Why industrialisation has not been successful in developing countries

The failure of structural adjustment programmes to promote industrialisation in Africa may be at least partly explained by the fragmentation of African business systems.

The failure of structural adjustment programmes to promote industrialisation in Africa may be at least partly explained by the fragmentation of African business systems.

In Africa, the parastatal foreign dominated formal and indigenous informal sectors are poorly integrated, largely as a result of the institutional environment in which they have developed.

The lack of supportive financial, state and social institutions inhibits trust and accountability, and impedes the access to capital, labour market flexibility and sub-contracting, which are needed for modern industrial development.

More research is needed, both detailed studies of business systems in individual African countries, and cross-country comparisons of the linkages between the economy and the wider social and institutional environment.

In many developing countries, industrialization is seen as a key to development and this always need concerted efforts from the local population and their governments.

Manufactured goods offer high unit values and less volatile prices than either food or cash crops, industrial jobs also promise high family incomes and improved quality of life especially for the growing number of workers who have little land.

Structural adjustment programmes have emphasized measures such as market liberalization and export promotion, which aim to increase productivity and strengthen the industrialisation process.

Yet despite the wide spread application of these programmes, industrialization has not taken off as expected in most developing African countries, and the reasons for its failure have argumentatively been not put forward.

The most important aspect is to focus on the dynamic processes of productivity growth, wealth creation and social advance in our countries to target millennium development goals and use it as one of the national poverty reduction strategies.

Through such ways, our countries can be able to reduce poverty through structural change, productivity growth and diversification, and by building up the institutional and social capabilities essential to overcome adverse initial harsh conditions affecting growth and development.

However, to achieve all these goals, there is need for greater private sector participation that can be strengthened through; the provision of public goods and enhance poverty reduction efforts.

There is also need for industrial development that takes advantage of environmentally sound and advanced technologies.

It is important to notice that development in areas of health, education gender, environment and infrastructure are essential if productive sectors are to grow, create employment and result in sustained development.

However, lots of effort is still required to promote industrial activities in the tourism and agriculture sectors in order to attain the Vision 2020 targets.

To promote and achieve industrial development in various areas of interest, great efforts are required to offset the adverse conditions via the Millennium Development Goals (MDG), a number of external and domestic policy interventions need to complement and reinforce the relationship between MDG’s, poverty reduction and sustainable growth.

Many developing countries have registered slow growth in the sector of Industrial development due to lack of proper and enough build up of social and technological capabilities.

Today, Africa is experiencing problems of the changing whether conditions that has affected its agriculture sector. Agriculture is the back bone of the economy in many countries undergoing development in Africa.

Many countries have ignited industrial development through various agricultural activities such as nuts (primarily cashews), cocoa butter and paste, cut flowers, prepared and preserved fish, and acyclic alcohols.

Other key areas of investment in this sector are; flat-rolled steel, petroleum gases, textiles and aluminum, wood veneer, financial services, and tourism services.

In Rwanda, before the colonial period, a number of industries such as breweries dominated both the position of job creation, quality of the final products and the contribution to treasury.

These were later replaced by agro-industrial companies on base of coffee, tea, sugar, and fruits’ transformation.

Rwanda is now undergoing industrial revolution and a number of industries that have been started and promoted include few chemical companies, building materials, printing offices, agro-industries, wooden products, textiles and service industries.

We have hope that the industrial growth will be attained in the future in spite of the private and public investments which remain very low due to many factors such as low level of purchasing power, shortage of power for industrial use, poor absorbing capacity of the funding resources, and others.

Coffee and tea manufacturing industries have undergone rapid development in recent years. Tea and coffee commodities are being produced on large-scale and this has favoured industrial growth in this sector.

Coffee and tea are also the leading exports in the country and brings high revenue earnings per annum than any other commodity.

Tourism is also another key area of industrial development in Rwanda. Mountain gorillas and other animals of rare species have caught an eye of foreign visitors and companies that have been coming to Rwanda to see these animals.
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