SECTORAL SPECIALIZATION COURSE ON INDUSTRIAL DEVELOPMENT IN AFRICA
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1 SECTORAL SPECIALIZATION COURSE ON INDUSTRIAL DEVELOPMENT IN AFRICA OBJECTIVES Over the past few years, IDEP has been offering a similar specialization course to middlehigh level public officials. The course has now been redesigned to better relate to emerging needs and requirements for more rapid industrial development in Africa, and will now be targeted at both public and private sector officials. The course has been developed in conjunction with the Industry Division of ECA and some divisions of UNIDO. The course will be of three months duration. The overall objective is to contribute to developing a critical mass of middle-high level policy and decision makers who will be better equipped to design and manage industrial development in Africa. The specific objectives are: - to provide participants with an understanding of key industrial development issues in Africa so as to be able to formulate and implement appropriate industrial development strategies and policies to address them; - to provide training in skills and techniques for analyzing and monitoring industrial development policies and programmes for resolving the underlying structural deficiencies in the industrial sector in African economies; - to enhance inter-agency dialogue and coordination of national economic policies and strategies among the various national agencies and institutions involved in industrial policy formulation, implementation and follow-up. STRUCTURE The course will consist of four main modules. The first module will deal with analysis of industrial development policies and strategies in Africa. This will cover review of the United Nations Industrial Development Decades I & II, including their evolution and experiences with industrial development plans and programmes at the regional, sub-regional and national levels. The second module will focus on management of industrial policies, industrial sector restructuring and rehabilitation. This will include management of industrial incentive policies and promotion of private investment, small and medium scale enterprise development, as well as public enterprise performance and management The third module will cover tools and techniques of industrial sector and project analysis. This will include industrial product line determination, product design and development, reliability and quality assurance, as well as industrial project appraisal, evaluation, monitoring and management. It is within this context that participants will be introduced to decision-making tools
2 such as objective trees, the logical framework, financial and social cost/benefit analysis, critical path methods, and programme evaluation and e-view techniques (PERT), among others. The final module will deal with practical applications involving field visits and preparation of technical reports by individual participants on the themes covered in the course. COURSE MODULES MODULE 1: Analysis of Industrial Strategies and Policies in Africa This will serve as an introductory module that will enable the participants to familiarize themselves with the general problems and issues of industrialization in Africa. The course will draw from experiences of other developing regions such as the high performing Asian economies (HPAEs), as well as the developed countries in Europe and the USA. The module will review the principal industrialization strategies adopted in Africa and initially such as IDDA I and II and more recently AAI. There will also be brainstorming sessions on future prospects for industrialization, particularly rehabilitation and revitalization of industries, the development of the private sector, small and medium-scale enterprise development and promotion, and women in industrialization. 1.1 Overview of African Industrialization Experience: basic definitions; pre-colonial era; independence and immediate post-independence era. 1.2 Industrial Development Decades I and II: Analysis of industrial development plans and programmes at the regional, sub-regional and national levels; industrial development experiences at the national, sub-regional and regional levels and regional levels. 1.3 Harmonization of the Second Industrial Development Decade for Africa (Second IDDA) and the Second Transport and Communication Decade for Africa (UNTACDA II) with the Alliance for Africa s Industrialization (AAI). 1.4 Major issues in industrial development in Africa: Human resource develop-ment; Institutional support, especially in the areas of technology adaptation and development, standardization and quality control, information and industrial research; infrastructural development; industrial financing; the role of the informal sector; participation of women in manufacturing. 1.5 Alternative approaches to industrialization, especially the experience of the High Performing Asian Economies (HPAEs). Lessons from the Asian Tigers Industrialization strategies: export-led growth versus import substitution; public versus private sector led growth; linkages between agriculture and industry; merits 2
3 and demerits of progressing "backwards" from light industries to heavy industries versus progressing "forward" from heavy to light industries. 1.7 The effects of globalization on industrial development, global investment flows and technology transfer and their impact on competitiveness of the industrial sector. 1.8 Economics of regional integration: Industrialization and the Africa Economic Community. 1.9 Environmental concerns as expressed in the United Nations Conference on Environment and Development (UNCED) and its Agenda 21; the concept of sustainable industrialization. MODULE 2:Management of Industrial Policies, Industrial Sector Rehabilitation and Restructuring The purpose of this module is to develop capacity to manage effectively industrial development policies for the restructuring and rehabilitation of the industrial sector. Participants will be introduced to the concept and operational aspects of the Interactive Policy Formulation process. Through lectures, brainstorming, role playing and exchange of experiences in class workshops, participants would be led to develop preparatory assistance project documents for capacity building for managing industrial development in their respective countries. They will also be led to develop capability for mainstreaming issues involving gender, SMEs and/or environment into the interactive process. 2.1 Industrial policies and industrial sector restructuring and rehabilitation. The context of IDDA I. Assessment of the achievements of IDDA I. Structural Adjustment Programmes, IDDA II, AAI and other initiatives of the 1990 s. 2.2 Legacies of past policies; emerging consensus on strategies for industrial development; private sector development approaches and practices; privatization issues, problems and practices; Strategic Management of Industrial Development (Interactive Policy Formulation process); industrial restructuring at enterprise level - problems and prospects. 2.3 Current issues in industrial policy formulation; role of the State in a private sector led industrial growth; promotional and support institutions and services; investment promotion and investment codes; technological capability and technology management issues; structure of incentives (transaction and production costs); measures guiding the flow of FDI; Human Resource Development. 3
