What’s New

  • Three Objectives for State-Business Collaboration in Africa

    While the state would contribute to economic transformation, it is entrepreneurial firms, both large and small, that will spearhead the creation of employment and the production and distribution of goods and services that drive economic transformation. That is why government should create mechanisms that bring it into regular contact with business to seek its inputs. Organized labor is another key part of the collaboration, particularly in democracies where it can exercise the right to strik....
  • Building the Entrepreneurial Nation in Africa

    Economic transformation entails learning and mastering new technologies, learning to produce new goods and services competitively for global markets, and breaking into new export markets. It thus requires taking risks—making bold, but informed bets. In a sense, it requires the whole nation to become entrepreneurial. The state and the private sector have their respective roles in advancing this goal, and working together they can leverage each other’s contributions for a greater collective im....
  • A Nine‑Point Plan for Transformational Development Banks

    Sub-Saharan countries can learn from their past experiences to create modern transformational development banks to support their transformation agendas. This does not necessarily mean new banks; in several countries it may call for restructuring some existing institutions and possibly closing or privatizing others. While transformational development banks should not be judged on the same profit-making yardstick as private commercial banks, they should nevertheless be financially viable. H....
  • Supporting Pioneer Ventures in Africa

    Producing goods and services that are new in a country and entering new export markets are risky. If a pioneer enterprise succeeds, other enterprises can emulate it and benefit, with the whole country also benefiting. But private commercial banks unfamiliar with product innovations or new markets may consider the pioneer venture too risky and price their loans too high. The same applies to pioneering efforts to upgrade technology. So there is a case for facilitating and underwriting some of ....
  • African Countries Need to Set and Implement National Transformation Visions

    How can African countries begin to progress faster with low technology, limited human skills, scarce financial resources, and weak institutional capabilities? By having clear goals and priorities for activities and resources—and a national vision and an explicit strategy to carry it out. A national vision can inspire citizens and mobilize their support for sacrifices in the early stages of economic transformation. A well developed strategy can clarify the interrelationships among government ....