scholarly journals Premature deindustrialization and development without factories. Are services sectors a new path for the development of sub-Saharan African countries?

2021 ◽  
Author(s):  
Dalila Chenaf-Nicet ◽  
Betty Asse
Keyword(s):  
Data Model ◽  
African Countries ◽  
Services Sector ◽  
Domestic Markets ◽  
Development Path ◽  
New Development ◽  
Global Demand ◽  
Development Trajectory ◽  
Sub Saharan ◽  
Knowledge Intensive

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.

Regional Integration and the Crisis in Sub-Saharan Africa

1985 ◽  
Vol 23 (4) ◽  
pp. 603-622 ◽  
Author(s):  
Peter Robson
Keyword(s):  
Regional Integration ◽  
Poverty Line ◽  
Sub Saharan Africa ◽  
Economic Management ◽  
African Countries ◽  
Domestic Markets ◽  
New Development ◽  
Pessimistic Scenario ◽  
Sub Saharan ◽  
New Guidelines

The appalling experience of most African countries has led many observers to conclude that the continent has now reached a critical stage in its development, and that a political, social, and economic ‘nightmare’ by the turn of the century cannot be ruled out.1 One pessimistic scenario suggests that even with fundamental improvements in domestic economic management, up to four-fifths of Africa's population in 1995 will be below the poverty line compared with three-fifths today.2 This is the context in which African leaders enunciated new development priorities in their 1980 Lagos Plan of Action, notably greater self-reliance and industrialisation geared to domestic markets. Outside the continent, a growing concern with dismal African prospects has generated two action programmes by the World Bank,3 while new guidelines have recently been produced in the European Community for supporting African development.4 Without exception, all of these appraisals see a major role for regional co-operation and economic integration.

Three Sectoral Policies in Ethiopia’s Structural Transformation

2019 ◽  
pp. 872-884
Author(s):  
Carlos Lopes
Keyword(s):  
Structural Transformation ◽  
Social Protection ◽  
Development Planning ◽  
Economic Transformation ◽  
Economic Sector ◽  
Success Story ◽  
African Countries ◽  
Development Path ◽  
Development Trajectory

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.

scholarly journals What determines the success of economic transition? Constructing regional advantage for Eastern and Western European regions

2020 ◽  
Vol 70 (2) ◽  
pp. 163-194
Author(s):  
Korneliusz Pylak ◽  
Elżbieta Wojnicka-Sycz ◽  
Piotr Sycz
Keyword(s):  
Economic Transition ◽  
Gdp Growth ◽  
European Regions ◽  
Related Factors ◽  
Development Path ◽  
Successful Transition ◽  
Eu Member States ◽  
New Development ◽  
Regional Advantage ◽  
Knowledge Intensive

AbstractThe aim of this paper is to identify the differences in the determinants of successful transition (understood as the creation of a new development path) between the eastern and the western EU Member States between 1994 and 2014 and elaborate assumptions for a strategy of constructing regional advantage for them at the NUTS2 level. We find that the regional transition requires individual approaches to using comparative advantage at the beginning of the process and then competing with specific advantages that can be consciously constructed throughout the process. Therefore, we hypothesise that a successful transition requires constructing regional advantages based on the knowledge-related factors, leading to specialisation in the knowledge-intensive industries. Furthermore, we state that the way of constructing such advantages differs across the regions. All of our hypotheses were confirmed. Both groups of regions had different comparative advantages at the beginning of the period and constructed competitive advantage based on related knowledge-intensive industries, leading to their specialisation. Interestingly, although the process of building regional advantage was similar, the factors used to create it were different, had a different impact on GDP growth and led to a different specialisation.

scholarly journals Economic complexity to boost the selected sub-Saharan African economies

