Suchergebnisse

Chapter 12, "Urbanization and Structural Transformation," describes patterns of urbanization in Ethiopia and government policy to promote development of secondary cities. Official population data indicate rapid urban growth, 4.2 percent per year between 1994 and 2015, far outpacing the overall population growth rate of 2.5 percent. By 2050 urbanization is expected to reach 38 percent with major implications for relative wage rates in rural versus urban areas, infrastructure needs, and public service delivery. Improved road infrastructure is improving connectivity across the country and promoting secondary city development. In addition, recent public investments to promote industrialization and increase manufacturing labor opportunities via newly constructed and planned industrial parks, though small relative to the overall economy, are designed to be a catalyst for future growth. ; PR ; IFPRI4; CRP2; ESSP ; DSGD; PIM ; CGIAR Research Program on Policies, Institutions, and Markets (PIM)

We revisit the role of Capital Fundamentalism, in the context of the Government of Indonesia's Inpres Desa Tertinggal (IDT or Left Behind Village) Program, which injected capital into poor village economies. We evaluate the impact of the program on village welfare and structural transformation adopting a (fuzzy) regression discontinuity design, which exploits village eligibility for identification. Welfare increased in rural as opposed to urban villages in Java, Sumatra and Bali and Nusa Tenggara, as households exited agriculture in favor of more productive activities in construction, industry and trade. We find no evidence that the program affected structural transformation or welfare in Kalimantan, Sulawesi or Papua, which suggests that structural transformation is a necessary condition for capital injections to foster village development.

This study examines the structural transformation-inclusive growth nexus for Ghana. The data cover the post-independence period for Ghana and are phased into three periods: the post-independence period to the start of the economic recovery programme (ERP) and structural adjustment programme (SAP) (1957-83), the ERP/SAP period to the start of oil production (1984-2010), and the start of oil production to date (2010-17). The paper finds that structural transformation has been generally weak and also associated with limited inclusive growth. In part, the legacy problem relating to political settlements, and with its roots in the immediate post-independence policies, has been important in shaping these outcomes. The paper concludes by noting that there is potential for the country to move to a path where structural transformation will be more impactful for inclusive growth. However, the risk of adverse political settlements still mitigating this potential impact remains.

The concept of embeddedness plays a central role in the segment of economic sociology and social theory which is inspired by the works of Karl Polanyi. But to the extent that embeddedness is understood in a substantialist manner, implying the existence of a unitary lifeworld, the desire for embeddedness is an impossible aspiration under modern conditions. Throughout the modern era it is however possible to observe the emergence of complex societal stabilization mechanisms, which serve as substitutes to traditional forms of embeddedness. The emergence of function specific cultures, in the form of, for example, legal, political and scientific cultures, establishing a 'second nature' in the Hegelian sense, is one example of this. Other examples are (neo-)corporatist institutions which fulfilled a central stabilising role in classical modernity and the kind of network based governance arrangements which fulfil a similar position in today's radicalised modernity.

In this paper, we analyse the relationship between China's structural transformation and the inclusiveness of its economic growth. China's economy has undergone significant structural changes since it initiated the economic reforms in 1978. Economic activities have shifted from the low-productivity agricultural sector to the high-productivity industrial sector and, more recently, the tertiary sector, with a large portion of the labour force moving from rural to urban areas, from inland to coastal regions, and from the public to the private sectors. These changes have only been able to happen because of major reforms to the land system, the Hukou system, the ownership of state-owned enterprises, and trade policies. Despite its great success in poverty reduction, China has witnessed rapidly increasing income inequality which only began to decline in the late 2000s. We analyse the political economy that determined the inclusiveness of the structural transformation. As the economy further transitions into services, the tension between structural transformation and its inclusiveness will depend more on the government's ability to reform the current social security policies and pay more attention to disadvantaged groups.

