Made in Africa: Industrial Policy in Ethiopia - Hardcover

Oqubay, Arkebe

Hardcover

ISBN 10: 0198739893 ISBN 13: 9780198739890

Publisher: OUP Oxford, 2015

Synopsis

Made in Africa presents the findings of original field research into the design, practice, and varied outcomes of industrial policy in the cement, leather and leather products, and floriculture sectors in Ethiopia. It explores how and why the outcomes of industrial policy are shaped by particular factors in these industries. It also examines industrial structures and associated global value chains to demonstrate the challenges faced by African firms in international markets. The findings are discussed against the backdrop of 'industrial policy', which has recently found renewed favour among economists and international organizations, and of the history of thought about and practice in industrialization. The book seeks to learn from the failures and successes in the three sectors, all of them functioning under the umbrella of a single industrial strategy. It argues that an effective industrial policy requires a more interventionist state than most development economists would accept, including those recently claiming to champion a 'new industrial policy'. Moreover, it argues that success lies in the interactions among policy, specific industrial structures, and institutions. Specifically, a successful policy, he posits should maximize linkage effects, but will founder in the absence of a clear understanding of the political economy of each sector.

About this title

Review

As a senior official in the ruling regime for the last few decades, Oqubay has been one of the architects of its economic policy, and his book offers interesting insights into the leaderships ideas and motivations, especially when it comes to industry and exports. (Nicolas van de Walle, Foreign Affairs)

Oqubay structures this book within a broad narrative that argues that industrial policy can work and, moreover, it can work in Africa. He looks in detail at three economic sectors: the cement industry (an import substitution industry); floriculture; and leather footwear and apparal (an export-oriented light industry). (Stephen Williams, African Business)

gives readers a rare front-row assessment of an African country's industrial strategy since the early 2000s. Seamlessly blending theoretical knowledge, academic rigor and rich policy analysis, the book highlights Ethiopia's industrial transformational path ... The book makes a compelling case for how industrial policies can work and thrive in a low-income African country (Dr Carlos Lopes (Ph.D), U.N Undersecretary and UNECA Executive Secretary, Selamta in flight magazine of Ethiopian Airlines)

This book combines sophisticated theories of industrial policy with a deep understanding of the policy process, which comes from the author's long experience in policy-making at the highest levels. This unusual combination has resulted in a framework for empirical analysis that is not only fully appreciative of structural dynamics and inter-sectoral linkages but also keenly aware of practical challenges policy implementation in terms of administrative capabilities, interest group politics, and institutional constraints. A unique, pathbreaking book. (Ha-Joon Chang, Reader in Economics, University of Cambridge)

Ethiopia is a development miracle in making, which will provide the inspiration, confidence, and experiences for other African countries, like the Japanese miracle in post WWII to East Asian countries. Dr Arkebe Oqubays Made in Africa: Industrial Policy in Ethiopia is a brilliant book. It provides first-hand insights with academic rigor about how Ethiopia kicked starting dynamic structural transformation and achieved double-digit growth in the past decade. Anyone concerned about the development in Africa and other poor countries in the world would be wise to read the book. (Justin Yifu Lin, Professor, Peking University and Former Chief Economist, the World Bank)

Solid transformation of the Ethiopian economy will generate its own industry of success attribution, but few will dispute that this book spells out succinctly and beautifully what is changing. There is no special secret as Arkebe rightly demonstrates: industrial policy is about a reform-minded government having a drive to make it happen; but also having the right cocktail of policies that generate the incentives in every front to make success possible. From agro-processing to light industrial production, from textiles to infrastructure servicing, Ethiopia has become a good case study for other countries to emulate. Be it through regulatory and macro incentives, be it through energy-centered investment, it demonstrates the need for coherence and eagerness to learn from other realities, particularly from Asia. A must read for the many Africans engaged in structural transformation. (Carlos Lopes, UN Undersecretary and UNECA Executive Secretary)

This is a profoundly original book about the Ethiopian development experience which highlights the potential for, and constraints on, industrialization in Africa. It questions conventional wisdom to argue that industrial policy can work even in low-income countries, where the State performs a developmental role and has the space to make its own policy choices. The author recognizes that industrial policy is easier said than done, to focus on implementation as much as analysis, and emphasizes that even if outcomes are mixed there is learning from both successes and failures. This lucid and engaging book is an unusual blend of theory and policy, as Arkebe Oqubay combines careful scholarship with his rich experience as a policy practitioner. It is essential reading for scholars and practitioners in countries that are latecomers to industrialization. (Deepak Nayyar, Emeritus Professor of Economics, Jawaharlal Nehru University, New Delhi, and former Vice Chancellor, University of Delhi)

Active and responsive industrial policy, trial-and-error attitude, and great attention to sectoral details proposed in this book are essentially East Asian. As a scholar and policy maker, Dr Arkebe has revealed to us what is going on in the mind-set of Ethiopian leaders, and why the country is growing fast and absorbing a large amount of light manufacturing investment from abroad. (Kenichi Ohno, Professor, National Graduate Institute for Policy Studies, Tokyo)

This book arrives at a propitious moment. There is a growing recognition of the importance of industrialization in Africa and an expanding consensus on the need for industrial policy but a paucity of studies to map out the terrain of transformation. The volume provides detailed insights into the institutional configuration and political dynamics underlying industrial policy success and failures by an insider closely tied to the center of power in Ethiopia. The book is essential reading for policy makers, academics and students of the political economy of Ethiopian economic policy. (Howard Stein, Professor School of Public Health, DAAS, University of Michigan)

Arkebe Oqubay is the ultimate insider, yet he offers an admirably detached and balanced assessment of the ups and downs of Ethiopias industrial policies. His view of industrial policy is a sophisticated one. Successful intervention requires the right political and institutional framework. It demands a deep understanding of market opportunities, of supply-side problems and linkages across activities, and an appreciation of what government can and cannot do. And it depends, most crucially, on the governments capacity to implement the appropriate measures. This book will be essential reading for all those concerned with the process of industrialisation in developing countries. (John Sutton, Sir John Hicks Professor of Economics, London School of Economics)

About the Author

Dr Arkebe Oqubay is a minister and special advisor to the Ethiopian prime minister and has been at the centre of policymaking for 25 years. He is the former mayor of Addis Ababa and serves as board chair of leading public organizations. He holds a PhD in development studies from SOAS, University of London, and is research associate at the Centre of African Studies in the University of London. Dr Oqubay has been a member of the core leadership of TPLF and EPRDF, the movement that spearheaded the seventeen-year popular liberation struggle that ended the Derg military dictatorship.

Edition details

• Publisher: OUP Oxford
• Publication date: 2015
• ISBN 10: 0198739893
• ISBN 13: 9780198739890
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 374