Structural transformation and labour productivity in LDCs

Human development is inextricably linked to economic development, as argued in chapter 3 of this Report. Key elements of human development, such as poverty, nutrition, health and education, are thus important indicators of the impact of economic development. As also highlighted in that chapter, structural transformation, labour productivity growth and employment creation are essential to the development process. The present chapter applies these concepts to the least developed countries (LDCs) and analyses the progress made by these countries in these vital areas since the 1990s. The results of this analysis offer insights into the “LDC paradox” of slow progress in human development despite accelerated economic growth since 2000.

Related Subject(s): Economic and Social Development