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: Understanding Bukavu’s urban dynamics and political settlement
A new ACRC report by Emery Mushagalusa Mudinga, Aymar Nyenyezi Bisoka and Philippe Mulumeoderhwa Kaganda analyses how politics and urban systems shape urban development challenges in Bukavu.
New research: How political and urban systems shape access to healthy diets in Kampala’s informal settlements
A new ACRC working paper explores the challenges that informal settlement residents in Kampala face in accessing healthy food, the political and systemic issues underpinning these, and potential ways to improve health, wellbeing and nutrition in the city.
Building partnerships in development: What needs to change?
The International Development Committee recently launched an inquiry into the future of the UK’s international aid and development assistance programmes. We believe the design and experiences of ACRC offers important insights and our CEO Diana Mitlin submitted written evidence to the inquiry.






