The industrial policy revolution. II, Africa in the 21st century

This volume is the result of the 2012 International Economic Association's series of roundtables on the theme of Industrial Policy. The first, 'New Thinking on Industrial Policy,' was hosted by the World Bank in Washington, D.C, and the second, 'New Thinking on Industrial Policy: Implications for Africa,' was held in Pretoria, South Africa. In this volume, world-renowned economists and policymakers write about industrial policy, which is being recognized anew as a linchpin for the economics of development. They show that developing countries that have undertaken a wide variety of industrial policies have been the most successful. In focusing on Africa, which has a potentially great producer and consumer base for industry, they have chosen a continent that provides an especially clear example of why this refreshed emphasis on industrial policy is so important Cover 1 Series 2 Title 4 Copyright 5 Contents 6 List of Tables 9 List of Figures 11 List of Boxes 15 Notes on the Contributors 16 Foreword 22 Acknowledgements 27 Introduction: Industrial Policy in the African Context 28 Part I: New Thinking on Industrial Policy 50 1.1 Learning and Industrial Policy: Implications for Africa 51 1.2 From Flying Geese to Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries 76 Part II: Structural Transformation: Lessons from History 97 2.1 Accumulation of Capabilities, Structural Change, and Macro Prices: an Evolutionary and Structuralist Roadmap 98 2.2 Industrial Policy: Can Africa Do It? 139 Part III: New Global Order and African Reindustrialization 158 3.1 Winning the Jackpot: Jobs Dividends in a Multipolar World 159 3.2 Walking (Stumbling?) on Two Legs: Meeting SSA's Industrialization Challenge 197 Part IV: Macroeconomics and Governance: Creating an Enabling Environment 222 4.1 How Macroeconomic Policy Can Support Economic Development in Sub-Saharan African Countries 223 4.2 Competition Policy, Industrial Policy, and Corporate Conduct 238 4.3 Political Settlements and the Design of Technology Policy 265 4.4 Infant Capitalists, Infant Industries and Infant Economies: Trade and Industrial Policies at Early Stages of Industrialization in Africa and Elsewhere 303 4.5 Industrial Policies and Contemporary Africa: The Transition from Prebendal to Developmental Governance 315 Part V: Trade, Finance, and Sectoral Policies 341 5.1 Does Financial Market Liberalization Promote Financial Development?: Evidence from Sub-Saharan Africa 342 5.2 Financialization as an Obstacle to Industrialization 371 5.3 Toward a Resource-based African Industrialization Strategy 385 5.4 The Global "Rush" for Land: Does it Provide Opportunities for African Countries? 407 5.5 Trade Facilitation and African Industrialization in the New Global Order: An Agenda for the Textile and Apparel Industry 433 Part VI: Country Experiences and Perspectives 476 6.1 Industrial Structural Change, Growth Patterns, and Industrial Policy 477 6.2 Industrial Policy and Economic Transformation in Africa: Strategies for Development and a Research Agenda 512 6.3 The Premature Deindustrialization of South Africa 549 6.4 How Ethiopia Can Foster a Light Manufacturing Sector 561 6.5 Industrialization: The Mauritian Model 589 6.6 Sharing of Singapore's Industrial Policy Insights 605 Index 610 Front Matter....Pages i-xxvi Introduction: Industrial Policy in the African Context....Pages 1-22 Front Matter....Pages 23-23 Learning and Industrial Policy: Implications for Africa....Pages 25-49 From Flying Geese to Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries....Pages 50-70 Front Matter....Pages 71-71 Accumulation of Capabilities, Structural Change, and Macro Prices: an Evolutionary and Structuralist Roadmap....Pages 73-113 Industrial Policy: Can Africa Do It?....Pages 114-132 Front Matter....Pages 133-133 Winning the Jackpot: Jobs Dividends in a Multipolar World....Pages 135-172 Walking (Stumbling?) on Two Legs: Meeting SSA’S Industrialization Challenge....Pages 173-197 Front Matter....Pages 199-199 How Macroeconomic Policy Can