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1. Exporting out of China or out of Africa? Automation versus Relocation in the Global Clothing Industry

Author:
Tilman Altenburg, Xiao Chen, Wilfried Lütkenhorst, Cornelia Staritz, and Lindsay Whitfield
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
The Discussion Paper examines the opportunities that the rising industrial wages in China will bring for Africa. China has been the industrial workbench of the global economy for decades. However, its competitive advantages are waning, particularly for labour-intensive assembly activities in the clothing, shoe, electronics and toy industries. The Chinese government estimates that up to 81 million low-cost industrial jobs are at risk of relocation to other countries - unless China can keep the companies in the country through automation. Against this background, three complementary studies were carried out. The first examines where the automation technology for clothing and footwear production stands today; the second, how clothing companies in China deal with the cost pressure: to what extent they automate, relocate within China or abroad and how great is the interest in Africa as a production location. The third part is devoted to Africa’s competitiveness in clothing assemly, with empirical findings from Ethiopia and Madagascar. The Discussion Paper shows that the manufacture of clothing can already be robotized today, but that for sewing, robotization will probably remain more expensive than manual labor in the next 15-20 years. China’s companies are investing heavily in the automation of all other production processes and at the same time shifting production to neighbouring Asian countries. In Africa, only Ethiopia is currently competitive in the manufacture of clothing, and here too there are significant institutional difficulties in absorbing large amounts of direct investment.
Topic:
Industrial Policy, Labor Issues, Foreign Direct Investment, Exports, and Automation
Political Geography:
Africa, Europe, Germany, Ethiopia, and Madagascar

2. Developing a Palm Oil Sector: The Experiences of Malaysia and Ghana Compared

Author:
Lindsay Whitfield and Niels Fold
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
This paper explores what can be learned about the development of a productive sector and the factors that affect the process of upgrading and innovation, through a comparative assessment of the experiences of Malaysia and Ghana in the palm oil sector. The purpose is not to carry out a direct comparison of the trajectories of the sectors in the two countries, which would serve only to emphasize the failures in the 'construction' of the palm industry in Ghana. Rather, the role of context must be acknowledged, such that learning starts with understanding key points in the industries' trajectories that either break or accelerate path dependency. Thus, the paper focuses on the differing contextual factors and initial conditions, and how they shaped early divergent paths and industry structures, as well as the presence or absence of factors supporting expansion and diversification within each country's trajectory.
Topic:
Agriculture, Development, Economics, and Industrial Policy
Political Geography:
Africa and Malaysia

3. Engaging in productive sector development: Comparisons between Mozambique and Ghana

Author:
Lars Buur and Lindsay Whitfield
Publication Date:
10-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Through a comparison of sector cases in Mozambique and Ghana, the paper analyzes why and how African states engage in developing productive sectors and with what success. It argues that successful state interventions depend on four factors: (1) sustained political support by the government leadership; (2) the existence of an embedded and mediating bureaucracy; (3) changing the 'rules of the game' which govern the distribution of economic benefits and resources; and (4) the organisation of industry actors and institutionalised interaction between industry actors and state actors.
Topic:
Economics and Industrial Policy
Political Geography:
Africa and Ghana

4. Competitive Clientelism, Easy Financing and Weak Capitalists: The Contemporary Political Settlement in Ghana

Author:
Lindsay Whitfield
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Ghana has exhibited rather strong economic growth since the 1980s, but little transformation of the productive structure of its economy. The paper argues that ruling elites' policy choices are shaped by their political survival strategies. In turn, these strategies are shaped by (1) the characteristics of the ruling coalitions, which include a high degree of vulnerability in power, strong lower-level factions of the ruling coalition, and a substantial amount of fragmentation among the higher factions of the ruling coalition; (2) the weak capabilities and political influence of the nascent productive capitalists; and (3) easy access to financing for the state and the ruling coalition from foreign aid, mining and cocoa bean exports. As a result, ruling elites' policy actions did not prioritize the development of new productive sectors (or upgrading of old ones), but were geared towards delivering benefits to the higher and lower levels of the ruling coalition, as well as delivering a small amount of visible goods and services to as much of the population as possible in an effort to 'swing' voters their way at election time. Neither of these political survival strategies resulted in significant productive sector investments.
Topic:
Development, Economics, Politics, Social Stratification, and Governance
Political Geography:
Africa and Ghana

