Private Sector Development In West Africa

This book examines key determinants of private sector development in West Africa, putting special emphasis on government’s cardinal role in fostering and supporting entrepreneurship. Favorable macroeconomic conditions are identified and it is shown that adequate policies that contribute to economic diversification and industrialization are likely to expand the investment base of the economy. The book also examines new business concepts and regional integration initiatives meant to enhance West Africa’s private sector and analyzes the role of finance in promoting development of private firms and the extent to which corruption impedes economic growth. All chapters are highly relevant to West Africa’s current policy challenges and therefore inform the region’s ongoing policy formulation. The empirical evidence supporting the policy recommendations is based on both qualitative field observations and advanced quantitative estimation techniques.

The book provides a detailed analysis of the causes of West Africa’s current economic high-growth episode and proposes ways to extend it sustainably. It examines the potential role of regional integration through the establishment of a common currency union and of other policy options that can enhance economic growth. The authors suggest appropriate methods of coordination between macroeconomic policy and industrialization to achieve higher economic growth and also examine why pro-poor strategies have not been successful. The book underscores the challenges and opportunities that will arise from the structural change to the region’s economies resulting from the necessary investment in manufacturing exports, ICT and infrastructure, which are key vehicles for extended growth. Readers will learn how the region can better reach its developmental goals by securing and perpetuating political liberty and transactional freedom for all its citizens.

From Civil Strife to Peace Building examines peace-building efforts in the fragile West African states of Sierra Leone, Liberia, and Côte d’Ivoire, with a focus on the role of the private sector in leading the reconstruction initiatives. Given that aid and debt relief, the traditional remedies for dependency and underdevelopment, have not been effective, the private sector is increasingly viewed as a major player in the revival of regional economies. Private sector support, however, requires government intervention to improve investment climates, curb corruption, strengthen the security sector, and reduce the cost of doing business. The contributors discuss ways in which West African governments can encourage the greater involvement of business in humanitarian support with incentives that demonstrate alignment with business objectives and profit margins, making humanitarian support simple and, more importantly, profitable and sustainable for both local and foreign investors. Co-published with the Centre for International Governance Innovation (CIGI)

This book explores what is, for many African countries, a new and controversial policy of relying on private actors rather than on government organizations to foster economic growth and development. The contributors explore key issues such as the impact of private enterprise on the development process, small- and medium-sized businesses as a vehicle for growth, and strategies for the expansion of markets and trade. The contributors analyze the historical, social, cultural, and economic obstacles to the development of private enterprise in Africa; the roles of government, women, and business organizations; access to capital and the function of financial institutions; private initiative and agriculture; the use of skilled and semi-skilled labor; and technology transfer. Arguing that private sector forces are crucial to African socioeconomic development, the contributors recommend economic policy reform, establishment of more private enterprises, and encouragement of new domestic and foreign investment.

Why is the private sector yet to take off in much sub-Saharan Africa? Drawing on a unique set of enterprise surveys, Vijaya Ramachandran and her co-authors identify the biggest obstacles: inadequate infrastructure (especially unreliable electricity and crumbing roads) and burdensome regulation. They then show how ethnic minorities dominate the private sector in many countries, inhibiting competition and demands for a better business environment, and thus impeding the emergence of an entrepreneurial middle class. Based on this careful diagnosis, the authors suggest investing in infrastructure and reforming regulation to lower the cost of doing business, and increasing the access to education of a broader-based business class that crosses ethnic divides. Book jacket.

Presents a cross-cutting analysis of the main development challenges for the West African region and offers suggestions on how to meet them.