The essentials of a manufacturing ecosystem
May 11, 2016 Editor 0
Value addition through manufacturing has been a major focus of economic policymakers across the world, and at times with remarkable success, most famously in East Asia. Initial ‘Asian miracles’ in places like South Korea have since been eclipsed by the meteoric rise of manufacturing in China, which has grown its exports in manufactures by 18 percent a year over the past 10 years, compared to a global average of 7 percent (ITC Trade Map data).
Most countries generally seemed to follow a basic pattern, initially establishing manufacturing credentials in light manufacturing, such as in textile and apparel, but then in time moving on from such products to higher-value-added and more complex products. As they moved on and up, they opened space for other countries to move into the initial entry products, following the so-called ‘flying geese’ model of division of labor.
There have been noticeable absences though, with not all regions having moved into manufacturing. This is partially the case with Central and South America, but most strikingly with Sub-Saharan Africa.
What can be done to support countries in their quest to deepen their manufacturing sectors, and extract the jobs and technological development that this can offer? How can they develop the kinds of deep and comprehensive manufacturing ecosystems that have enabled China to maintain investment despite fast-rising labor costs?
- Unlocking innovation in the Middle East through financial inclusion
- Newest private participation in infrastructure update shows growth and challenges
- The reforms behind the Doing Business rankings
- Improving SME competitiveness: To target or not to target? What businesses, and how?
- An investment ecosystem: Piecing together the interventions needed for a dynamic textile and apparel cluster in Kenya
- Why Juba?
Categories: World Bank PSD
Tags: manufacturing ecosystem
Subscribe to our stories
- The Partnership for Economic Policy Call for Project Proposals September 29, 2017
- 3 Uncommon Ways ICT Can Aid Delivery of High Impact Agricultural Research and Development September 29, 2017
- 20 Reasons You Should Integrate Tourism into Your Development Agenda September 29, 2017
- How Mobile Applications are Documenting Property Rights in Zambia September 29, 2017
- Which African Governments Spy on Technology Users the Most? September 29, 2017