Sustainable Industrialization in Africa: Toward a New Development Agenda

223 Pages·2016·1.47 MB·English

by  Padmashree Gehl Sampath

“The book is set at the junction of two agendas, raising pertinent questions related
to the need for integrating economic transformation, sustainable management of
natural resources, social inclusion, sustainable agriculture and industrial develop-
ment, sustainable urbanization and rural prosperity. It also suggests the need to
calibrate the post-2015 SDGs agenda according to the needs of specific regions
and countries. The book and its content could not have been timed better.”
– Amina Mohammed, United Nations Special Advisor on
Post-2015 Development Planning
“This book not only deepens our understanding of the sustainable development
goals but it is also persuasive in its argument for redirecting our collective efforts
in Africa to the central role of industrialization as an engine of economic devel-
opment. It is well researched and refreshing in the techniques it deploys to make
the case. I fully recommend it to academia, political players and policy actors.”
– Professor Yemi Osinbajo, Professor of Law and Vice President,
Federal Republic of Nigeria
“The book is a collection of eight excellent chapters written by nine African and
non-African specialists addressing the general theme of sustainable industrializa-
tion and development of Africa. The lead authors are authorities in the field who
give insightful definitions for ‘sustainable development,’ profound analysis of
the status and potential of Africa’s services sector, linkage dynamics and natural
resources, diversification and catch-up, and a thorough treatise on sustainable
development and inequality of opportunity in Africa. I would consider the
book as essential reading by all the stakeholders of development – economists,
policy makers, development partners, university professors in the developmental
sciences and graduate students.”
– Professor Berhanu Abegaz, Executive Director,
African Academy of Sciences
“Too much emphasis on trade in the last 20 years has overlooked that industri-
alization is key to fostering economic and social development. This book must be
welcomed not only because it stresses this notion but also for many other reasons.
It analyzes in-depth the situation and industrialization prospects for Africa, often
seen as condemned to be a mere supplier of raw materials; emphasizes the role
of the states in leading the transformation of national economies; advocates
an environmentally sustainable and equity-based policy, adapted to the reality
of each country; recognizes the importance of innovation (including by imita-
tion and learning); and brings the discussion of these issues in the context of
the Sustainable Development Goals that were elaborated pursuant to the World
Conference on Sustainable Development – Rio+20. The quality and coverage of
the research conducted for this book provide a unique set of materials valuable
to academics, policy makers and the broader public interested in the future of
African societies and sustainable development.”
– Professor Carlos Correa, Director, Center for Interdisciplinary Studies
on Industrial Property and Economics, University of Buenos Aires
“A key aspect of Sustainable Development Goals is building the productive
capacity of developing countries. This book offers a most comprehensive and
balanced approach to this issue, which has been rarely available so far. It analyzes
the ‘three main alternatives’ of manufacturing, service, and resource-based
paths toward development, besides the roles of the GVCs, and thereby provides
evidence-based policy suggestions.”
– Professor Keun Lee, Professor of Economics,
Seoul National University
“This book ‘Sustainable Industrialization in Africa: Toward a New Development
Agenda’ promises to re-open the debate on the role of industrialization in Africa
and its contribution to economic growth. The book is well focused with defini-
tive policy recommendations drawing on the MDGs and anchored on the 2030
Agenda for Sustainable Development.
I fully endorse and recommend this novel book to policy practitioners, academics
as well as industrialists.”
– O. Ibidapo-Obe, past president, Nigerian Academy of Sciences
and Fellow African Academy of Sciences; Distinguished Professor;
Vice Chancellor University of Lagos (2000–2007)
Sustainable

