Assessment of structural transformation

The Asia-Pacific countries with special needs are a heterogenous group and thus exhibit varying degrees and patterns of structural transformation. A defining feature of the countries with special needs is their low levels of productivity that have only evolved incrementally and, in some cases, stagnated or even regressed. Such low productivity levels, however, mask the huge productivity differentials that exist across sectors, with agriculture typically occupying the bottom spot, and extractive sectors (such as mining and petroleum production) with limited employment potential ranking as the most productive. In fact, such productivity gaps are a feature of developing countries due to allocative inefficiencies that reduce overall labour productivity (McMillan, Rodrik and Verduzco-Gallo, 2014).

Sustainable Development Goals:

No Poverty

Reduced Inequalities