URBANIZATION AND INDUSTRIALIZATION

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210 ECONOMIC REPORT ON AFRICA 2017 Given urbanization’s cross-cutting nature and complexity, coordination with sectors and subsectors other than industry is also crucial. Energy, transport, communications and technology are, among others, important in shaping the urban development landscape. A mechanism needs to be set up for coordinating urban and industrial development planning. If planning on both sides is to be linked, multiple sectors, subsectors and actors need to be part of planning and executing policies. This mechanism should also provide for consulting with and involving private stakeholders, notably leaders in manufacturing and real estate. The agendas on both sides are multi-scale and need to be managed at different levels, from local to national. Although decentralization remains important and is in progress in many countries, competencies in economic development lie primarily at national level, and many local authorities lack the interest or competence to formulate and execute economic programmes. Many cities, outside South Africa and Northern Africa, have little local economic planning experience and where they do, are too limited in territorial and substantive scope to have much impact. Moreover, such initiatives rarely interface with national and subnational priorities. Thus coordination at national level to align urban and industrial priorities should involve subnational authorities and be accompanied by technical, financial and institutional support. National plans are only as good as their implementation, and local actors are critical in implementation. Understanding the complexities of urbanization and its links to industrial development—in order to assess policy options and trade-offs, to design good policy strategies and to measure impacts—requires evidence-based data. Moreover, urban development and long-term economic growth targets need a framework for linking them, one grounded in sound methods and a matrix of indicators. But spatial economic data, especially at subnational level, are lacking for employment, spatial economic structure, agglomeration economies, land and real estate markets, subnational revenues and expenditures, congestion and mobility (including public transit) and infrastructure quality. Cooperation between urban agencies and national statistical offices could, however, improve matters, possibly including think tanks. Understanding the complexities of urbanization and its links to industrial development—in order to assess policy options and trade-offs, to design good policy strategies and to measure impacts—requires evidence-based data. In conclusion, it is critical to develop guidelines and tools on how to coordinate the formulation and execution of urban and industrial policies, guided by national targets of growth and transformation. While policymakers may appreciate the need to link these policies, they also need to strengthen capacities. Based on practices that have worked in Africa and elsewhere, it will be important to support states and partnerships among regional economic communities.
REFERENCES ENDNOTES City of Chicago. 2017. “Repositioning Chicago’s Industrial Corridors for Today’s Economy.” Chicago, IL. Available at: https://www.cityofchicago.org/city/ en/depts/dcd/supp_info/repositioning-chicago-s-industrial-corridors-for-today-s-economy.html. Department of Human Settlements. 2014 “Concept Document: National Human Settlements Spatial Plan August 2014.” Pretoria, South Africa. Available at: https://www.thehda.co.za/uploads/ files/140814_MSP_Concept_document_(2).pdf. Habitat III Secretariat, UNECA and UN-Habitat (2017) “Habitat III Africa Regional Report” Henderson, J., Z. Shalzi and A. Venables. 2001. “Geography and Development.” Journal of Economic Geography 1 (1): 81–85. Kingdom of Morocco (2014) United Nations International Conference On Housing and Sustainable Urban Development, Rabat, Morocco. Ministry of Finance and Economic Planning. 2000. Vision 2020. Kigali, Rwanda. http://www. sida.se/globalassets/global/countries-and-regions/africa/rwanda/d402331a.pdf. ———. 2013. “Economic Development and Poverty Reduction Strategy II 2013–2018.” Kigali, Rwanda. Available at: http://www.rdb.rw/uploads/tx_sbdownloader/EDPRS_2_Main_Document.pdf. 1 The myths are the following. Policies to improve cities will stimulate migration and only make cities more overcrowded. Policymakers should focus on rural development to slow urbanization. African cities are cheap. Good cities will spring up naturally under free market conditions. Industry will do better if it is separated from the urban dysfunction of cities. Urban issues are social issues, not economic issues. 2 “Product space” as elaborated by Ricardo Haussmann refers to a network of related products and sectors that feature relatedness in shared inputs and similar factors of production. 3 Primary cities studied across regions have been shown to retain their central importance over 100 or more years, in part due to accumulated physical and institutional investments (Henderson, Shalzi, & Venables, 2001). 4 New spatial and digital data can provide inputs into “smart” urban planning and design. 5 New York University and UN-Habitat are both piloting innovative approaches to road planning in advance of growth. See http://marroninstitute.nyu.edu/uploads/ content/A_New_Plan_for_African_Cities_Oct_19_2015. pdf and http://unhabitat.org/urban-initiatives/ initiatives-programmes/planned-city-extensions/. 