Light Manufacturing in Tanzania: A Reform Agenda for Job Creation and Prosperity
Light Manufacturing in Tanzania argues that for Tanzania to remain one of the fastest growing economies in Sub-Saharan Africa, it has to make progress in the structural transformation that can lift workers from low-productivity agriculture and the informal sector to higher productivity activities. Manufacturing, which has been the main vehicle throughout the world to achieve this transformation, has remained stunted in Tanzania. Using new evidence, the book shows that feasible, low-cost, sharply focused policy initiatives aimed at enhancing private investment could launch Tanzania on a path to competitive light manufacturing. These initiatives would complement progress on broader investment reforms by increasing the share of industry in regional output and raising the market share of domestically produced goods in rapidly growing local markets for light manufactures. And, as local producers increase their scale, improve quality, and gain experience with technology, management, and marketing, they can take advantage of emerging export opportunities. In Tanzania, as in East Asia, policies that encourage foreign direct investment can speed industrial development and the expansion of exports. The impact of isolated successes can be multiplied. The strategies proposed here can launch a process that would create millions of productive jobs. Light Manufacturing in Tanzania has several innovative features. First, it provides in-depth cost comparisons between Tanzania and four other countries in Asia and Africa at the sector and product levels. Second, the book uses a wide array of quantitative and qualitative techniques to identify key constraints to enterprises and to evaluate differences in the performance of firms across countries. Third, it uses a focused approach to identify country- and industry-specific constraints. Fourth, it highlights the interconnectedness of constraints and solutions. For example, solving the manufacturing input problem requires actions in agriculture, education, and infrastructure. Detailed cross-country analysis was carried out in four subsectors in Tanzania: textiles and apparel, leather products, wood products, and agroprocessing. Based on this analysis, the book suggests directing government policies toward removing constraints in a few of the most promising light manufacturing sectors using practical and innovative solutions inspired by the fast-growing Asian economies the starting point of which 20 years ago was not so different from Tanzania's today. This book will be valuable to African policy makers, professional economists, and anyone interested in economic development, industrialization, and the structural transformation of developing countries.
"1115772522"
Light Manufacturing in Tanzania: A Reform Agenda for Job Creation and Prosperity
Light Manufacturing in Tanzania argues that for Tanzania to remain one of the fastest growing economies in Sub-Saharan Africa, it has to make progress in the structural transformation that can lift workers from low-productivity agriculture and the informal sector to higher productivity activities. Manufacturing, which has been the main vehicle throughout the world to achieve this transformation, has remained stunted in Tanzania. Using new evidence, the book shows that feasible, low-cost, sharply focused policy initiatives aimed at enhancing private investment could launch Tanzania on a path to competitive light manufacturing. These initiatives would complement progress on broader investment reforms by increasing the share of industry in regional output and raising the market share of domestically produced goods in rapidly growing local markets for light manufactures. And, as local producers increase their scale, improve quality, and gain experience with technology, management, and marketing, they can take advantage of emerging export opportunities. In Tanzania, as in East Asia, policies that encourage foreign direct investment can speed industrial development and the expansion of exports. The impact of isolated successes can be multiplied. The strategies proposed here can launch a process that would create millions of productive jobs. Light Manufacturing in Tanzania has several innovative features. First, it provides in-depth cost comparisons between Tanzania and four other countries in Asia and Africa at the sector and product levels. Second, the book uses a wide array of quantitative and qualitative techniques to identify key constraints to enterprises and to evaluate differences in the performance of firms across countries. Third, it uses a focused approach to identify country- and industry-specific constraints. Fourth, it highlights the interconnectedness of constraints and solutions. For example, solving the manufacturing input problem requires actions in agriculture, education, and infrastructure. Detailed cross-country analysis was carried out in four subsectors in Tanzania: textiles and apparel, leather products, wood products, and agroprocessing. Based on this analysis, the book suggests directing government policies toward removing constraints in a few of the most promising light manufacturing sectors using practical and innovative solutions inspired by the fast-growing Asian economies the starting point of which 20 years ago was not so different from Tanzania's today. This book will be valuable to African policy makers, professional economists, and anyone interested in economic development, industrialization, and the structural transformation of developing countries.
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Light Manufacturing in Tanzania: A Reform Agenda for Job Creation and Prosperity

