Can Sub-Saharan Africa leap into global network trade ?

A new working paper from World Bank on African industry;

Summary: This paper examines opportunities for Sub-Saharan African countries to effectively participate in globalization, particularly given the increasing interest of China and India in Sub-Saharan Africa. How can Sub-Saharan Africa fully engage and gain benefits from global network trade? Over the past 15 years Asia has become Africa's fastest growing export market. Asian countries are much more open to trade than Europe or America. There seems to be no evidence to suggest that this trend will not continue in the near future. The authors acknowledge the numerous caveats in Asia's growing interest in the African continent, not least the "resource curse" of exports that are heavily concentrated on oil, minerals, and raw materials, as well as the fierce competition from Asia's cheap manufactured exports. However, they believe that there is strong evidence to suggest a clear potential for South-South cooperation in trade and investment. Drawing on evidence from their extensive research into international value chains, the authors identify five critical factors for effective participation in global network trade: price, speed-to-market, labor productivity, flexibility, and product quality. Underlying competitive performance of these critical factors are a country's policies and institutions. Effective policies, efficient institutions, and the necessary infrastructure will ensure the best outcome for trading countries. To improve the depth and sustainability of these five critical factors, it is important that developing countries create a supportive policy and institutional framework from the outset.

From the conclusion;

“As a final note, and more as a potential area for future research, it is important to point out that African countries not only look to Asia as potential markets; they also look at the Asia as a “model” for economic growth and development. One continuing and highly controversial point of contention is the importance of industrial policy in East Asia’s growth story. There is no doubt that, in addition to trade and capital market liberalizing measures, the state has played a key role in East Asia’s economic development since the 1970s. Although it is impossible to point out one or two successful policies in East Asia, and keeping in mind that both continents are radically different, the question we have to ask ourselves is what lessons – if any – could African governments learn from East Asia’s state involvement in their miraculous growth and poverty reduction?”

Related;
Manufacturing in Asia