African Business Systems in a Globalising World

bibliographic database
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Periodical article

Title:	African Business Systems in a Globalising World
Authors:	Pedersen, Poul O. McCormick, Dorothy
Year:	1999
Periodical:	Journal of Modern African Studies
Volume:	37
Issue:	1
Period:	March
Pages:	109-135
Language:	English
Geographic term:	Africa
Subjects:	private enterprises Economics and Trade Politics and Government Development and Technology
External link:	https://www.jstor.org/stable/161470
Abstract:	The failure of structural adjustment programmes (SAP) to promote industrialization in Africa may be at least partly explained by the fragmentation of African business systems. This article examines Africa's fragmented business systems, focusing particularly on the institutions that evolved or failed to evolve. The analysis focuses especially on eastern and southern Africa, but also draws on material from other parts of the continent. The article shows that the different segments of the African business systems - the parastatal sector, the formal large-scale private sector, the 'informal' indigenous sector - are not well-integrated in terms of inter-enterprise trade and production links. The hypothesis is advanced that the fragmentation of African business systems is the result of the institutional environment in which they have developed. The lack of supportive financial, State and social institutions inhibits trust and accountability, and impedes the access to capital, labour market flexibility, and subcontracting, which are needed for modern industrial development. Bibliogr., notes, ref., sum.