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endowment structure

Picking winners

Justin Yifu Lin's picture

Concepts derived from structural-change theory are being revived and debated in exciting new ways, as evidenced in a recent conference at the World Bank earlier this month on ‘Structural Transformation and Economic Growth.’ Top researchers presented new papers and new ongoing work that covered globalization and structural transformation, sectoral diversification and human capital, industrial policy, and country case studies. 

The conference revealed an important emerging consensus about the role of the government in providing both soft infrastructure (for example a conducive business environment, regulations, and legal system) and hard infrastructure (such as port facilities, highways, telecommunications, and power).  Indeed, few dispute that broad-based interventions to support industrial upgrading and diversification are crucial to facilitating structural transformation and to spurring sustainable growth.