Cover

CONTENTS

EXECUTIVE SUMMARY

I. INTRODUCTION

II. TRANSFORMATION FOR SUSTAINABLE GROWTH

A. Diversification and Structural Transformation in Developing Countries

B. Economic Diversification and Structural Transformation: Policies

III. MAKING GROWTH MORE INCLUSIVE

A. Inclusion and Growth

B. Trends in Inequality

C. Toward Greater Inclusion

IV. ENVIRONMENTAL SUSTAINABILITY FOR MACROECONOMIC STABILITY AND GROWTH

A. Environmental Sustainability for Macroeconomic Stability and Growth

B. Managing Energy Pricing

C. Managing Water Resources

D. Mitigating the Effects of Adverse Environmental Events—The Role of the Financial Sector

V. CONCLUDING REMARKS

REFERENCES

BOXES

1. Diversification in Small States for Sustainable Development

2. Ethiopia: Economic Reforms for Equitable Growth

3. Macroeconomic Resilience to Natural Disasters and Climate Change in the Small States.

FIGURES

1. Diversification and Income per Capita, 1962–2010

2. Diversification and Volatility

3. Average Labor Productivity, 1985–2009

4. Changes in Poverty and Inequality, 1990–2010

5. Poverty and Inequality in Developing Countries, 1985–2010

6. Tax Revenues and Social Spending in Advanced and Developing Economies, 2011

7. Labor Force Participation Gaps, 1993–2013

8. Global Energy Subsidies, 2011–15

9. Revenue from Energy Price Reform, Selected Countries, 2013

10. Public Water Subsidies by Country Groups and Regions, 2012

TABLE

Sustainable Development Goals (SDGs)

APPENDIX

Developing Countries and Country Groups