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Thobeka Ncanywa ◽  
Itumeleng P. Mongale ◽  
Ombeswa Ralarala ◽  
Thabiso E. Letsoalo ◽  
Brian S. Molele
Keyword(s):  
Income Inequality ◽  
African Region ◽  
African Countries ◽  
Data Set ◽  
Services Sector ◽  
Economic Complexity ◽  
Managerial Implications ◽  
African Context ◽  
Sub Saharan ◽  
Value Add

Orientation: Economic complexity is a measure of productive capabilities indirectly by looking at the mix of sophisticated products that countries export. The economic complexity index proposed a proxy for diversity and ubiquity of products in the export basket.Research purpose: This study seeks to determine if economic complexity can influence the inequality measured by the Gini index in some selected sub-Saharan African countries.Motivation for the study: The need for the study emanates from the notion that that economic complexity can reduce income inequality hence it is imperative to investigate this relationship in the sub-Saharan African region where most countries produce few sophisticated goods that are also labour-intensive. Inadequate literature within the African continent has also contributed to the formulation of this study.Research approach/design and method: This study employed the autoregressive distribution lag (ARDL) model to analyze a panel data set, which includes eight sub-Saharan African countries for the period 1994–2017.Main findings: We found that economic complexity can reduce income disparities.Practical/managerial implications: Sub-Saharan African countries should shift their productive capabilities and resources from primary to sophisticated products in the manufacturing and services sector to increase economic complexity and reduce inequality.Contribution/value-add: The study makes an important contribution to the debate about the relationship between economic complexity and income inequality in the sub-Saharan African context and it is envisaged that it will inform the actions of the decision-makers to drive future productivity and prosperity in the region.

scholarly journals GDP Structure and Economic Performance in Sub-Saharan Countries

2014 ◽  
Vol 62 (4) ◽  
pp. 729-747
Author(s):  
Luboš Smutka ◽  
Karel Tomšík
Keyword(s):  
Economic Development ◽  
Civil Wars ◽  
Economic Performance ◽  
Point Of View ◽  
Living Standards ◽  
African Countries ◽  
Services Sector ◽  
The World ◽  
Sub Saharan ◽  
High Level

Africa belongs to important regions of the world economy with specific problems distinguishing this part of the world from other regions. The region is suffering because of limited economy structure and high level of poverty. Low economic performance ranks most of African countries among the worldwide poorest ones (both from the point of view of total economy performance and also individuals living standards); the development is hindered by political instability and also by other accompanied problems as high level of corruption, deficit of democracy, low level of education, limited investments, criminality, local conflicts, civil wars etc. On the other hand, African natural, economy and social resources and unexploited opportunities in many areas offer a potential for a considerable economic development. Understanding the current economic position of African states thus may reveal causes of problematic development and outline ways to overcome existing shortcomings. The aim of the paper is to analyze main changes in area of GDP structure formation (agricultural, industrial and services sector share in GDP and value performance) which have occurred in selected African (Sub-Saharan) countries. Changes are analyzed both in relation to the total GDP and GDP per capita. The authors identify main trends of economic development in the Sub-Saharan region and to specify differences among Sub-Saharan countries with the intention to identify particular groups of African countries according to their economic structure and to identify differences in their GDP formation.

scholarly journals Introduction

2019 ◽  
pp. 1-16
Author(s):  
Xinshen Diao ◽  
Peter Hazell ◽  
Shashidhara Kolavalli ◽  
Danielle Resnick
Keyword(s):  
Labor Productivity ◽  
Food System ◽  
African Countries ◽  
Services Sector ◽  
Commercial Farming ◽  
Depth Analysis ◽  
African Context ◽  
Research Questions ◽  
Sub Saharan

This chapter provides an overview of the book and places Ghana’s transformation trajectory in the broader sub-Saharan African context. It notes that much of the growth in Africa over the last decade was driven by growth in the services sector rather than in manufacturing. The sustainability of this trajectory is problematic since services are mostly domestically consumed and therefore constrained by growth in national demand, and labor productivity is generally low. The chapter then argues why modernizing agriculture offers one route for African countries to both improve labor productivity and provide decent jobs. Such modernization involves a shift towards commercial farming practices, stronger integration of agricultural value chains, and a focus on opportunities in the broader agri-food system. The chapter justifies why Ghana offers a useful case study for in-depth analysis of the options for modernizing agriculture and summarizes the key research questions addressed in each of the subsequent chapters.

