Africa may have some of the world’s fastest-growing economies, but investment and incomes still lag far behind other regions. New research conducted by Tim Kelsall, under the rubric of the DFID-funded African Power and Politics Programme (APPP), has sought to unpack the widely held view that 'irregular' African growth is strongly linked to the governance syndrome known as neo-patrimonialism. This refers to a system of personal rule held together by the distribution of economic resources to clients or cronies.
One of the major challenges identified for African countries to replicate the Asian model is that Africa does not have well established clusters of firms and knowledge in the new export sectors. This leaves two major issues that need to be resolved: (1) Until clusters are established, costs will be above those of Asian competitors, and (2) because costs are currently higher, individual firms have no incentive to relocate.
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