Three Sectoral Policies in Ethiopia’s Structural Transformation

Author(s):  
Carlos Lopes

Ethiopia’s stellar growth performance, guided by amicable development planning, has created a common and shared agenda for economic transformation that has fostered better social outcomes in poverty, universal education, child health, and combating AIDS. This chapter attempts to explore the interest and fascination surrounding the Ethiopian development path, beginning with a consideration of the policy innovations that underpin the experience. It identifies the similarities that connect lessons from three disparate sectoral perspectives—industrialization, social protection/food security, and the success story of Ethiopian Airlines—underlining the pivotal role of coherence, ambition, and innovation in Ethiopia’s development trajectory. Central to these characteristics is the notion that structural transformation is an aggregate of socio-economic sector successes and its potential replicability by other African countries.

Author(s):  
Fantu Cheru ◽  
Arkebe Oqubay

Economic cooperation between China and Africa has deepened in scope and scale in recent times, and FOCAC has emerged as the largest South–South economic partnership platform. However, evidence suggests that the catalytic effect of China–Africa engagement on the economic transformation of African countries has been uneven, primarily shaped by the strategic response of the respective African countries. This chapter proposes that China–Africa economic ties should be examined from a structural transformation perspective to adequately evaluate the catalytic effect of Chinese engagement on the economic growth and diversification of African economies, the development of domestic capabilities, and lastly on Africa’s successful insertion into the globalized economy of the twenty-first century. Based on the experience of Ethiopia, the chapter unpacks the pathways to structural transformation in the African context, and the role of the state in guiding the economy through a proactive and strategic approach to economic transformation. The chapter concludes with pathways to the future.


2017 ◽  
Vol 19 (3) ◽  
pp. 360
Author(s):  
Nur Feriyanto

The first aim of this study was to determine the relationship between the growth rate of GRDP and the growth rate of sectors’ labor absorption in Special Region of Yogyakarta. The second objective was using the Esteban Marquillas’ Shift-Share analysis to prove whether there has been a structural transformation of the economy in Special Region of Yogyakarta during 2009-2014. The third aim was to determine the impact of economic sectors’ growth in Indonesia on the growth of aggregate GRDP in Special Region of Yogyakarta.  Results of this study were: (1) There were three conditions used to observe the relationship between the growth rate of GRDP and the growth rate of labor absorption in Special Region of Yogyakarta namely anomalous; regressive; and progressive. (2) The use of Esteban Marquillas’ Shift-Share analysis showed that in the area of Special Region of Yogyakarta there had been a shift in the economic structure from the primary sector to the secondary and tertiary sectors. (3) The economic sectors’ growth in Indonesia could lead to the growth of aggregate GRDP in Special Region of Yogyakarta as much as 539.53 billion IDR. Suggestions offered by this research are as follows: (1) policy making by the government related to development has to pay attention to the relationship between economic growth and unemployment rate. (2) Government has to address the economic transformation from primary to tertiary sectors; especially for development planning; and (3) government needs to focus on economic development for the dominant sectors of economy in DIY province.


2021 ◽  
Author(s):  
Dalila Chenaf-Nicet ◽  
Betty Asse

Abstract For some authors (Rodrik, 2015 and 2017) deindustrialization process is premature in sub-Saharan countries. This means that the period of industrialization has been too short, with too little job creation and growth to guarantee a development trajectory. For these authors, the consequences for development are necessarily negative. However, in this work, the economic causes are: the global demand for services is growing faster than the demand for manufactured goods. This growth would leave too few development opportunities for industries in these countries that suffer from narrow domestic markets. Global demand for services and weak domestic demand are the causes of this deindustrialization. However, according to other authors (Loungani et al. 2017), if sub-Saharan African countries (SSA) deindustrialize, they should still be able to benefit from development opportunities through the services sector, which will be a new development path without factories (Ghani and O’Connel, 2014; Dihel and Grover, 2016). This article is part of the controversy. It tests the impacts of different sectors on growth, for a sample of 57 developing countries (Asia, SSA, and Latin America) in a panel data model over the period from 1984 to 2017. Our work shows that the services sector generates few spill-over effects on the income of SSA, which remains highly specialized in low-knowledge-intensive services.


Author(s):  
Arkebe Oqubay ◽  
Justin Yifu Lin

This introductory chapter outlines the aims, analytical perspectives, and the organization of the volume. It sets the scene by describing China’s place in the changing dynamics of global economic order, the increasing role of China in Africa’s economic transformation, and the unevenness of the China’s economic footprint in Africa. It introduces the four thematic sections that primarily focus on the progress, foundations, challenges, and future trajectory of China–Africa cooperation. Part I: ‘China’s Rise and the Changing Global Development Discourse’ examines the meanings and global externalities of China’s economic emergence in an era of globalization. Part II: ‘Evolving China–Africa Relations: Context, Perspectives, and Framework’ examines China–Africa ties in their historical context, the institutional and policy frameworks for promoting cooperation. Part III: ‘The Dynamics of China–Africa Economic Ties’ describes the Chinese approach to doing business in Africa, while the last section Part IV: ‘China and Africa’s Economic Transformation’ discusses the conditions under which Chinese engagement in Africa can play a catalytic role in Africa’s industrialization and structural transformation.


