Contemporary African Structural Transformation: An Empirical Assessment
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Over the past three decades, global progress in reducing poverty and hunger has been impressive with extreme poverty declining from 44% in 1981 to 13% in 2012 (World Development Indicators, 2016) and hunger from 19% in 1991 to 10% in 2012 (FAO, 2016). The process underlying the achievements to date is structural transformation of economies from subsistence agriculture to one of wage employment in the manufacturing and service sectors. Agricultural technical change and greater agricultural produc tivity has helped enable investment in and demand for domestic non-agricultural production of goods and services, which coupled with manufacturing development generated economy-wide growth with rapid and sustained reductions in poverty and hunger. Examples of agricultural productivity led structural transformation include the Green Revolutions in parts of Asia and Latin America; China, after the 1978 introduction of the household responsibility system and ensuing agricultural and non-agricultura l policy changes; and Vietnam after the doi moi reforms in the mid 1980s.