Support Economic Development in Sub-Saharan African Countries....Pages 201-215 Competition Policy, Industrial Policy, and Corporate Conduct....Pages 216-242 Political Settlements and the Design of Technology Policy....Pages 243-280 Infant Capitalists, Infant Industries and Infant Economies: Trade and Industrial Policies at Early Stages of Industrialization in Africa and Elsewhere....Pages 281-292 Industrial Policies and Contemporary Africa: The Transition from Prebendal to Developmental Governance....Pages 293-318 Front Matter....Pages 319-319 Does Financial Market Liberalization Promote Financial Development?: Evidence from Sub-Saharan Africa....Pages 321-349 Financialization as an Obstacle to Industrialization....Pages 350-363 Toward a Resource-based African Industrialization Strategy....Pages 364-385 The Global “Rush” for Land: Does it Provide Opportunities for African Countries?....Pages 386-411 Trade Facilitation and African Industrialization in the New global Order: An Agenda for Action for Textile and Apparel Industry....Pages 412-454 Front Matter....Pages 455-455 Industrial Structural Change, Growth Patterns, and Industrial Policy....Pages 457-491 Industrial Policy and Economic Transformation in Africa: Strategies for Development and a Research Agenda....Pages 492-528 The Premature Deindustrialization of South Africa....Pages 529-540 Front Matter....Pages 455-455 How Ethiopia Can Foster a Light Manufacturing Sector....Pages 541-568 Industrialization: The Mauritian Model....Pages 569-584 Sharing of Singapore’s Industrial Policy Insights....Pages 585-589 Back Matter....Pages 590-607 Industrial Policy in the African Context: Introduction-- Justin Yifu Lin et al 1. New Thinking on Industrial Policy 1.1. The Learning Economy: Spillovers and Learning Processes-- Bruce Greenwald and Joseph Stiglitz 1.2. From Flying Geese to Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries-- Justin Yifu Lin 2. Structural Transformation: Lessons from History 2.1. Accumulation of Capabilities, Structural Change and Macro Prices: an Evolutionary and Structuralist Roadmap-- Mario Cimoli and Gabriel Porcile 2.2. Industrial Policy: Can Africa Do It?-- Ha Joon Chang 3. New Global Order and African Reindustrialization 3.1. Winning the Jackpot: Jobs Dividends in a Multi-polar World-- Celestin Monga 3.2. Walking (stumbling?) on Two Legs: Meeting SSA's Industrialization Challenge-- Raphael Kaplinsky 4. Macroeconomics and Governance: Creating an Enabling Environment 4.1. How Macroeconomic Policy Can Support Economic Development in Sub-Saharan African Countries-- James Heintz 4.2. Competition Policy, Industrial Policy and Corporate onduct-- Simon Roberts 4.3. Political Settlements and the Design of Technology Policy-- Mushtaq Khan 4.4. Infant Capitalists, Infant Industries and Infant Economies Trade and Industrial Policies for Early Stages of Development in Africa and Elsewhere-- Akbar Noman 4.5. Industrial Policies and Contemporary Africa: Frontiers of Political Economy and Social Science-- Richard Joseph 5. Trade, Finance and Sectoral Policies 5.1. Does Financial Market Liberalization Promote Financial Development?-- Hamid Rashid 5.2. Financialization as an Obstacle to Industrialization-- C.P. Chandrasekhar 5.3. Towards a Resource-based African Industrialisation Policy-- Paul Jourdan 5.4. The Global 'Rush' for Land: Does it Provide Opportunities for African Countries?-- Klaus Deininger 5.5. Trade Facilitation and African Industrialization: An Agenda for the Textile and Apparel Industry-- Dominique Njinkeu, Julie L In this volume, world-renowned economists and policymakers write about industrial policy, which is being recognized anew as a linchpin for the economics of development. They show that developing countries that have undertaken a wide variety of industrial policies have been the most successful. In focusing on Africa, which has a potentially great producer and consumer base for industry, they have chosen a continent that provides an especially clear example of why this refreshed emphasis on industrial policy is so important. Book jacket