<a href="http://sundiatapost.com/wp-content/uploads/2014/09/book-review.jpg"><img src="http://sundiatapost.com/wp-content/uploads/2014/09/book-review-201x300.jpg" alt="book review" width="201" height="300" class="alignleft size-medium wp-image-21437" /></a>Title: Industrialization and National Prosperity (Lessons for the Developing Countries) Author: Lawrence U. Ekeh Publisher: Luzek Publishers, London, 2009, 202pp Price: N3,000 By Uche Nwoguwugwu Inadequate industries and entrepreneurs is one main factor that perpetuates poverty in most developing countries and it cannot be overcome without active engagement of industrialization. Nations can achieve the goal of industrialization only if they can examine how this has evolved over the centuries. Lawrence Ekeh in this epic not only discussed how industrialization evolved but also various issues that may hinder any nation in attaining industrialized status. The author accepted my worry in the book that the model of industrialization presented is not a one-cap-fit-all type since no single industrial model can benefit every country. For instance, some of the most successful newly industrialized nations such as Taiwan, South Korea, Hong Kong and Singapore have achieved extraordinary industrial growth by using an outward oriented model driven by market incentives and a strong private sector. But these countries do not have the same characteristics as Nigeria, South Africa and South American countries. This astute author applied his expertise based on his passion for the ideas on technology transfer to developing countries to reconstruct the past and found that the fight for economic superiority in the past was brutal, crude and wicked; though today the world has changed a little but not entirely. The greater part of popular literature on the process of industrialization has been written from the vantage point of the developed nations. On the contrary, the main concern of this book is not to provide all the answers to all problems of industrialization and national prosperity but to put reasonable knowledge together for others in the hope that it can stimulate debate, act as a solution, bring awareness of the constraints facing the developing countries and above all that future leaders can be taught the precept of ascetism emphasized in the book. The book is organized neatly into seven chapters, preceded by an introductory section where the synopsis for the study, list of tables, case studies etc are put forth. Extensive list of bibliography and index are available at the end of the book. Chapter one of the book is concerned with Ancient trade, inventions and their diffusion. The author discusses the struggle of the Kings to take control of cities and towns from the Guilds to form government. The laws and theories used at the time, the development of money in gold and silver, the belief of the mercantilist of the day in international trade and also the promotion of industry. The invention of Gunpowder in AD 664, Iron and Steel, books and paper making, shipbuilding and the struggle to accumulate capital based in part on slave trade with Africans (p5 – 32). Chapter two discusses how cultures shape national prosperity. The author eloquently put it thus “the laws of economics are just as valid in the UK, Japan, Nigerian and the US but there are significant cultural variations in their applications” (p33). The spirit of Nationalism and national ideology cradles industries. High Trust societies nourishes high industrial development, in low trust societies industries hardly thrive, although people can still change their cultures (as did in Asian Tigers because culture is not static) and embrace progressive policies to industrialize (pp33 – 67). Choosing the right industrialization pathway for a more balanced economy requires state direction. Chapter three discusses appropriate Technology choice available – cottage industry, small and medium scale industry, large automated industry or a combination of all these.[eap_ad_2] Choice need be made on either import-substitution industrialization or export-led industrialization; on labour intensive or capital intensive mode of technology or a combination of both. Countries with small population but with very high per capita income such as Singapore, Kuwait or South Korea where the national income far exceed the countries’ current and future requirement may choose the capital intensive mode, while developing countries such as Nigerian and Indonesia with a large surplus labour and low per capita income may think about labour-intensive - small to medium scale and capital intensive industries. The author proposes two opposing innovative, ideas for industrialization. 1. The Multi-Local Enterprises which calls for pulling resources together in order to establish a sizeable production capacity. 2. Build-Today-and –Privatize-Tomorrow (BTPT) – this enables the local, state, or central government to establish industries that may require large capital outlay and privatize them soon after. The author discusses the issue of protection and international trade politics, local content requirements, EPZs etc. In chapter four, the lesson is how finance for industries can be raised. The author uses the Malaysian model to demonstrate how sourcing and funding of industrial development capital can be made including the ODA – see case study 2 (p97 -99). The loans Guarantee Scheme is also an important recommendation for any developing country that is planning about averting poverty and economic disaster (case study 3 – UK Firms LGS p 100 -102). How to efficiently access capital from the capital-exporting countries for infrastructure development is a challenge facing developing countries. Build- Operate and transfer (BOT) is a form of project financing whereby a private entity receives a concession to design, finance, construct and operate a facility as stated in the concession contract – see case study 4 The Philippines BOT and The Manila Metro Rail system p107 109). Public-Private Partnership (PPP), or Private Finance Initiative (PFI) and Two-Strep Loans or bank-to-bank Loans are also other sources explained in details. Chapter five discusses different types of Technology Transfer ranging from foreign direct investment (FDI), Joint Ventures and Licensing from Patents to turnkey Transfer Operation. The views of both technology owners and of technology recipients on various issues are revealed. Such as control of technology and contribution and the abuse of licenses by foreign patent owners as well as counteraction such as compulsory licenses by some developing countries’ governments. Foreign investment guarantee Scheme, which cover MNC who wish to invest in certain developing countries are some opportunities to attract foreign investment which some developing countries leaders may not be aware of. The author suggests issues such as enforcing effective laws that may stop MNCs from bribery. The leaders of developing countries eradicating agricultural subsidies and reviewing the market liberalization often imposed on developing countries. In chapter six, the author examines legal aspects of transfer of technology (TOT) to developing countries. The UNCTAD draft international code of con duct on the transfer of technology to developing countries comprises a preamble and nine chapters from definition and scope of application, objective and principles to special treatment for developing countries. The author observes that since the 1964 report of the UN on the “role of Patent on the transfer of technology, to developing countries which called for meetings and debates with UNCTAD, a number of diplomatic rounds including GATT and WTO the difference over some of the issues in the TOT chapter has not been resolved. Although in principle the WTO which took over from GATT has accepted the principles encouraging the transfer of technologies to developing countries. Whether this will help to bridge the technological gap is yet to be seen, especially as n o developing country has ever been to an international court or tribunal for breach of technology transfer laws against any developed country. Chapter seven captioned “The Chinese Copying Culture” reminiscences China’s inventions of early technology such as gunpowder, paper-making and iron and steel but her technology advancement was disrupted by series of external attacks and wars as well as unequal treaties with foreign powers. British acquisition of Hong Kong based on 1842 peace treaty after the opium war, French defeat of China in 1864 to use Chinese ports for trade. In 1895 Japan defeated China and made treaty that enabled them to set up industries in interior China. The later movement in China in the twentieth century compelled Chinese entrepreneurs to use and learn to use (copy) foreign technology to produce their own goods but to reject consumption of foreign goods. Today China is a success story by learning to use and replicate foreign technology and produce at optimum scale with even cheaper labour for their needs and others. Uche C.C. Nwogwugwu PhD (Senior lecturer) Department of Economics Nnamdi Azikiwe University, Awka, Nigeria<!--nextpage--> *The book is available for purchase at SundiataPost, Suite 300, Bayelsa Guest House, Plot 1038, Shehu Shagari Way, Mailtama, Abuja. Call: 08033083361 or email: max.a@sundiatapost.com [eap_ad_3]