve expanding the prerogatives of state-owned financial institutions to directly invest in green industrialization projects with the private sector; (2) doubling down on the "Wall Street Consensus" (PPPs, blended finance, and other "derisking" tools); (3) "polyalignment strategies" aiming at leveraging competition between rival geopolitical hegemons in the realm of infrastructure finance, green tech, and green energy. This paper analyses how developing countries combine and experiment with these three financing strategies, resulting in novel configurations of market-based and state-led approaches to financing green industrialisation. Focusing on Morocco, the paper asks what is the outcome of these strategies and the extent to which they renegotiate the position of developing countries within global monetary and financial hierarchies.