A World Bank expert urged Thursday low and middle income countries to pursue industrial change as industry is the principal driver of growth and urbanization.

Shahid Yusuf, Economic Adviser of Development Economics Research Group of the World Bank, made this remark on Thursday at Malaysia's National Economic Advisory Council Talk.

Shahid said that economic prosperity was closely linked to the speed of industrial evolution as industry met domestic demand for products and generated exports.

He also said that industry development could increase job opportunities with higher value added than primary sector and most services, leading to higher gains in productivity.

Higher rates of technological change and innovation would also bring benefits to the economy, added Shahid.

Shahid said that to drive an industry forward, there must be political commitment to a vision of a dynamic modern industrial economy.

A literate, trainable workforce that could be readily accuturated into factory disciplines and routines, as well as an elastic supply of low cost capital were also essential, added Shahid.

On instruments for industrial policies, Shahid said research and development activities must be supported while being open to imports and encouraging exports.

He also suggested that incentives and financing for human capital development and for research in universities and firms be given.

The talk, titled "Industrialization in the 21st Century: Preconditions, Drivers and Policies", drew some 60 participants from various ministries and agencies of the Malaysian government.

(Xinhua News Agency November 20, 2009)