Lall - "Structural adjustment and African industry"

18 July 2006
20:45

· 73 McNamara speech? Shifts World Bank from agribusiness to small-scale agr focus
· 1981 Berg report brings neo-liberal focus;
        ? blames government protection for stagnation;
        ? says producer prices must be allowed to rise.
· 1989 less prices focused, but more private-sector focussed, version
        ? Recognises need for state infrastructure provision
        ? 4 types of smallholders:
                § Trad/export mix - may lose out from adjustment
                § Cash crop focus - rainy areas - farming less important for growth
                § Larger cash crop production - this what WB initially encouraged
                § Large-scale capitalist cereal farms - these best places to benefit from adjustment
        ? Big farming blurs lines with state; all in political posts etc
        ? No separate private sector waiting to step in
                § Eg WB loves co-ops, but usually state supported.
· Mid-90's - technology capability approach
        ? Focuses on need for specific interventions
        ? May replace government failures with market failures.
· Demolishes '94 data
        ? Initial benefits of import liberalisation disappear because of export competition.
        ? Even basic sweatshop competitiveness requires a certain level of governance, technology, education
        ? Liberalise too soon, too fast, and you get deindustrialisation
        ? Gradual, realistic adjustments
        ? Allow transparent, measured, timed state intervention
        ? Needs improved govt, training, etc
        ? Framing focussed on key industries and those most to benefit.