1 Introduction -- 2 Africa's Least Developed Countries: Missed opportunities -- 3 Asia's Least Developed Countries: Policy Lessons -- 4 Central Asia: Three decades after the economic transition -- 5 The Pacific: Development challenges of small island states -- 6 Path dependence and policy as...

This paper explores macroeconomic policies that can sustain structural change in China and India. A two-sector open-economy model with endogenous productivity growth, demand driven output and income distribution as an important determinant of economic activity is calibrated to a 2000 SAM for...