scholarly journals Knowledge management competences, exporting and productivity: uncovering African paradoxes

2019 ◽  
Vol 24 (1) ◽  
pp. 81-104 ◽  
Author(s):  
Ferran Vendrell-Herrero ◽  
Christian K. Darko ◽  
Pervez Ghauri
Keyword(s):  
Knowledge Management ◽  
Manufacturing Firms ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
Exporting Firms ◽  
Domestic Markets ◽  
Conditional Knowledge ◽  
Knowledge Intensive ◽  
Productivity Gains

PurposeThis study aims to investigate the importance of relational and conditional knowledge by assessing how service and signaling competences affect manufacturing firms’ productivity. These relationships are explored in the context of Africa, where, paradoxically, firms selling abroad must satisfy different market demands than firms that serve only domestic markets.Design/methodology/approachThe authors draw on the World Bank Enterprise Survey to perform a cross-sectional analysis of 4,683 manufacturing firms. These surveys cover the period 2009-2017 and 35 different African countries. The authors define service competence development as co-location with knowledge-intensive business service (KIBS) firms, measured through KIBS density at city level. Signaling is measured through outward-looking competences.FindingsThis paper shows that African exporters differ significantly from their non-exporting counterparts in terms of productivity and competences. External service competence generates productivity gains for exporters but has the opposite effect for non-exporters. Results consistent with previous research also show that signaling competences generate productivity gains, but the effect for firms serving domestic markets is stronger than the effect for exporting firms. The authors use paradoxes of learning to interpret these results.Research limitations/implicationsThis study detects nuances of the African context that increase the understanding of knowledge management in emerging markets. The findings would benefit from confirmation in a longitudinal and causal setting.Practical implicationsAfrican exporting firms should establish mechanisms to develop joint knowledge with external partners (know-with) to enhance their competitiveness, whereas African non-exporters should prioritize building knowledge credibility.Originality/valueThe study develops a novel empirical approach to analyzing firm competences in Africa. It also shows that contextualization of existing knowledge management theories matters, opening a research avenue to test further existing theories in emerging economies.

A Review of Edward Luce's In Spite of the Gods: The Strange Rise of Modern India

2009 ◽  
Vol 47 (3) ◽  
pp. 771-780 ◽  
Author(s):  
Lant Pritchett
Keyword(s):  
Well Being ◽  
The United States ◽  
African Countries ◽  
Administrative Capacity ◽  
Institutes Of Technology ◽  
Electoral Democracy ◽  
Development Trajectory ◽  
World Class ◽  
Sub Saharan ◽  
Election Commission

India poses a development puzzle on a grand scale. Sixty years of electoral democracy, thirty years of rapid growth, and a number of world class institutions (such as the Institutes of Technology or Election Commission) have led to talk of India as a superpower in a league with the United States and China. Yet, on many fronts, India's indicators of human well-being (e.g., malnutrition, immunization) are at, or below, those of much poorer sub-Saharan African countries. Measures of the administrative capacity of the state on basics like attendance, performance, and corruption reveal a potentially “flailing state” whose brilliantly formulated policies are disconnected from realities on the ground. This review essay of Ed Luce's In Spite of the Gods attempts to articulate the puzzle that is modern India and pose questions about the development trajectory of a country whose fortunes will shape our century.

scholarly journals Use It Sustainably or Lose It! The Land Stakes in SDGs for Sub-Saharan Africa

