Political origin and persistence of industrial policy in Africa

Abstract

The literature on industrial policy in Africa has generally explained its political origins in terms of ruling elites’ distribution of benefits to their supporters. However, in competitive political contexts in which policies are deeply political and designed to satisfy clients, such as policies that support party donors, the problem of policy discontinuity is bound to arise because a change in ruling party is bound to alter the direction of distributional policies. The current paper uses Nigeria’s backward integration policy (BIP), an industrial policy on cement production, to sharpen the analytical distinction between the origins and persistence. Although the ruling elites’ political quest for survival explains the origin of Nigeria’s industrial policy on cement (ruling elites were in search of re-election funds and teamed up with domestic capitalists for donations, who in turn influenced the political elites to create policies in their area of business), it does not explain the continuation.

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