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Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

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  • Pritish Behuria

Abstract

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.

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  • Pritish Behuria, 2019. "Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda," Development and Change, International Institute of Social Studies, vol. 50(4), pages 1033-1062, July.
    • Handle: RePEc:bla:devchg:v:50:y:2019:i:4:p:1033-1062
    DOI: 10.1111/dech.12498
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    Cited by:

    1. Julian Boys & Antonio Andreoni, 2020. "Value chain directionality, upgrading, and industrial policy in the Tanzanian textile and apparel sectors," WIDER Working Paper Series wp-2020-93, World Institute for Development Economic Research (UNU-WIDER).
    2. Stender, Frederik & Vogel, Tim, 2021. "Murky trade waters: Regional tariff commitments and non-tariff measures in Africa," IDOS Discussion Papers 13/2021, German Institute of Development and Sustainability (IDOS).
    3. Harmke Immink & Robbie Louw & Amy Garlick & Samuel Vosper & Alan Brent, 2022. "Country specific low carbon commitments versus equitable and practical company specific decarbonisation targets," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(8), pages 10005-10025, August.
    4. Talea Bernatzki & Matthias Busse & Ruth Hoekstra, 2022. "Promoting Rwanda’s business environment: Impact of reforms and drivers of change," Development Policy Review, Overseas Development Institute, vol. 40(2), March.
    5. Chinsinga, Blessings & Weldeghebrael, Ezana Haddis & Kelsall, Tim & Schulz, Nicolai & Williams, Timothy P., 2022. "Using political settlements analysis to explain poverty trends in Ethiopia, Malawi, Rwanda and Tanzania," World Development, Elsevier, vol. 153(C).

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