2011 African Economic 2011 African Economic Conference Conference

25th – 28th, October 201125th – 28th, October 2011

Addis Ababa – EthiopiaAddis Ababa – Ethiopia

Eric K. Ogunleye, Ph.D.Eric K. Ogunleye, Ph.D.Office of the Chief Economic Office of the Chief Economic

Adviser to the PresidentAdviser to the PresidentAbuja - NigeriaAbuja - Nigeria

Introduction Literature Review

Concept of Growth Poles

Channels of Transmission of Growth Poles from Core to Periphery Empirical Results for Growth Polarity in Africa A Framework for Structural Transformation in Africa through Development of Growth Poles

Identifying Regional Clusters

Value Chain Development Policy Recommendations Conclusion and Agenda for Further Research

Structural transformation remains elusive in SSA Disparities among countries could induce unfavorable socio-economic consequences, threatening overall

stability Objective: Proffer alternative solution for transformation in SSA based on the growth pole strategy

IIdentifying regional clusters that would serve as development corridors

DDeveloping value chains of activities and commodities within each cluster

Perroux (1950) provide a theoretical formalization of growth pole Grouping industries around a core that are able to impact growth for the core area as well as that of the surrounding

areas Support the potential pole through infrastructure enhancement and incentives to private firms “poor locations” and “politically driven” growth poles are challenges of successful growth pole development

Follows Adams-Kane and Lim (2011) Growth

Trade

Capital Flows

Migration

Technology

Develop in-country and regional infrastructure to support growth poles Improve natural resource exploitation and managementAfDB should take the lead in driving the growth pole process while the ECA and AU provide the

political buy-in Identify specific value chains and clusters for development in SSA countries and be committed to

it

Structural economic transformation is not impossible in SSAPolitical will and commitment required to transform SSA through growth pole

strategyEmpirically establish determinants of growth polarity in SSA(institutional

quality, per capita income, economic integration, etc)