Structural Transformation and Economic Growth

ACET in March 2020 commenced a five-year research initiative funded by DFID. The primary goal of the project is to provide a better understanding of structural change, productivity and growth in low- and middle-income countries. Q4 2020 ACET convened four country specific virtual workshops for Ghana, Ethiopia, Zambia and Uganda between September- December 2020. These were Small-group engagements to present the STEG project to the participants, solicit their insight on the relevance of the research questions for their respective countries, as well as to garner any additional research questions that should be included. An additional objective was to bolster inclusive participation in framing of the research questions at the initial phase of the research for further engagement as the research progressed. The participants, who are our stakeholders in the project were enthusiastic about the project as evidenced by the insightful discussions that ensued and made commitments to stay engaged with the researchers In q1 2021, work progress was on hold as a result of a projected budget cut from the project donor (UK government). In Q2 2021, the ACET’s STEG budget for Year 2 of the project (1st February 2021 to 31st January 2022) was approved by the project manager, Center for Economic Policy Research (CEPR). We had earlier been informed that due to a reduction in the UK government’s foreign aid budget for 2021 due to the Covid-19 pandemic, there will be a cut of up to 50% in the STEG budget. All project activities were at a standstill while waiting for final confirmation of the budget for the year. The main activity for the next quarter will be advertising for the ACET/STEG Fellow, as well as interviewing and appointing the Fellow. The major output for this year will be production of a research paper on structural transformation for presentation at the STEG annual conference in 2022. Drafting of an annotated outline of the paper has commenced. In Q3 2021, the Terms of Reference for the ACET/STEG Transformation Fellow was developed and approved by senior management. The position has now been advertised internationally and interviews will be conducted in November. Q4 2021 An ACET/STEG fellow has been recruited to lead the implementation of the project. The fellow will resume office in February 2022. The project team has also developed an annotated outline to guide the production of a research paper on structural transformation which will be presented at the STEG annual conference in 2022.