Abstract
This chapter outlines a pragmatic framework for the structural policies needed to complement trade liberalization within the context of comparative advantage. Its recommendations are eclectic — ranging from efforts to identify key areas of market failure to policy experiments and the analysis of successful past experiences in developing institutions and infrastructure. The goal is to strengthen an economy’s ability to maximise benefits attendant from specialising in comparative advantage industries, while providing support to facilitate structural adjustment and ensure that the benefits from structural change are widely shared. The tools recommended are in turn based on strategies that can be (and often have been) implemented by governments subject to the usual political, informational and capacity constraints.