Can Africa develop without industrialising? The simple answer is no. No country in the world has ever achieved fully developed status, let alone a continent, without going through an industrialisation stage of some form.
- Sustainability of economic growth depends on industrialisation
- Basing economic growth on commodities exposes the country to the volatility of international prices.
- Commodities do not last for ever. They eventually run out.
- A focus on commodities stops an economy from becoming competitive.
- Manufacturing creates higher quality and better paying jobs.
- Manufacturing creates new job opportunities in supporting sectors.
- The income derived from manufacturing is higher than that of commodities and tends to be more stable.
- Rural areas can be lifted up through manufacturing.
- The creation of industries through manufacturing results in significant capital inflows into the economy and increased productivity.
- Prices of manufactured goods tend to increase over time
A full analysis of the situation can be found in Michael Mbate’s blog post by the LSE
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