REVISITING CHINA'S DEVELOPMENTAL STATE: LESSONS FOR AFRICA

2020 ◽  
Vol 38 (1) ◽  
Author(s):  
Khwezi Mabasa ◽  
Zukiswa Mqolomba
Keyword(s):  
Economic Growth ◽  
Developmental State ◽  
Sub Saharan Africa ◽  
State Institutions ◽  
Developmental States ◽  
Power Shift ◽  
Rapid Economic Growth ◽  
Development Institutions ◽  
Sub Saharan ◽  
Sustainable Economic Growth

Prominent development institutions and researchers have documented the ascendance of China in the global political economy and mainly explored how the global balance of power is affected by China's growing economic expansion. Political economists have argued that it is part of the generic economic power shift from the global north to south whilst security studies place emphasis on Chinese national geopolitical interests in several regions. This article discusses what lessons can be drawn from China's developmental state experience and how these can inform Sub-Saharan African developmental strategies. We argue that China's rise has been driven by both market and non-market institutions and show how peculiar contextual historical and socio-political factors have been integral to building the Chinese developmental state. This demonstrates the importance of building effective state institutions to support sustainable economic growth and human development. We highlight the principles shaping institutional mechanisms relating to the rapid economic growth and argue that African governments should apply these in their attempts to rebuild state capacity. However, we also point out that negative trends such as authoritarianism and persistent inequality should not be replicated. Rather, Sub-Saharan Africa should build democratic developmental states characterised by pro-poor sustainable inclusive growth.

scholarly journals Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Kuznets Curve ◽  
African Countries ◽  
Financial Access ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

scholarly journals Exploring economic structure and drivers of economic growth in Botswana

2015 ◽  
Vol 4 (4) ◽  
pp. 673-678
Author(s):  
Patricia Lindelwa Makoni
Keyword(s):  
Economic Growth ◽  
Commodity Prices ◽  
Economic Structure ◽  
Sub Saharan Africa ◽  
International Capital ◽  
Private Sector Investment ◽  
Sub Saharan ◽  
The Government ◽  
Small Economy ◽  
Sustainable Economic Growth

This article set out to analyse the economic structure and main economic drivers in Botswana. Botswana, a country in sub-Saharan Africa, is a relatively small economy, hugely dependent on its diamond mineral wealth. Concerns have arisen in recent years that the diamond deposits will soon be depleted and the country therefore needs to embark on a diversification programme to broaden its economic base. In order to understand the Botswana economy, its economic structure and current domestic sectorial performance were evaluated, as well as its trends in imports and exports. An analysis of the data shows that, regardless of the awareness of the sensitivity to external shocks of commodity prices, as well as the obvious future depletion of diamond reserves, the Botswana economy continues to rely on diamonds, at the expense of attracting international capital flows to enhance and maintain sustainable economic growth, through investments in agriculture, manufacturing and tourism. It is therefore recommended that the Government of Botswana becomes proactive and implements recommended policies to diversify its economy, so that it can sustain or improve its economic growth by becoming a prime destination of international capital and domestic private sector investment, thereby increasing employment and trade opportunities.

Access to drinking water in sub-Saharan Africa: does the developmental state doctrine matter?

2020 ◽  
pp. 002085232093006
Author(s):  
Bacha Kebede Debela ◽  
Geert Bouckaert ◽  
Steve Troupin
Keyword(s):  
Drinking Water ◽  
Developmental State ◽  
Water Sources ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Drinking Water Sources ◽  
Developmental States ◽  
Urban Rural ◽  
Sub Saharan ◽  
Using Data

Using data from 14 sub-Saharan African countries, this study investigates the relevance of the developmental state doctrine to enhancing access to improved drinking water sources and to reducing urban–rural inequalities in access to improved sources and piped-on premises. Although access to improved water sources and urban–rural inequality seems better in developmental states than in non-developmental states, we have not found sufficient support for the claim that the developmental state approach is the best alternative. The influence of corruption is, unexpectedly, higher in developmental states than in non-developmental states. Moreover, both developmental states and non-developmental states were not significantly investing in access to drinking water supply programs. We find that the total population growth rate is the strongest predictor, rather than regime type. Other factors that explain the variation between all samples of developmental states and non-developmental states are identified and discussed, and implications are outlined. Points for practitioners There is significant variation in access to improved drinking water sources and urban–rural inequalities in access to improved sources and piped-on premises between developmental states and non-developmental states. The relevance of the developmental state doctrine to improving access to drinking water, reducing socio-economic inequalities in access to drinking water, and realizing Sustainable Development Goal targets in sub-Saharan Africa is ambiguous. We advise strengthening a functional Weberian bureaucracy and promoting political decentralization.

scholarly journals The Impact of Democracy on Economic Growth in Sub-Saharan Africa, 1982–2012

2014 ◽  
pp. 658-674
Author(s):  
Takaaki Masaki ◽  
Nicolas van de Walle
Keyword(s):  
Economic Growth ◽  
Democratic Consolidation ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Economic Implications ◽  
New Era ◽  
Rapid Economic Growth ◽  
Sub Saharan ◽  
The Impact ◽  
Regime Transitions