Building upon recent work on epistemic varieties of liberalism, avant-garde political agency and the theory and practice of activism, I claim that a liberal defence of more open borders does not presuppose either indifference to the problem of the deep structural sources of poverty in poorer countries, or the absence of an account of those structures' transformation. Rather, it is claimed that in addition to the remittance of money and other economic goods to alleviate the symptoms of poverty, more open borders facilitate the remittance of norms and values in terms of which individuals and activist communities in poorer countries may transform the deep structures and institutions that are poverty's sources. This liberal account of more open borders and deep structural transformation also makes possible the non-coercive discharge of obligations of global justice on the part of wealthier states to the world's poor, when poorer nations are either unable or unwilling to discharge them themselves.

Most recessions are a result of some shock to the economic system, typically amplified by financial accelerators, and leading to large balance sheet effects of households and firms, which result in the effects persisting. But, over time, the balance sheets get restored. Even banks recover. But episodically, the "shock" is deeper. It is structural. Among advanced countries, the movement from agricultural to manufacturing in the last century, and the more recent movement from manufacturing to the service sector reflect such a large economic transformation. The associated downturns are longer lasting. The usual responses, in particular, monetary policy, are only of limited efficacy. Policies have to be designed to facilitate such transformations: markets on their own typically do not do well. This paper explains why such transformations are associated with persistently high unemployment, and describes the effects of particular government policies. It looks at the lessons of the Great Depression both for the advanced countries and the developing countries as they go through their structural transformations.

One aspiration of the Agricultural Fisheries Modernization Act (AFMA) is the promotion of industry dispersal and rural industrialization. This involves a policy of structural transformation, which attempts to transition the economy from a low productivity sector, such as agriculture, to a high productivity sector, such as industry. This study shows that despite the efforts of AFMA, this process has not been accomplished. Previous literature has attributed this failure to many factors, including policy failure and lack of investments. However, the paper argues that the role of technological change has not been given considerable attention. Empirical analysis demonstrates that policy formulation and capital accumulation are not sufficient in achieving structural transformation. Even if the correct policies are implemented and adequate investments are available, the sustainable transition from agriculture to industrialization will require the adoption of appropriate technology that utilizes local resources, including labor. To do this, the government must set up not only an environment for research and development and extension but also provide incentives in the form of transfers to the private sector to invest in technology.

This paper evaluates structural change, inequality dynamics, and industrial policy in South Africa between 1960 and the present day. We find that South Africa experienced growth-enhancing structural transformation until the early 1970s, before entering a period of premature deindustrialization. Today, the services sector has become the primary driver of growth and employment in the country, while the agriculture, mining, and manufacturing sectors have declined in relative importance. While the post-apartheid government has systematically strengthened its pro-poor policies, the high levels of poverty, unemployment, and inequality forged under the past race-based colonial and apartheid regimes remain stagnant. The future of South Africa's structural transformation and inclusive growth path rests on the ability of the country to move into more skills-intensive and higher value-added manufacturing, while also promoting employment-enhancing services subsectors.

Africa has come a long way since the economic turmoil of the 1980s, the decade of "structural adjustment". Growth has been strong, yet poverty remains high. Underlying the shortage of good livelihoods and high social inequality is the lack of diversification in Africa's economies-in contrast to Asia's success stories. Structural adjustment did not change the basic structure of economies. Many countries became mired in war in the 1980s and 1990s. This also brought about structural change, often of the worst kind. Today, structural transformation remains on the policy table, but many of the constraints, notably infrastructure and enterprise finance, have yet to be resolved. Agricultural productivity remains low. And without new manufacturing and service clusters, Africa is yet to follow East Asia in integrating with the global economy in ways that add value and good jobs. Instead, integration continues via Africa's traditional primary exports, making the region vulnerable to commodity price shocks. Today's policy agenda is subtle, and one in which the challenges have no easy answers.