Author(s):  
Philip N. Jefferson

Although poverty reduction has not occurred as fast as anyone would like, we know a considerable amount about what is helpful in the struggle against poverty. We also know a lot about what is not helpful. What seems to reduce poverty? What does not? Why have countries in East Asia and the Pacific excelled in poverty reduction, while sub-Saharan African countries and many developed countries have not? ‘Combating poverty’ considers the role of economic growth and inequality, the role of governance and institutions, markets and trade, social safety nets and social protection systems, infrastructure, foreign aid, the treatment of women and girls, and evaluation of the policies and programmes that reduce poverty.


2018 ◽  
Vol 5 (2) ◽  
pp. 1-25
Author(s):  
M Kpessa-Whyte

Contemporary research in institutional analysis shows that institutions, broadly defined to include rules, policy, laws, conventions, shared expectations, and repeated practices, are instrumental in shaping human behaviour. This insight raises questions for understanding the dynamics of social care and protection in African countries where formal and informal institutions interact and compete in an environment characterized by two publics. Analytically, African countries reflect the notions of modern state, however due to their inability to connect with majority of the population informal rules practices that derived their logic of appropriateness and legitimacy from familial and kinship relationships have become essential institutional rules that mediate interaction and social exchange in social protection and beyond. The overbearing influence of informal institutional practices is however often ignored in the scholarly analysis of development and policies in the region, and this is due partly to a narrow focus on formal institutional reforms and a penchant for perceiving informality as deviant behaviour. This paper discusses the interface between informal institutions and social protection in Africa and draws attention to the role such institutions play in shaping the incentive structures and choices of political actors and citizens as well as the implications of informality in sub-Saharan African countries for broader socio-economic transformation.


2018 ◽  
Vol 19 (3) ◽  
pp. 360-377
Author(s):  
Nur Feriyanto

The first aim of this study was to determine the relationship between the growth rate of GRDP and the growth rate of sectors’ labor absorption in Special Region of Yogyakarta. The second objective was using the Esteban Marquillas’ Shift-Share analysis to prove whether there has been a structural transformation of the economy in Special Region of Yogyakarta during 2009-2014. The third aim was to determine the impact of economic sectors’ growth in Indonesia on the growth of aggregate GRDP in Special Region of Yogyakarta.  Results of this study were: (1) There were three conditions used to observe the relationship between the growth rate of GRDP and the growth rate of labor absorption in Special Region of Yogyakarta namely anomalous, regressive, and progressive. (2) The use of Esteban Marquillas’ Shift-Share analysis showed that in the area of Special Region of Yogyakarta there had been a shift in the economic structure from the primary sector to the secondary and tertiary sectors. (3) The economic sectors’ growth in Indonesia could lead to the growth of aggregate GRDP in Special Region of Yogyakarta as much as 539.53 billion IDR. Suggestions offered by this research are as follows: (1) policy making by the government related to development has to pay attention to the relationship between economic growth and unemployment rate. (2) Government has to address the economic transformation from primary to tertiary sectors, especially for development planning; and (3) government needs to focus on economic development for the dominant sectors of economy in DIY province.


2017 ◽  
Vol 21 (2) ◽  
pp. 79-83
Author(s):  
Anna Dąbrowska ◽  
Jacek Szlachta

AbstractIn the discussion of regional development factors in recent years, more and more importance has been attributed to territory, locality, site specificity and endogenous resources, as evidenced on theoretical grounds by the concept of territorial capital (Camagni 2008) and regional, place-based policy. This article aims to identify the elements of territorial capital that play a key role in the process of changing the development path of an underdeveloped region - Podkarpackie - as well as ascertaining what consequences territorial capital has for development planning within regional policy. The research highlights the importance of the immobile and intangible development factors - a high level of social capital, extensive networks and the ability to cooperate - which have helped to eliminate the limitations resulting from the weakness of other factors (especially material factors, such as private capital and low GDP).


Author(s):  
Ibukun Beecroft ◽  
Evans S. Osabuohien ◽  
Isaiah O. Olurinola ◽  
Uchenna R. Efobi ◽  
Stephen Oluwatobi

Economic transformation suggests sustainable and inclusive economic development. It includes the changes in the structures of the economy in favour of more productive sectors to ensure consistent economic progress. This has been the earnest desire of most African countries. However, achieving economic transformation will require strong institutions, among others. The channels through which institutions can influence the process of economic development using specific country analyses are still under-researched. Thus, this study examines the importance of institutions in the development and sustenance of some important sectors: finance, education, technology, industry, and trade, believed to drive economic transformation. Drawing evidence from Nigeria, the study submits that institutions have varying influence on all the selected sectors. Thus, the role of specific sectoral planning based on a strong institutional framework cannot be overemphasised in a country's quest for economic transformation.


2021 ◽  
Vol 13 (1) ◽  
pp. 53-64
Author(s):  
Ricardo Gottschalk ◽  
Padmashree Gehl Sampath

This article examines how infrastructure development may best support structural transformation in developing countries. It critiques ongoing emphasis by multilateral financial institutions and other actors on infrastructure as an asset class and their focus on bankable projects. The article considers this approach too narrow for real economic transformation and argues development requires a more holistic approach, one that includes project assessment based on developmental criteria. Drawing on the pioneers of development and more recent literature on infrastructure systems, the article proposes development planning as a more promising approach and assesses how developing countries are faring regarding infrastructure planning for growth and transformation. JEL Classification: H54, O21, O40, P11


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