LEAPFROGGING: Public Disclosure Authorized THE KEY TO AFRICA’S DEVELOPMENT? FROM CONSTRAINTS TO INVESTMENT OPPORTUNITIES AGRICULTURE Public Disclosure Authorized ICT EDUCATION GOVERNANCE ENERGY Public Disclosure Authorized $ FINANCE Public Disclosure Authorized Table of Contents Foreword ................................................................................................................................................... v Acknowledgments ................................................................................................................................... vii Abstract .................................................................................................................................................... ix Abbreviations and Acronyms ................................................................................................................... xi Executive Summary ................................................................................................................................xiii Enabling Leapfrogging in Africa ..............................................................................................................xiii Innovation, Technology, and Development: Africa Can Leapfrog ............................................................. xv Agriculture ............................................................................................................................................... xx Education .............................................................................................................................................. xxv Energy .................................................................................................................................................. xxix Finance ................................................................................................................................................ xxxii Governance ....................................................................................................................................... xxxviii Information and Communications Technologies ......................................................................................xli CHAPTER 1: Innovation and Development: Why Africa Needs to Leapfrog? ........................................... 1 I. Why Are Technology Adoption and Innovation Crucial for Africa’s Future? .......................................1 II. What Do Economic Theory and History Say about Leapfrogging? .......................................................3 What Does Economic Theory Say? ..........................................................................................................3 What Does History Reveal about Technology and Development? ................................................................5 Technological Innovation Has No Border .................................................................................................8 III. Africa Leapfrogging through Innovation: Opportunities for Investments ...........................................10 Endnotes ..................................................................................................................................................15 References ................................................................................................................................................15 CHAPTER 2: Agriculture ......................................................................................................................... 19 I. The Need to Feed the Continent .......................................................................................................19 II. Micro Jumps .....................................................................................................................................21 III. Conditions for Agricultural Leapfrogging ..........................................................................................24 IV. Future Research ................................................................................................................................26 Endnotes ..................................................................................................................................................28 References ................................................................................................................................................29 i ii Leapfrogging: The key to Africa’s Development? CHAPTER 3: Education ........................................................................................................................... 35 I. Some Gains, but Falling Behind ........................................................................................................35 II. Leapfrogging School Enrollment, Educational Technology, and Outcomes .......................................38 III. Establishing the Preconditions for Leapfrogging Education Outcomes and Skills ..............................43 IV. Future Research ................................................................................................................................46 Endnotes ..................................................................................................................................................47 References ................................................................................................................................................47 CHAPTER 4: Energy ................................................................................................................................ 53 I. Abundant Resources but Insufficient Capacity ..................................................................................53 II. Power Leaps ......................................................................................................................................56 III. Preconditions for Powering Africa .....................................................................................................57 IV. Future Research ................................................................................................................................59 Endnotes ..................................................................................................................................................60 References ................................................................................................................................................60 CHAPTER 5: Finance .............................................................................................................................. 65 I. A Sector in Need of Change ..............................................................................................................65 II. Leapfrogging Finance .......................................................................................................................68 III. Changes to Transform the Financial System in Africa ........................................................................72 IV. Future Research ................................................................................................................................74 Endnotes ..................................................................................................................................................76 References ................................................................................................................................................76 CHAPTER 6: Governance ........................................................................................................................ 81 I. Digital Technologies: The Foremost Change .....................................................................................81 II. Experiences Implementing Innovation and Technology to Make Government More Effective ...........84 III. Prerequisites for Contextual Leapfrogging .........................................................................................86 IV. Future Research ................................................................................................................................88 Endnotes ..................................................................................................................................................89 References ................................................................................................................................................89 CHAPTER 7: Information and Communications Technologies .............................................................. 95 I. The Mobile Revolution ......................................................................................................................95 II. Rapid Progress through Substitution and New Approaches ...............................................................96 III. Enhancing Conditions for Digital Leapfrogging .................................................................................99 IV. Future Research ..............................................................................................................................102 Endnotes ................................................................................................................................................104 References ..............................................................................................................................................104 Concluding Remarks