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Although import substitution policy suggested a need for protection for infant industry at an initial stage, a recurring theme of inward-looking approach was espoused in African region while Asian countries take the reciprocal of export-oriented approach. The propensity of Asian countries to encourage export was immediate evident as a source of capital accumulation for development. By making use of their comparative advantage and exposing their product to foreign competition, along with measures to promote diversification and deepening of industrialisation has seen a change in the industrial terrain from the progression of primary to manufacturing production that makes the engine for the Asian robust economy. The undercurrent of African countries import substitution approach was the neglect of export over foreign earnings that associated with government inward-looking and conservative policy formulation.

Besides, industrial intervention was an important component where resource allocation and credit control characterised both region. However, a disciplined interventions and realistic set of goal from the standpoint of Asia marked the difference from the African poor institutional framework and overambitious goals. In most part of Asia, import substitution was pursued in a manner where export is an overriding objective buoyed by a stable currency. In this regard, Asian countries legitimized their monetary policy by maintaining a low budget deficit and freedom from external forces in policy formulation regarded partly as their successes. In Asian countries, ‘highly capable, coherent economic bureaucracy, closely connected to, but still independent of, the business community, has been an essential institutional prerequisite for successful policy formulation and implementation’ (Evans 1998 in Nissanke 2000). An independent political structure that brought together national and entrepreneurial interests insulated from political pressures while in the meantime maintaining best practice and providing market opportunities by installing economic-technocrats in powerful positions for economic planning (Nissanke 2000; Roemer 1994). Meanwhile in the development context under African rule as inhabited by rent-seeking characteristic has been detrimental to the economy. In contrast to Asian countries, African governments lacked a proper governance mechanism and mass political participation for policy formulation and implementation. The political structure, hampered by international influences and civil strife has been authoritarian and highly centralised that in light of economic bureaucracy, important positions were often led by military officers who have been hostile to foreign and domestic private business (Aron 1997 in Nissanke 2000). Furthermore, the incapacity of African governments from depredations of rent-seeking also pronounced the cause of poverty and income disparity. Since gains are often large and concentrated in the hands of few people, it provided incentives for potential beneficiaries to lobby the government and under the African framework where policy formulation are under pressure, projects are approved even the benefits exceed cost. As such, corruption is also rampant is Africa as in gaining benefits and income disparity is severe and continuing to be worsened with a Gini Coefficient of 0.575 in 1970 dampened to 0.635 in 2000 (Artadi & Martin 2003) whilst reverse is evidenced in Asia’s economic endeavour.

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