How economic transformation happens at the sector level: evidence from Africa and Asia

About the Paper

This research paper, published by the Overseas Development Institute and Gatsby Africa, explores the factors that shape the prospects of success in economic transformation at the sector level. It applies an analytical framework to six experiences of successful sector transformation and five cases where sectors did not transform to produce evidence on the factors that drive or hold back economic transformation. The evidence shows that interventions at sector level, coordinated around a targeted set of activities, in a politically smart way, and set in a competitive framework, can be an important driver of economic transformation. This, in turn, is crucial for sustained job creation, inclusion and a diversified, resilient economy.

Read the Paper

The development of specific competitive sectors has been key to dynamic growth periods and hence to long-term transformation, even in countries where wider aspects of economic governance have not improved. This implies it is possible to develop dynamic, competitive sectors even when broader conditions in the economy are unfavourable.