Diagnostics Before Prescription
Abstract
Development economists should stop acting as categorical advocates (or detractors) for specific approaches to development. They should instead be diagnosticians, helping decisionmakers choose the right model (and remedy) for their specific realities, among many contending models (and remedies). In this spirit, Ricardo Hausmann, Andres Velasco, and I have developed a "growth diagnostics" framework that sketches a systematic process for identifying binding constraints and prioritizing policy reforms in multilateral agencies and bilateral donors. Growth diagnostics is based on the idea that not all constraints bind equally and that a sensible and practical strategy consists of identifying the most serious constraint(s) at work. The practitioner works with a decision tree to do this. The second step in growth diagnostics is to identify remedies for relaxing the constraint that are appropriate to the context and take cognizance of potential second-best complications. Successful countries are those that have implemented these two steps in an ongoing manner: identify sequentially the most binding constraints and remove them with locally suited remedies. Diagnostics requires pragmatism and eclecticism, in the use of both theory and evidence. It has no room for dogmatism, imported blueprints, or empirical purism.Download Info
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Paper provided by Harvard Kennedy School of Government in its series Scholarly Articles with number 8057678.Length:
Date of creation: 2010
Date of revision:
Publication status: Published in Journal of Economic Perspectives
Handle: RePEc:hrv:hksfac:8057678
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Robert, Christopher & Zeckhauser, Richard, 2011.
"The Methodology of Normative Policy Analysis,"
Working Paper Series
rwp11-004, Harvard University, John F. Kennedy School of Government.
- Christopher Robert & Richard Zeckhauser, 2011. "The methodology of normative policy analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(3), pages 613-643, Summer.
- Christopher, Robert & Zeckhauser, Richard Jay, 2011. "The Methodology of Normative Policy Analysis," Scholarly Articles 4669672, Harvard Kennedy School of Government.
- Robert, Christopher LeBaron & Zeckhauser, Richard Jay, 2010.
"The Methodology of Positive Policy Analysis,"
Scholarly Articles
4450129, Harvard Kennedy School of Government.
- Robert, Christopher & Zeckhauser, Richard, 2010. "The Methodology of Positive Policy Analysis," Working Paper Series rwp10-041, Harvard University, John F. Kennedy School of Government.
- Shaikh, Salman, 2012. "Examining Theories of Growth & Development & Policy Response Based on Them from Islamic Perspective," MPRA Paper 38530, University Library of Munich, Germany.
- Bluhm, Richard & Szirmai, Adam, 2012. "Institutions and long-run growth performance: An analytic literature review of the institutional determinants of economic growth," UNU-MERIT Working Paper Series 033, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Richard Bluhm & Adam Szirmai & UNICEF Innocenti Research Centre, 2011. "Institutions, Inequality and Growth: A review of theory and evidence on the institutional determinants of growth and inequality," Innocenti Working Papers inwopa634, UNICEF Innocenti Research Centre.
- Harald HABERMANN & Pablo PADRUTT, 2011. "Growth Diagnostics: Strengths and Weaknesses of a Creative Analytical Framework to Identify Economic Growth Constraints in Developing Countries," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 25, December.
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