Made in Africa: Industrial Policy in Ethiopia

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Oxford University Press, 2015 - Business & Economics - 348 pages
This is an open access title available under the terms of a CC BY-NC-ND 4.0 International licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations.

This is an open access title available under the terms of a CC BY-NC-ND 4.0 International licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations.

Made in Africa presents the findings of original field research into the design, practice, and varied outcomes of industrial policy in the cement, leather and leather products, and floriculture sectors in Ethiopia. It explores how and why the outcomes of industrial policy are shaped by particular
factors in these industries. It also examines industrial structures and associated global value chains to demonstrate the challenges faced by African firms in international markets. The findings are discussed against the backdrop of 'industrial policy', which has recently found renewed favour among
economists and international organizations, and of the history of thought about and practice in industrialization.

The book seeks to learn from the failures and successes in the three sectors, all of them functioning under the umbrella of a single industrial strategy. It argues that an effective industrial policy requires a more interventionist state than most development economists would accept, including those
recently claiming to champion a 'new industrial policy'. Moreover, it argues that success lies in the interactions among policy, specific industrial structures, and institutions. Specifically, a successful policy, he posits should maximize linkage effects, but will founder in the absence of a clear
understanding of the political economy of each sector.

 

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Excellent book with an in-depth analysis of the Ethiopian and African reality for industrialization. An in-depth analytical examination of the industrial sector in Ethiopia was seriously lacking and this book is a major contribution and the lessons to be learnt in the context of Africa. It shows the complex web of the challenge of industrialization and an effective contribution to the wider frame of understanding the challenges when industrialization is attempted by developing countries. It deals with the issues of productivity, technical and organizational change, technology and human skills, the importance of institutions and the context of policy space. It examines transformation in the context of African countries and examines the political economy industrialization from a realistic point of view. It shows how the state is vital and underappreciated in its role in industrialization, creating and shaping market and the economy. It shows how the state plays a far more creative role in terms of setting a grand mission of industrialization, investing in the different stages of industrialization and partnering with the private sector. It examines the critical role played by the state in economies such as US, Britain, China, Brazil, Germany etc where the state was not just acting as a market regulator but an active actor in shaping industrialization and growth of economies. It challenges conventional wisdom, review policy making in Ethiopia and Africa, examines structural change and what it takes to do it in Africa, deeply and directly observes the real world from an African context, discusses what constitutes successful catch up, and how industrial policy combination of strategic selective intervention. A must read and refreshing as well as useful book based on both theory and practice as the author is bot an excellent researcher and practitioner.  

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About the author (2015)


Arkebe Oqubay, Minister and Special Advisor to the Ethiopian Prime Minister

Arkebe Oqubay is a Senior Minister and Special Adviser to the Prime Minister of Ethiopia and has been at the centre of policymaking for over twenty-five years. He is a research associate at the Centre of African Studies in the University of London, and holds a PhD in development studies from SOAS,
University of London. He is the former mayor of Addis Ababa and winner of the ABN Best African Mayor of 2006, and finalist for the World Mayor Award 2006. He is a recipient of the Order of the Rising Sun, Gold and Silver Star and serves as board chair of several leading public organizations and
international advisory boards. His work includes Made in Africa: Industrial Policy in Ethiopia (OUP, 2015); African Economic Development: Evidence, Theory, and Policy (OUP, 2019); and China-Africa and an Economic Transformation (2019, OUP). He was recognized as one of the 100 Most Influential
Africans of 2016, and a 'leading thinker on Africa's strategic development' by the New African.

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