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Economic crisis, structural adjustment and the coping strategies of manufacturers
Olukoshi, Adebayo
Olukoshi, Adebayo
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dp77.pdf
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"Nigerian industry is undergoing major restructuring in production, marketing and management practices, the outcome of which may have serious implications for the survival of industry itself and the livelihoods of those who work in it. Like many developing countries that attempted to industrialize in the 1960s and 1970s, Nigerian industrialization has been heavily import-dependent and largely protected by an overvalued currency, tariff barriers and, in some cases, state subsidies. Thus even before the onset of the current economic crisis, the industrial sector suffered from very serious structural imbalances. These imbalances are manifested in the linkages between the various sub-sectors of industry, particularly the consumer, intermediate and capital goods industries, with the bulk of manufacturing capacity concentrated in the consumer goods sector. The intermediate goods sector is relatively underdeveloped and the capital goods sector almost non-existent. Factories depend for their full operation on the importation of essential raw materials, spare parts and machinery (Teriba and Kayode, 1977; Bangura et al., 1984; Olukoshi, 1991; The Odama Report, 1983; Forrest, 1993). The implications of this heavy import dependence are that, for all the rapid growth of industrial production in the 1970s, value added has been generally low in a large number of industries, and backward and forward linkages with the rest of the economy have been few and far between. The oil crisis in the early 1980s and the sharp reductions in foreign exchange accruing to the federal government greatly exposed these major weaknesses in industrialization. This paper examines the ways in which major manufacturing groups, namely indigenous entrepreneurs, transnational corporations and Levantine companies, have coped with the crisis and programmes of stabilization and structural adjustment. It seeks to identify patterns of entrepreneurial response to the changing structure of opportunities in the macro-economy and the industrial sector specifically. It explores, in turn, the question of whether there have been new developments in industrial economic behaviour and the social organization of firms, and traces out the implications of entrepreneurial coping strategies for industrial development."(pg 1)
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1996-09
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With permission of the license/copyright holder