Underdevelopment and Economic Theory of Growth: Case for Infant Industry Promotion
Consilience: The Journal of Sustainable Development Vol. 8, Iss. 1 (2012), Pp. 171 - 187
17 Pages Posted: 11 Apr 2017
Date Written: May 10, 2012
The article reviews literature on economic development, critiques neoliberal economic theories, and advances the theory of infant industry promotion as an alternative model for development in Africa. The essay argues that for developing countries to catch up to developed countries requires contextualizing development theory, applying selective economic policies to industries where productive capacities can be developed, localizing the policies lessons so as to prioritize local industries and thus develop their productive abilities. The role of state in development and implementation of protective measures such as tariffs, import bans on key raw materials, rebates on industrial inputs, is discussed. To escape the Resource Curse, African states will have to develop an alternative source of employment, an industrial base, and strengthen the productive powers of infant industries if those industries are to survive fierce international competition. To be durable in the African context, economic policy must reflect local conditions, vary from one historical context to the next, use readily available resources and adequately respond to local problems.
Keywords: Triple Curse, Infant Industry Promotion, Economic theory of growth, African development, Underdevelopment, Diminishing Returns, Increasing Returns
Suggested Citation: Suggested Citation