Made in Africa: Learning to Compete in Industry

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Why is there so little industry in Africa?

Over the past forty years, industry has moved from the developed to the developing world, yet Africa’s share of global manufacturing has fallen from about 3 percent in 1970 to less than 2 percent in 2014. Industry is important to low-income countries. It is good for economic growth, job creation, and poverty reduction. Made in Africa: Learning to Compete in Industry outlines a new strategy to help African industry compete in global markets. This book draws on case studies and econometric and qualitative research from Africa and emerging Asia to understand what drives firm-level competitiveness in low-income countries. The results show that while traditional concerns such as infrastructure, skills, and the regulatory environment are important, they alone will not be sufficient for Africa to industrialize. The book also addresses how industrialization strategies will need to adapt to the region’s growing resource abundance.
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About the author

Carol Newman is Associate Professor in the Department of Economics, Trinity College Dublin. Her main research and publications are in the microeconomics of development with a focus on both household and enterprise behavior.

John Page is a Senior Fellow in the Global Economy and Development Program of the Brookings Institution, Washington, DC. He was the World Bank’s chief economist for Africa until 2008 and has published widely on industrial development and industrial policy in Africa and Asia. He is the co-author of UNIDO’s Industrial Development Report, 2009.

John Rand is Professor in development microeconomics at the University of Copenhagen. He has published extensively on the economics of the firm in developing countries, and in 2001 and 2008 he was an economic advisor to leading think tanks in Vietnam and Mozambique.

Abebe Shemeles is acting Director of the Research Department of the African Development Bank. His main research interests and publications are in poverty analysis and labor economics.

Måns Söderbom is Professor of Economics, University of Gothenburg. His research centers on development economics and applied econometrics. He has published widely on the decisions and performance of firms.

Finn Tarp is Professor of Economics, University of Copenhagen and Director, UNU-WIDER. He is a leading international expert on development strategy and foreign aid. He has held senior posts and advisory positions in government and with donor organizations and is a member of a large number of international committees and advisory bodies.
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Additional Information

Publisher
Brookings Institution Press
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Published on
Feb 23, 2016
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Pages
306
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ISBN
9780815728160
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Language
English
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Genres
Business & Economics / Development / Business Development
Business & Economics / Development / Economic Development
Political Science / World / African
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Content Protection
This content is DRM protected.
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This is an open access title available under the terms of a CC BY-NC-SA 3.0 IGO licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations. Much of the information relevant to policy formulation for industrial development is held by the private sector, not by public officials. There is therefore fairly broad agreement in the development literature that some form of structured engagement — often referred to as close or strategic coordination — between the public and private sectors is needed, both to assist in the design of appropriate policies and to provide feedback on their implementation. There is less agreement on how that engagement should be structured, how its objectives should be defined, and how success should be measured. In fact, the academic literature on close coordination provides little practical guidance on how governments interested in developing a framework for government—business engagement should go about doing it. The burden of this lack of guidance falls most heavily on Africa, where — despite 20 years of growth — lack of structural transformation has slowed job creation and the pace of poverty reduction. Increasingly, African governments are seeking to design and implement policies to encourage the more rapid growth of high productivity industries and in the process confronting the need to engage constructively with the private sector. These efforts have met with mixed results. For sustained success in structural transformation, new policies and new approaches to government-business coordination will be needed. In 2014 the Korea International Cooperation Agency and UNU-WIDER launched a joint research project on 'The Practice of Industrial Policy'. The objective of the project was to help African policy-makers develop better coordination between the public and private sectors in order to identify the constraints to faster structural transformation and to design, implement, and monitor policies to remove them. This book, written by national researchers and international experts, presents the results of that research.
An unforgettable firsthand account of a people's response to genocide and what it tells us about humanity.

This remarkable debut book chronicles what has happened in Rwanda and neighboring states since 1994, when the Rwandan government called on everyone in the Hutu majority to murder everyone in the Tutsi minority. Though the killing was low-tech--largely by machete--it was carried out at shocking speed: some 800,000 people were exterminated in a hundred days. A Tutsi pastor, in a letter to his church president, a Hutu, used the chilling phrase that gives Philip Gourevitch his title.

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Can a country composed largely of perpetrators and victims create a cohesive national society? This moving contribution to the literature of witness tells us much about the struggle everywhere to forge sane, habitable political orders, and about the stubbornness of the human spirit in a world of extremity.

We Wish to Inform You That Tomorrow We Will Be Killed with Our Families is the winner of the National Book Critics Circle Award for Nonfiction.

By 2030 more than three quarters of the world's absolute poor are projected to live in Africa. Accelerating economic growth is key to rising incomes on the continent, and central to this challenge is establishing activities that are capable of employing large numbers of unskilled workers, that can raise productivity through innovation, and that can power growth through exports. Such structural transformation is a key driver of growth, and between 1950-1996 about half of the economic catch-up by developing countries (led by East Asia) was due to rising productivity in manufacturing combined with growing agricultural output. Africa, however, has lagged behind. In 2014, the average share of manufacturing in GDP in sub-Saharan Africa hovered around 10 per cent, unchanged from the 1970s, leading some observers to be pessimistic about Africa's potential to catch the wave of sustained rapid growth and rising incomes. Industries Without Smokestacks: Industrialization in Africa Reconsidered challenges this view. It argues that other activities sharing the characteristics of manufacturing- including tourism, ICT, and other services as well as food processing and horticulture- are beginning to play a role analogous to that played by manufacturing in East Asia. This reflects not only changes in the global organization of industries since the early era of rapid East Asian growth, but also advantages unique to Africa. These 'industries without smokestacks' offer new opportunities for Africa to grow in coming decades.
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