Behind the Curve: Can manufacturing still provide inclusive growth?

This podcast was originally recorded on Friday, April 8, 2022, for the CID Speaker Series featuring Robert Lawrence, Albert L. Williams Professor of International Trade and Investment at John F. Kennedy School of Government. Robert continued the conversation with CID Student Ambassador, Kevin Chen, after an appearance at the virtual CID Speaker Series event. Professor Lawrence discusses the causes and consequences of the diminished role of manufacturing as a driver of economic growth and inclusion in developed and developing countries. The talk explains why the share of manufacturing follows an inverted U-shaped curve as countries develop; considers why that curve has shifted downwards and inwards over time; shows that all developed and many developing countries, even those with large trade surpluses in manufacturing are now on the downward slope of the curve; and evaluates the implications recent industrial policy initiatives in the light of this experience.

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Incredible progress has been made throughout the world in recent years. However, globalization has failed to deliver on its promises. As problems like unequal access to education and healthcare, environmental degradation, and stretched finances persist, we must continue building on decades of transformative development work. The Center for International Development (CID) is a university-wide center based at the Harvard Kennedy School that seeks to solve these pressing development problems—and many more. At CID, we believe leveraging global talent is the key to enabling development for all. We teach to build capacity, conduct research that guides development policy, and convene talent to advance ideas for a thriving world. Addressing today’s challenges to international development also requires bridging academic expertise with practitioner experience. Through collaborative, in-country partnerships, CID’s research programs, faculty, and students deploy an analytical framework and context-dependent approaches to tackle development problems from all angles, in every region of the globe.