Presentation at JICA-ACET seminar
By Dr. Yaw Ansu, Chief Economist– ACET
August 7, 20121

Going beyond growth$ACET Economic policy institute based in Accra, serving Africa
 Founded in 2007 to support sustained growth and transformation
 Staff of 30 from 10 African countries, global network of leading thinkers
and practitioners
 Diverse board of highly accomplished leaders in business, governmentand global development

2Our Vision for Africa’s path forward“By 2025 an African continent where countries are
successfully driving their own growth andtransformation agenda, supported by capable
institutions and optimal policies for the benefit ofall.”3

ACET’s mission...
Our mission…

… and how we will achieve it• Engaging clients on policy research intransformation studies; advisory work
and institution strengthening; advocacy
and dissemination of knowledge“Promote policy andinstitutional reforms forsustained economic growth
and transformation in Africa”• Championing an informed African
perspective and greater local ownershipof the development agenda• Creating an unrivalled network ofinternational experts and preeminent
African professionals

4The ACET approach• Ask new questions• Search for evidence around the world• Adapt to Africa•••••Engage African governments
Engage the private sector
Broker public-private dialogues
Share lessons among governments
Push for action• Support governments to implement

5ACET’s work program
Country studies

Thematic studies

Industry studies

Agriculture studies

BRICS studies

African Transformation Index

African Transformation Report
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TransformationStudies

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3Advisory
Engagements

Advocacy andKnowledge sharing

Export promotion

Publications

Technology upgrade

ATR launch and dissemination

Skills development

Transformation dialogues

Agro-processing
Managing extractive resources

Exchanging knowledge
Involving the private sector

6Policy advice
Supporting governments to develop institutional mechanisms and tostrengthen state’s capacity to formulate and implement coherent, long-termtransformation strategies.
Examples:Ghana: National Development Planning Commission
Ghana: Diagnostic review of Tema Oil Refinery
Liberia: Coordination of infrastructureLiberia: Development of aid policy
Liberia: Merger of planning and finance ministries
Rwanda: Streamlining of Public-Private Partnerships
Sierra Leone: Functional review of the Office of the President

7Extractives industries program
Harnesses our industry experience, analytical skills, and understanding ofAfrican political economies to help African governments formulate policies,
build capacity, and take action to using natural resources to transform theireconomies.
Examples:Mozambique: developing a gas management plan
Liberia and Sierra Leone: petroleum sector reform
Guinea: review of mining contracts
Focus areas:
Fiscal regimes: maximizing revenues
Local content: deepening skills, creating jobs
Value addition: moving up the chain8Advocacy and knowledge-sharing Transformation Dialogues• Country level – focused on specific policies and actions• Regional level – fostering regional peer-to-peer learning oncommon issues• Global level – present findings of research to a global audience Knowledge-Exchange• Connecting stakeholders to share knowledge, especially SouthSouth exchanges
 Involving the private sector• Strategy briefs from ACET papers• Policy briefings• African Transformation Forum9

Transformation studies
ACET’s definition of economic transformation:
Economic growth accompanied by economic diversification, technologicalupgrading, productivity growth, international competitiveness and highproductive employmentACET believes governments can positively influence economictransformation by setting the vision and implementing sound economic
management, and proactively supporting the private sector to innovate.

10ACET’s Economic transformation framework• Technological••advancement
ProductsExports• Productivity• MVA• Cereal Yield

1) State Capacity for Economic
Management
2) The Business Environment for thePrivate Sector
3) Domestic Savings and Investment
4) Infrastructure5) Education and Skills6) Technology Upgrading Policies
7) Proactive Export Promotion
Strategies
8) Foreign Direct Investment (FDI)
Policies
9) Labor and Employment Policies

Regional Integration• Diversification• Production• Exports• Export competitiveness10)Targeted Sectoral Strategies• Employment/Poverty

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The Africa Transformation Report (ATR)• ACET’s key vehicle in promoting the transformationagenda• Review and compare country performance ontransformation using an index• Provide analysis, lessons and best practices ontransformation experiences• Identify pathways for further diversification• Primary audience is African policy decision makers
and influencers, but also all broader stakeholders(NGOs, Academia, Private sector)• First release planned for Q1 201312Objectives of the ATR•Promote the focus of policy on
economic transformation - in SubSaharan Africa•Bring data and analysis to informdiscussion and policy action on thetopic•Compare countries along various
dimensions of economictransformation so as to spur
competitive action by policy makers

