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IFPRI3; ISI; CRP2 ; DSGD; PIM ; PR ; CGIAR Research Program on Policies, Institutions, and Markets (PIM)

The volume consists of an overview and seven country studies, written by leading scholars from both developed and developing countries. The overview lays out a unifying framework for thinking about economic growth as a combination of two challenges. The "structural change challenge" is focused on moving resources from traditional low-productivity activities into modern, more productive industries. The "fundamentals challenge" faced by policy makers in the developing world is about how best to develop broad capabilities such as human capital and infrastructure. While the two are inextricably linked, they are conceptually different, and making this distinction is one of the contributions of this book. The overview also includes a description of the common methodology used in the country studies, a discussion of data and measurement issues, and a synthesis of the findings.

The first decade of the 21st century was extraordinarily good for developing countries and their mostly poor citizens. Their economies expanded at unprecedented rates, resulting in both a large reduction in extreme poverty and a significant expansion of the middle class. In fact, their growth rates were an average 4 percentage points faster than those of the advanced countries—versus only 1.3 percentage points in the 1990s (Figure O.1a). This growth was led by the efforts of China, India, and a small number of other Asian countries, and assisted by the weaker economic performance of the rich countries. Latin America and Africa resumed growth as well, catching up with—and often surpassing—the growth rates they experienced during the 1950s and 1960s. As a result, the developing countries moved more quickly to close the income gap with the advanced countries (Figure O.1b), a process known as economic convergence. More recently, however, that process has slowed down—reflecting a narrowing of the advanced and developing country growth rate differentials since 2010—making it unlikely that poorer countries will be able to close the development gap with richer countries anytime soon. ; PR ; IFPRI1; CRP2 ; DSGD; PIM ; CGIAR Research Program on Policies, Institutions, and Markets (PIM)

There is a widespread belief that China plays a fundamental role in African economies, but few rigorous empirical studies to back up this view. Many reports describe China's engagement with Africa as "neo-imperialism" and "authoritarian capitalism", exploiting natural resources and local labour while undermining democracy. A growing demand for natural resources in China is also credited with boosting growth across the continent, especially in Africa's resource-rich countries. In this paper, Brautigam, Diao, McMillan and Silver (2016) present a more balanced and data-driven view on what we know about Chinese investment in Africa and what it means for growth. The authors use official Chinese data to examine the patterns of Chinese engagement in Africa for the period 1998 to 2015. Importantly, these data show large gaps between planned and realised investment. They distinguish between these, and focus only on realised investments. The data indicate that China's influence in Africa is much smaller than is generally believed, though its engagement on the continent is increasing. Chinese investment in Africa, while less extensive than often assumed, has the potential to generate jobs and development on the continent. ; IFPRI5 ; DSGD ; Non-PR

The volume consists of an overview and seven country studies, written by leading scholars from both developed and developing countries. The overview lays out a unifying framework for thinking about economic growth as a combination of two challenges. The "structural change challenge" is focused on moving resources from traditional low-productivity activities into modern, more productive industries. The "fundamentals challenge" faced by policy makers in the developing world is about how best to develop broad capabilities such as human capital and infrastructure. While the two are inextricably linked, they are conceptually different, and making this distinction is one of the contributions of this book. The overview also includes a description of the common methodology used in the country studies, a discussion of data and measurement issues, and a synthesis of the findings. ; Overview: Structural Change, Fundamentals, and Growth Chapter 1 Can the Whole Actually Be Greater Than the Sum of Its Parts? Lessons from India's Growing Economy and Its Evolving Structure Chapter 2 Moving Out of Agriculture: Structural Change in Viet Nam Chapter 3 Stuck in the Middle? Structural Change and Productivity Growth in Botswana Chapter 4 Structural Change in a Poor African Country: New Historical Evidence from Ghana Chapter 5 Structural Change and the Possibilities for Future Growth in Nigeria Chapter 6 The Political Economy of Zambia's Recovery: Structural Change without Transformation? Chapter 7 Structural Change, Productivity Growth, and Trade Policy in Brazil ; PR ; IFPRI1; CRP2 ; DSGD; PIM ; CGIAR Research Program on Policies, Institutions, and Markets (PIM)

In 1966 when Botswana gained independence, it was one of the poorest countries in the world. But by 1986, Botswana had achieved middle-income status, and in 2005, the World Bank classified it as an upper-middle-income country. The only other country to enjoy such rapid economic growth over such a long period is China—an average of 9 percent between 1968 and 2010. Botswana has also maintained democracy throughout its recent history, and this combination of economic and political success has earned it the reputation of an "African success story" (Acemoglu, Johnson, and Robinson 2002). Botswana's rapid economic growth has nonetheless left many individuals behind. Unemployment is a major issue, particularly among the young. Income inequality is extremely high, as is poverty. As such, it is important to understand the sources of Botswana's economic growth to better appreciate where it may come from in the future and what prospects it has for being more inclusive. ; PR ; IFPRI1; CRP2 ; DSGD; PIM ; CGIAR Research Program on Policies, Institutions, and Markets (PIM)