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Catching up, falling behind: the need to build upgrading coalitions for innovation and inclusive development in South Africa [Catching up, falling behind: a necessidade de coalizões políticas para inovação e desenvolvimento inclusivo na África do Sul]

Author

Listed:
  • Glenda Kruss

    (Human Sciences Research Council)

Abstract
Through analysis of the South African case, a country stalled in a middle income trap, the paper aims to add to the literature on catch-up. It uses Albuquerque’s (2019) model of the vicious cycles arising from inequality and income concentration, together with the notion of ‘upgrading coalitions’ (Doner and Schneider 2016) required to challenge these vicious cycles, to analyse the persistence of lock-ins. It then analyses a global astronomy project, a ‘window of opportunity’ building on historically grown capabilities, promoted by ‘upgrading coalitions’ operating in the national interest. In contrast, it proposes a ‘detour’ to build domestic capabilities, driven by an upgrading coalition centred on local economic development and livelihoods in the informal economy. The paper aims to reinforce the evidence on how inequality is both a cause and consequence of a middle income trap, and open debate on how upgrading coalitions may be a critical strategy for breaking lock-ins.

Suggested Citation

  • Glenda Kruss, 2020. "Catching up, falling behind: the need to build upgrading coalitions for innovation and inclusive development in South Africa [Catching up, falling behind: a necessidade de coalizões políticas para ino," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(spe), pages 1115-1144, December.
    • Handle: RePEc:nov:artigo:v:30:y:2020:i:spe:p:1115-1144
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    References listed on IDEAS

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    1. Bhorat, Haroon & Cassim, Aalia & Hirsch, Alan, 2014. "Policy co-ordination and growth traps in a middle-income country setting: The case of South Africa," WIDER Working Paper Series 155, World Institute for Development Economic Research (UNU-WIDER).
    2. Linda Glawe & Helmut Wagner, 2016. "The Middle-Income Trap: Definitions, Theories and Countries Concerned—A Literature Survey," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(4), pages 507-538, December.
    3. Haroon Bhorat & Aalia Cassim & Alan Hirsch, 2014. "Policy Co-ordination and Growth Traps in a Middle-income Country Setting: The Case of South Africa," WIDER Working Paper Series wp-2014-155, World Institute for Development Economic Research (UNU-WIDER).
    4. Lee,Keun, 2019. "The Art of Economic Catch-Up," Cambridge Books, Cambridge University Press, number 9781108460705, October.
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    13. Longfeng Ye & Peter E. Robertson, 2016. "On the Existence of a Middle-Income Trap," The Economic Record, The Economic Society of Australia, vol. 92(297), pages 173-189, June.
    14. John M. Luiz, 2016. "The Political Economy of Middle-Income Traps: Is South Africa in a Long-Run Growth Trap? The Path to “Bounded Populism”," South African Journal of Economics, Economic Society of South Africa, vol. 84(1), pages 3-19, March.
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    17. Lee,Keun, 2013. "Schumpeterian Analysis of Economic Catch-up," Cambridge Books, Cambridge University Press, number 9781107042681, October.
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    Cited by:

    1. Glenda Kruss & Keun Lee & KJ Joseph & Eduardo da Motta e Albuquerque, 2020. "Breaking middle income traps in a post Covid-19 world: an introduction to the Special Issue [Romper a armadilha da renda média no mundo pós-Covid-19: uma introdução ao Número Especial]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(spe), pages 1063-1088, December.
    2. Habiyaremye, Alexis & Jacobs, Peter & Molewa, Olebogeng & Lekomanyane, Pelontle, 2021. "Macroeconomic stimulus packages and income inequality in developing countries: Lessons from the 2007-9 Great Recession for the Covid-19 crisis in South Africa," MERIT Working Papers 2021-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    middle income trap; inequality; upgrading coalitions; lock-ins; South Africa;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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