Industrialization in Africa
Toward a New Development Agenda
Edited by
Padmashree Gehl Sampath
and
Banji Oyelaran-Oyeyinka
Selection and editorial content © Padmashree Gehl Sampath and
Banji Oyelaran-Oyelaran 2016
Chapters © Contributors 2016
Foreword © Amina J. Mohammed 2016
Softcover reprint of the hardcover 1st edition 2016 978-1-137-56111-4
All rights reserved. No reproduction, copy or transmission of this
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in accordance with the Copyright, Designs and Patents Act 1988.
First published 2016 by
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ISBN 978-1-349-57360-8 ISBN 978-1-137-56112-1 (eBook)
DOI 10.1007/978-1-137-56112-1
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Contents
List of Illustrations v ii
Foreword ix
Amina J. Mohammed
Preface xii
Notes on Contributors xiii
1 Sustainable Industrialization in Africa: Toward a
New Development Agenda 1
Padmashree Gehl Sampath
2 Revisiting the MDGs in an African Perspective:
Lessons for the Sustainable Development Goals 20
Olumayokun Soremekun and Banji Oyelaran-Oyeyinka
3 Challenges to and Opportunities for Structural
Transformation: Africa’s Service Sector 46
Padmashree Gehl Sampath and Donatus Ayitey
4 Linkage Dynamics and Natural Resources:
Diversification and Catch-Up 6 6
David Kaplan
5 External Opportunities, Innovation and Industrial
Growth: The Case of GVCs in Africa 85
Padmashree Gehl Sampath and Donatus Ayitey
6 Growth and Structural Change in Africa: Development
Strategies for the Learning Economy 113
Bengt-Åke Lundvall and Rasmus Lema
v
vi Contents
7 Using Industrialization to Raise Urban Living Standards 1 39
Oyebanke Oyeyinka
8 Sustainable Development and Inequality of Opportunity
in Africa 173
Olumayokun Soremekun, Oyebanke Oyeyinka and
Dominique Haughton
Index 201
List of Illustrations
Box
7.1 Sample questions of subjective living standard
measurements 149
Figures
2.1 DAG pattern by PC algorithm 28
2.2 PC DAG model 32
2.3 Research model 36
2.4 PLS formative model 38
5.1 Results of policy effects on industry value-added and
participation in GVCs over the two policy periods 102
5.2 Results of R&D policy effects on industry value-added
and participation in GVCs over the two policy regimes 104
6.1 A model linking transformation pressure to the
capacity to change and to the distribution of the costs
and benefits of change 127
A 7.1 Levels of deprivation in households in Nigeria and the
Otigba cluster 167
8.1 A framework for inequality of outcome and
opportunity 176
Tables
2.1 MDGs – selected targets and indicators in our model 2 5
2.2 Indicator loadings and bootstrap results 39
2.3 Path coefficients with bootstrap values, T values 39
3.1 Definition of variables 51
3.2 Correlation matrix 55
3.3 Estimated output 56
3.4 Estimated output 60
5.1 Transition from science and technology (S&T) policies
to science, technology and innovation (STI) policies
in selected African countries 93
vii
viii List of Illustrations
5.2 Descriptive statistics 96
5.3 Definition of variables 97
5.4 Policy effects on industry value-added and participation
in the GVCs 100
5.5 Estimated multiple linear models (main effects) 106
A 5.1 GERD as a percentage of GDP in selected sub-Saharan
African countries (2010–2012) 109
7.1 Overlap in MPI, UN-Habitat and study indicators 151
7.2 Percentage of firms involved in the market for various
products and services 153
7.3 Profile of employees in Otigba 155
7.4 Association of standards of living and main source
of lighting 158
7.5 Summary – standardized measures of living standards
among Otigba employees 161
8.1 Proportion of urban population in slum areas 178
8.2 DHS-V survey characteristics for select countries 183
8.3 Example dataset 1 85
8.4 Opportunities 187
8.5 Circumstances 188
8.6 Coverage of opportunities 189
8.7 Logistic regression estimates – access to electricity 190
8.8 D-Index 1 91
8.9 Human Opportunity Index 193
A 8.1 Logistic regression estimates – access to water 197
A 8.2 Logistic regression estimates – access to sanitation 197
A 8.3 Logistic regression estimates – access to education 197
Foreword
Over the two decades, the international community has been engaged
in an intense debate to agree upon new, common global milestones to
guide long-term development efforts of countries worldwide. The first
effort that began shortly before the year 2000 culminated in the adop-
tion of the Millennium Development Goals (MDGs), which are set to expire
this year. The process of finding a worthy successor to this framework
has been ongoing from 2012, coming out of the World Conference on
Sustainable Development – Rio+20. This widely inclusive global process
has engaged diverse actors within the international development debates
in order to build consensus around the proposed S ustainable Development
Goals (SDGs).
Both sets of goals have some similarities, but differ substantially in
their core philosophies and proposed outcomes. Both focus broadly on
the long-term agenda of ending poverty and attenuating vulnerabili-
ties in developing countries in its multi-dimensional forms such as the
lack of income, equality, education, water, sanitation and the right to
political participation among others that became the capstone of the
Millennium Development Goals. But at the same time, there are large
differences. For example, the developmental vision advanced by the
Millennium Development Goals for eradicating poverty and attenuating
multiple vulnerabilities that are widespread in developing countries was
far less sanguine about the prospects of endogenous productive capabili-
ties in poor countries. However, not much emphasis was placed on the
drivers of wealth creation such as innovation (broadly defined), indus-
trialization, and ultimately sustainable production and consumption
and equitable development. Perhaps a more robust engagement with
these issues in MDGs may well have triggered greater investment into
more appropriate knowledge-driven programs and solutions.
On the contrary, at the heart of the Sustainable Development Goals
for all countries is an emphasis on productive activities represented
by four core goals, namely Goal 2: “End hunger, achieve food security
and improved nutrition, and promote sustainable agriculture”; Goal 8:
“Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all”; Goal 9: “Build resil-
ient infrastructure, promote inclusive and sustainable industrialization
ix