ABSTRACT
This chapter explores the conditions under which an activist industrial policy (IP) might improve market outcomes in an industrializing African economy. Most African countries have industrial development plans that encapsulate their strategic visions and long-term commitments. Another important dimension of IP, especially of great concern for a developing economy, is the gap between planning and implementation. The implication for industrial policy then is that IP should shift its traditional focus less on complementarities to exploit economies of scale than to expanding economies of scope. According to the cadre of Japanese advisors on industrial policy, Ethiopia certainly meets many of the ingredients of a successful IP. Ghana's Industrial Policy is set within the context of Ghana's long-term strategic vision of achieving middle-income status by 2020. The full spectrum of industrial policy initiatives cuts across four thematic policy areas, namely, production and distribution, technology and innovation, incentives and regulatory regime, and cross-cutting issues.
