Inclusive and sustainable industrial development for Africa

Abstract

Inclusive and sustainable industrialization is essential to achieve sustainable development. It unleashes dynamic and competitive economic forces that generate employment and income, facilitate international trade and enable efficient use of resources. As such, it is a major driver of poverty alleviation and shared prosperity. The Industrial Development Report (IDR) series is an established source of reference on industrial development. Previous editions have been examining the driving forces of industrialization and the positive factors that can lead to social inclusiveness and environmental sustainability. They have examined crucial components of the production side of industrialization, such as capacity building, energy efficiency, employment creation and technological change, to mention just a few. This 2018 edition of the IDR complements previous reports by shedding light on a dimension of industrial development that has still been unexplored: the consumption of manufactured goods. Understanding the consumption side is essential to fully grasp the drivers and impact of industrialization. On the one hand, industrialization cannot take place unless there is sufficient demand for new products. We thus need to understand the determinants of manufacturing consumption. On the other hand, industrial development can bring important benefits to consumers, and can thereby significantly improve their living standards and well-being. We need to better comprehend how to improve the positive impact on consumers. This IDR, for the first time, provides a framework that captures the interactive nature of manufacturing consumption and industrial development, supported by empirical evidence.