The Economic Commission for Africa defines structural transformation as the fundamental changes in economic and social structures that advance inclusive and sustainable development This definition addresses three key questions:
a) What is structural transformation? It is a fundamental and multidimensional process observed in all countries reaching high levels of development;
b) How is it achieved? It requires profound economic and social transformation, such as economic diversification and technological upgrading, the creation of decent and productive employment and equitable social welfare;
c) Why does it matter? It is crucial for implementing the 2030 Agenda for Sustainable Development and Agenda 2063: The Africa We Want.
Within the core objective of accelerating structural transformation (ST), there are three inherent dimensions to be assessed: employment (E), production (P), and society (S). This speaks directly to the need to fundamentally change economic and social structures, with employment playing a key role in linking economic growth (production) and social development (society), in both directions. It is useful to keep in mind the ultimate objective of the analytical framework, namely, to achieve inclusive and sustainable development through accelerated structural transformation. Hence, structural transformation, employment, production and society for sustainable development (STEPS 4 SD) is the framework that shapes the design and implementation of the profiles.
- East Africa: Ethiopia