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Manufacturing Transformation: Comparative Studies of Industrial Development in Africa and Emerging Asia

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Book Series: WIDER Studies in Development Economics ISBN: 9780198776987 Year: Pages: 336 DOI: 10.1093/acprof:oso/9780198776987.001.0001 Language: English
Publisher: Oxford University Press Grant: UNU WIDER
Subject: Economics
Added to DOAB on : 2016-08-05 11:01:21
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While it is possible for economies to grow based on abundant land or natural resources, more often structural change—the shift of resources from low-productivity to high-productivity sectors—is the key driver of economic growth. Structural transformation is vital for Africa. The region’s much-lauded growth turnaround since 1995 has been the result of fewer economic policy mistakes, robust commodity prices, and new discoveries of natural resources. At the same time, Africa’s economic structure has changed very little. Primary commodities and natural resources still account for the bulk of exports. Industry is most often the leading driver of structural transformation. Africa’s experience with industrialization over the past thirty years has been disappointing. In 2010, sub-Saharan Africa’s average share of manufacturing value added in GDP was 10 per cent, unchanged from the 1970s. In fact the share of medium- and high-tech goods in manufacturing production has been falling since the mid-1990s. Per capita manufactured exports are less than 10 per cent of the developing country average. Consequently, Africa’s industrial transformation has yet to take place. This book presents results of comparative country-based research that sought to answer a seemingly simple but puzzling question: why is there so little industry in Africa? It brings together detailed country case studies of industrial policies and industrialization outcomes in eleven countries, conducted by teams of national researchers in partnership with experts on industrial development. It provides the most comprehensive description and analysis available of the contemporary industrialization experience in low-income Africa.

Industries without Smokestacks

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Book Series: WIDER Studies in Development Economics ISBN: 9780198821885 Year: Pages: 480 DOI: 10.1093/oso/9780198821885.001.0001 Language: English
Publisher: Oxford University Press Grant: UNU WIDER
Subject: Manufactures --- Economics
Added to DOAB on : 2019-05-14 11:21:02
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Structural transformation in Africa has become a hot topic. One of the earliest stylized facts of development economics is that low-income countries have large differences in output per worker across sectors, and movement of workers from low- to high-productivity sectors—structural transformation is a key driver of economic growth. Between 1950 and 2006, about half of the catch-up by developing countries—led by East Asia—to advanced economy productivity levels was due to rising productivity within manufacturing combined with structural transformation out of agriculture. Manufacturing has the capacity to employ large numbers of unskilled workers, is capable of large productivity gains through innovation, and entails tradeable products that permit economies of scale and specialization. But manufacturing in Africa, rather than leading growth, has typically been a lagging sector. 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. This book challenges that 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 the role that manufacturing played 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.

Growth, Structural Transformation, and Rural Change in Viet Nam: A Rising Dragon on the Move

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Book Series: WIDER Studies in Development Economics ISBN: 9780198796961 Year: Pages: 336 DOI: 10.1093/acprof:oso/9780198796961.001.0001 Language: English
Publisher: Oxford University Press Grant: UNU WIDER
Subject: Economics --- History --- Migration
Added to DOAB on : 2017-04-07 11:02:22
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Many developing countries—Viet Nam included—continue to struggle to raise incomes per capita. A common feature of the growth and development process is a fundamental change in the pattern of economic activity, as households reallocate labour from traditional agriculture to more productive forms of agriculture and modern industrial and service sectors. Broad structural transformation and widespread poverty reduction is the combined result of these large-scale shifts in work and labour allocation when they realize desired development goals. The roots of this book grow from when the first pilot Viet Nam Access to Resources Household Survey (VARHS) was carried out in 2002. The success of this inspired the Central Institute of Economic Management (CIEM) in Hanoi, the Institute of Policy and Strategy for Agriculture and Rural Development (CAP-IPSARD), the Institute of Labour Science and Social Affairs (ILSSA), and the Development Economics Research Group (DERG) of the University of Copenhagen, together with Danida and, later on, UNU-WIDER, to plan and carry out a more ambitious VARHS from 2006, increasing coverage and representativeness to more than 2,150 families and 12 provinces across the various regions of Viet Nam. The VARHS covering these very same households had, by 2014, been carried out five times, that is, every two years. It is on this high-quality panel data foundation and almost fifteen years of study and policy work using the VARHS data that the present volume builds, in its effort to bring out the essential rural microeconomic characteristics and insights of a dynamic South-East Asian economy in transition from a centrally planned towards a more market-based economy.

The Practice of Industrial Policy: Government—Business Coordination in Africa and East Asia

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ISBN: 9780198796954 Year: Pages: 336 DOI: 10.1093/acprof:oso/9780198796954.001.0001 Language: English
Publisher: Oxford University Press Grant: WIDER Studies in Development Economics
Subject: Economics
Added to DOAB on : 2017-04-27 11:01:30
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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, to assist in the design of appropriate policies and provide feedback on their implementation. There is less agreement on how that engagement should be structured, how its objectives be defined, and how success be measured. In fact, the academic literature provides little practical guidance on how governments interested in developing such a framework should go about doing it. The burden of this lack of guidance falls most heavily on Africa, where—despite twenty years of growth—lack of structural transformation has slowed job creation and the pace of poverty reduction. In 2014, the Korea International Cooperation Agency (KOICA) and United Nations University World Institute for Development Economics Research (UNU-WIDER) launched a joint research project: The Practice of Industrial Policy. The aim is to help African policy makers develop better coordination between public and private sectors in order to identify the constraints to faster structural transformation and design, implement, and monitor policies to remove them. This book, written by national researchers and international experts, presents the results of that research by combining a set of analytical ‘framing’ essays on close coordination with case studies of successful and unsuccessful efforts at close coordination in Africa and in comparator countries.

Youth and Jobs in Rural Africa

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ISBN: 9780198848059 Year: Pages: 336 DOI: 10.1093/oso/9780198848059.001.0001 Language: English
Publisher: Oxford University Press
Subject: Economics
Added to DOAB on : 2020-05-04 10:26:38
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Theories underlying the relationship between urbanization and transformation are being challenged by trends in Sub-Saharan African countries, since many have yet to observe their own “green” or industrial revolutions, despite moderate urbanization. Africa’s trajectory is very different than those of other developing regions, a main reason for which is the region’s significant “youth bulge” and the lack of a labor market outlet for this growing subpopulation. In many countries, the youth are driving the (albeit slow) movement out of agriculture, yet rather than migrating to urban areas, many are finding (usually informal) work in secondary cities, their peri-urban spaces, and the rural nonfarm economy. This book examines the overall trends in youth migration, policies, and political activism, then looks specifically at five African case studies to identify key trends and provide recommendations on encouraging youth to spur structural change. Conclusions reached in this book include that the rate of structural transformation varies among countries in Sub-Saharan Africa, but in most cases, it is the youth who are driving these changes. Education, access to financial services, and agricultural productivity contribute to this structural transformation and can act as pushes or pulls out of agriculture for the youth. However, when structural transformation policies are not pro-poor or inclusive, it can result in higher levels of youth under- and unemployment. Thus, the conclusions point to recommendations focusing on agricultural productivity, the rural nonfarm economy and informal sectors especially along agriculture value chains, access to finance and savings, infrastructure, and education.

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