Manoj Atolia, Mr. Prakash Loungani, Milton Marquis, and Mr. Chris Papageorgiou
This paper takes a fresh look at the current theories of structural transformation and the role of
private and public fundamentals in the process. It summarizes some representative past and
current experiences of various countries vis-a-vis structural transformation with a focus on the
roles of manufacturing, policy, and the international environment in shaping the trajectory of
structural transformation. The salient aspects of the current debate on premature
deindustrialization and its relation to a middle-income trap are described as they relate to the
path of structural transformation. Conclusions are drawn regarding prospective future paths for
structural transformation and development policies.
Uruguay experienced one of its biggest economic booms in history during 2004-2014. Since then, growth has come down significantly. The paper investigates the various causes of the boom and discusses the sustainability of these causes. It then compares Uruguay against high-growth countries that were once at a similar income level, across a broad set of structural indicators, to identify priority reform areas that could improve long-term growth prospect.