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Infrastructure for Structural Transformation: A Comebackof Planning?

Author

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  • Ricardo Gottschalk
  • Padmashree Gehl Sampath

Abstract

This article examines how infrastructure development may best support structural transformation in developing countries. It critiques ongoing emphasis by multilateral financial institutions and other actors on infrastructure as an asset class and their focus on bankable projects. The article considers this approach too narrow for real economic transformation and argues development requires a more holistic approach, one that includes project assessment based on developmental criteria. Drawing on the pioneers of development and more recent literature on infrastructure systems, the article proposes development planning as a more promising approach and assesses how developing countries are faring regarding infrastructure planning for growth and transformation. JEL Classification: H54, O21, O40, P11

Suggested Citation

  • Ricardo Gottschalk & Padmashree Gehl Sampath, 2021. "Infrastructure for Structural Transformation: A Comebackof Planning?," Journal of Infrastructure Development, India Development Foundation, vol. 13(1), pages 53-64, June.
    • Handle: RePEc:sae:jouinf:v:13:y:2021:i:1:p:53-64
    DOI: 10.1177/09749306211023667
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    References listed on IDEAS

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    1. Ricardo Hausmann & Dani Rodrik & Charles F. Sabel, 2008. "Reconfiguring Industrial Policy: A Framework with an Application to South Africa," CID Working Papers 168, Center for International Development at Harvard University.
    2. Meg Elkins & Simon Feeny & David Prentice, 2018. "Are Poverty Reduction Strategy Papers Associated with Reductions in Poverty and Improvements in Well-being?," Journal of Development Studies, Taylor & Francis Journals, vol. 54(2), pages 377-393, February.
    3. Holz, Carsten A., 2011. "The unbalanced growth hypothesis and the role of the state: The case of China's state-owned enterprises," Journal of Development Economics, Elsevier, vol. 96(2), pages 220-238, November.
    4. Shi, Yingying & Guo, Shen & Sun, Puyang, 2017. "The role of infrastructure in China’s regional economic growth," Journal of Asian Economics, Elsevier, vol. 49(C), pages 26-41.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Yunnan Chen, 2024. "Technology Transfer on the Belt and Road: Pathways for Structural Transformation in Ethiopia’s Standard Gauge Railways," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 668-694, June.
    2. Linda Calabrese, 2024. "Diversifying Away from Extractives: The Belt and Road Initiative, Chinese Capital and Industrialisation in the Kyrgyz Republic," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 601-638, June.

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    More about this item

    Keywords

    Infrastructure; investment; economic growth; structural transformation; planning; developing countries;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform

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