•Manufacturing allows dynamic, sustained gains in skill, technology, and innovation.•Not all countries can simultaneously industrialize to develop their economies.•Competition in global markets has led some countries to deindustrialize prematurely.•The high-productivity services have limited potential to absorb a lot of labor.•Thus, there is need to strengthen private economic fundamentals and public policy. This paper takes a fresh look at the current theories of structural transformation and the role of private and public fundamentals in the process. It summarizes some representative past and current experiences of various countries vis-a-vis structural transformation with a focus on the roles of manufacturing, policy, and the changing nature of global production in shaping the trajectory of structural transformation. The salient aspects of the current debate on premature deindustrialization and its relation to a middle-income trap are described as they relate to the path of structural transformation. Conclusions are drawn regarding prospective future paths for structural transformation and development policies as well as for the need for further empirical analysis to inform our current understanding of the process of economic development.