Land ◽  
2020 ◽  
Vol 9 (3) ◽  
pp. 63 ◽  
Author(s):  
Cheikh Mbow
Keyword(s):  
Learning System ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Policy Makers ◽  
The Sustainable Development ◽  
Transformative Action ◽  
Development Goals ◽  
Internal Policy ◽  
Sub Saharan ◽  
Knowledge Intensive

Sub-Saharan Africa (SSA) failed to meet most Millennium Development Goals (MDGs). The Sustainable Development Goals (SDGs) require knowledge-intensive actions that weigh development goals against sustainability options with several possibilities in various contexts. Land resources are the mainstay for most African communities and the basis of achievement of most SDGs. The “transformation imperative” in Africa will only take place in a differentiated set of resource management and use. The baselines in African countries are rather low in terms of internal policy and economic functions. The objective of this paper is to instate ideas on ways to achieve the SDGs through a new transformative design based on a collective capacity of diverse actors to access a range of land-based practices. We should selectively adapt, adopt, or consolidate various land innovations by targeting place and time where various practices have worked or can work in a range of ecologies; what seems to work over the short-term but reduces risks for the long-term; and what the implications are for wealth, food production, livelihoods, climate change, resilience, and development. This requires a greater capacity to apply what is known about transformative action but also set a collaborative learning system to influence policy-makers and action-takers to support sustainable transformation.

Crowdsourcing Covid-19 signals in sub-Saharan Africa: Leveraging digital contributor networks for participatory surveillance of Covid-19 symptoms and deaths (Preprint)

2020 ◽  
Author(s):  
Ngozi A Erondu ◽  
Sagal A Ali ◽  
Mohamed Ali ◽  
Schadrac C Agbla
Keyword(s):  
Public Health ◽  
Sub Saharan Africa ◽  
Specific Information ◽  
Surveillance Systems ◽  
Health Seeking ◽  
African Countries ◽  
Cross Sectional Survey ◽  
Local Networks ◽  
The World ◽  
Sub Saharan

BACKGROUND In sub-Saharan Africa, underreporting of cases and deaths has been attributed to various factors including, weak disease surveillance, low health-seeking behaviour of flu like symptoms, and stigma of Covid-19. There is evidence that SARS-CoV-2 spread mimics transmission patterns of other countries across the world. Since the Covid-19 pandemic has changed the way research can be conducted and in light of restrictions on travel and risks to in-person data collection, innovative approaches to collecting data must be considered. Nearly 50% of Africa’s population is a unique mobile subscriber and it is one of the fastest growing smart-phone marketplaces in the world; hence, mobile phone platforms should be considered to monitor Covid-19 trends in the community. OBJECTIVE We demonstrate the use of digital contributor platforms to survey individuals about cases of flu-like symptoms and instances of unexplained deaths in Ethiopia, Kenya, Nigeria, Somalia, and Zimbabwe. METHODS Rapid cross-sectional survey of individuals with severe flu and pneumonia symptoms and unexplained deaths in Ethiopia, Kenya, Nigeria, Somalia and Zimbabwe RESULTS Using a non-health specific information platform, we found COVID-19 signals in five African countries, specifically: •Across countries, nearly half of the respondents (n=739) knew someone who had severe flu or pneumonia symptoms in recent months. •One in three respondents from Somalia and one in five from Zimbabwe respondents said they knew more than five people recently displaying flu and/or pneumonia symptoms. •In Somalia there were signals that a large number of people might be dying outside of health facilities, specifically in their homes or in IDP or refugee camps. CONCLUSIONS Existing digital contributor platforms with local networks are a non-traditional data source that can provide information from the community to supplement traditional government surveillance systems and academic surveys. We demonstrate that using these distributor networks to for community surveys can provide periodic information on rumours but could also be used to capture local sentiment to inform public health decision-making; for example, these insights could be useful to inform strategies to increase confidence in Covid19 vaccine. As Covid-19 continues to spread somewhat silently across sub-Saharan Africa, regional and national public health entities should consider expanding event-based surveillance sources to include these systems.

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