ADB aligns its assistance strategies and operations with the development plans and poverty reduction strategies of its developing member countries (DMCs). However, ADB recognizes that DMCs may need assistance in strengthening their planning processes and capabilities for undertaking underlying diagnostic and analytical assessments. Country diagnostic studies attempt to diagnose the most critical constraints that the country faces to achieving these goals. Critical constraints are those whose removal could yield the highest welfare gains.
An inclusive growth framework
The country diagnostic study framework is based on the inclusive growth concept. Inclusive growth not only generates economic opportunities, but also ensures equal access to these by all members of a society. Growth is considered inclusive only when it allows all members to participate in and benefit from the growth process on an equal basis, regardless of their individual circumstances. A development strategy based on the inclusive growth concept is anchored on three pillars:
- creation and expansion of economic opportunities through high and sustained growth,
- broadened access to opportunities for all members of a society, and
- minimum well-being of the population through the adequate provision of social safety nets.
Strengthening developing member countries (DMCs)
ADB also works with DMCs to strengthen their capability for diagnosing and analyzing binding development constraints. To this end, ADB has approved the following technical assistance projects:
Strengthening Country Diagnosis and Analysis of Binding Development Constraints in Selected Developing Member Countries (Approved 2007)
The expected outcome of this project is enhanced DMC capacity to undertake development diagnostic studies and formulate development plans or poverty reduction strategies targeting the binding constraints.
The Bhutan Country Diagnostic Study is a sub-project of this technical assistance. Its expected outcome is enhanced capacity of the country in undertaking country/sector development diagnosis, identifying critical constraints to growth and formulating development plans and poverty reduction strategies addressing them.
Diagnosing Critical Constraints to Growth and Structural Transformation in Selected Developing Member Countries (Approved 2010)
The project outcome is the use of diagnostic approaches in assessments and analytical work underlying national development plans.