{ "title": "Topic 4: Promoting Structural Change and Institutional Development", "sourceUrl": "https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/promoting-structural-change-institutional-development", "canonical": "https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/promoting-structural-change-institutional-development", "overlayPath": "/en/topics/low-income-countries/macro-research-for-development/promoting-structural-change-institutional-development/index.md", "summary": "Low-income countries (LICs) have been facing an increasingly challenging external environment: slowing global growth under the ongoing COVID-19 crisis; sharp declines with high volatility in commodity prices, affecting many commodity producers; and tighter external funding conditions.", "sections": [ { "heading": "Overview", "content": "- Low-income countries (LICs) face an increasingly challenging external environment: slowing global growth under the ongoing COVID-19 crisis; sharp declines with high volatility in commodity prices; and tighter external funding conditions. These developments have raised concerns about a prolonged growth slowdown and elevated the priority of structural reforms in LICs.\n- Strengthening governance and tackling corruption are identified as necessary for successful progress on many reforms.\n- The work is carried out under the FCDO-IMF partnership on research on the macroeconomics of LICs, spanning four phases covering March 2012 to March 2025." }, { "heading": "Evolution of the FCDO-IMF research collaboration", "content": "- Phase 1: March 2012 to March 2015\n- Phase 2: April 2015 to March 2017\n- Phase 3: April 2017 to March 2020\n- Phase 4: April 2020 to March 2025\n- Outputs associated with the partnership are catalogued as \"Year 1 to 13 (Excel)\" and by individual year reports for each phase." }, { "heading": "Major achievements and outputs by phase", "content": "- Phase 1 (March 2012 to March 2015)\n - Focus: growth through diversification and structural transformation.\n - Major achievement: construction of a new publicly available diversification toolkit enabling assessment of potential for further transformation and quality upgrading in LICs.\n - Other outputs: policy papers \"Economic Diversification in LICs: Stylized Facts and Macroeconomic Implications\" and \"Sustaining Long-run Growth and Macroeconomic Stability in Low-income countries—The Role of Structural Transformation and Diversification\"; conference on \"Diversification and Structural Transformation for Growth and Stability in Low-Income Countries\".\n- Phase 2 (April 2015 to March 2017)\n - Focus: extend the diversification toolkit to include services exports; examine the link between gender and diversification; expand training on toolkit usage.\n - Outputs include: working paper \"World Trade in Services: Evidence from A New Dataset\"; working paper \"Gender Equality and Economic Diversification\"; policy paper \"From Ambition to Execution: Policies in Support of Sustainable Development Goals\".\n- Phase 3 (April 2017 to March 2020)\n - Research plan three-fold:\n - Encourage greater uptake of the Diversification Toolkit and enhance its value.\n - Construct a comprehensive database on structural reforms and policies to identify which policies delivered inclusive growth and facilitated structural transformation.\n - Study strategies for maintaining growth in a weaker external environment, including through strengthening governance.\n - Achievements include: applications of the diversification toolkit on Sub-Saharan Africa, Guinea-Bissau, and Vanuatu; paper \"Structural Reforms and Elections: Evidence from a World-Wide New Dataset\"; high level conference \"Global Transformations: Challenges and Opportunities for Developing Economies\".\n- Phase 4 (April 2020 to March 2025)\n - Focus areas:\n - Diversification and interactions with development and industrial policies.\n - Automation and the changing landscape of structural transformation in LICs.\n - State fragility, economic consequences, and shock mitigation.\n - Outputs for years 9-13 are indicated as forthcoming." }, { "heading": "Tools, datasets, and capacity building", "content": "- Diversification Toolkit:\n - Initially developed under phase 1; extended under phase 2 to include services exports.\n - Subject to wider uptake and enhancements during phase 3, with applications to specific countries and regions.\n- Databases and datasets:\n - Phase 3 included construction of a comprehensive database on structural reforms and policies.\n - Research output referenced working papers and new datasets (e.g., services trade dataset; world-wide dataset on structural reforms and elections).\n- Training and dissemination:\n - Phase 2 emphasized expanded training on how to use the diversification toolkit.\n - Phase 3 prioritized encouraging uptake and increasing the toolkit's value through enhancements and country/regional applications." }, { "heading": "Policy implications and research priorities", "content": "- Prioritized policy agenda items for LICs:\n - Structural reforms to support diversification and long-run growth.\n - Strengthening governance and addressing corruption to enable reform implementation.\n - Policies to manage and mitigate shocks from volatile commodity prices and tighter external financing.\n - Understanding interactions between diversification, development policy, and industrial policy.\n - Assessing the impact of automation on structural transformation pathways.