Mainstream development economics is failing


Published 27.02.19
Photo credit:
Assistance in Building Afghanistan by Developing Enterprises (ABADE) Program/Steve Dorst

The former World Bank Chief Economist explains why developing countries should pursue growth based on their unique comparative advantages

Increasing labour market productivity, improving technology, and generating sectors with higher value-added outputs are key characteristics of sustained economic growth. Empirical data on successes and failures in realising these processes reveal that mainstream policy approaches, which are designed for high-income country contexts, are not appropriate for developing countries. Successful developing countries instead implement pioneering policy approaches that prioritise capitalising on their comparative economic advantages to realise their growth potential.