Productive Sectors

Productive economic transformation and diversification goes hand in hand with reducing corruption in a country’s development. The process is led by the expansion of organisational and technological capabilities and increasing productivity in multiple sectors. These may include agriculture, manufacturing and services as well as productive sectors such as skills.

This emergence of competitive organisations engaging similar bodies in contractual relationships is critical to the reduction of corruption because in countries with increasing levels of competitiveness, productive organisations develop a strong interest in ‘horizontal’ rule of law enforcement. Without a reliable and enforceable set of rules, productive organisations are unable to carry out complex contract and interdependent activities, make profits or re-invest in their development.

However, corrupt practices along multiple value chains and productive sectors are also major constraints to development. For example, they can make investments unprofitable by discouraging capable organisations to increase their operations or enter new markets. Rent capture might also divert scarce resources away from productive investments.

Not only does this corruption manifest in different ways across sectors, it involves different organisations with varied incentives and interdependent interests across private and public sectors. For this reason, the design and implementation of feasible anti-corruption reforms call for a sector-specific approach focusing on specific corruption processes.

ACE’s research is informed by an in-depth analysis of power distribution and interests in the selected productive sectors, and the mapping of rent capture and other value capture dynamics.

Our selected sectors include:

  • mineral and oil extractives
  • fertilizers in agriculture
  • food value chains, textile and garments
  • electronics and pharmaceutical industries
  • technical skills development

Unleashing productive sectors’ potential and reducing their vulnerability to corruption in the early stages of development is critical to improving development outcomes and is central to ACE’s research approach. Given the nature of this research the private sector and business organisations are key stakeholders for ACE.

Projects

Skills in Nigeria

The shortage of technical skills in Tanzania has been one of the most fundamental constraints to its industrial development. Vocational training institutions are funded by a skills levy collected by t...

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Fertilisers in Tanzania

This project will examine centralised and technology-enhanced distribution modalities that have recently been introduced into fertiliser subsidy programmes in Nigeria and Tanzania - two of the largest...

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Business Groups in Tanzania

This cross-country project will trace the evolution of such local firms and analyse their impact on growth in their respective sectors. It will attempt to isolate proactive policy from their experienc...

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Business Groups in Nigeria

This cross-country project will trace the evolution of such local firms and analyse their impact on growth in their respective sectors. It will attempt to isolate proactive policy from their experienc...

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Business Groups in Bangladesh

This cross-country project will trace the evolution of such local firms and analyse their impact on growth in their respective sectors. It will attempt to isolate proactive policy from their experienc...

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Extractives in Nigeria

Analysis suggests systemic reform will be difficult to achieve in extractives in Nigeria given the distribution of power. Our approach will be to collect data and map the interdependent network of pol...

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Fertilisers in Nigeria

This project will examine centralised and technology-enhanced distribution modalities that have recently been introduced into fertiliser subsidy programmes in Nigeria and Tanzania - two of the largest...

Read more

Skills in Tanzania

The shortage of technical skills in Tanzania has been one of the most fundamental constraints to its industrial development. Vocational training institutions are funded by a skills levy collected by t...

Read more

Skills in Bangladesh

Overall, the performance of skills training programmes in Bangladesh has been poor. But some targeted programmes have done well because they have addressed relevant market failures with targeted fundi...

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