\n - Addressing state fragility and designing shock-mitigation strategies." }, { "heading": "Project management and contact", "content": "- Project Managers: Petia Topalova; Emine Boz\n- Contact: MacroResDev@imf.org" } ], "bullets": [ "Low-income countries (LICs) face an increasingly challenging external environment: slowing global growth under the ongoing COVID-19 crisis; sharp declines with high volatility in commodity prices; and tighter external funding conditions. These developments have raised concerns about a prolonged growth slowdown and elevated the priority of structural reforms in LICs.", "Strengthening governance and tackling corruption are identified as necessary for successful progress on many reforms.", "The work is carried out under the FCDO-IMF partnership on research on the macroeconomics of LICs, spanning four phases covering March 2012 to March 2025.", "Phase 1: March 2012 to March 2015", "Phase 2: April 2015 to March 2017", "Phase 3: April 2017 to March 2020", "Phase 4: April 2020 to March 2025", "Outputs associated with the partnership are catalogued as \"Year 1 to 13 (Excel)\" and by individual year reports for each phase.", "Phase 1 (March 2012 to March 2015)", "Phase 2 (April 2015 to March 2017)", "Phase 3 (April 2017 to March 2020)", "Phase 4 (April 2020 to March 2025)", "Diversification Toolkit:", "Databases and datasets:", "Training and dissemination:", "Prioritized policy agenda items for LICs:", "Project Managers: Petia Topalova; Emine Boz", "Contact: MacroResDev@imf.org", "**June 2019**", "**June 2020**", "**June 2021**", "**June 2022**", "**June 2023**", "**June 2024**", "**June 2025**", "**Call to Donors to Strengthen IMF Research Capacity for Low-Income Countries**", "**Macroeconomic Research in Low Income Countries — June 2013**", "**Macroeconomic Research in Low Income Countries — June 2014**", "**June2015**", "**Annual Review of the Macroeconomic Research in Low Income Countries project**", "**June2017**", "**MRLIC programme review — By March 2018**", "[List of Outputs: Year 1 to 13 (XLSX)](/-/media/files/topics/lics/macro-research-for-development/listofoutputs.xlsx){rel=\"external\" type=\"application/vnd.openxmlformats-officedocument.spreadsheetml.sheet\"}", "**Dec 2018, Vol.6**", "**Dec 2019, Vol.7**", "**Dec 2020, Vol.8**", "**Dec 2021, Vol.9**", "**Dec 2022, Vol.10**", "**Dec 2023, Vol.11**", "**Dec 2024, Vol.12**", "**Dec 2025, Vol.13**", "**Jun 2018, Vol.6**", "**Jun 2019, Vol.7**", "**Jun 2020, Vol.8**", "**Jun 2021, Vol.9**", "**Jun 2022, Vol.10**", "**Jun 2023, Vol.11**", "**Jun 2024, Vol.12**", "[Jun 2025, Vol.13 (PDF)](/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2025.pdf){rel=\"external\" type=\"application/pdf\"}", "**Mar 2018, Vol.6**", "**Mar 2019, Vol.7**", "**Mar 2020, Vol.8**", "**Mar 2021, Vol.9**", "**Mar 2022, Vol.10**", "**Mar 2023, Vol.11**", "[Mar 2024, Vol.12 (PDF)](/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2024.pdf){rel=\"external\" type=\"application/pdf\"}", "**Mar 2025, Vol.13**", "**Mar 2026, Vol.14**", "**Sep 2018, Vol.6**", "**Sep 2019, Vol.7**", "**Sep 2020, Vol.8**", "**Sep 2021, Vol.9**", "**Sep 2022, Vol.10**", "**Sep 2023, Vol.11**", "**Sep 2024, Vol.12**", "[Sep 2025, Vol.13 (PDF)](/-/media/files/topics/lics/macro-research-for-development/newsletters/sep2025.pdf){rel=\"external\" type=\"application/pdf\"}", "**Devarajan–O'Connell final report on the MRLIC project**", "[Policy Paper (2014) (PDF)](/external/np/pp/eng/2014/030514.pdf){rel=\"external\" type=\"application/pdf\"}", "[From Ambition to Execution: Policies in Support of Sustainable Development Goals (PDF)](/external/pubs/ft/sdn/2015/sdn1518.pdf){rel=\"external\" type=\"application/pdf\"}" ], "related": [ { "title": "June 2019", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/annual-reports/dfid-ar-june2019.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/dfid-ar-june2019.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/dfid-ar-june2019.pdf", "mime": "application/pdf" } }, { "title": "June 2020", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/annual-reports/dfid-ar-june2020.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/dfid-ar-june2020.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/dfid-ar-june2020.pdf", "mime": "application/pdf" } }, { "title": "June 2021", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2021.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2021.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2021.pdf", "mime": "application/pdf" } }, { "title": "June 2022", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2022.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2022.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2022.pdf", "mime": "application/pdf" } }, { "title": "June 2023", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2023.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2023.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2023.pdf", "mime": "application/pdf" } }, { "title": "June 2024", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2024.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2024.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2024.pdf", "mime": "application/pdf" } }, { "title": "June 2025", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2025.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2025.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2025.pdf", "mime": "application/pdf" } }, { "title": "Call to Donors to Strengthen IMF Research Capacity for Low-Income Countries", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/call-to-donors-to-strengthen-imf-research-capacity-for-low-income-countries-nov-2025.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/call-to-donors-to-strengthen-imf-research-capacity-for-low-income-countries-nov-2025.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/call-to-donors-to-strengthen-imf-research-capacity-for-low-income-countries-nov-2025.pdf", "mime": "application/pdf" } }, { "title": "Macroeconomic Research in Low Income Countries — June 2013", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/documents/june2013.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2013.