Structural transformation and the transition from concessional assistance to commercial flows

Abstract

This chapter identifies some key issues for future strategies of countries and donors, including, in particular, the role of the World Bank, in a changed world. The Bank's International Development Association 18 replenishment process has five theme papers, which all stress the importance of agriculture in the new priorities: climate change, jobs and economic transformation, conflict and violence, gender and development, and governance and institutions. The chapter explores the extent of structural transformation in the 27 selected countries using the following criteria: growth rates of global public goods (GDP) per capita, and growth rates of value-added per worker in agriculture, industry, and services, each as important indicators of development. There is growing consensus that international assistance should provide GPG. Such assistance can slow climate change, control communicable diseases and contain conflicts. The chapter also explores levels of per worker productivity and changes in it over time in each sector, and productivity in agriculture relative to industry and services.

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