Industrialization in Sub-Saharan Africa

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32   Industrialization in Sub-Saharan Africa

the argument could be made that the early failures may not necessarily define its future prospects for industrialization. Lack of industries is a defining characteristic of many developing economies at low levels of income. Hence, the industrialization peaks identified in Rodrik (2016) for a few countries may be false starts or unsuccessful attempts at industrialization caused by well-known factors, including political economy constraints, poor investment climate, low productivity, and lack of effective industrial policies and partnerships between governments and the private sector. Thus, to the extent that a strong industrial base has not yet been developed in the region, any suggestion of premature deindustrialization is misleading. The case remains, however, that Sub-Saharan Africa is the least industrialized region in the world. Only a few countries, including Mauritius and South Africa, have successfully developed strong industrial economies. Failure has often characterized the efforts of developing economies before their successful industrialization. Still, the predominant pessimism about industrialization prospects in the region highlights important challenges that Sub-Saharan African countries face in their industrialization efforts, including technical progress in manufacturing that is making it increasingly labor saving, which limits the traditional mass job creation prospects associated with industrialization. It is therefore important to distinguish between early failures in industrialization efforts and premature deindustrialization, given that the policy implications of this distinction are especially important for the prospects for industrialization in the region. In summary, countries in Sub-Saharan Africa have had different experiences in industrializing their economies, and clear evidence of premature deindustrialization in the region as a whole is lacking. Yet many countries have not undergone the kind of successful structural transformations associated with sustained economic growth and job creation on a large enough scale to have an impact on poverty reduction. Emerging trends in international trade policies; changes in global production processes, mainly caused by the emergence of global value chains; and unprecedentedly rapid technological advances biased toward labor-saving technologies present significant challenges for the region in its efforts to follow traditional models of structural transformation through industrialization. However, much of the pessimism about the prospects for industrialization in Africa is overstated because the debate has been dominated by the consideration of past failures as signals of poor prospects for the future.

The Future of Industrialization in Africa Given the uncertainty that has emerged about the path of industrialization that countries should follow, there is no guarantee that all countries in the


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References

7min
pages 199-203

Notes

1min
page 198

6.7 Policy Framework: Integrate, Compete, Upgrade, and Enable

2min
page 197

Policy in Ethiopia

2min
page 194

Policy Framework: Integrate, Compete, Upgrade, and Enable

1min
page 196

6.2 Women in Manufacturing Jobs: The Role of Industrial Policy

4min
pages 191-192

Education and Skills Enhancement

3min
pages 189-190

Competition Policy

4min
pages 187-188

Infrastructure Development

1min
page 185

Opportunity Act, Everything But Arms, and the Generalized System of Preferences

2min
page 177

Trade Policy

1min
page 176

Sub-Saharan Africa and Benchmark Countries

1min
page 163

Industry Employment Shares

3min
pages 169-170

Current Trends in Job Growth in Sub-Saharan Africa across GVCs

2min
page 152

Annex 4A Gravity Model of Global Value Chain Participation

3min
pages 142-143

Role of Industrial Upgrading in Jobs Growth in Manufacturing in Sub-Saharan Africa

6min
pages 160-162

Countries, 2014

3min
pages 153-154

4.2 COVID-19 and Potential Disruptions to Global Value Chains

2min
page 141

Conclusion and Policy Options

3min
pages 139-140

Neighbor South Africa

1min
page 138

Africa Sold as Intermediate Inputs, 2015

1min
page 135

Evolution of Sourcing Patterns for Intermediate Inputs among Manufacturing Firms

1min
page 130

Resource Endowment and Participation in Manufacturing GVCs

6min
pages 123-127

4.1 Country Groups and Comparators

2min
page 122

Global Value Chains: Definition and Measures

2min
page 118

Metals Exporters

3min
pages 128-129

References

9min
pages 112-117

Notes

3min
pages 110-111

Annex 3A Productivity Growth Decomposition

3min
pages 108-109

Physical Infrastructure and Productivity

2min
page 105

Conclusion and Policy Options

3min
pages 106-107

Market Structure, Entry Regulation, and Productivity

2min
page 104

Sources of Productivity Growth: Within-Firm Productivity Growth, Innovation, and Technology Adoption

8min
pages 100-103

Notes

4min
pages 91-92

Sources of Productivity Growth: Interindustry and Intraindustry Resource Reallocation

5min
pages 97-99

References

4min
pages 93-95

Jobs Growth at the Intensive Margin with Productivity as the Driver

1min
page 96

Conclusion and Policy Options

2min
page 90

Underlying Factors and Policy Interventions

5min
pages 87-89

The Case of Ethiopia

5min
pages 78-81

Sustainable Growth and Structural Transformation in Africa

2min
page 52

References

2min
pages 68-70

Note

1min
page 67

1 Establishment Age Effects on Job Growth across Size Groups

2min
page 30

The Future of Industrialization in Africa

4min
pages 60-61

A Policy Framework for Industrializing along Global Value Chains: Integrate, Compete, Upgrade, Enable

6min
pages 44-46

Key Messages

2min
page 31

Rethinking Industrial Policy for Africa

4min
pages 62-63
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