The Apparel Industry and African Economic Development

Abstract

I. SUMMARY In recent years, a newfound interest in Africa(2) has stimulated a trend in resources and personnel to develop commerce between that continent and the United States. Increasingly, high profile missions and private entrepreneurs are supplementing and, in some cases, supplanting the legions of workers and non-governmental officials who have long been the primary instrument of U.S. foreign policy in the region. Many have pointed to the creation of a textile and apparel industry as the cornerstone of this trade not aid reorientation. Businesses are said to be eyeing Africa as a new source for low-cost textile and apparel imports for global markets. Policymakers see this sector as a quick way to generate employment and stimulate basic manufacturing skills that can be used for other industries. Development economists are no doubt attracted to the notion that production and employment in textiles and apparel can stimulate other improvements in basic infrastructure and other social needs such as education and health. It is enticing to view the ,development of such a sector as a panacea for the many ills that routinely plague Africa. However, recent developments in the apparel industry and the rapidly approaching end of the worldwide quota system eclipse many of Africa's natural advantages. Other factors that constrain African participation in the apparel industry include inadequate infrastructure, remoteness from natural markets, pervasive corruption, and the perception that Africa is unpromising for business. Nevertheless, if on going economic reforms take hold, and if increased stability stimulates greater business confidence, traditional fears and risks associated with Africa will disappear. Moreover, Africa's other advantages, including its abundant labor supply, combined with the perpetual search for new and alternative places to produce garments, will boost African involvement in worldwide apparel trade. II. INTRODUCTION Historically, Africa has been overlooked as a commercial partner for the United States. It is easy to see why. For most Americans, Africa is known for its civil strife, humanitarian crises, and exotic wildlife. Those who know something about African economies are familiar with the pervasive entrepreneurial spirit on the one hand and the maze of bureaucratic red tape, poor access to capital, and fragmented markets on the other. As a result, the U.S. private sector, except for a few notable U.S. multinationals, largely ignored Africa. Instead, Africa was the playground of Warriors and African countries were deemed valuable only when they provided access to the U.S. military or voted with the United States in international fora.(3) While some commercial factors such as mining, fishing, and aviation rights occasionally played a role, U.S. policy has been oblivious to Africa for much of the past forty years. Only in South Africa, where the United States imposed a embargo to force an end to apartheid, or Nigeria, which supplies about 10% of U.S. oil imports,(4) did U.S. policy seem to play a significant role. Since the end of the Cold War, the United States has shifted its priorities to promote democracy and free market reforms. With this change has come a greater focus on private sector growth. Although U.S. policy toward Africa is still grounded largely in foreign and disaster assistance, those flows are beginning to taper off as the overall U.S. foreign assistance budget is decreased and assistance to Africa is redirected to other parts of the world.(5) As a result, commerce has become increasingly important as a tool for U.S.-Africa relations. Fortunately, the prospects for African commercial development have improved as well. U.S. Commerce Department figures show that between the United States and Africa hit a new high in 1997. U.S. investment in Africa is also increasing. …

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