Africa\'s Turn to Industrialize

Africa's Turn to Industrialize? - ROAPE

http://roape.net/2016/05/24/africas-turn-industrialize/

Africa’s Turn to Industrialize? Posted at 11:47h in Blog, Featured by ROAPEadmin

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ROAPE’s Laura Mann discusses a recent workshop held at the London School of Economics on 3 May, which brought together leading economic geographers and political economists to discuss new prospects for industrialization and transformation in African countries in light of shifts in the global economy. Industrial Policy is back! At least under new names. Given the term’s toxic association among neo-classical economists in institutions like the WTO and World Bank, new words are apparently needed: ‘productive sector policies’ and ‘territorial innovation networks’. Nevertheless, there is hope that policy space is widening for African policy-makers to more strategically engage with global trade and economic growth. First, the story goes, there are economic reasons to be hopeful. Owing to rising costs of production in China and South Asia, economists such as Justin Lin have argued that there are opportunities for African economies to attract manufacturing jobs from Asia and use these Mows to industrialize, upgrade and transform their domestic economies. Second, there are demographic reasons. Populations in most regions of the world are getting older and less fertile while population growth is still increasing in many African countries. African consumer markets are becoming increasingly lucrative and ‘interesting’ to domestic and multinational business interests alike. In the past decade, astute readers will have observed the efforts of Orms such as Unilever and Massmart (the international section of Walmart) and Onancial intermediaries such as Mastercard and Visa eying African markets, conducting research into ‘middle class’ shopping habits and seeking to develop digital payment systems, regional supply chains and distribution networks. Domestic supermarket chains within African countries like Nakumat and Priceright are also moving into regional markets and trying to claim some retail space from informal actors. In other words, it is being said that there is scope for local demand to drive industrialization and upgrading. Third, there are political reasons for hope. The examples of Asian developmental states and the ongoing economic crisis within advanced economies have provided intellectual credence to political economists calling for more interventionist policy-making from African governments. Such authority has been enforced by the physical and political presence of

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Asian actors on the continent as development actors, providing the funds and infrastructure for such ambitions to be realised while dulling the sting of the conditionality of older developmental actors. 1 of 2

5/25/16 1:26 PM

Africa's Turn to Industrialize? - ROAPE

http://roape.net/2016/05/24/africas-turn-industrialize/

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5/25/16 1:26 PM