ABSTRACT
This chapter traces the origin of the idea of structural transformation back to the classical development economics literature, and then there is exploration as to how this has been expanded over time to incorporate thinking about equity and environmental sustainability. This chronological journey entails both conceptual and theoretical accounts to discuss the two normative development frameworks adopted by national governments to inform country-specific development strategies while serving as the fundamental grounds for conceptual analysis of country change processes. The three potential tensions between structural transformation, sustainability and social inclusion in the contemporary development discourse are empirically explored, which can indicate that realising these potential synergies and trade-offs can be effective in reconciling holistically these two development objectives into one unified process of sustainable structural transformation.
