Trouble in the making? The future of manufacturing-led development

This report looks at how the criteria for becoming a desirable manufacturing location are changing. 

In the past, manufacturing created jobs and increased productivity in developing countries. But technology is improving, trade is slowing, and industrial automation may mean fewer jobs in the future. To continue advancing, developing countries must adapt. But how? 

• New technology, including advanced robotics, industrial automation, and 3-D printing are changing the landscape of global manufacturing
• Developing countries’ traditional path to development, often driven by manufacturing, may be at risk because the criteria for becoming an attractive production location are changing
• Although there are challenges, opportunities remain for developing countries as long as governments take appropriate policy actions on the 3Cs: competitiveness, capabilities, and connectedness