There is still an ongoing debate over the economic implications of democracy, and this has gained critical importance particularly in the African context, where a wave of democratization in the early 1990s coincided with the start of a new era of rapid economic growth. In this chapter, it is argued that the existing literature is inadequate in distinguishing the effects of regime transitions and democratic consolidation on economic growth. Through the analysis of the latest economic and political data, which include up to 43 countries in sub-Saharan Africa for the period of 1982–2012, strong evidence is found that democracy is positively associated with economic growth, and that this “democratic advantage” is more pronounced for those African countries that have remained democratic for longer periods of time. The findings call for more nuanced studies that carefully distinguish potentially divergent effects of regime transitions and democratic consolidation on economic growth.

scholarly journals Critical Analysis of Governance, Economic Freedom, and Human Capital Implications on Sustainable Economic Growth: Evidence from Sub-Saharan Africa

2021 ◽  
Vol 7 (08) ◽  
Author(s):  
Yusuf Ayotunde Ayodeji
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Causal Relationship ◽  
Economic Freedom ◽  
Sub Saharan Africa ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan ◽  
Sustainable Economic Growth

In the recent time, the attention of scholars have shifted towards deeper understanding of factors that drives the achievement of sustainable economic growth, but yet factors such as governance, economic freedom, and human capital have not been exhaustively investigated, especially within the context of Sub-Saharan Africa (SSA). Thus, this study investigates the implications of governance, economic freedom, and human capital on the sustainability of economic growth in the SSA, usingpanel data that spanned between 1996 and 2018, and employed a Pooled Mean Group (PMG) estimator for the analysis. This study found governance, economic, and human capital to have a positive and significant causal relationship with economic growth in the long-run, while only economic freedom was found to have a negative and significant causal relationship with economic growth in the short-run. In addition, this study found that in case of disequilibrium, the model has a convergent speed of adjustment of about 10.8%. The study implications were discussed in the study.

scholarly journals The Impact of social infrastructures on economic growth of Sub-Saharan Africa: implications for sustainable economic growth

2019 ◽  
Vol 33 (2) ◽  
Author(s):  
Ezebuilo R Ukwueze ◽  
Oliver E Ogbonna ◽  
Ozoemena S Nwodo ◽  
Chinasa E Urama ◽  
Anthony C Ajah
Keyword(s):  
Economic Growth ◽  
Sub Saharan Africa ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

Developing Countries, Economic Development, and Markets

2019 ◽  
pp. 3-8
Author(s):  
Eleanor M. Fox ◽  
Mor Bakhoum
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Poverty Line ◽  
State Ownership ◽  
Sub Saharan Africa ◽  
The People ◽  
Vested Interests ◽  
Sub Saharan ◽  
Sustainable Economic Growth

This chapter discusses economic development and markets in developing countries, with a focus on sub-Saharan Africa. Developing countries, especially lower-income developing countries with low rates of growth, share key characteristics and challenges. Huge portions of their populations live below the poverty line. The markets are generally highly concentrated with high barriers to entry, and state ownership—with privileges granted by the state—is pervasive. In order to provide the people with the necessities of life, developing countries need economic growth; in order to provide equity and spur development, they need inclusive, sustainable economic growth, consistent with equity. The chapter then describes two forms of market policy: antitrust law, which prohibits and removes restraints by market actors who engage in harmful conduct such as conspiracies to raise prices and bar entry by competitors, and surrounding restraints that are not violations of law but do the same thing: raise prices, barricade entry, and favor vested interests.

Conceptualizing the Developmental State in Resource-Rich Sub-Saharan Africa

2015 ◽  
Vol 8 (2) ◽  
Author(s):  
Sara Ghebremusse
Keyword(s):  
Natural Resources ◽  
State Capacity ◽  
Developmental State ◽  
Sub Saharan Africa ◽  
State Model ◽  
Developmental States ◽  
State Participation ◽  
Sub Saharan

AbstractThis paper uses the “developmental state” model to conceptualize state participation in African extractive sectors. What form thss can take in resource-rich states has not been extensively studied, since most countries labeled as “developmental states” lacked significant natural resources. Borrowing from the experiences of “successful” African developmental states – notably Botswana and Mauritius – this paper proposes a graduated developmental state model that is driven by state capacity, both fiscally and structurally. This paper is divided as follows:

Steering Sustainable Economic Growth: Entrepreneurial Ecosystem Approach

2021 ◽  
pp. 239395752110243
Author(s):  
Abdullah Promise Opute ◽  
Kalu Ibe Kalu ◽  
Ogechi Adeola ◽  
Chux Gervase Iwu
Keyword(s):  
Economic Growth ◽  
Well Being ◽  
Ecosystem Approach ◽  
The Body ◽  
Sub Saharan Africa ◽  
Future Research ◽  
Entrepreneurial Ecosystem ◽  
Sub Saharan ◽  
Critical Policy ◽  
Sustainable Economic Growth

The importance of entrepreneurship in steering sustained economic growth and improved well-being has been re-echoed over the past decade. Regrettably, the sub-Saharan Africa setting lags behind from the point of harnessing the economic development impact of entrepreneurship, and the obvious implication is ever increasing unemployment and poverty. Utilising a systematic review approach, this article draws from the body of knowledge to shed light on critical strategies towards achieving productive entrepreneurship. Specifically, we forward an entrepreneurial ecosystem framework that underlines the importance of institutional level and enterprise level attributes in achieving effective entrepreneurial ecosystem and maximising economic growth gains. We highlight strategic and pro-active initiatives for ensuring active and ambitious entrepreneurial orientation that will contribute to economic growth and create employment. Towards achieving these targets, we also flag critical policy guides, drawing attention to the facilitating role that governments can play in ensuring an effective and economic growth impacting entrepreneurial ecosystem. Directions for future research have been flag.

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