A Conceptual Overview to Understand Commodities, Linkages and Industrial Development in Africa

Sub-Sahara African commodity exporting economies have benefitted greatly from the commodities boom of the past decade. The conventional wisdom argues that resource extraction is corrosive of industrial development due to a combination of the macroeconomic consequences of resource exploitation and the assumed enclave nature of mineral and energy extraction. The paper challenges this pessimistic ‘resource curse’ argument, arguing that there are unexploited opportunities for promoting industrial development through the development of linkages from the commodities sector. In particular, these opportunities may be greater for backward than for forward linkages, particularly in the minerals and energy sectors. In making this case, this Discussion Paper draws on the experience of high-income countries which have resource-intensive economic structures, the geographical specificity of many resources and the growing interest of large resource-extracting firms in outsourcing the production of inputs which are outside of their core competences, It sets out a general model of linkages between industry and services and the commodities sector which distinguishes between win-win and win-lose outcomes. The paper concludes with a brief review of the reasons why Governments might wish to intervene to support linkages between the commodities and the industrial and service sectors

Global Talentship: Toward a Decision Science Connecting Talent to Global Strategic Success

It is widely accepted that global competitive advantage frequently requires managing such complex situations that traditional organization and job structures are simply insufficient. Increasingly, in order to create a flexible and integrated set of decisions that balance local flexibility with global efficiency, organizations must rely on more social, informal and matrix-based shared visions among managers and employees. Research on global strategic advantage, global organizational structures, and even shared mindsets has suggested that dimensions of culture, product and function provide a valuable organizing framework. However, typical decisions about organization structure, HRM practices and talent often remain framed at such a high level as to preclude their solution. We maintain that there is often no logical answer to such questions as, “Should the sales force be local or global?” or “Should product authority rest with the countries or the corporate center?” However, we propose that embedding business processes or value chains within a Culture and Product matrix provides the necessary analytic detail to reveal otherwise elusive solutions. Moreover, by linking this global process matrix to a model that bridges strategy and talent, it is possible to identify global “pivotal talent pools,” and to target organizational and human resource investments toward those talent areas that have the greatest impact on strategic advantage. We demonstrate the Value-Chain, Culture and Product (VCCP) matrix using several examples, and discuss future research and practical implications, particularly for leadership and leadership development

Commodities and Linkages: Meeting the Policy Challenge

The results of detailed empirical enquiry into the nature and determinants of the breadth and depth of linkages in and out of the commodities sector in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber) has shown extensive scope for industrial development (MMCP DP 13, 2011). A primary conclusion of this research was that policy in both the private and public realm was a prime factor holding back the development of linkages. Addressing this problem requires the closing of three sets of misalignments between policy and practice – within the corporate sector, within the public sector, and between the public sector and other stakeholders involved in linkage development. In addition, specific policies need to be developed, monitored and implemented in relation to the three contextual drivers of linkages from the commodity sector – skills and capabilities, infrastructure and policies towards ownership

Commodities and Linkages: Industrialisation in Sub-Saharan Africa

In a complementary Discussion Paper (MMCP DP 12 2011) we set out the reasons why we believe that there is extensive scope for linkage development into and out of SSA’s commodities sectors. In this Discussion Paper, we present the findings of our detailed empirical enquiry into the determinants of the breadth and depth of linkages in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber). We conclude from this detailed research that the extent of linkages varies as a consequence of four factors which intrinsically affect their progress – the passage of time, the complexity of the sector and the level of capabilities in the domestic economy. However, beyond this we identify three sets of related factors which determined the nature and pace of linkage development. The first is the structure of ownership, both in lead commodity producing firms and in their suppliers and domestic customers. The second is the nature and quality of both hard infrastructure (for example, roads and ports) and soft infrastructure (for example, the efficiency of customs clearance). The third is the availability of skills and the structure and orientation of the National System of Innovation in the domestic economy. The fourth, and overwhelmingly important contextual factor is policy. This reflects policy towards the commodity sector itself, and policy which affects the three contextual drivers, namely ownership, infrastructure and capabilities. As a result of this comparative analysis we provided an explanation of why linkage development was progressive in some economies (such as Botswana) and regressive in others (such as Tanzania). This cluster of factors also explains why the breadth and depth of linkages is relative advanced in some countries (such as South Africa), and at a very nascent stage in other countries (such as Angola)

