New Patterns of Structural Change and Effects on Inclusive Development : A Case Study of South Africa and Brazil

This study explores the question of structural change and inclusive development in South Africa and Brazil. Using Census data from the two countries, the analysis combines a household level multidimensional indicator of well-being with the applications of growth incidence curves and a sectoral decomposition of change to provide insight into the relationship between the place of households in the economy as reflected by employment sector and geographical location, and the extent to which the residents of those households are sharing in the benefits from growth. The results here suggest that current patterns are in some ways contradictory to received models of development and distribution, and, further, that redistribution alone is insufficient in creating inclusive development if the patterns of structural change do not sufficiently involve people in the processes of growth, particularly through accessible and remunerative employment.