The authors of CEPR Policy Insight No. 2, argue that OECD nations can do something to
help Africa kick-start a development process. The key is to offer trade preferences
that allow African manufacturing locations to a chance to develop industrial
clusters that cross the minimum-scale threshold - thus allowing them to
compete with clusters in developing Asia. While preferences have to date failed in
this task, the authors suggest key design changes that will give Africa a fighting chance.