The Political Economy of Industrialization and Industrial Policy in Africa, 1960‒2018

Abstract

This chapter examines industrial policy (IP) in Africa from late colonial times to the present. It focuses on explanations of the failure of African countries to transcend the first stage of import substitution and effect the structural transformation of their economies. These explanations lie in the nature of a country’s power relations, their interaction with foreign capital and international institutions, and their effect on the ability of the state to implement IP. We point to the continuities from colonial IP to the post-independence adoption of more rapid import substitution, then to the effects of liberalization through structural adjustment programmes on IP and industrialization, and finally to the return of a more focused IP. We show the policy effects on industrial growth and economic structure in each period and argue that particular policies were followed because of the power of specific class and state coalitions to prevent or effect change.