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2013.pdf", "mime": "application/pdf" } }, { "title": "Macroeconomic Research in Low Income Countries — June 2014", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/documents/june2014.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2014.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2014.pdf", "mime": "application/pdf" } }, { "title": "June2015", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/documents/june2015.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2015.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2015.pdf", "mime": "application/pdf" } }, { "title": "Annual Review of the Macroeconomic Research in Low Income Countries project", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/documents/june2016.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2016.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2016.pdf", "mime": "application/pdf" } }, { "title": "June2017", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/documents/june2017.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2017.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2017.pdf", "mime": "application/pdf" } }, { "title": "MRLIC programme review — By March 2018", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/documents/june2018.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2018.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/documents/june2018.pdf", "mime": "application/pdf" } }, { "title": "List of Outputs: Year 1 to 13", "role": "dataset", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/listofoutputs.xlsx", "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/listofoutputs.xlsx", "mime": "application/vnd.openxmlformats-officedocument.spreadsheetml.sheet" } }, { "title": "Dec 2018, Vol.6", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2018.pdf", "summary": { "path": 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"application/pdf" } }, { "title": "Dec 2023, Vol.11", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2023.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2023.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2023.pdf", "mime": "application/pdf" } }, { "title": "Dec 2024, Vol.12", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2024.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2024.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2024.pdf", "mime": "application/pdf" } }, { "title": "Dec 2025, Vol.13", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2025.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2025.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2025.pdf", "mime": "application/pdf" } }, { "title": "Jun 2018, Vol.6", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2018.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2018.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2018.pdf", "mime": "application/pdf" } }, { "title": "Jun 2019, Vol.7", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2019.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2019.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2019.pdf", "mime": "application/pdf" } }, { "title": "Jun 2020, Vol.8", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2020.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2020.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2020.pdf", "mime": "application/pdf" } }, { "title": "Jun 2021, Vol.9", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2021.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2021.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2021.pdf", "mime": "application/pdf" } }, { "title": "Jun 2022, Vol.10", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2022.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2022.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2022.pdf", "mime": "application/pdf" } }, { "title": "Jun 2023, Vol.11", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2023.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2023.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2023.pdf", "mime": "application/pdf" } }, { "title": "Jun 2024, Vol.12", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2024.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2024.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2024.pdf", "mime": "application/pdf" } }, { "title": "Jun 2025, Vol.13", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2025.pdf", "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/jun2025.pdf", "mime": "application/pdf" } }, { "title": "Mar 2018, Vol.6", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2018.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2018.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2018.pdf", "mime": "application/pdf" } }, { "title": "Mar 2019, Vol.7", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2019.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2019.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2019.pdf", "mime": "application/pdf" } }, { "title": "Mar 2020, Vol.8", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2020.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2020.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2020.pdf", "mime": "application/pdf" } }, { "title": "Mar 2021, Vol.9", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2021.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2021.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2021.pdf", "mime": "application/pdf" } }, { "title": "Mar 2022, Vol.10", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2022.pdf", "summary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2022.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/topics/lics/macro-research-for-development/newsletters/mar2022.pdf", "mime": 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