, 7 tweets, 3 min read Read on Twitter
1/When I express optimism about African manufacturing, people inevitably tell me that industrialization won't work for Africa (or, presumably, for Bangladesh, Vietnam, etc.) because of automation.

I don't buy it.

bloomberg.com/opinion/articl…
2/First of all, the people who push this thesis (e.g. Joseph Stiglitz) tend to cite the fact that manufacturing in Africa fell as a % of GDP from the late 70s to the early 2000s.

www8.gsb.columbia.edu/faculty/jstigl…
3/But the timing is all wrong. Automation didn't become a big deal until recently. And China did just fine with manufacturing in the 90s and 00s.

So what is Africa's deindustrialization in the 70s-90s reflecting?

Probably just bad policy.

brookings.edu/blog/africa-in…
4/In addition, the official statistics on African industrialization simply miss a lot of manufacturing activity.

Bad data leads to bad conclusions!

ifpri.org/blog/myth-de-i…
5/Third, the people who warn of "premature deindustrialization" don't really present any credible alternative path to development.
6/And fourth, pessimists conflate manufacturing *employment* with manufacturing *output*.

Even if manufacturing doesn't create as many jobs as in past decades, it still generates external multipliers!
7/Therefore, there is no reason for African countries to abandon the traditional, manufacturing-centric approach to industrialization.

Ignore the Joe Stiglitzes, and full speed ahead!

(end)

bloomberg.com/opinion/articl…
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