Diagnostics Before Prescription
AbstractDevelopment 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 InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Harvard Kennedy School of Government in its series Scholarly Articles with number 8057678.
Date of creation: 2010
Date of revision:
Publication status: Published in Journal of Economic Perspectives
Other versions of this item:
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
- F35 - International Economics - - International Finance - - - Foreign Aid
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christopher, Robert & Zeckhauser, Richard Jay, 2011.
"The Methodology of Normative Policy Analysis,"
4669672, Harvard Kennedy School of Government.
- 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.
- 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.
- Riccardo Crescenzi & Andrés Rodríguez-Pose, 2011.
"Reconciling top-down and bottom-up development policies,"
2011-03, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Riccardo Crescenzi & Andrés Rodríguez-Pose, 2011. "Reconciling top-down and bottom-up development policies," Environment and Planning A, Pion Ltd, London, vol. 43(4), pages 773-780, April.
- Crescenzi, Riccardo & Rodríguez-Pose, Andrés, 2011. "Reconciling top-down and bottom-up development policies," Open Access publications from London School of Economics and Political Science http://eprints.lse.ac.uk/, London School of Economics and Political Science.
- Jean Cartier-Bresson, 2013. "Le pouvoir du positivisme et ses limites : microéconométrie et macroéconométrie actuelles du développement," Working Papers hal-00847005, HAL.
- Marc Deschamps, 2013. "Pourquoi des politiques de concurrence ?," GREDEG Working Papers 2013-23, Groupe de REcherche en Droit, Économie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
- Foellmi, Reto & Oechslin, Manuel, 2012. "Globalization and Productivity in the Developing World," Economics Working Paper Series 1203, University of St. Gallen, School of Economics and Political Science.
- Robert, Christopher & Zeckhauser, Richard, 2010.
"The Methodology of Positive Policy Analysis,"
Working Paper Series
rwp10-041, Harvard University, John F. Kennedy School of Government.
- 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.
- Shaikh, Salman, 2012. "Examining Theories of Growth & Development & Policy Response Based on Them from Islamic Perspective," MPRA Paper 38530, University Library of Munich, Germany.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reinhard Engels).
If references are entirely missing, you can add them using this form.