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Content and approach to the ATRPart 1

Content

Review of performance Core themes:• Fundamental Policy• Performance andand Institutional
comparisons on
Drivers ofeconomictransformation in Africa Transformation• Explanation of trends • For 1-2 themes,• -30 pages
Approachandsourcesofinformation

Part IIhighlight experienceof successful
countries relevant for
Africa and draw
lessons• 20 pages

Part III
Pathways toDiversification:• Suggests ways for
African countries todiversify exports andincrease international
competitiveness• 20 pages•Conduct standardised country •Conduct Thematic•Conduct Industry

Studiescase studies onTransformation•Use Transformation indicatorsand drivers as framework•Studies to inform crosscountry comparisonsStudies14

What distinguishes the ATR•No report explicitly focused on transformation•Shift development focus from short term growth
to fundamental long term structural, sustainabletransformation•Underpinned by in-depth country studies withthink tank partnerships•African based and driven, which we anticipate
will enhance ownership by African policymakers•Follow up with in country advocacy andpromotion efforts to inform policy work
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ACET’s Index of Economic Transformation

1) Diversification• Production• Exports
2) Technological advancement• Products• Exports
3) Productivity• MVA• Cereal Yield
4) Export competitiveness5) Employment/Poverty
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The Transformation Index
Indicators

Transformation Index (5 broad measures) used toassess and compare countries on transformation“A transformed economy
looks like this “Drivers ofTransformation

Measures of fundamental drivers used to explain/interpret the transformation experience and draw
policy recommendations“You take these actions toencourage economictransformation“
17Country case studies
 In-depth analysis of environment and prospects for transformation
 15 countries• Botswana, Burkina Faso, Cameroon, Ghana, Ethiopia, Kenya,Mauritius, Mozambique, Nigeria, Rwanda, Senegal, South Africa,Tanzania, Uganda, and Zambia
 Working with local think tanks, common TOR
 Next phase: 10 more countries, including North Africa18

Country case studies - framework
Part 1

Part II

Part IIIPart IV

Review
Transformation

Institutional
Environment forTransformation

Identification of
new products andservices

Policyrecommendations•Review trends in•State capacity for•Provides firm even

• Make firm and specificeconomic management
and formulating long termtransformation strategies•Private sector capacity•Policy and regulation
environment for private
sector•Public-private
consultation mechanisms

potentially provocative
answers to thequestion "Where doyou go? "recommendations• Answers “How do you
do it? "indicators and explainusing fundamental drivers

Note consistentframework used for ATR,Transformation Indexand Country CaseStudies19

Thematic studies – framework
High Level Structure• Conduct policy analyses:• What is the role of this theme in the transformation
TRANSFORMATIONTHEMES• State Capacity• Business environment• Domestic savings andinvestment• Infrastructure• Education and Skills• Technology Upgrading• Export Promotion• FDI• Labor & Employment• Sectoral Strategies

experience of successful countrires• Collect stories of both success and failure• Analyse where Africa is regarding this theme• Africa vs the outside world• Comparison among African countries• Make concrete policy and other practical
recommendations

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Industry studies – Pathways to transformation?
 Textiles: the traditional route?
 Agro-processing: low hanging fruits?
•Cocoa•Coffee•Soyabean•Fruits•Palm oil
•Sugar
Tourism
Component assembly manufacturing: why has Africa been left out,
any prospects going forward?
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Industry Studies- Framework
High Level Structure• Conduct market analyses:• Global /segmented market demand analyses• Supply conditions in Africa• Map back from product to African countries (i.e. list countries
that have potential in sub sector)• Bring to bear experience and lessons from successful
exporters globally• Identify the supporting policy conditions and actions thatneed to be in place in African countries for sector to be
successfully promoted

Use different lens than Country Case study:• Country Case Study produces list of products applicable to country• Sub Sector Study produces list of countries applicable to sub sector
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“ACET is making an invaluable contribution in assisting us
strengthen the policy and institutional foundations of ourrecovery and reform agenda. It is becoming and institutionthat gives meaning to African ownership of African destiny.”– President Ellen Johnson-Sirleaf, Liberia

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