Motivation The question of industrial policy has gained prominence in the policy agenda over the last decade, despite its persistently ambiguous and incomplete definition. The lack of a firm definition is problematic because it prevents scholars and policy-makers from comparing and monitoring the impact of industrial policy across developing countries. This vague definition also fails to account for issues that are relevant to the impact and usefulness of industrial policy in the process of economic development. Research Question What is the effect of an inadequate definition and implementation of industrial policy for structural transformation in underdeveloped economies? Methods We undertake both a critical literature review of industrial policy and a policy review, and use insights from 86 structured interviews with manufacturing businesses and government officials in Ethiopia, to illustrate how industrial policy could be more effective. Findings The article finds that there is no clear and exhaustive understanding of what the definition of industrial policy entails. In part this is also a result of a limited and incoherent use of the concept of structural transformation in the definition and policy formulation of industrial policy. Conclusions Using a case study of Ethiopia, we show how an inadequate and incoherent definition and implementation of industrial policy can lead to limited upgrading, learning and innovation in an underdeveloped economy. Policy Implications For Ethiopia, and for other underdeveloped economies, the findings imply a reconfiguration of industrial policy, rather than more industrial policy.

Structural transformation requires raising productivity and achieving competitiveness in increasingly higher-valued activities. This process can be constrained by different types of knowledge gaps. The importance of codified knowledge and practical know-how or skills are well recognized. But another type of knowledge critically affects the value of both. A society must have firms with the organizational capabilities to organize production competitively so that educated and skilled people can be employed profitably. This is a specific type of collective knowledge distinct from the codified knowledge and know-how embodied in individuals. Without appropriate organizational capabilities, investments in other types of knowledge can fail to achieve adequate returns. The required organizational capabilities can range from basic, intermediate to dynamic, depending on whether firms in the sector are catching up or innovating. Effective learning strategies have to identify and target interdependent knowledge gaps and to do this effectively, they also have to recognize distinct institutional and political economy problems of implementation. The general points are illustrated with reference to the emergence of the garments industry in Bangladesh and the challenges facing its upgrading.

This paper examines the feasibility of environmentally sustainable growth in a competitive market economy assuming various types of technological changes affecting pollution emissions and ultimately climate change. We consider two final outputs and two factors of production, accounting for both pollution flow and stock effects. If the initial level of pollution emissions satisfies certain boundary conditions, a Pigouvian pollution tax may assure sustainable growth without any further government intervention. This is true even if exogenous technological change is assumed to benefit exclusively the pollution-intensive industries (the "dirty" sector). A consumers' composition effect (often neglected in the literature), driven by an endogenous change in the relative prices between clean and dirty final goods under an optimal pollution tax, plays a critical role in the structural transformation process to achieve long-run sustainable economic growth.

We focus on special characteristics of the manufacturing sector, in terms of employment generation and productivity growth, that enable the rapid, resilient economic catch-up of developing countries. We consider the 'developer's dilemma' and the relationship between manufacturing value added or employment shares and trends in income inequality. In Indonesia, structural transformation was growth-enhancing and economic growth inclusive during the decades before the 1997-98 Asian financial crisis. Since then, structural transformation has become notably less growth-enhancing and inclusive growth outcomes have been mixed. Indonesia's structural transformation pattern has shifted, from 'upgrading industrialization' before the crisis to 'stalled industrialization' afterwards. Both periods saw weak Kuznetsian tension, but patterns of structural transformation and inclusive growth beforehand were more 'benign' than patterns after the crisis. The government has adopted diverse social policy programmes and industrial policies to tackle these twin development challenges. We discuss changes in the political economy of development policymaking since the crisis.

Purpose: Coproduction fundamentally changes the roles of citizens and governments. The purpose of this paper is to enhance the theoretical understanding of the transformative changes in the structural order of the public domain that result from the coproduction of public services. Design/methodology/approach: This paper builds upon both the literature on coproduction of public services, new public governance and on social contracts between citizens and the state to identify the nature, drivers and implications of the transformation. The argument is illustrated with examples from crime control and healthcare. Findings: The analysis identified an institutional misfit and highlights four key issues that are key to the understanding of the structural transformation of public services: compensation for time and knowledge resources, responses to new forms of (in)equality, risk of conflicts between citizens and re-organizing accountability. Research limitations/implications: The analysis highlights the need for further research into the implications of coproduction for government legitimacy, transfer of power, financial implications, representativeness and consequences for non-coproducing citizens. Originality/value: This paper links instrumental debates about the coproduction of public services to fundamental debates about the relations between government and citizens and identifies substantial issues that are raised by this structural transformation in the public domain and that require new responses.