Editing Import substitution industrialization (section)

=== Ideological foundation ===
For leaders of post-colonial African nations, it was imperative for their economic policies to represent an ideological break with the [[imperialism|imperialist]] models of development. To achieve that, some newly independent states pursued [[African socialism]] to build indigenous growth and break free from capitalist development patterns.<ref>{{cite book |first=Martin|last=Meredith |title=The State of Africa: A History of Fifty Years of Independence |url=https://archive.org/details/stateofafricahis00mere |url-access=registration |date=2006 |publisher=Free Press |page=[https://archive.org/details/stateofafricahis00mere/page/144 144]|isbn=9780743232227 }}</ref> Through the adoption of African socialism, leaders such as [[Kwame Nkrumah]], [[Julius Nyerere]], and [[Leopold Senghor]] hoped to establish a model of development based around  [[Nkrumaism|consciencism]], an intellectual and cultural revolution; and, most importantly, a big push in industrialization towards rapid development for the continent.<ref name="African socialism">{{cite journal |last1=Akyeampong|first1=Emmanuel|title=African socialism; or, the search for an indigenous model of economic development? |journal=Economic History of Developing Regions |date=2018|volume=33 |pages=69–87 |doi=10.1080/20780389.2018.1434411 |url=https://www.aehnetwork.org/wp-content/uploads/2017/11/AEHN-WP-36.pdf }}</ref>{{rp|73-77}} One of the main aspects of the big push towards development was the growth of [[parastatal|parastatals]] from 1960 to 1980.<ref>{{cite journal |first1=Paul Ove|last1=Pedersen|first2=Dorothy|last2=McCormick |title=African Business Systems in a Globalising World |journal=The Journal of Modern African Studies |date=1999 |page=113}}</ref> The state-owned trading corporations were given control over the import-export business as well as the retail-wholesale distribution.<ref name="African capitalism"/>{{rp|65}} That allowed post-colonial states to nationalise industries and retain the profits from their output, rather than allow capital flight to the west through multinational corporations.

The growth of African socialism in the pursuit of ISI can be seen in the 1967 [[Arusha Declaration]] (Tanzania) in which Nyerere argued that "we cannot get enough money and borrow enough technicians to start all the industries we need and even if we could get the necessary assistance, dependence on it would interfere with our policy on socialism."<ref>{{cite journal |first1=Dennis|last1=Cohen |title=Class and the Analysis of African Politics: Problems and Prospects |journal=Political Economy of Africa |page=189}}</ref> The need for indigenous development formed the core of the African socialist vision whereby the state would manage a [[planned economy]] to prevent it from being controlled by the free market, which was regarded as a form of [[neo-imperialism]].<ref>{{cite book |first1=Kwame|last1=Nkrumah |title=Neo-colonialism the Last Stage of Imperialism |date=1965 |publisher=Nelson |pages=239–243}}</ref> In line with that economic vision, Tanzania engaged in the [[nationalization]] of industry to create jobs and to produce a domestic market for goods while it maintained an adherence to African socialist principles exemplified through the [[ujamaa]] program of villagization.<ref name="Industrialization in Sub-Saharan Africa and Import substitution policy">{{cite journal |first1=A|last1=Mendes|first2=M.|last2=Bertella|first3=R.|last3=Teixeira |title=Industrialization in Sub-Saharan Africa and Import substitution policy |journal=Brazilian Journal of Political Economy |date=2014|volume=34 |pages=120–138 |doi=10.1590/S0101-31572014000100008 |hdl=11449/109485|hdl-access=free}}</ref>{{rp|130}} The unaffordability of industrial products and increased tensions between managers and settlers of the villages contributed to a "colossal failure" of ISI in Tanzania, leading it to abandon the villagization project and to focus on agricultural development.<ref>{{cite journal |first=I.G.|last=Shivji |title=The village in Mwalimu's thought and political practice |journal=Africa's Liberation: The Legacy of Julius Nyerere |date=2010 |pages=121}}</ref>

While ISI under African socialism was purported to be an anti-Western development model, scholars such as Anthony Smith argued that its ideological roots came from Rostow's [[modernization theory]], which maintains that commitment to economic growth and free-market capitalism is the most efficient means of state development.<ref>{{cite book |first1=A.D.|last1=Smith |title=The Concept of Social Change |url=https://archive.org/details/conceptofsocialc0000smit |url-access=registration |date=1973 |publisher=Routledge |page=[https://archive.org/details/conceptofsocialc0000smit/page/33 33]|isbn=9780710076076 }}</ref> [[Kenya]]'s implementation of ISI under state capitalism exemplifies the model of development. [[Tom Mboya]], the first minister for economic development and planning, aimed to create a growth-oriented path of industrialization, even at the expense of traditional socialist morals.<ref>{{cite journal |first=Daniel|last=Speich |title=The Kenyan Style of "African Socialism: Developmental Knowledge Claims and the Explanatory Limits of the Cold War |journal=Diplomatic History |date=2009 |page=457}}</ref>  Kenya's Sessional Paper No. 10 of 1965 reinforced the view by claiming, "If Africanization is undertaken at the expense of growth, our reward will be a falling standard of living."<ref>{{cite book|title=African Socialism and Its Application to Planning in Kenya |date=1965 |publisher=Republic of Kenya |page=18}}</ref> Under such a development path, multinational corporations occupied a dominant role in the economy, primarily in the manufacturing sectors. Economic historians such as Ralph Austen argue that the openness to western enterprise and technical expertise led to a higher GNP in Kenya than comparative socialist countries such as Ghana and Tanzania.<ref name="African Economic History">{{cite book |first=Ralph|last=Austen |title=African Economic History |date=1987 |publisher=Oxford University Publishing}}</ref>{{rp|246-247}} However, the 1972 [[World Bank]] ILO report on Kenya claimed that direct state intervention was necessary to reduce the growing economic inequalities that had occurred as a result of state capitalism.<ref>{{cite book |first1=Hans W.|last1=Singer|first2=Richard|last2=Jolly |title=Employment, Incomes and Equality: A strategy for Increasing Productive Employment in Kenya |date=1972}}</ref>