Structural transformation
Structural transformation involves the movement of workers from low-productivity sectors (such as agriculture), to high-productivity (industrial, urban-based) sectors, leading to job creation, improved labour productivity and poverty reduction.
In much of Africa, urbanisation has taken place without structural transformation, leaving high numbers of city dwellers trapped in low-productivity informal employment. To create growth and reduce poverty, it is therefore essential to disentangle the connections between cities and structural change.
ACRC will look at how key city systems – including urban planning, infrastructural service provision (such as transport, energy, water and waste management), productivity-enhancing policies and regulatory frameworks, and educational and technology accumulation strategies – need to be pulled together to facilitate structural transformation. Our approach considers how the political economy of cities affects the potential for structural transformation. Success requires ruling elites to commit to investing in the public infrastructure necessary for firms to operate productively, and to building productive state–business relations. This can stand in tension with the incentives to extract rents from firms and household enterprises and to enter into collusive relationships, such as offering subsidies and contracts in return for political and personal financing.
LATEST NEWS from ACRC
New research: Uncovering Lilongwe’s urban development challenges
Lilongwe is the capital of Malawi and its largest city, home to about 1 million residents – three quarters of whom live in informal settlements. Newly published ACRC research throws light on the political dynamics and city systems underpinning urban development in Lilongwe.
New research: How land intersects with connectivity in urban Africa
ACRC has published new research, exploring land and connectivity in six African cities: Accra (Ghana), Bukavu (DRC), Kampala (Uganda), Harare (Zimbabwe), Maiduguri (Nigeria) and Mogadishu (Somalia).
Local impacts of global vaccine inequalities: Post-pandemic informal settlement experiences
This blog post outlines key findings from our recent Covid Collective research, which examined changing patterns and key lessons from the Covid-19 vaccine rollouts as they took place (or did not) in a selection of informal settlements across four African cities: Harare, Kampala, Lilongwe and Nairobi.