New economic report urges Africa to build credible institutions to boost industrialization

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Abuja, 30 March 2014 (ECA) - African countries need to introduce credible industrial policies and promote effective industrial policy organizations to enhance the structural transformation of the continent, says a new report jointly produced by the United Nations Economic Commission for Africa and the African Union Commission.

Transforming Africa’s industrial landscape has failed partly because countries used industrial blueprints characterised by lack of dynamism and high level coordination, as well as inadequate consultations with stakeholders, according to this year’s Economic Report on Africa.

Until now, says the report, an examination of Africa’s failure at industrialization had ignored the policy processes and institutions governing industrial policy in Africa or the impact of their inherent weaknesses on industrialization. “Indeed, weak institutional structures and poor policy design have been at the root of Africa’s industrial policy problem throughout its post-independence history,” the report declares.

The theme of this year’s report is “Dynamic industrial policy in Africa: innovative institutions, effective processes and flexible mechanisms.” While acknowledging Africa’s impressive economic growth in the past decade on the back of better commodity prices, improved governance and increasing domestic demand and trade and investment ties with emerging economies, it says that industrialization is a “precondition for Africa to achieve inclusive and sustainable economic growth.”

Beyond an analysis of the continent’s industrialization problems, and based on the experience of industrializing countries in the global south, the report offers an institutional framework for designing and implementing industrial policy in Africa.

The report recommends that top-level coordination of the industrial policy framework is required to deal with potential problems that could undermine the efficiency of industrial policy. Making provision for dialogues between public sector and private stakeholders allows governments and the industrial policy organizations to be adaptable to the changing needs of industry, it counsels.

Regarding the provision of modern infrastructure and logistics necessary for industrialization, the report wants governments with few resources to create “pockets of infrastructure” focused on sectoral or clustering needs of industrial expansion. It recommends industrial parks as one approach which “provides high potential for growth and value addition as well as for solid linkage development and related spillovers among companies, suppliers and service providers.”

The report builds on the previous work of the 2011 edition—on the role of the state in economic transformation—and last year’s—on leveraging Africa’s comparative advantages in commodities to industrialize.


Download the report here:
http://www.uneca.org/era2014
Follow the debate #ERA2014


Tentative Schedule: Multi-city Events on the 2014 Economic Report on Africa:

 
LocationDateLocation and Partnership
Abuja, Nigeria30 March 2014Hilton Transcorp, during Annual Joint Conference of Ministers of Finance, Planning and Economic Development
New York, USA 11 April 2014In collaboration with Office of the Special Adviser on Africa -OSAA and Department of Public Information at Trusteeship Council Chamber, UN Secretariat Building
Geneva, Switzerland 16 April 2014 In collaboration with the African Group of Negotiators and the African Union; Palais des Nations - Salle XXIV 
Khartoum, Sudan 27 April 2014 In collaboration with Mamoun Beheiry Centre for Economic and Social Studies and Research  
Addis Ababa, Ethiopia 12 May 2014 Launch of Report to be held for the Addis Ababa Diplomatic Corps, Representatives from Government of Ethiopia, Civil Society and UN agencies at the UN Conference Centre 
Pretoria, South Africa 27 May 2014 In collaboration with the Univeristy of Pretoria - Rethinking Development Public Seminar Series; 
Libreville, Gabon 2-6 June 2014 In collaboration with UNDP 
Brazaville, Congo 2-6 June 2014 In collaboration with UNDP 
Port Louis, Mauritius 9-14 June 2014 To Be Communicated
Nairobi, Kenya 16-20 June 2014 Kenya Institute for Public Policy Research and Analysis (KIPPRA); 2nd Floor Bishops Garden Towers, Bishops Road 
Tunis, Tunisia19-24 May 2014 Chambre de Commerce et de l’Industrie de Sfax 
Abidjan, Cote d'Ivoire 26-31 May 2014 In collaboration with the Ministry of Industry and Mines 
London, United Kingdom July 2014 In Collaboration with The Royal Institute of International Affairs, Chatham House 
Dakar June 2014 To Be Communicated 
Yaounde June 2014To Be Communicated 
Niamey June 2014  To Be Communicated 
Kigali June 2014  To Be Communicated 
Lusaka June 2014  To Be Communicated 
Rabat June 2014  To Be Communicated