6 Habitat III Secretariat, UNECA and UN-Habitat (2017) Ministry of Urban Development, Housing and Construction (2014), National Report on Housing and Sustainable Urban Development, Addis Ababa, Ethiopia NYCEDC (New York City Economic Development Corporation). n.d. “The Industrial Action Plan.” New York. Available at: http://www.nycedc.com/industry/industrial. National Planning Commission. n.d. “National Development Plan: Our Future Make it Work 2030.” http://www.gov.za/sites/www.gov.za/files/ Executive%20Summary-NDP%202030%20-%20 Our%20future%20-%20make%20it%20work.pdf. Redding, S. 1999. “Dynamic Comparative Advantage and the Welfare Effects of Trade.” Oxford Economic Papers 51 (1999): 15–39. Available at: https://www.princeton. edu/~reddings/pubpapers/DCAOEP1999.pdf. UNECA (United Nations Economic Commission for Africa). 1962. “Report on Workshop on Urbanization in Africa: Economic Factors in Urban Growth in Africa and the Role of Industrialization: Comment on the Work Programme of the Economic Commission for Africa Division for Industry, Transport and Natural Resources.” Addis Ababa. Available at: http://repository.uneca.org/bitstream/ handle/10855/6815/Bib-46876.pdf?sequence=1. ———. 2016. Economic Report on Africa 2016. Addis Ababa. URBANIZING TO INDUSTRIALIZE: POLICY RESPONSES 211
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URBANIZATION AND INDUSTRIALIZATION
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CCONTENTS LIST OF BOXES, FIGURES &
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chapter 5 URBANIZATION AND INDUSTRI
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CHAPTER 1 (CONT) Figure 1.11 Growth
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CHAPTER 4 BOXES Box 4.1 Drivers, en
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LIST OF ABBREVIATIONS USED AEO AfDB
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UN-Habitat UNICEF US USAID WDI WTO
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The lead consultant, Mr. Gulelat Ke
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FFOREWORD Urbanization is a mega-tr
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articulated. Yet, industrial target
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harnessing opportunities from rapid
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A diverse urban system can offer in
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Cities and urban agglomerations sho
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Figure 1.1 Economic growth in Afric
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In 2016, the generally weak world e
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Box 1.2 SOME POLICY RESPONSES OF AF
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year, driven by slower growth in Al
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associated with a decline in the va
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Figure 1.7 Productivity growth by A
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AFRICA’S CURRENT ACCOUNT DEFICIT
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lower global prices of oil and food
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about 4 and 5.5 percentage points,
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Box 1.3 THE CONTINENTAL FREE TRADE
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Figure 1.15 Gross domestic savings,
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are seeking to finance public inves
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Figure 1.19 Africa’s growth prosp
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Box 1.4 CHINA’S ENGAGEMENT IN AFR
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REFERENCES AfDB-OECD-UNDP 2016. Afr
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72 Table 2.7 Change in gender gap i
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Figure 4.1 The urbanization-industr
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4.1 DRIVERS: URBAN DEMAND AND SHIFT
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FOOD VALUE CHAIN AND RURAL-URBAN LI
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But for the construction sector to
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The link between GDP and formal hou
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Figure 4.7 Employment in constructi
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More recent theories of industrial
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Table 4.3 Results of selected econo
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expensive interventions to support
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Figure 4.9 Top two ranked countries
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study 16 —makes the following con
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Table 4.4 Industrial sector charact
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Box 4.5 A PATH TO FORMALIZATION Suc
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Arusha, Tanzania Beira, Mozambique
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lengthening travel times and creati
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in South Asia (Yepes, Pierce and Fo
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ҋҋ Linking sector strategies, nat
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Agglomeration economies are powerfu
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Gutman, J., A. Sy and S. Chattopadh
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ENDNOTES 1 The link between urbaniz
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Page 161 and 162: Figure 5.1 50,000 Four basic countr
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Page 191 and 192: REFERENCES Ackah, C., C. Adjasi and
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