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The politics of industrial policy: ruling elites and their alliances

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  • Lindsay Whitfield
  • Lars Buur

Abstract

Economic transformation is driven by successfully implemented industrial policy, but industrial policy is inherently political. We cannot understand why some governments pursue and implement industrial policy better than others without understanding its politics. This article addresses the conditions under which industrial policies are successfully implemented. It presents an analytical approach to understanding why some ruling elite-capitalist alliances lead to better economic outcomes than others. Sub-Saharan African countries present a particular puzzle, given their low productive capabilities and the relatively small number of successful productive sectors. The article examines the most successful productive sectors in Mozambique and in Ghana in order to illuminate the conditions under which such alliances occur and their specific characteristics and outcomes.

Suggested Citation

  • Lindsay Whitfield & Lars Buur, 2014. "The politics of industrial policy: ruling elites and their alliances," Third World Quarterly, Taylor & Francis Journals, vol. 35(1), pages 126-144, January.
    • Handle: RePEc:taf:ctwqxx:v:35:y:2014:i:1:p:126-144
    DOI: 10.1080/01436597.2014.868991
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    Cited by:

    1. Shen, Wei & Ayele, Seife & Worako, Tadesse Kuma, 2023. "The political economy of green industrial policy in Africa: Unpacking the coordination challenges in Ethiopia," Energy Policy, Elsevier, vol. 179(C).
    2. Martínez Sola, María Luz, 2017. "Ocasos y resurgimientos de los Bancos Nacionales de Desarrollo en Latinoamérica: entendiendo factores que pudieron haber afectado las diversas trayectorias en Argentina y Brasil," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 27, pages 101-139, May.
    3. Tröster, Bernhard & Janechová, Eva, 2021. "The long journey towards Pan-African integration: The African Continental Free Trade Area and its challenges," Briefing Papers 31, Austrian Foundation for Development Research (ÖFSE).
    4. Sam Hickey, 2019. "The politics of state capacity and development in Africa - Reframing and researching ‘pockets of effectiveness’," Global Development Institute Working Paper Series esid-117-19, GDI, The University of Manchester.
    5. Shingie Chisoro-Dube & Cornelius Dube & Wellington Matsika, 2019. "Exploring the potential for growth and trade in fruit and oilseed-to-edible oils value chains following political shifts in Zimbabwe," WIDER Working Paper Series wp-2019-72, World Institute for Development Economic Research (UNU-WIDER).
    6. Pablo Yanguas, 2016. "The role and responsibility of foreign aid in recipient political settlements," Global Development Institute Working Paper Series esid-056-16, GDI, The University of Manchester.
    7. Palash Kamruzzaman, 2017. "Understanding the Role of National Development Experts in Development Ethnography," Development Policy Review, Overseas Development Institute, vol. 35(1), pages 39-63, January.
    8. Teboho Bosiu & Thando Vilakazi, 2020. "Competition and inclusive regional economic growth in food production: Barriers to entry and the role of African multinational corporations," WIDER Working Paper Series wp-2020-88, World Institute for Development Economic Research (UNU-WIDER).
    9. Thando Vilakazi & Stefano Ponte, 2022. "Black Economic Empowerment and Quota Allocations in South Africa's Industrial Fisheries," Development and Change, International Institute of Social Studies, vol. 53(5), pages 1059-1086, September.
    10. Wittern, Jonas & Luckmann, Jonas & Grethe, Harald, 2023. "Cashew processing in Ghana – A case for infant industry support?," Food Policy, Elsevier, vol. 119(C).
    11. Cruz, Manuel Máximo & Gahn, Santiago José & Morlin, Guilherme Spinato, 2022. "State-owned and multinational enterprises partnership as an import substitution strategy: A narrative ARDL approach to the case of oil contracts in Argentina (1958–1962)," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 213-223.
    12. Ross, Michael L. & Werker, Eric, 2024. "Diversification in resource-rich Africa, 1999–2019," Resources Policy, Elsevier, vol. 88(C).
    13. Richey, Lisa Ann & Ponte, Stefano, 2021. "Brand Aid and coffee value chain development interventions: Is Starbucks working aid out of business?," World Development, Elsevier, vol. 143(C).
    14. Finn Tarp & Sam Jones & Felix Schilling, 2021. "Doing business while holding public office: Evidence from Mozambique’s firm registry," DERG working paper series 21-08, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).

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