Tool 1 determines the magnitude, strengths, productivity and performance of a country’s industrial sector. It provides insights into manufacturing by determining whether the country’s industrial capacity and manufacturing sector can achieve their potential, both domestically and internationally. This analysis serves as the first step in identifying policy areas that require attention. For example, if a country with similar characteristics or endowments can produce twice as much as the country under analysis, it suggests that implementing a well-designed industrial policy could enhance performance.
This tool also analyses data over time to assess significant structural change shifts, such as structural changes between the primary, secondary and tertiary sectors. The goal is to achieve shifts from the primary/ low-tech sector to the secondary and tertiary/ medium- and high-tech sectors over time. If these shifts do not take place, it may indicate a need for policy interventions to address bottlenecks and other obstacles. Structural change is addressed from both the output and input perspectives. The tool encompasses multiple dimensions of domestic production, emphasizing rigorous benchmarking and analysis to identify policy implications for enhancing industrial performance.
