Territorialization of industrial policy and inclusive growth in North Africa

North Africa has made significant progress towards the Millennium Development Goals (MDGs), however the relatively low diversification of the sub-region’s economies is now hampering their development.

North African economies are yet to find the path to an endogenous, sustained growth that would enable them to seize their growth potential and generate sufficient and stable incomes to finance their development. This state of affairs is limiting their capacity to generate decent jobs to absorb the flow of young diploma holders, to increase their innovative capacities and usetheir resources to the best.

The report examines industrial policy territorialization in North Africa, in other words the degree to which territorial specificities and the participation of territorial players are taken into account in the formulation or implementation of public policies.

To do so, this document examines the industrial policies of three North African countries (Algeria, Morocco and Tunisia), identifies gaps in institutional architectures (especially in local governance) that prevent territories from becoming fully fledged industrial development players. The report also includes recommendations to speed up the structural transformation process and contribute to more inclusive growth through industrial policy territorialization in these countries.