TLDR
Using public money to make green hydrogen projects safer for investors may attract funding but leave countries with less control over their industries. The authors favor public ownership and partnerships that help local businesses grow.
Summary
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1 Study Aim
The authors examine whether “derisking developmentalism” (using government support to reduce investors’ risks) can help low- and middle-income countries build green industries. They use green hydrogen (hydrogen presented as part of a shift to cleaner energy) to explore whether attracting private investment can also support national development. Their analysis draws on “critical macrofinance” (the study of how finance and global power shape economies) and ideas about African developmental states. The study asks whether countries can attract investment while still directing it toward their own industrial goals.
2 Study Design
The article develops a conceptual analysis rather than reporting a measured experiment or survey. The authors extend critical macrofinance (analysis of how financial systems and power shape economies) with Thandika Mkandawire’s account of post-independence African developmental states (governments that guide economic development). They use Namibia’s green hydrogen ambitions as an illustration of how government policies and private finance may interact. The abstract does not specify a dataset, interviews, or other empirical methods. The authors use Namibia to show how government efforts to attract investors can affect control over development.
3 Findings
The authors argue that the promise of a “divine coincidence” (the belief that investor profits and public goals will naturally align) gives governments room to attract private capital, but weakens their ability to direct it. They warn that powerful investors and Global North governments may shape green hydrogen rules, leaving Global South countries (lower- and middle-income countries) buying technology and generating returns for investors. This could reinforce external debt vulnerabilities. The authors recommend experimenting with green public ownership and partnerships that guide local industries. They call for a supportive global financial framework, which they name “Green Bandung Woods,” instead of the “Wall Street Consensus” (a development approach centered on attracting private finance). Countries may have more control over green industries if they build them with public ownership and rules that serve local needs.