Ethnic Diversity and Anti-development Bias in Sub-Saharan Africa (SSA): The Challenges of Fostering Productive Capacities and Structural Economic Transformation.

This paper examines the impact of ethnic diversity on the fostering of productive capacities and structural transformation in sub-Saharan Africa (SSA). The fact that ethnically diverse countries in SSA are lagging behind other developing countries in productive capacities and structural transformation is a confirmation of the endogeneity of ethnic polarisation in the development process. The paper shows that SSA performs poorly on the Productive Capacities Index (PCI) and other socio-economic indicators both in cross-country and inter-regional comparisons. It argues that accumulation of "national capital", as opposed to "ethnic capital formation", bonds societies, bridges ethnic divisions and fosters productive capacities and structural economic transformation. It provides conclusions and policy recommendations to maximise the developmental impact of ethnic diversity through national identity-based politics. Viewed from this perspective, the problem in SSA is not ethnic diversity per se but how political regimes, governance and elite institutions of the region manage ethnic diversity. The paper concludes that political elite and state institutions have primary responsibilities in managing ethnolinguistic and cultural diversity. Therefore, it suggests that there is an urgent need to seriously consider the ethnic dimension of development as an integral part of policy formulation and implementation in SSA. [ABSTRACT FROM AUTHOR]