Africa should industrialize. Without structural change it cannot sustain recent growth. Economies with more diverse and sophisticated industrial sectors tend to grow faster. But since 1980 Africa has deindustrialized. The paper shows that between 1975 and 2005 the size, diversity and...

This paper argues that official development assistance (foreign aid) is partly responsible for the lack of structural change in Africa. Africa's development partners have devoted too few resources and too little attention to two critical constraints to private investment, infrastructure and...