Cape Verde and Mozambique as Development Successes in West and Southern Africa
AbstractThis paper applies an interpretation of how globalization and governance (G&G) interact with convergence given Cape Verde and Mozambique’s particular geographical and historical contexts. We hold that development success under globalization entails, necessarily but not exclusively, positive market perceptions regarding the orientation and predictability of policies as well as the accompanying institutional arrangements. As such, a positive G&G interaction with respect to a comparator group can usefully be defined as success notwithstanding the inexistence of a universally applicable development model. In practical terms, we first identify macro-level policy and institutional combinations underpinning successful trade diversification (an indicator of globalization) and income convergence (an indicator of governance) in the sub-regions of West and Southern Africa. We then assess to what extent these combinations apply to both countries using an empirical analysis. We find that trade openness drives convergence and export diversification in Western Africa (which is becoming more diversified) while convergence is instead driven by economic and political freedoms in Southern Africa (which is becoming more specialized). Our empirical analysis is complemented by a case-study narrative of Cape Verde and Mozambique’s long-term development, which allows us to also identify the following common drivers: moving towards a market economy; opening up to regional and global trade; increasing economic and political freedom; pursing macroeconomic stability and financial reputation; ensuring policy continuity (especially in the industrial and trade sectors) and focusing on human development (especially education and poverty reduction). Moreover, both countries reveal convergence compared to their sub-regional peers when looking at average GDP per capita and indicators of financial reputation and good governance. While these findings are insufficient to conclude that convergence will be sustained, the positive interaction between trade and financial globalization, on the one hand, and good governance and democracy, on the other, may help explain the observed diversity of the Portuguese-speaking African community, which includes three other countries (Angola, Guinea-Bissau and São Tomé e Príncipe).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16552.
Date of creation: Nov 2010
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cabral, Manuel Heredia Caldeira & Veiga, Paula, 2010. "Determinants Of Export Diversification And Sophistication In Sub-Saharan Africa," FEUNL Working Paper Series wp550, Universidade Nova de Lisboa, Faculdade de Economia.
- John M. Luiz, 2009. "Institutions and economic performance: Implications for African development," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(1), pages 58-75.
- Luca De Benedictis & Marco Gallegati & Massimo Tamberi, .
"Overall Specialization and Income: Countries Diversify,"
73, Sapienza University of Rome, CIDEI.
- Luca De Benedictis & Marco Gallegati & Massimo Tamberi, 2006. "Overall Specialization and Income: Countries Diversity," Working Papers 37-2006, Macerata University, Department of Finance and Economic Sciences, revised Oct 2008.
- Fecerico Bonaglia & Jorge Braga de Macedo & Maurizio Bussolo, 2002.
"How Globalisation Improves Governance,"
- Bonaglia, Federico & Braga de Macedo, Jorge & Bussolo, Maurizio, 2001. "How Globalization Improves Governance," CEPR Discussion Papers 2992, C.E.P.R. Discussion Papers.
- Federico Bonaglia & Jorge Braga de Macedo & Maurizio Bussolo, 2001. "How Globalisation Improves Governance," OECD Development Centre Working Papers 181, OECD Publishing.
- Macedo, Jorge Braga de, 2010. "Global crisis and national policy responses: together alone?," FEUNL Working Paper Series wp546, Universidade Nova de Lisboa, Faculdade de Economia.
- Paulo Bastos & Manuel Cabral, 2007.
"The Dynamics of International Trade Patterns,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 143(3), pages 391-415, October.
- Reinhart, Carmen & Rogoff, Kenneth, 2009. "This Time It’s Different: Eight Centuries of Financial Folly-Preface," MPRA Paper 17451, University Library of Munich, Germany.
- Macedo, Jorge Braga de & Pereira, Luis Brites, 2006. "The Credibility of Cabo Verde’s Currency Peg," FEUNL Working Paper Series wp494, Universidade Nova de Lisboa, Faculdade de Economia.
- Aleksandra Parteka, 2010.
"Employment and export specialisation along the development path: some robust evidence,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 145(4), pages 615-640, January.
- Aleksandra PARTEKA, 2007. "Employment and Export Specialization Patterns versus GDP Per Capita Performance - Unifying Approach," Working Papers 302, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Angel-Urdinola, Diego & Wodon, Quentin, 2007. "Assessing Absolute and Relative Poverty Trends with Limited Data in Cape Verde," MPRA Paper 11111, University Library of Munich, Germany.
- Jorge Braga de Macedo & Luis Pereira & Afonso Reis, 2009. "Comparing Exchange Market Pressure across Five African Countries," Open Economies Review, Springer, vol. 20(5), pages 645-682, November.
- Jeffrey A. Frankel, 2010.
"Mauritius: African Success Story,"
NBER Working Papers
16569, National Bureau of Economic Research, Inc.
- Jorge Braga de Macedo, 2012. "Cape Verde’s foreign policy: an economic perspective," FEUNL Working Paper Series wp572, Universidade Nova de Lisboa, Faculdade de Economia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.