Strategies for Structural Transformation in South Asian Countries

Clovis Freire

Economic Affairs Officer, Development Policy Section, Macroeconomic Policy and Development Division, United Nations Economic and Social Commission for Asia and the Pacific, United Nations building, Rajadamnern Nok Avenue, Bangkok 10200, Thailand, Tel: +66-2-288-1551, Fax: +66-2-288-3007 freire@un.org

JEL Classification: O11, O14, O25, O33, O38, O53, O57

Abstract

Growth in South Asia has not resulted in structural transformation and increase of productive capacities. This paper presents a methodology to identify the opportunities for countries in South Asia to build their productive capacities and promote structural transformation through the emulation of the productive structure of more developed countries. The paper also discusses country-specific strategies that combine laissez-faire and strategic diversification approaches to facilitate the emergence of new economic activities that are more likely to increase the productive capacities in the country. In addition to its relevance to the formulation of inclusive development policies in South Asia, this paper contributes to the industrial policy literature by exploring the use of empirical data to verify the need for selective policies.

Keywords:

Diversification, Structural Transformation, Productive Capacities, Economic Development, Industrial Policy

Acknowledgments

The views expressed herein are those of the author and do not necessarily reflect the views of the United Nations. Ph.D. fellow, GPAC2, Maastricht Graduate School of Governance (MGSoG), UNU Maastricht Economic and Social Research Institute on Innovation and Technology (UNU-MERIT), Keizer Karelplein 19, 6211 TC Maastricht, The Netherlands. (E-mail) c.freirejunior@student.maastrichtuniversity.nl.

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