The State of Industry in Sub-Saharan African Countries Undertaking Structural Adjustment Programmes

Farhad Noorbakhsh and Alberto Paloni ()

Working Papers from Business School - Economics, University of Glasgow

Abstract: Industry in Sub-Saharan African programme countries is in a severe crisis. Is this affecting the industrial base necessary for future growth and leading to de-industrialization? Or is the industry undergoing a process of efficient restructuring whereby the lack of growth is the result of inefficient industries shutting down? The analysis in this paper of a broad range of indicators provides some support for the hypothesis that Africa is on the brink of de-industrialization. The cross-country analysis, which compares Sub-Saharan programme countries with other programme countries, suggests that the programmes in Sub-Saharan Africa may have failed to account for indigenous structural characteristics that would have required a different approach with respect to the industrial sector.

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