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From United Nations Economic Commission for Africa

Economic Report on Africa 20
Governing development in Africa. The role of the state in economic transformation
Cover - Acronyms - Acknowledgements - Foreword -Contents

Developments in the world economy and implications for Africa
Growth and social development in Africa in 2010 and prospects for 2011
Economic performance
Social conditions
Current and emerging development challenges in Africa
Trade performance and trade negotiations
Development financing
Some key green economy issues
The state and Africa’s development challenges
Economic transformation and its importance
Africa’s transformation experience
State actions for transforming African economies

Africa’s need for a developmental state
Constructing an African developmental state
The way forward for African developmental states
Policy recommendations
Further research

Developments in the World Economy and Implications for Africa
1.1 A moderating global recovery in 2010
1.2 World trade growth yet to stabilize
1.3 Global interest rates still low but inflation up in some regions
1.4 Trading in foreign exchange dominated by weak US dollar and fluctuating euro
1.5 Macroeconomic imbalances threatening global economic stability 17
1.6 World commodity prices and volatility both up
- Crude oil
- Food and beverages
- Agricultural raw materials, minerals, ores and metals
1.7 Remittances and foreign direct investment starting to pick up again
- Remittances
- Foreign direct investment
- Official development assistance
1.8 The quest for reform of the global financial architecture
1.9 Conclusions
Economic and Social Conditions in Africa in 2010 and Prospects for 2011 29
2.1 Economic performance in 2010
- Uneven growth among countries...
- ...and among subregions
- A largely jobless recovery
- Generally subdued inflation across the continent
- Continued accommodative or neutral monetary policy stance in most economies
- Still-deteriorating fiscal balances
- Marginally worse external positions despite thriving external sectors
2.2 Recent trends in social development
- Slow progress towards human and social development
- Switching balance in state and non-state provision of social services
- Changing role of the state in Africa’s social development
2.3 Favourable outlook for 2011, barring exogenous shocks
2.4 Conclusions
Selected Current and Emerging Development Issues in Africa in 2010
3.1 Developments in international trade in 2010
- Africa’s trade performance
- Africa’s share in services trade
- WTO negotiations in 2010: Addressing the development aspects of the Doha Round
- Developments in the Economic Partnership Agreements negotiations in 2010
- Aid for Trade initiative in Africa: Opportunities and challenges beyond 2010
- Trade preferences and South–South cooperation
3.2 Financing for development
- Mobilizing domestic resources
- Mobilizing foreign capital
- International trade and official development assistance
- External debt and debt relief
- Global financial and economic governance
3.3 A green economy: Implications for Africa’s development
- Capitalizing on natural capital
- Embarking on green industrialization
- Harnessing clean energy potential
- Creating enabling policies and institutions
3.4 Conclusions

The Role of the State in Economic Transformation in Africa
4.1 Economic transformation and sustained economic growth
- Stylized facts
- Growth and transformation in Africa
- Key lessons
4.2 The role of the state in promoting economic transformation in Africa
- Planning the development process
- Formulating relevant development policies
- Implementing plans and policies
4.3 Conclusions

Africa’s Need for a Developmental State: Opportunities and Challenges
5.1 Concept and features of a developmental state
- Vision setting, capable leadership and a developmentalist ideology
- Relative state autonomy, especially in formulating and implementing policy
- State institutional capacity, notably a strong and competent bureaucracy
- Effective national development planning
- Coordination of economic activities and resources
- Support for a national entrepreneurial class
- Commitment to expansion of human capacity
- Peace, political stability, rule of law and predictability in government business
5.2 Africa’s post-colonial efforts at building developmental States
5.3 Comparative performance of developmental States in Asia and Latin America
5.4 Towards the future: How to construct developmental States in Africa
- Purposeful leadership and a developmentalist coalition
- Transformative institutions
- Focused industrial policy,br. - Investment in research
- Enhanced social policy
5.5 Conclusions

Governing Development in Africa: Needs and Responses
6.1 The state, economic diversification and structural transformation in Africa
- The need for diversification and transformation
- The role of the state
- Constructing developmental states in Africa 118
6.2 Policy recommendations
- Enhancing the role of the state in Africa’s economic transformation
- Building African developmental states
- Ensuring the effectiveness of African developmental states
- Avoiding the pitfalls of state intervention
- Enhancing stakeholder participation
- Using intraregional and continental institutions more effectively
- Confronting policy restrictions
6.3 Conclusions and areas for future research

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