By Frances Stewart, Sanjaya Lall, Samuel M. Wangwe
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Extra info for Alternative Development Strategies in SubSaharan Africa
Secondly, from the 1970s macropolicies favoured exportoriented indutrialisation. Thirdly, companies from Hong Kong, anxious to diversify their location, took advantage of these favourable conditions. Local entrepreneurship was also very active (with close links with India), and was responsible for half of manufactured exports. 23 While the examples of successful industrial development in the largescale formal sector, whether owned by the state or by private enterprises, have been unusual, especially among indigenous companies, the very small-scale sector has been notably successful, as recorded in the chapters of Liedholm and Bagachwa and Stewart.
In addition, by extending the size of market, production on a regional basis allows for division of labour, specialisation and competition, all of which form essential aspects of efficient growth. The country-by-country import substitution policies followed in the past were inevitably associated with high production costs, because the small size of most economies made it impossible to realise scale economies and led to an oligopolistic structure in many industries. As pointed out earlier, only very small-scale technologies, where competition is fierce, escaped the prevalent inefficiencies.
Only Frances Stewart, Sanjaya Lall and Samuel Wangwe 27 applying to industries where comparative advantage can be expected to develop over a ten-year period; - industries should be selected for protection and promotion where it seems probable that a dynamic comparative advantage will emerge; experience from other countries provides a strong indicator of the industries which should be promoted at an early stage of development; industries in which there are not very significant economies of scale and which involve relatively high labour intensity and low skill requirements are likely candidates.
Alternative Development Strategies in SubSaharan Africa by Frances Stewart, Sanjaya Lall, Samuel M. Wangwe
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