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Periodical article | Leiden University catalogue | WorldCat |
Title: | Structural Adjustment and African Industry |
Author: | Lall, Sanjaya |
Year: | 1995 |
Periodical: | World Development |
Volume: | 23 |
Issue: | 12 |
Period: | December |
Pages: | 2019-2031 |
Language: | English |
Geographic terms: | Subsaharan Africa Ghana |
Subjects: | industrial development economic policy industrial policy Development and Technology Economics and Trade |
External link: | https://doi.org/10.1016/0305-750X(95)00103-J |
Abstract: | A recent World Bank study comes to optimistic conclusions about the impact of structural adjustment programmes (SAPs) on African industry and exports. This paper questions both the underlying approach and the empirical evidence. It argues that the data do not establish that adjustment has benefited industry. The experience of Ghana, the strongest adjuster in Africa, shows a spurt followed by relative stagnation and little manufactured export diversification. There is no controversy on the need for stabilization and some form of policy reform on industry. The debate is really about how efficient markets are, and what role governments should play in improving them. On the arguments advanced here, market failures are rife and structural adjustment must be pursued more gradually, with greater control, strategy and involvement by the government. Clearly, many African governments presently lack the capability to mount effective strategies. But given the need to remedy market deficiencies in order to achieve sustainable industrial development, the first step in adjustment should be to improve their intervention capabilities. The evidence on the benefits of past SAPs on industrial growth and diversification does not provide much support for the present World Bank 'line'. App., bibliogr., notes, ref., sum. |