Structural Change, Fundamentals, and Growth
The first decade of the 21st century saw major economic advances for developing countries, resulting in a reduction in extreme poverty and a significant expansion of the middle class. More recently, however, that process has slowed, making it unlikely that poorer countries will close the development gap anytime soon. In their report for the
International Food Policy Research Institute, Margaret McMillan, Dalaudi Sepúldeva address two broad development challenges: The
structural transformation challenge: How to ensure that resources flow rapidly to the modern economic activities that deliver higher levels of economic productivity, and the
fundamentals challenge: How to accumulate the skills and institutional capabilities needed to generate sustained productivity growth across the range of services and other non-tradable activities.
http://drodrik.scholar.harvard.edu/files/dani-rodrik/files/structural_change_fundamentals_and_growth.pdf
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