Studying the developmental state: theory and method in research on industrial policy and state-led development in Africa

Abstract

This paper examines theoretical and methodological issues in the study of African developmental states. We argue that applying this concept beyond East Asia, must take into account changes in the global economic context-in particular systemic tendencies towards deficient consumer demand-to uncover the conditions under which demand for commodity production remains or becomes expansionary. We further argue for a mixed methods case study approach to structural transformation, blending quantitative and qualitative evidence at multiple levels of analysis. The examples of concrete manufacturing and oil and gas in Nigeria and Tanzania illustrate our approach to researching state-led development in Africa.

Thinking about developmental statehood, manufacturing and international capital: the case of Ethiopia

“…Second, the sector has a longstanding engagement with foreign private capital that has seen recent expansion with a leading role for Chinese capital (Xiaoyang 2019). Ovadia and Wolf (2018) emphasise the methodological importance of case study approaches in theorising developmental statehood with mixed-methods analysis using descriptive quantitative and qualitative methods. This article analyses processed and unprocessed quantitative data from Ethiopian government databases including the National Bank of Ethiopia and the Leather Industry Development Institute (LIDI), China-Africa Research Initiative (CARI) Database, UN Food and Agricultural Organisation (FAO), UN Comtrade and the World Bank's World Development Indicators on foreign loans and investment, national economic indicators and the Ethiopian leather subsector.…”

“…Hirschman (1981) identifies three main categories of linkages as follows: fiscal linkages refer to the state's use of resources that accrue to it from taxes (from natural resources) to irrigate other sectors, (forward) production linkages refer to the use of the primary sector's outputs as raw materials for production in other sectors and consumption linkages refer to the domestic industrial demand resulting from income generated within the primary sector. Ovadia and Wolf (2018) emphasise a contemporary need to recentre demand as critical to developmental statehood in African contexts. This ties in also with African development policy directions that are refocusing on domestic regional markets through continental economic and trade integration with the African Continental Free Trade Area.…”

The Dynamics of Industrial Development in a Resource-Rich Developing Society: A Political Economy Analysis

“…Notably, economic performance varies in terms of political, economic and social structures that may stimulate or hamper structural changes in a developing country (Khan, 2010). Configurations of power, which are historically rooted and shaped by the nature of politics, its symbolic and material expression have been decisive at the societal level, across industries and within organizations (Nem Singh, 2012;Ngo, 2016). Khan explains this as the political settlement, which is described as follows:…”

“…They explain the performance of institutions within a particular context based on the balance of power among elites and lower level factions (Gray, 2016). At another level, it influences the technological and organizational capabilities within enterprises and the access by ruling elites to rents from production and exports (Ngo, 2016). These interconnections help explain the dynamics of industrialization and the development of capabilities across public and private sectors (Figueiredo, 2008;Lall, 1992).…”

“…This article challenges these perspectives and relies upon a multilevel political economy approach to explain varying patterns of growth and industrial development in a developing country like T&T (Edwards, 2017b;Jessop, 2015;Migdal, 1988;Ngo, 2016). It examines how state capacity and a certain form of "developmental state" emerged to promote industrialization in T&T, reinforced by a favorable international climate and buoyant commodity prices.…”