To fundamentally transform an economy, a country needs to establish an appropriate industrial infrastructure, develop research and development (R&D) capability, and internalize technology. A dynamic industrial economy usually comprises numerous strategic industries such as basic metals, chemicals, metal working, and engineering. The basic metals include iron and steel and non ferrous metals such as aluminum, copper, tin, zinc, lead, and nickel. It involves mining, metallurgy, rolling, extrusion, and drawing that produce intermediate goods. These goods serve as inputs into the metal-working industry and con stitute the basic capital goods industries, essential for self-sustaining economic growth and transformation.
Capital goods industries are usually large and depend on the exploitation of economies of scale. They have benefcial external effects in the surrounding countries as they have large-spread effects in the neighborhood. In light of the slow processes of regional integration, the small African economies will beneft from the establishment of such industries in the large African countries. The African Union, the New Partnership for African Development (NEPAD), the United Nations Economic Commission for Africa, and the African Develop ment Bank, among other African organizations, together with the elites of the large African countries, should lead in the establishment of the viable develop ment poles in the continent. Self-sustaining development of the rest of the countries on the continent will spread from the regional development poles. The establishment of diversifed industrial economies, fnancial systems, and convertible currencies in the regional development poles will further facilitate industrialization in the smaller neighboring economies.
Regional integration is a slow process and cannot be the sole reliance on African economic transformation. The present regional groupings are riddled with duplication and overlapping membership, which results in a scattering of resources and efforts. Politicians make fne speeches on the need for African collective self-reliance, but they are loath to concede any of their vaunted sovereignty to a supranational body. Thus, while African countries should continue efforts toward achieving collective action to support development, those that are large enough to go it alone should spearhead a process to speed up transformation from their own economies. The regional development poles strategy will reinforce regional integration through greatly increased intra-industry African trade.
To maximize the spread effects of such a strategy, there is need to build intra African infrastructure, especially transport networks, ports, energy, and ICT. The state will also have to play a crucial role in this process as has been the case throughout histories of national economic transformations. A developmental state endowed with tremendous natural and human resources can succeed more easily and faster than one lacking in both factors. Cooperation and collabora tion with neighbors can help, but effective coordination of development policy by different political entities can be diffcult and very slow, clouded with uncer tainties, especially where legalistic sovereignty is overemphasized.