Rethinking Development Policy : Deindustrialization, Servicification and Structural Transformation

This paper takes a fresh look at the current theories of structural transformation and the role ofprivate and public fundamentals in the process. It summarizes some representative past andcurrent experiences of various countries vis-a-vis structural transformation with a focus on theroles of manufacturing, policy, and the international environment in shaping the trajectory ofstructural transformation. The salient aspects of the current debate on prematuredeindustrialization and its relation to a middle-income trap are described as they relate to thepath of structural transformation. Conclusions are drawn regarding prospective future paths forstructural transformation and development policies