This book analyzes the factors behind the poor industrial performance in African countries under structural adjustment policies in the eighties and discusses prospects for recovery and further industrialization in the nineties. The focus is on the African textile sector in a worldwide comparative perspective and Tanzania has been chosen for a detailed case-study. Macro- and microeconomic explanations are given and combined with an analysis of the state. The conclusion is that lack of adequate industrial policy threatens to undermine past industrialization efforts.