nep-afr New Economics Papers
on Africa
Issue of 2015‒11‒21
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Patterns of Manufacturing Growth in Sub-Saharan Africa: From Colonization to the Present By Gareth Austin; Ewout Frankema; Ewout Morten Jerven
  2. Managing commodity price risks: The cases of cotton in Burkina Faso and Mozambique and coffee in Ethiopia By Staritz, Cornelia; Tröster, Bernhard; Küblböck, Karin
  3. Agricultural value chain development in practice: Private sector-led smallholder development: By Kolavalli, Shashidhara; Mensah-Bonsu, Akwasi; Zaman, Saima
  4. The long walk: Considering the enduring spatial and racial dimensions of deprivation two decades after the fall of apartheid By Ronelle Burger; Servaas van der Berg; Sarel van der Walt; Derek Yu

  1. By: Gareth Austin; Ewout Frankema; Ewout Morten Jerven
    Abstract: This paper reviews the Ôlong twentieth-centuryÕ development of ÔmodernÕ manufacturing in Sub-Saharan Africa from colonization to the present. We argue that classifying Africa generically as a Ôlate industrializerÕ is inaccurate. To understand the distinctively African pattern of manufacturing growth, we focus our discussion on the dynamic interplay between the regionÕs specific endowment structures, global economic relationships and government policies. We conclude that the case of Sub-Saharan Africa is best characterized as interrupted industrial growth instead of sustained convergence on world industrial leaders. This is partly because, until very recently, the factor endowments made it very costly for states to pursue industrialization; and partly because successive rulers, colonial and post-colonial, have rarely had both the capacity to adopt and the dedication to sustain policies that modified the regionÕs existing comparative advantage in primary production, by using their fiscal and regulatory powers effectively to promote industrialization.
    Keywords: Manufacturing, Sub-Saharan Africa, Colonial institutions, Economic History
    Date: 2015–11
  2. By: Staritz, Cornelia; Tröster, Bernhard; Küblböck, Karin
    Abstract: Price instability is a major concern for commodity producers in developing countries. Commodity derivative markets have become the central pricing mechanism for international commodity trade. This is problematic given the high volatility and increased short-termism of these markets in the context of financialisation. The effects on producers depend on the market structure in producer countries. Burkina Faso and Mozambique have different types of national cotton price stabilization schemes in place while global coffee price fluctuations are transmitted directly to producers in Ethiopia. Policy reforms are required at two fronts - on commodity derivative markets to reduce excessive speculation and stabilize commodity prices and in producer countries to ensure fair and stable prices for producers.
    Date: 2015
  3. By: Kolavalli, Shashidhara; Mensah-Bonsu, Akwasi; Zaman, Saima
    Abstract: Value chain development is adopted widely as a private sector–led approach to agricultural development that can benefit smallholders. The objective of this research is to understand how development organizations are conceptualizing and developing agricultural value chains in Ghana to include smallholders. The study is based on case studies of five programs supported by various donors. A typology is employed to categorize the intervention. Common to all the programs are interventions to encourage the development of interlinked vertical contracts between smallholders and buyers and investments to improve the operations of actors downstream. The study explores issues related to expectations, scaling up of activities to reach a significant portion of the population, technology transfer, and participatory development of value chain strategies and identifies some indicators to examine the outcomes of value chain interventions.
    Keywords: smallholders, agricultural development, private sector, value chains, vertical contracts, inclusion,
    Date: 2015
  4. By: Ronelle Burger (Department of Economics, University of Stellenbosch); Servaas van der Berg (Department of Economics, University of Stellenbosch); Sarel van der Walt (Department of Economics, University of Stellenbosch); Derek Yu (Department of Economics, University of Stellenbosch)
    Abstract: This study examines the enduring spatial and racial dimensions of poverty and deprivation in South Africa to assess the progress made by the post-apartheid society and state. A multi-dimensional approach is required to assess progress because it can reflect the reduction in deprivation attributable to the improved affordability and expanded coverage of government services. While there has been previous studies tracking poverty trends over segments of the post-apartheid period, no previous work has considered multi-dimensional deprivation over the two decades following the official fall of apartheid. We adopt the Total Fuzzy and Relative approach proposed by Cheli and Lemmi (1995) to derive a poverty index with nine dimensions of deprivation, including education, employment, dwelling type, overcrowding, access to electricity, water, telephone, sanitation and refuse collection. Our analysis shows that there has been a significant improvement in deprivation levels between 1996 and 2011, but it also finds that geography and race continue to play an important role in explaining patterns of deprivation.
    Keywords: poverty, deprivation, fuzzy sets, South Africa
    JEL: I32 I38 N97 D31
    Date: 2015

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