Lessons for African economies from Irish and East Asian industrial policy

David Bailey, H. Lenihan, A. Singh

    Research output: Contribution to journalArticle

    6 Citations (Scopus)
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    Abstract

    When comparisons in terms of industrial policy lessons to be learned have taken place, it has tended to be solely vis-a-vis the ‘development state’ East Asian experience. This paper broadens the analysis and considers lessons which African countries can learn from other so-called ‘tiger’ economies including Ireland and the East and South Asian countries. We recognise that the latter are indeed clearly significant as many African countries at the time of independence had economic structures and levels of income quite similar to East Asian countries, yet have grown at vastly different rates since then. Exploring why this has been the case can thus offer important insights into possibilities for industrial policy. Yet this comes with some health warnings over East Asian experience. We suggest that another important contribution can come by looking at the Irish example, given its emphasis on corporatism rather than simply relying on state direction in the operation of industrial policy. The Irish model is also more democratic in some senses and has protected workers’ rights during the development process in contrast to the often highly dirigisite East Asian model. Overall we suggest that some immediate actions are needed, notably with regard to the financial system in small African economies. Without such changes, a poorly functioning financial system will continue to keep investment at low levels. In relation to the small size of the African economies, the paper recommends regional integration and sufficient overseas development assistance (ODA) for infrastructural development. It is also critical to note that the various small African economies each face their own industrial and economic development challenges, and that a ‘one size fits all’ approach is not appropriate; rather the key is to tailor policies and systems to the unique opportunities and development challenges in each African country.
    Original languageEnglish
    Pages (from-to)357-382
    JournalJournal of Industry, Competition and Trade
    Volume9
    Issue number4
    DOIs
    Publication statusPublished - 2009

    Fingerprint

    Asia
    Industrial policy
    Africa
    African countries
    Asian countries
    Financial system
    Industrial development
    Economic structure
    Development assistance
    Corporatism
    Development process
    Workers' rights
    Ireland
    Income
    Functioning
    Health
    Warning
    Regional integration
    Economic development

    Bibliographical note

    The final publication is available at www.springerlink.com

    Keywords

    • industrial policy
    • Ireland
    • East Asia
    • economic development
    • FDI
    • small firms

    Cite this

    Lessons for African economies from Irish and East Asian industrial policy. / Bailey, David; Lenihan, H.; Singh, A.

    In: Journal of Industry, Competition and Trade, Vol. 9, No. 4, 2009, p. 357-382.

    Research output: Contribution to journalArticle

    Bailey, David ; Lenihan, H. ; Singh, A. / Lessons for African economies from Irish and East Asian industrial policy. In: Journal of Industry, Competition and Trade. 2009 ; Vol. 9, No. 4. pp. 357-382.
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