The political economy of reviving industrial policy in Uganda

Abstract

Industrial policy is enjoying a resurgence. Though the revival of industrial policies has been generally associated with the prioritisation of increasing exports, several African countries have introduced domestically oriented industrial policies. Despite their increased adoption, domestically oriented industrial policies have had limited success. This paper deepens our understanding of contemporary constraints to industrialization by analysing Uganda’s failed attempts at banning used clothes and using public procurement to promote domestic consumption of locally produced goods. Despite acknowledgment of the political constraints of industrial policy in academic and policy circles, the Ugandan government has replicated domestically oriented industrial policies implemented elsewhere, without adapting them to local political realities. This has resulted in significant resistance to industrial policies, which showcase the salience of the legacies of past policies. In particular, the paper highlights how resistance exists within government (from powerful budgetary ministries) and through the competing interests of industrial firms. .