Introduction and Analytical Approach
Sub-Saharan Africa’s industrial development has been disappointing. This has been explained by two sets of factors. The first has traced it to external shocks such as declining terms of trade, droughts and civil unrest; the second to inappropriate policies, such as poor macro-economic management, inward-looking trade strategies, a predilection for public ownership, regulations on domestic competition, financial market segmentation and suppression, and restrictions on foreign investment. These two sets of explanations, with their associated recommendations, have tended to dominate discussions of African industrialisation. The remedies for the first set of deficiencies (primarily espoused by many African governments) have been to increase import capacity by giving more aid and to restore stable political conditions. For the second set (mainly from the multilateral aid agencies), they have been to achieve macroeconomic stability and more market-oriented policy regimes.1
KeywordsSmall Firm Market Failure Technological Capability Industrial Enterprise Efficient Resource Allocation
Unable to display preview. Download preview PDF.