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structural change

Is it harder for children from poor families in rural China to attain education?

Yan Sun's picture
China has achieved unparalleled success in economic growth and poverty reduction since initiating market reform in 1978. But in recent decades, increasing inequality has become a central policy issue (Figure 1), and the goal of ‘harmonious development’ has become a focus of Chinese policy makers. It remains a challenge for China to share its prosperity more equitably.
 
Figure 1: Poverty and inequality in rural China

Spike Lee’s ‘Chi-Raq’: The Maestro Handles Complexity Adroitly

Sina Odugbemi's picture

Chi-Raq movie billDifficult social problems are fiendishly difficult to communicate. For, these are issues about which experts disagree and citizen-voters, too. The causes are unclear, the solutions are unclear, and then there is the ideological deadweight that tends to drag meaningful debate and discussion all the way down to seedy depths. Above all, public debate on complex social problems also leads to framing battles: you frame the discussion to privilege the ‘solution’ you want. So, for instance: what do we do about homelessness in our cities? If you don’t want public funds spent on it, you frame it as an individual responsibility issue. You argue that the homeless need to pull themselves up by the straps of their dirty sneakers. If you want public funds spent on the problem, you frame the issue as a structural challenge. You ask for a focus on unemployment, targeted welfare schemes, improved care for the mentally ill and so on.

Chi-Raq’, Spike Lee’s new movie, tackles a horrendously difficult problem: the horrific and persistent gang violence in inner cities in the United States of America (and, by implication, several such places across the globe). His setting is the South Side of Chicago. The title of the movie is a play on Chicago and Iraq. The movie opens with these stunning statistics: while American deaths in the Iraq War between 2003 and 2011 came to 4,424, between 2001 and 2015 there were 7,356 homicides in Chicago. Think about that for a second: 7,356 homicides.

Europe: Fiscal Stimulus versus Structural Reform, or More?

Zia Qureshi's picture

The current policy debate on spurring growth is sometimes couched as a choice between fiscal stimulus and structural reform. In the context of the euro zone, this gives an incomplete picture. Two other issues are important: financial policies to avert a credit crunch; and collective actions to rebuild confidence. Adding these complicates the picture but helps point the way to a fuller policy response and clearer priorities to address the current mutually reinforcing combination of a growing sovereign debt-banking problem on the one hand and risks of a recession on the other.

Structural Change, growth and jobs

Merrell Tuck-Primdahl's picture

Structural transformation is a key determinant of productivity growth and explains two-thirds of the difference between superior East Asian growth and more muted Latin American growth in the past two decades.

Given the multi-speed paths that regions and countries take as they transform, with some succeeding spectacularly and some struggling to compete, it may be time to consider new industrial and labor policies to ensure that a huge swath of the lower middle class in the developing world doesn’t get left behind in the race to compete in today’s unforgiving global marketplace.