Inclusive economic and employment policies

Developing a competitive private sector is crucial for economic growth, employment and poverty reduction. However, the more competitive individual enterprises, value chains or economic sub-sectors are, the higher the entry barriers tend to be for newcomers. This is particularly true for those with scarce human and physical capital and little voice in the political system. Thus, our overarching research question is: How can competitive production systems be shaped in a socially inclusive way?

This is broken down into three research topics: (1) Why do so few micro and small enterprises manage to upgrade into productive medium-sized enterprises, and what explains the exceptional success cases? (2) How can industrial and employment policies be efficient and inclusive, even when governments are weak? (3) How do global production networks and value chains change (especially with the growing role of emerging economies) and how can weak actors, such as peasants and micro entrepreneurs, be integrated in, and increase their benefits from, the emerging division of labour?

Highlight

Directing structural change: from tools to policy
Altenburg, Tilman / Maria Kleinz / Wilfried Lütkenhorst
Discussion Paper 24/2016

Highlight

Industrial policy in developing countries: failing markets, weak states
Altenburg, Tilman / Wilfried Lütkenhorst (2015)
Cheltenham: Edward Elgar Publishing

Highlight

The entrepreneur makes a difference: Evidence on MSE upgrading factors from Egypt, India, and the Philippines
Hampel-Milagrosa, Aimée / Markus Loewe / Caroline Reeg (2015)
in: World Development 66(2), 118-130