ABSTRACT
This chapter sketches a theoretical framework applicable to the situation of a mineral country like Namibia along the lines of a minerals theory of growth. It discusses the developing problems that confront a country with this specific endowment and point out some norms that is applicable in the development process. Industrial policy in Namibia includes subsidies, which are usually more effective and direct, and also make it easier to determine the true costs for a certain type of production. Namibia develops small-scale and medium-sized industries that are primarily geared toward the domestic market. Namibia is a country well endowed with natural riches, and with a strong comparative advantage in the mining sector. A policy of industrial promotion can start by developing export industries based on the country's rich primary resources in mining, agriculture and fishing. Such a policy permits these industries to enjoy the privilege of access to cheaply imported machinery and other input factors.
