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DPR debate - Growth identification and facilitation: the role of the state in the dynamics of structural change

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Written by Dirk Willem te Velde

This DPR Debate is based on the contribution by Justin Lin, Chief Economist at the World Bank, and his colleague Célestin Monga, on ‘Growth Identification and Facilitation: The Role of the State in the Dynamics of Structural Change’. The article is important and timely as it articulates a number of new policy implications from Justin Lin's earlier work on New Structural Economics which was discussed in a previous DPR debate (Lin and Chang, 2009). The article provides a novel and practical 6-step plan for governments to facilitate growth, and constitutes a credible alternative to existing frameworks (growth diagnostic framework, competiveness analysis, capability analysis, investment-climate analysis). Moreover, it reinvigorates the debate on the appropriate role of growth policy in development, which has once again become a topical issue in development economics. This DPR Debate contains the article and comments on it from five distinguished specialists, and closes with a rejoinder by Lin and Monga. 

Access the full-text Debate for free at http://onlinelibrary.wiley.com/doi/10.1111/j.1467-7679.2011.00534.x/abstract

Justin Lin and Célestin Monga, introduced by Dirk Willem te Velde and with commentaries by Suresh D. Tendulkar, Alice Amsden, K. Y. Amoako, Howard Pack and Wonhyuk Lim