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Economic transformation in theory and practice: What are the messages for Africa?

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  • Breisinger, Clemens
  • Diao, Xinshen

Abstract

"Encouraging signs of growth acceleration in Africa may herald a new development era of rapid transformation. In an effort to promote the future success of African transformation, we herein provide an extensive literature review on development economics and empirical observations from successfully transformed countries, along with analytic narratives on the transformations of Thailand and Mexico. To conclude, we derive six key messages for African transformation. We find that the traditional development economics theory is consistent with the transformation practice of successful countries. However, this theory needs to be broadened in light of rising inequalities during transformation. Success vitally depends on agricultural development; early withdrawal of public support away from agriculture slows down transformation, and the resulting inequalities are recognized as a persistent development challenge. Transformation also depends on industrialization strategies, but we find that winner-picking industrialization negatively affects other aspects of development, whereas home-grown, export-oriented industrialization led by private entrepreneurs opens up broader opportunities for sustainable growth. Finally, government support will be required to create a business-promoting environment and to offer incentives for African entrepreneurs to lead growth." from authors' abstract

Suggested Citation

  • Breisinger, Clemens & Diao, Xinshen, 2008. "Economic transformation in theory and practice: What are the messages for Africa?," IFPRI discussion papers 797, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:797
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    5. Andersen, Lykke E. & Breisinger, Clemens & Mason d'Croz, Daniel & Jemio, Luis Carlos & Ringler, Claudia & Robertson, Richard D. & Verner, Dorte & Wiebelt, Manfred, 2014. "Agriculture, incomes, and gender in Latin America by 2050: An assessment of climate change impacts and household resilience for Brazil, Mexico, and Peru:," IFPRI discussion papers 1390, International Food Policy Research Institute (IFPRI).
    6. Breisinger, Clemens & Diao, Xinshen & Thurlow, James, 2009. "Modeling growth options and structural change to reach middle income country status: The case of Ghana," Economic Modelling, Elsevier, vol. 26(2), pages 514-525, March.
    7. Kasper Vrolijk, 2021. "Industrial policy and structural transformation: Insights from Ethiopian manufacturing," Development Policy Review, Overseas Development Institute, vol. 39(2), pages 250-265, March.
    8. Clemens Breisinger & Tingju Zhu & Perrihan Al Riffai & Gerald Nelson & Richard Robertson & Jose Funes & Dorte Verner, 2013. "Economic Impacts Of Climate Change In Syria," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-30.
    9. Janvier D. Nkurunziza, 2010. "Why Is The Financial Sector In Burundi Not Development-Oriented?," RSCAS Working Papers 2010/29, European University Institute.
    10. El-Enbaby, Hoda & Figueroa, Jose Luis & ElDidi, Hagar & Breisinger, Clemens, 2016. "The role of agriculture and the agro-processing industry for development in Egypt: An overview," MENA working papers 3, International Food Policy Research Institute (IFPRI).
    11. Wiebelt, Manfred & Breisinger, Clemens & Ecker, Olivier & Al-Riffai, Perrihan & Robertson, Richard & Thiele, Rainer, 2011. "Climate change and floods in Yemen: Impacts on food security and options for adaptation," IFPRI discussion papers 1139, International Food Policy Research Institute (IFPRI).
    12. Reeg, Caroline, 2017. "Spatial development initiatives – potentials, challenges and policy lessons: with a specific outlook for inclusive agrocorridors in Sub-Sahara Africa," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 97, number 97, July.
    13. Fan, Shenggen & Brzeska, Joanna, 2011. "The nexus between agriculture and nutrition: Do growth patterns and conditional factors matter?," 2020 conference briefs 1, International Food Policy Research Institute (IFPRI).
    14. Breisinger, Clemens & Ecker, Olivier & Al-Riffai, Perrihan & Robertson, Richard & Thiele, Rainer & Wiebelt, Manfred, 2011. "Climate change, agricultural production and food security: Evidence from Yemen," Kiel Working Papers 1747, Kiel Institute for the World Economy (IfW Kiel).
    15. Andam, Kwaw & Silver, Jed, 2016. "Food processing in Ghana: Trends, constraints, and opportunities," GSSP policy notes 11, International Food Policy Research Institute (IFPRI).
    16. Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 745-770, November.
    17. Breisinger, Clemens & Zhu, Tingju & Al Riffai, Perrihan & Nelson, Gerald & Robertson, Richard & Funes, Jose & Verner, Dorte, 2011. "Global and local economic impacts of climate change in Syria and options for adaptation:," IFPRI discussion papers 1091, International Food Policy Research Institute (IFPRI).
    18. Shashidhara Kolavalli & Elizabeth Robinson & Guyslain Ngeleza & Felix Asante, 2012. "Economic Transformation in Ghana: Where Will the Path Lead?," Journal of African Development, African Finance and Economic Association (AFEA), vol. 14(2), pages 41-78.
    19. Kyle, Jordan, 2017. "Perspectives on the role of the state in economic development: Taking stock of the “Developmental State†after 35 years," IFPRI discussion papers 1597, International Food Policy Research Institute (IFPRI).
    20. Janvier D. Nkurunziza, 2010. "Why Is The Financial Sector In Burundi Not Development-Oriented?," EUI-RSCAS Working Papers 29, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    21. Figueroa, Jose Luis & Mahmoud, Mai & Breisinger, Clemens, 2018. "The role of agriculture and agro-processing for development in Jordan," MENA working papers 5, International Food Policy Research Institute (IFPRI).
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    23. Al-Riffai, Perrihan & Breisinger, Clemens & Verner, Dorte & Zhu, Tingju, 2012. "Droughts in Syria: An Assessment of Impacts and Options for Improving the Resilience of the Poor," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(1), pages 1-29, February.

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    Economic transformation; Agricultural growth; structural change; Development strategies;
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