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: How the climate crisis is hampering labour productivity in Accra
Researchers from ACRC’s structural transformation domain have published a new working paper, looking at the effect of climate change on city-wide labour productivity in Accra, Ghana.
Urbanisation, rentier capitalism and the politics of inequality in Kenya
On 25 June 2024, the streets of Nairobi erupted in protest against the government of Kenya’s plans to increase taxes on many everyday goods, such as food and fuel.
Obstructed paths into adulthood: Challenging the hindrances to young people’s lives in African cities
In African cities, young people struggle with limited opportunities and systemic failures. How can cities overcome these barriers to secure their future?