“Dynamic Industrial Policy in Africa – Innovative Institutions, Effective Processes and Flexible Mechanisms”: statement By Carlos Lopes UN Under-Secretary General and Executive Secretary of ECA

Abstract

Statement by Carlos Lopes UN Under-Secretary General and Executive Secretary of ECA at the Presentation of 2014 Economic Report on Africa. Mr. Lopes, on his remarks highlighted that, this report is being launched at a time when Africa is emerging as a pivotal region for global economic growth. This had been evidenced by the continent’s robust growth performance despite subdued global growth caused by the global economic crisis and the slow global recovery. A major factor contributing to the continents’ limited transformation is the adoption of a “blueprint” approach to industrialization. In most countries, industrial policy has been limited to the design and implementation of policy instruments such as tariff protection, tax rebates, research and development subsidies, industrial zones, cheap credit and other interventions. Industrial Policy Organizations (IPOs) in most countries are characterized by organizational imperfections and inefficiencies. Many African countries are actually missing the industrial policy organizations vital role in plugging the myriad gaps and resolving market failures in industry. The common underlying imperative is that the State support is vital to address market failures and institutionalize industrial policy at the highest levels of government.