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Dependence on primary commodities and poverty traps in sub-Saharan Africa: Devising strategies and building capabilities for diversification

This paper argues that conventional approaches to development and industrialisation are not appropriate for analysing poverty in sub-Saharan Africa because they disregard domestic technological progress and learning efforts.

Instead, the author suggests, a new approach based on innovation system creation, is needed for economic diversification and poverty reduction. This should focus on developing human capital, physical infrastructure and formal institutions to ensure that firms in sub-Saharan Africa can acquire, adapt and change technology.