TY  - JOUR
AU  - de Macedo, Jorge Braga
AU  - Pereira, Luís Brites
TI  - Cape Verde and Mozambique as Development Successes in West and Southern Africa
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16552
PY  - 2010
Y2  - November 2010
DO  - 10.3386/w16552
UR  - http://www.nber.org/papers/w16552
L1  - http://www.nber.org/papers/w16552.pdf
N1  - Author contact info:
Jorge Braga de Macedo
Nova School of Business and Economics
Campus Campolide
1099-032 Campolide, Lisboa
PORTUGAL
Tel: +351-213630778
Fax: +351-213631460
E-Mail: jbmacedo@novasbe.pt

Luis Brites Pereira
Center for Globalization and Governance (CG&G)
Faculty of Economics
Universidade Nova de Lisboa (UNL)
Campus de Campolide
Lisbon 1099-032
PORTUGAL
Tel: (+351) 21 380 1600
Fax: (+351) 21 388 6073
E-Mail: lpereira@novasbe.pt
M1  - published as Jorge Braga de Macedo, Luís Brites Pereira. "Cape Verde and Mozambique as Development Successes in West and Southern Africa," in Sebastian Edwards, Simon Johnson, and David N. Weil, editors, "African Successes, Volume IV: Sustainable Growth" University of Chicago Press (2016)

AB  - This paper applies an interpretation of how globalization and governance (G&G) interact with convergence given Cape Verde and Mozambique's particular geographical and historical contexts. We hold that development success under globalization entails, necessarily but not exclusively, positive market perceptions regarding the orientation and predictability of policies as well as the accompanying institutional arrangements. As such, a positive G&G interaction with respect to a comparator group can usefully be defined as success notwithstanding the inexistence of a universally applicable development model. In practical terms, we first identify macro-level policy and institutional combinations underpinning successful trade diversification (an indicator of globalization) and income convergence (an indicator of governance) in the sub-regions of West and Southern Africa. We then assess to what extent these combinations apply to both countries using an empirical analysis. We find that trade openness drives convergence and export diversification in Western Africa (which is becoming more diversified) while convergence is instead driven by economic and political freedoms in Southern Africa (which is becoming more specialized). Our empirical analysis is complemented by a case-study narrative of Cape Verde and Mozambique's long-term development, which allows us to also identify the following common drivers: moving towards a market economy; opening up to regional and global trade; increasing economic and political freedom; pursing macroeconomic stability and financial reputation; ensuring policy continuity (especially in the industrial and trade sectors) and focusing on human development (especially education and poverty reduction). Moreover, both countries reveal convergence compared to their sub-regional peers when looking at average GDP per capita and indicators of financial reputation and good governance. While these findings are insufficient to conclude that convergence will be sustained, the positive interaction between trade and financial globalization, on the one hand, and good governance and democracy, on the other, may help explain the observed diversity of the Portuguese-speaking African community, which includes three other countries (Angola, Guinea-Bissau and São Tomé e Príncipe).
ER  -