5. Growth without Economic Transformation: Economic Impacts of Ghana's Political Settlement

Author:
Lindsay Whitfield
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Since the Fourth Republic was inaugurated in 1993, politics in Ghana has been increasingly characterized by competitive clientelism. Ruling coalitions are characterized by a high degree of vulnerability in power due to a strong opposition party, by strong lower-level factions within the ruling coalition due to their importance in winning elections, and by a high degree of fragmentation among the ruling elite. These characteristics, combined with a weak domestic capitalist class and high inflows of foreign aid, have led the ruling elites across political parties to pursue and implement policies that have a short time horizon, that do not significantly shift the allocation of resources towards building productive sectors, and which are often plagued by problems of enforcement. The results have led to growth without economic transformation. In particular, the country has witnessed recurrent macroeconomic instability, a haphazard process of privatization of state-owned enterprises, and no serious attempt to build up productive sectors outside of cocoa and gold.
Topic:
Democratization, Development, Economics, Politics, Social Stratification, Foreign Aid, and Governance
Political Geography:
Africa and Ghana

6. Political Challenges to Developing Non-Traditional Exports in Ghana: The Case of Horticulture Exports

Author:
Lindsay Whitfield
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The nascent Ghanaian horticulture export sector, which emerged in the mid-1980s, has been ignored by ruling elites, especially after the return to multiparty democracy in 1993. Ruling elites across the two party governments between 1993 and 2008 did not actively pursue initiatives to support the industry. Without sustained political support, the types of public-private coordination of actions and investments needed to help the sector expand and upgrade were not forthcoming in an effective and timely manner. This private sector-driven non-traditional export sector constitutes a neglected opportunity for export diversification and building a new agro-industry, and also highlights some of the factors explaining why the country's economy was still dependent on the traditional exports of cocoa and gold by the close of the 2000s. The political challenges to changing the productive structure in Ghana can be found in the characteristics of ruling coalitions–vulnerability of the ruling elite in power, the high fragmentation within ruling coalitions, and their existing sources of and strategies for financing the state and the ruling coalition, combined with the country's existing economic structure as well as the size and capabilities of domestic capitalists. The characteristics of ruling coalitions in Ghana shaped the incentives facing ruling elites such that the ruling elites were not sufficiently compelled to support new productive sectors, such as horticulture export, which did not (yet) provide substantial revenues.
Topic:
Agriculture, Economics, International Trade and Finance, Social Stratification, and Governance
Political Geography:
Africa and Ghana

7. Developing Technological Capabilities in Agro-Industry: Ghana's experience with fresh pinapple exports in comparative perspective

Author:
Lindsay Whitfield
Publication Date:
11-2010
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The economic policy agenda which promoted a non-interventionist state, trade openness, deregulation, liberalization and privatization as the formula for unleashing private sector productive forces in developing countries is discredited. The economic record of the past decades does not support this theory. Former proponents of the agenda acknowledge that the 'supply side' response of the private sector, especially in African countries, has not been what was expected in reaction to these economic reforms. Consensus is building on the need for industrial policy, and the debate is over what kinds of state interventions are likely to help build the private sector. Thus, the time is ripe for an evidence-based discussion of what is 'private sector development' in Africa, and how it promote it. In order to move the debate forward, we need more analyses of how actual existing industries are created, expanded and remain competitive in the contemporary global economic context.
Topic:
Agriculture, Development, Economics, and Globalization
Political Geography:
Africa

8. The new 'New Poverty Agenda' in Ghana: what impact?

Author:
Lindsay Whitfield
Publication Date:
09-2009
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
This paper describes and explains the impact of the international-driven 'New Poverty Agenda' in Ghana, focusing on the impact of the Poverty Reduction Strategy Papers (PRSPs) adopted by the New Patriotic Party government in power from 2001 until 2008. The paper argues that the New Poverty Agenda has had some impacts, but not they have been limited and not necessarily helpful in achieving long term poverty reduction. The PRSP was seen by the government in Ghana as necessary to secure debt relief and donor resources, and the strategies produced by the government contained broad objectives rather than concrete strategies on how to achieve those objectives and thus had little impact on government actions. The paper discusses what was actually implemented under the NPP government and the factors influencing those actions. It highlights the constraints Ghanaian governments face in pursuing economic transformation within contemporary domestic and international contexts.
Topic:
Economics, Government, and Poverty
Political Geography:
Africa

9. Ownership and the Donor-Recipient Relationship

Author:
Lindsay Whitfield
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
At the centre of the Paris Declaration on Aid Effectiveness is the idea of country ownership. It is meant to change the situation in many aid dependent African countries where donors dominate decision-making over which policies are adopted, how aid is spent, and what conditions are attached to its release. This article assesses the impact of recent aid reforms to put ownership into practice.
Topic:
Foreign Exchange, Poverty, Third World, and Foreign Direct Investment
Political Geography:
Africa