Productive Capacities Development: Challenges and Opportunities - The Case of Ethiopia

The report examines the gaps in Ethiopia’s productive capacities and provides a holistic and comprehensive set of policy recommendations to address them. Productive capacities are productive resources, entrepreneurial capabilities and production linkages that together determine a country’s ability to produce goods and services that will help it grow and develop. Productive capacities are measured by the Productive Capacities Index (PCI), a composite index comprising eight components: natural capital, human capital, transport, energy, ICT, private sector, institutions and structural change. The National Productive Capacities Gap Assessment of Ethiopia constitutes the first part of the report, whereas the Holistic Productive Capacities Development Programme – the second part.