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About Annual Meeting
In the sociological literature on economic development, there are credible theories that identify the conditions that allowed for successful industrialization in countries like South Korea, and describe the factors behind failed industrialization in countries like Nigeria. But what to make of instances of local production in political and economic environments that our theories suggest are not generally conducive to industrialization? To address this question I look at the local production of medicines in Kenya, Uganda and Tanzania. All three countries have active local pharmaceutical sectors but with significant differences, in regard both to market share and the structure of the sector. I argue that this variation reflects differences in the type of non-developmental state policies and the extent to which capable entrepreneurs are present in each country. More controversially, I also argue that transnational ties – foreign aid in support of state policies, and entrepreneurs’ access to capital that is not available locally thanks to cross-national ties – are particularly significant.