The article is devoted to growth and structural reform challenges in emerging economies, focusing on key dimensions of the structural reform agenda, including private investment climate, infrastructure, job creation, green growth, and trade reform. The author notes the centrality of structural reforms in developing countries in their transition from middle- to high-income levels and also the importance of fiscal consolidation in the advanced economies and subsequent redirection of part of global savings to finance infrastructure investment in developing economies. The analysis is underpinned by statistical data and analysis from the World Bank reports.

Restoring and sustaining growth according to Zia Qureshi requires structural reforms commitment by the governments in order to avoid the “middle-income trap”, caused by a lack of structural change and industrial upgrading in developing economies. The author envisages a scenario showing gains from fiscal consolidation in advanced economies and redirection of global savings to investment in infrastructure in developing countries. Despite the fact that structural reforms priority areas may differ from one country to another the evidence shows that infrastructure upgrading is a key catalyst for middle-term economic growth and can also cause the rise in short-term demand and other positive externalities.

The article suggests that in order to unlock the growth potential of the developing economies and promote economic growth in low-income countries the G20 should put more emphasis on structural reforms within its agenda.