Structural Transformation in Africa: Policy, Strategy, Process & Structure Ethiopia Case Study

Structural Transformation in Africa:

Policy, Strategy, Process & Structure

Ethiopia Case Study

Public Lecture - Respublica Literaria CXXXIX, MMXVI

Costantinos Berhutesfa Costantinos, PhD

Professor of Public Policy, School of Graduate Studies,

College of Business and Economics, AAU

Abstract

This lecture evaluates achievements and challenges of the industrial development strategy of Ethiopia. During the study, the researcher undertook a literature review and collected primary data from government officials and secondary data from national reports. The discourse in the literature and findings of different empirical studies were reviewed and triangulated with the content of the interviews that were held with key informants. Three major obstacles must be overcome in order to make industrial policy in developing countries more successful: bad economic advice, development agencies and private consultancies, which say that they have identified the best practice and can provide you with a golden ticket to economic prosperity and the allure of FDI. The success of industrial policy in developing countries will be greatly enhanced by recognition of the wealth latent in their own national value chains and of their right and responsibility to limit foreign presence when it infringes on their capacity to build an economy, which serves their populations’ needs (Janoo, 2016:1).

Source Economic Report on Africa, 2013

The findings of the study showed that the strategy has resulted in good growth of the industry sector, brought remarkable improvements, and contributed to the development of the national economy. Nevertheless, the study leads to the conclusion that the strategy is not effective in bringing structural change in the economy. Moreover, if structural change is desired in a manner that allows industry to take the lead in the economy, Ethiopia still needs to invest in a number of areas for the realization of this goal. Investments to increase the agricultural productivity, enhancing forward and back ward linkages of the manufacturing sector, tapping into the mining sector, linking research and development works and improving the overall business and investment climate are recommended to enhance the effectiveness of the Industrial development strategy. Credit and capital markets are vital to industrialisation. The lecture is based on Misgana Tekle’s 2015 AAU MPA thesis

Key words: industrial policy, industrial strategy, technology, capital, management know how

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