1. South Africa’s Industrial Policy Some Observations Maggie McMillan IFPRI, NBER & Tufts

2. Observations Need to place South Africa in global context Overemphasis on manufacturing? Not enough focus on target markets No mention of global value chains No mention of foreign direct investment

3. South Africa in Context

4. U.S. Structural Change 1997-2007

5. Target Market: Africa?

6. Foreign Direct Investment

7. Global Value Chains Offshoring can create jobs Blue Skies : Ghana, Egypt, South Africa, Brazil, UK OLAM: South Africa + 129

8. Conclusion South Africa has tremendous potential (think Olympics) Bold vision + action from the top is needed