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Economic transformation in theory and practice: What are the messages for Africa?

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Author Info
Breisinger, Clemens
Diao, Xinshen

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Abstract

"Encouraging signs of growth acceleration in Africa may herald a new development era of rapid transformation. In an effort to promote the future success of African transformation, we herein provide an extensive literature review on development economics and empirical observations from successfully transformed countries, along with analytic narratives on the transformations of Thailand and Mexico. To conclude, we derive six key messages for African transformation. We find that the traditional development economics theory is consistent with the transformation practice of successful countries. However, this theory needs to be broadened in light of rising inequalities during transformation. Success vitally depends on agricultural development; early withdrawal of public support away from agriculture slows down transformation, and the resulting inequalities are recognized as a persistent development challenge. Transformation also depends on industrialization strategies, but we find that winner-picking industrialization negatively affects other aspects of development, whereas home-grown, export-oriented industrialization led by private entrepreneurs opens up broader opportunities for sustainable growth. Finally, government support will be required to create a business-promoting environment and to offer incentives for African entrepreneurs to lead growth." from authors' abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 797.

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Date of creation: 2008
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Handle: RePEc:fpr:ifprid:797

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Keywords: Economic transformation; Agricultural growth; structural change; Development strategies;

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References listed on IDEAS
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  3. Godo, Yoshihisa & Takahashi, Daisuke, 2008. "Japan: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 822, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. Blandford, David & Orden, David, 2008. "United States: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 821, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Bouet, Antoine & Mevel, Simon & Thomas, Marcelle, 2008. "The effects of alternative free trade agreements on Peru: Evidence from a global computable general equilibrium model," IFPRI discussion papers 824, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Schiffer, Eva & McCarthy, Nancy & Birner, Regina & Waale, Douglas & Asante, Felix, 2008. "Information flow and acquisition of knowledge in water governance in the Upper East Region of Ghana:," IFPRI discussion papers 820, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Wouterse, Fleur S., 2008. "Migration and technical efficiency in cereal production: Evidence from Burkina Faso," IFPRI discussion papers 815, International Food Policy Research Institute (IFPRI). [Downloadable!]
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