ABSTRACT
The central focus of the chapter is to identify the optimal sequence of social, economic and environmental conservation interventions that minimise trade-offs in advancing structural transformation. This can be achieved by employing a structural equation model to estimate the direct and indirect impacts of social, economic and environmental indicators on a composite index of structural transformation. This is pursued by quantifying the total (direct plus indirect) impact of economic, social and environmental interventions on structural transformation. Hence, this chapter addresses the question, “How do empirical trade-offs and synergies between economic growth, social inclusion and environmental conservation affect structural transformation outcomes?” The outcomes suggest that a compartmentalised approach – grow first, redistribute and clean up later – reduces the potential for long-run structural transformation. It further emerges that a strategy of incorporating environmental initiatives into Africa’s structural transformation goals outperforms one that prioritises economic growth, while a strategy favouring social development goals may be most effective in the context of structural transformation.
