Research: How Does Inclusive Economic Growth Happen?

We are partnering with the Overseas Development Institute (ODI) and others to learn more about how inclusive economic growth happens.

We want to better understand:

  • What different countries’ experiences through history can tell us about triggering inclusive economic growth by transforming individual sectors
  • What factors drive or hold back transformative sector-level change
  • What roles governments need to play in supporting inclusive economic growth through sector-level change

case studies of success and failure from Africa and Asia

Gatsby wants to help more people benefit from economic growth in East Africa by creating jobs, raising incomes and building opportunities. This will require economic transformation – growth with depth that will radically change economies, lead to leaps in productivity, offer large numbers of people pathways out of poverty, and better protect the planet for future generations.

To better understand how to trigger such transformation, we have worked with ODI to explore historical evidence from across Africa and Asia. The research looks at 6 cases of success - and 5 of failure - in efforts to transform sectors – from garments in Bangladesh to pineapples in Ghana to cars in South Africa.  The paper draws out lessons for Gatsby and others, finding some key factors for success, which include:

  1. Accurate identification of the economic opportunity;
  2. A favourable political economy at the sector level;
  3. Credible commitments to investors;
  4. A reasonably good provision of public goods;
  5. Specific efforts to tackle investment coordination problems; and
  6. The ability to act on moments of unusual opportunity.

To learn more, please download the full report by clicking here: How economic transformation happens at the sector level: Evidence from Africa and Asia

lessons on How to develop textile and garment sectors to promote inclusive economic growth

How could Tanzania's textile and garments sector be a driver of inclusive economic growth in the country?  To help answer this question, we partnered with ODI to research the varying experiences of six countries: Bangladesh, Cambodia, Ethiopia, India, Lesotho and Madagascar.

The varied experiences of the case study countries show that no single model can be isolated as a definitive route to success. But the paper draws out relevant lessons from different approaches for developing a vibrant, vertically integrated textile and apparel sector with strong local capability and ownership and long-term, lasting benefits for citizens.

To learn more, please download the summary paper by clicking here: Briefing note: Comparative country study of the development of textile and garment sectors: Lessons for Tanzania

You can download the full research by clicking here: Full Report: Comparative country study of the development of textile and garment sectors: Lessons for Tanzania