Rethinking the Growth Diagnostics Approach: Questions from the Practitioners
The growth diagnostics methodology pioneered by Hausmann et al. (2005) is becoming a key piece of the toolkit for donor agencies in formulate their operational strategies. This paper aims at clarifying the primary objectives of the approach, highlighting some limitations for operational use. The key to benefiting from the full potential of this approach lies in a proper understanding of what it does; and being forewarned about the indiscriminate application of the approach to developing countries, for this can lead to misguided conclusions.
- What is the Growth Diagnostics Approach?
- What are Limitations of the Growth Diagnostics Approach?
- Some Final Thoughts