Light Manufacturing in Tanzania: A Reform Agenda for Job Creation and Prosperity

Light Manufacturing in Tanzania: A Reform Agenda for Job Creation and Prosperity

Light Manufacturing in Tanzania: A Reform Agenda for Job Creation and Prosperity

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Overview

Light Manufacturing in Tanzania argues that for Tanzania to remain one of the fastest growing economies in Sub-Saharan Africa, it has to make progress in the structural transformation that can lift workers from low-productivity agriculture and the informal sector to higher productivity activities. Manufacturing, which has been the main vehicle throughout the world to achieve this transformation, has remained stunted in Tanzania. Using new evidence, the book shows that feasible, low-cost, sharply focused policy initiatives aimed at enhancing private investment could launch Tanzania on a path to competitive light manufacturing. These initiatives would complement progress on broader investment reforms by increasing the share of industry in regional output and raising the market share of domestically produced goods in rapidly growing local markets for light manufactures. And, as local producers increase their scale, improve quality, and gain experience with technology, management, and marketing, they can take advantage of emerging export opportunities. In Tanzania, as in East Asia, policies that encourage foreign direct investment can speed industrial development and the expansion of exports. The impact of isolated successes can be multiplied. The strategies proposed here can launch a process that would create millions of productive jobs. Light Manufacturing in Tanzania has several innovative features. First, it provides in-depth cost comparisons between Tanzania and four other countries in Asia and Africa at the sector and product levels. Second, the book uses a wide array of quantitative and qualitative techniques to identify key constraints to enterprises and to evaluate differences in the performance of firms across countries. Third, it uses a focused approach to identify country- and industry-specific constraints. Fourth, it highlights the interconnectedness of constraints and solutions. For example, solving the manufacturing input problem requires actions in agriculture, education, and infrastructure. Detailed cross-country analysis was carried out in four subsectors in Tanzania: textiles and apparel, leather products, wood products, and agroprocessing. Based on this analysis, the book suggests directing government policies toward removing constraints in a few of the most promising light manufacturing sectors using practical and innovative solutions inspired by the fast-growing Asian economies the starting point of which 20 years ago was not so different from Tanzania's today. This book will be valuable to African policy makers, professional economists, and anyone interested in economic development, industrialization, and the structural transformation of developing countries.

Product Details

ISBN-13: 9781464800320
Publisher: World Bank Publications
Publication date: 09/01/2013
Series: Directions in Development - Private Sector Development
Pages: 136
Product dimensions: 6.70(w) x 9.80(h) x 0.40(d)

Table of Contents

Foreword ix

Acknowledgments xi

About the Authors xiii

About the Contributors xv

Abbreviations xvii

Part 1 Overall Context 1

Chapter 1 A Good Potential in Light Manufacturing 3

Why Light Manufacturing? 4

Identifying Opportunities in Light Manufacturing 5

The Potential for Light Manufacturing in Africa 5

Resolve the Critical Constraints in Promising Sectors 9

Notes 11

References 11

Chapter 2 A Country with Great Potential 13

Good Macroeconomic Performance, but Limited Structural Transformation 14

Seizing the Moment: Opportunities for Tanzania 18

Note 20

References 20

Chapter 3 The Business Environment 23

The Macroeconomic Framework 23

The Microeconomic Constraints 26

Competition Is Weak in Industry 35

A Shortcut: Plug-and-Play Industrial Parks 39

Overcoming the Constraints to Competitiveness 41

Notes 44

References 47

Part 2 Sectoral Analyses 49

Chapter 4 Textiles and Apparel 51

Structure of the Sector 52

The Main Constraints 56

Policy Recommendations 61

Notes 62

References 63

Chapter 5 Leather and Leather Products 65

Structure of the Sector 65

The Main Constraints 68

Policy Recommendations 69

Notes 71

References 72

Chapter 6 Wood and Wood Products 73

Structure of the Sector 73

The Main Constraints 74

Policy Recommendations 76

Notes 78

References 78

Chapter 7 Agroprocessing 79

Structure of the Sector 79

The Main Constraints 81

Policy Recommendations 86

Notes 87

References 88

Chapter 8 Institutional Support for Policy Coordination 89

Industrial and Sectoral Strategies 89

Vocational and Technical Skills Training 93

Institutional Support and Coordination 95

Policy Recommendations 96

Notes 97

References 98

Appendix A A Matrix of Recommended Policy Actions to Accelerate Light Industry Development 99

Appendix B The Institutional Support Structure and Value Chain, Four Sectors 107

Reference 116

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