Structural transformation

A shift from lower to higher value-added productive activities is an important condition for long-term growth that is sustainable and provides economic opportunities for everyone. In many countries, this requires investment, adoption of new technologies and a skilled workforce. Statistics show the complex environmental challenges we are facing. To avoid further ecological degradation and climate change, a shift to more resource-efficient and environmentally responsible economic activities will be needed. Productive capacitiesUNCTAD defines productive capacities as consisting of the productive resources, entrepreneurial capabilities and production linkages that together determine a country’s ability to produce goods and services that will help it grow and develop -—
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—- – human and natural capital, energy, transport, ICTInformation and communications technology (ICT) is a diverse set of technological tools and resources used to transmit, store, create, share or exchange information. These resources include computers, the Internet, live broadcasting technologies, recorded broadcasting technologies and telephony -—
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—-., institutions, private sector and structural changeStructural transformation or change can be broadly defined as the reallocation of economic activity across three broad sectors, agriculture, manufacturing and services, which accompanies the process of economic growth -—
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—-. It usually refers to the transfer or shift of production factors — especially labour, capital and land — away from activities and sectors with low productivity to those with higher productivity, which are typically different in location, organization and technology -—
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—-. – play a central role in strengthening countries’ resilience to deal with economic and environmental pressures and shocks. This theme of SDGSustainable Development Goal Pulse looks at these three aspects of structural transformationStructural transformation or change can be broadly defined as the reallocation of economic activity across three broad sectors, agriculture, manufacturing and services, which accompanies the process of economic growth -—
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—-. It usually refers to the transfer or shift of production factors — especially labour, capital and land — away from activities and sectors with low productivity to those with higher productivity, which are typically different in location, organization and technology -—
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• We look for evidence of a shift towards Sustainable industrialization and higher technologys and more skills-intensive economic activities, and
• We consider whether it is Make or break for green economy in the face of serious environmental and climate concerns, and
• We discuss Fostering productive capacities to graduate with momentum as a priority for LDCsLeast developed country.

To achieve the objectives of the Paris Climate AgreementThe Paris Agreement is an agreement within the UNFCCC aiming is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase even further, to 1.5°C. It aims to strengthen countries’ ability to deal with the impacts of climate change. To reach these ambitious goals, appropriate financial flows, a new technology framework and an enhanced capacity building framework are intended to support developing countries, in line with their national objectives -—
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—-., the world needs to deploy green technologies on a much greater scale. Innovation plays a key role in that process. The climate challenge is immediate, and as statistics in the SDG Pulse demonstrate, we can reduce carbon intensityCarbon intensity is the amount of emissions of carbon dioxide (CO₂) released per unit of another variable such as gross domestic product (GDP), output energy use or transport -—
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—-. of the economy through technological and economic transformation, but the challenge is urgent. If there was some hope that the pandemicCommonly described by the WHO as ‘the worldwide spread of a new disease’, no strict definition is provided. In 2009, they set out the basic requirements for a pandemic: • New virus emerges in humans
• Minimal or no population immunity
• Causes serious illness; high morbidity/mortality
• Spreads easily from person to person
• Global outbreak of disease.
The US Centre for Disease Control uses a similar approach, but with a reduced set of criteria. It is very difficult to gauge whether the spread of a disease should be termed an outbreak, epidemic or pandemic. In other words, when to declare a pandemic isn’t a black and white decision -—
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—-. would have put the world on the right track to achieve at least the 2 °C target, this hope was dashed by the strong rebound of fossil carbon dioxideCarbon dioxide (CO₂) is a colourless, odourless and non-poisonous gas formed by combustion of carbon and in the respiration of living organisms -—
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—-. emissions by 6 per cent in 2021.

Medium and high-tech manufacturing share increasing in all regions, with Africa lagging behind.
SDG indicator 9.b.1

LDCs spend eight times less on R&D than the world average, relative to GDPGross domestic product (GDP) is an aggregate measure of production, income and expenditure of an economy. As a production measure, it represents the gross value added, i.e., the output net of intermediate consumption, achieved by all resident units engaged in production, plus any taxes less subsidies on products not included in the value of output. As an income measure, it represents the sum of primary incomes (gross wages and entrepreneurial income) distributed by resident producers, plus taxes less subsidies on production and imports. As an expenditure measure, it depicts the sum of expenditure on final consumption, gross capital formation (i.e., investment, changes in inventories, and acquisitions less disposals of valuables) and exports after deduction of imports -—
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SDG indicator 9.5.1