IDEAS home Printed from
   My bibliography  Save this paper

Is Broad Industrialisation Imperative for Development? Case Studies on Uganda and Tanzania


  • Eva Näfe
  • Barbara von Toll


On the basis of two case studies viz. Uganda and Tanzania, this paper examines possible paths to development. The traditional one, here called ‘broad’ industrialisation, is contrasted with agricultural-based industrialisation and service sector development as possible alternative routes for countries to improve their situation. It is argued that traditional industrialisation is not an exclusive path towards development; rather there are other options such as industrialisation based on agriculture or service sector development. For Uganda the importance of all the three sectors has been recognised. However, it is suggested that a focus on agricultural and service sector development could be more promising for the near future as there are fewer obstacles that need to be overcome. Furthermore, prioritisation of subsectors could even lead to more effective results. Within the agricultural sector it is of critical importance to develop the value-adding activities in order to increase the quality of life eventually. In the case of Tanzania, it is not so clear whether broad industrialisation or services are the key. But clearly a diversification of the economy needs to take place. Compared to Uganda, Tanzania has a clear advantage of being situated at the sea shore. Very little focus has been put on policies supporting the service sector. But, growth rates of traditional agricultural exports in Tanzania are low. Thus, there is the need to diversify into service sector exports and non-traditional value-adding activities in order to pursue a path of development.

Suggested Citation

  • Eva Näfe & Barbara von Toll, 2011. "Is Broad Industrialisation Imperative for Development? Case Studies on Uganda and Tanzania," Competence Centre on Money, Trade, Finance and Development 1105, Hochschule fuer Technik und Wirtschaft, Berlin.
  • Handle: RePEc:mtf:wpaper:1105

    Download full text from publisher

    File URL:
    File Function: First version, 2011
    Download Restriction: no

    References listed on IDEAS

    1. Sheehan, Peter, 2008. "Beyond Industrialization: New Approaches to Development Strategy Based on the Service Sector," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).
    2. Petro S Magai & Alejandro Márquez-Velázquez, 2011. "Tanzania’s Mining Sector and Its Implications for the Country’s Development," Competence Centre on Money, Trade, Finance and Development 1104, Hochschule fuer Technik und Wirtschaft, Berlin.
    3. Kaplinsky, Raphael & Morris, Mike, 2008. "Do the Asian Drivers Undermine Export-oriented Industrialization in SSA," World Development, Elsevier, vol. 36(2), pages 254-273, February.
    4. Singh, Nirvikar, 2006. "Services-Led Industrialization in India: Assessment and Lessons," Santa Cruz Department of Economics, Working Paper Series qt8jn2b8z6, Department of Economics, UC Santa Cruz.
    5. Ajit Singh & Sukti Dasgupta, 2005. "Will services be the new engine of economic growth in India?," Working Papers wp310, Centre for Business Research, University of Cambridge.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mtf:wpaper:1105. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Dr. Sebastian Dullien). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.