4 2.4 Small and medium-scale enterprise (SME) development: cross-country definitions; characteristics of SMEs; policies to promote SMEs; mainstreaming SMEs in IPF. 2.5 IPF within the framework of AAI Principles, framework, practices; operationalizing IPF; implementing IPF problems and prospects; Preparatory Assistance project document on capacity building for IPF. 2.6 Public enterprise performance and management : classical arguments; structure and organs; price determination; objectives, conflicts and problems. Case studies of performance evaluation and management systems: Pakistan, Korea, Cote d'ivoire, etc. MODULE 3: Tools and Techniques of Industrial Sector Analysis and Project Evaluation This module aims at acquainting participants with the tools and techniques of product line determination, product design and development, product reliability and quality assurance. It will also provide training in the principles and methodology of industrial product and project identification, preparation, appraisal, management and evaluation. Thus participants will acquire and be able to apply the technical and decision-making tools necessary for effective industrial sector policy analysis, management and monitoring. 3.1 Review of scientific research methodology for problem- solving and testing of hypotheses: empirical tools for testing hypotheses and data analysis; elements of project analysis; problem solving techniques of optimization theory, statistical methods. 3.2 Review of application software for industrial product analysis: Lotus, Quatro Pro, Excel, Statistical Packages for Social Sciences (SPSS), Computer Model for Feasibility Analysis and Reporting (COMFAR), etc. 3.3 Product line determination: evaluation of new and existing product lines; product planning. 3.4 Industrial product design and development: the innovation cycle including pure research, applied research, product configuration resulting from market research; the role of management; training and personnel policies. 3.5 Product reliability, product effectiveness and quality assurance programmes. 4
5 3.6 Industrial project identification, preparation, appraisal, management and evaluation: decision making tools such as objective trees and the logical framework; financial profitability analysis; social cost/benefit analysis; programme evaluation and review techniques (PERT); critical path methods, etc. MODULE 4: Practical Applications: Field Visits and Research Reports The field visits will provide participants with an opportunity to test the relevance of the training they have had against realities on the ground. They will conduct first-hand field observations in order to relate concepts to actual experiences and draw lessons for further analysis. On the basis of the findings, preliminary assessments can be made of the applicability of some of the skills acquired to actual job functions of participants. Throughout the course, participants will be introduced to research methodology techniques to assist them in preparing their individual written reports on themes and issues covered in the course. The main objective here is to develop participants' ability to think through and around the problems and issues of industrial development in Africa and to be able to prepare and present technical reports for review at the end of the course. 4.1 Field Visits: Industrial development projects; small and medium-scale private enterprises in industrial estates; public sector enterprises. Field trips are to be undertaken in selected localities in Senegal and in The Gambia, Chamber of Commerce and Industry, Manufacturers Associations, etc. 2.2 Report Preparation: Choice of subject; problem identification; objectives and hypothesis to test; literature review; analytical framework, methodology and issue analysis; empirical application; policy implications. Oral presentation of report in a scientific and rigorous manner. TARGET PARTICIPANTS Participants will be drawn from all countries in Africa and would be middle-high level public servants or private sector industrial cadres with the minimum qualification of a bachelor s degree. A maximum of 25 participants is desirable. The course is also designed for participants working on industrial projects in the field who have had some practical relevant experience. Generalists in planning, finance, agriculture, and science and technology ministries and departments are other potential beneficiaries. Other participants will be from central banks, parastatals, industrial development agencies that provide support services or industrial extension service to SMEs, and chambers of commerce and manufacturers associations. 5
6 BREAKDOWN OF FELLOWSHIP COSTS There exists two fellowship scales. All potential trainees who succeed in securing fellowships from UNDP and other UN-system agencies could be funded at the UNDP standard scheme. Other donors outside the UN system may apply the alternative IDEP recommended fellowship scheme, but they would also be free to adopt the UN-system scheme if they so wish. I. UNDP STANDARD FELLOWSHIP SCHEME NOTE: Monthly stipends are fixed and paid in local currency (CFA Franc). The other allowances are fixed in US dollars but paid in local currency at the prevailing rate. Because exchange rates fluctuate widely, the official United Nations exchange rate equivalency applied (CFA F 604 = US $1, average for September 1999) can be considered a rough approximation. Total Cost: Monthly Period Period (months) CFA F US$ Equivalent Stupent (first month) CFA F Stupend at monthly resid. rate CFA F Book allowance $ E.U Provision for medical expenses $ E.U Tuition fee Termination allowance 150 Total * II. IDEP RECOMMENDED FELLOWSHIP SCHEME NOTE: Monthly stipends and different allowances are fixed and paid in local currency (CFA Franc). The termination allowance is fixed in US dollars but paid in local currency at the prevailing rate. Because exchange rates fluctuate widely, the official United Nations exchange rate equivalency applied (CFA F 604 = US $1, for September 1999) can be considered a rough approximation. Total Cost: Monthly Period Period (months) CFA F US$ Equivalent Stupent (first month) CFA F Stupend at monthly resid. rate CFA F Book allowance CFA F Provision for medical expenses CFA F Tuition fee Termination allowance 150 Total * * Travel cost should be added to this overall total. 6
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