Economic impacts of SEZs: Theoretical approaches and analysis of newly notified SEZs in India

This study aims at examining the economic impacts of SEZs in the Indian context. While doing so, it addresses the conceptual confusion about SEZs, outlines the evolution of SEZs; traces economic philosophies explaining the rationale and benefits of SEZs; extends existing theoretical literature to explain the economic impacts of SEZs; assesses the economic impacts of newly notified SEZs in India; reviews the strategies followed by various state governments in the implementation of the policy ; and draws policy implications. It argues that the existing economic theories donot adequately explain the rationale and contribution of SEZs. These approaches need to be extended by integrating the provisions of the theories of agglomeration economies and global value chains within the existing theoretical frameworks. It analyses the economic impacts of SEZs within the extended theoretical framework. It finds that while SEZs are stimulating direct investment and employment, their role appears to be more valuable in bringing about economic transformation from a resource-led economy to a skill and technology-led economy; from low value added economic activities to high value added economic activities; from low productive sectors to high productive sectors; and from unorganised to organized sectors, both at the national and regional levels. They have the potential of promoting new knowledge intensive industries; augmenting existing industrial clusters/industrial states; diversifying the local industrial base; and localizing global value chain. However, a strategic approach is required to reap the opportunities offered by SEZs.Special economic zones; Exports; FDI; Economic diversification; Agglomeration economies; global value chains;India

Impact of Special Economic Zones on Employment, Poverty and Human Development

This study aims at examining the impact of Special Economic Zones (SEZs) on human development and poverty reduction in India. It identifies three channels through which SEZs address these issues: employment generation, skill formation (human capital development), and technology and knowledge upgradation. It examines how the impact of SEZs is passed through each of these channels. The study finds that the modality differs significantly according to the characteristics of the SEZs, in particular, the level of their development as reflected in the composition of economic activities. Within this framework, the study examines the sectoral and economic composition of SEZ activities in India. It finds that labour intensive, skill intensive and technology intensive firms co exist in India's zones and, therefore argues that all the three effects described above are likely to be important in the Indian context. Empirical findings reported in the study are based on the data collected from both secondary sources and primary surveys. The primary survey based data was generated through extensive interviews of entrepreneurs and workers across the three largest SEZs (in terms of their contribution to exports and employment) : SEEPZ, Madras and Noida. The analysis reveals that `employment generation' has been the most important channel through which SEZs lend themselves to human development concerns, in India. Employment generated by zones is remunerative. Wage rates are not lower than those prevailing outside the zones. Besides, working conditions, non monetary benefits (such as transport, health and food facilities), incentive packages and social security systems are better than those prevailing outside the zones, in particular, in the small/informal sector. The role of SEZs in human capital formation and technology upgradation is found to be rather limited. The study argues that the zones' potential could not be exploited fully in India. This could primarily be attributed to the limited success of SEZs in attracting investment and promoting exports. The new SEZ policy gives a major thrust to SEZs. However the creation of SEZs alone does not ensure the realization of their potential. The government will need to play a more proactive role for effective realization of the full range of benefits from SEZs.Special Economic Zones, Human Development, Employment, Poverty, Skill Formation, Technology Transfers, Local R&D

Work organisation and restructuring in the knowledge society

It is generally agreed that major changes in work are taking place in the organisation of work as corporate structures are transformed in the context of economic globalisation and rapid technological change. But how can these changes be understood? And what are the impacts on social institutions and on workers and their families? The WORKS project brought together 17 research institutes in 13 European countries to investigate these important issues through a comprehensive four year research programme.organisation of work, globalisation, technological change, Europe