The Growth Paths: Country Specificity in Practice project consists of 12 country case studies called Growth Diagnostic Studies, designed to apply an innovative methodology to the Bank's work on Growth (see concept note). A key finding of the Lessons of the 1990s project was that growth strategies are most successful when developed through country-specific analysis of binding constraints.
The framework for the studies is adapted from recent work on Growth Diagnostics by Dani Rodrik, Ricardo Hausmann and Andres Velasco. The framework begins with a recognition that developing countries that have grown successfully have followed several rules of good economic behavior, including providing the effective enforcement of private property rights, maintaining macroeconomic stability, seeking to integrate with the world economy, and providing a conducive environment for productive diversification and innovation. However, these general principles do not always map into specific, universally applicable policies that operate equally well across countries. Yet developing countries have often followed a notion of international best practice in economic policy, developing a “laundry list” of policy reforms, with mixed results. These 12 Growth Diagnostics Studies will be a bold experiment in rethinking our approach to growth diagnostics.
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