Concludes that the Chinese government's contribution to business enterprises varies according to the life cycle of firms, increasing with the scale, sophistication, and maturity of manufacturing enterprises, and that public sector involvement in light manufacturing has provided considerable benefit by backing, rather than picking, winners. The success of Chinese industry has redefined the production standard of developing countries and, in view of globalization, has raised the entry barriers facing many mid-level and high-end industries in Africa. Developing countries should therefore not seek to duplicate what China has done but instead learn the lessons of China's light industry in the context of today's production landscape by (1) focusing their scarce resources on selected areas, (2) discovering the binding constraints in each, (3) applying policies to remove these constraints, and (4) proactively developing competitive value chains and clusters in the industries where they have a comparative advantage in resource-based, labor-intensive light manufacturing.
Concludes that the Chinese government's contribution to business enterprises varies according to the life cycle of firms, increasing with the scale, sophistication, and maturity of manufacturing enterprises, and that public sector involvement in light manufacturing has provided considerable benefit by backing, rather than picking, winners. The success of Chinese industry has redefined the production standard of developing countries and, in view of globalization, has raised the entry barriers facing many mid-level and high-end industries in Africa. Developing countries should therefore not seek to duplicate what China has done but instead learn the lessons of China's light industry in the context of today's production landscape by (1) focusing their scarce resources on selected areas, (2) discovering the binding constraints in each, (3) applying policies to remove these constraints, and (4) proactively developing competitive value chains and clusters in the industries where they have a comparative advantage in resource-based, labor-intensive light manufacturing.
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