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
Analysis of urban reform coalitions awarded best 2024 paper by Area Development and Policy
ACRC’s CEO, Diana Mitlin, has been awarded the best paper of 2024 by Area Development and Policy for “The contribution of reform coalitions to inclusion and equity: lessons from urban social movements”.
New research: Are reform coalitions the key to more inclusive urban housing in Africa?
By 2050, it is projected that African cities will become home to an additional 950 million people – all of whom will need housing. A new ACRC report outlines findings from the housing domain research, which was implemented in seven African cities.
New research: Overcoming systemic barriers facing young people in African cities
A new ACRC paper presents research into the challenges facing young people as they transition to adulthood in five African cities: Addis Ababa, Ethiopia; Freetown; Sierra Leone; Kampala, Uganda; Maiduguri, Nigeria; and Mogadishu, Somalia.