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Trade, Development and Industrial Policy in Africa: The Case for a Pragmatic Approach to Optimizing Policy Coherence Between Industrial Policy and the WTO Policy Space

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  • van der Ven Colette M. A.

    (Sidley Austin LLP, Geneva, Switzerland)

Abstract

Industrial policy has become a new development priority for many African countries. In this context, many scholars point to the WTO and argue that a key impediment towards Africa’s successful industrialization is the narrowing of the WTO policy space. This paper challenges that argument through examining the extent to which African countries actually take into account the WTO policy space when implementing their industrial policy objectives. Through an empirical analysis of industrial policy priorities and key trade and investment laws and regulations in Kenya, Ghana and Namibia, this paper concludes that a significant policy constraint to effective industrialization in Africa is not the WTO policy space per se, but rather a lack of alignment between a country’s industrial policy objectives, trade and investment laws, and the WTO policy space.

Suggested Citation

  • van der Ven Colette M. A., 2017. "Trade, Development and Industrial Policy in Africa: The Case for a Pragmatic Approach to Optimizing Policy Coherence Between Industrial Policy and the WTO Policy Space," The Law and Development Review, De Gruyter, vol. 10(1), pages 29-80, June.
    • Handle: RePEc:bpj:lawdev:v:10:y:2017:i:1:p:29-80:n:2
    DOI: 10.1515/ldr-2016-0018
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    References listed on IDEAS

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    1. Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), 2013. "The Industrial Policy Revolution II," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33523-4, December.
    2. Jörg Mayer, 2009. "Policy Space: What, for What, and Where?," Development Policy Review, Overseas Development Institute, vol. 27(4), pages 373-395, July.
    3. Robert Hamwey, 2005. "Expanding national policy space for development: Why the Multilateral Trading System must change," Development and Comp Systems 0511005, University Library of Munich, Germany.
    4. Yaw Ansu, 2013. "Industrial Policy and Economic Transformation in Africa: Strategies for Development and a Research Agenda," International Economic Association Series, in: Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), The Industrial Policy Revolution II, chapter 6, pages 492-528, Palgrave Macmillan.
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    1. van der Ven Colette M.A., 2018. "Inclusive Industrialization: The Interplay Between Investment Incentives and SME Promotion Policies in Sub-Saharan Africa," The Law and Development Review, De Gruyter, vol. 11(2), pages 557-587, December.
    2. Sèna Kimm Gnangnon, 2019. "Trade Policy Space and Production Diversification in Developed and Developing Countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-39, June.

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