This report explores the relationship between inclusive industrialization and sustainable human development in fostering decent jobs for women and youth, addressing informality and promoting sustainable urbanization. The slow pace of structural transformation could be counteracted by investing in industrial growth. For economic transformation to enhance human development will require the emergence of a modern economy that can generate wealth and by extension fulfill individual and collective needs by expanding human capabilities and extending human freedoms. The NHDR 2018 argues that the benefits and costs of the industrialization process in Ethiopia must be managed for inclusive growth: to advance human development; uphold the basic human rights of all as a means to end poverty; and expand the choices of Ethiopians.