These are: the investment necessary to build domestic capital stock (physical capital, human capital, and so forth), which economists refer to as capital accumulation; structural change (or structural transformation); and building the capabilities of the domestic enterprise sector. The policy framework proposed here is intended to contribute to thinking about how this might be done, given the specific conditions of a typical LDC. The main novelty in the framework is that it explicitly links employment creation with the three processes through which productive capacities develop.