The CID raised the issue of the underperformance of Indonesian economic growth compared to several of its developing peers, and then proposed the new methodology in the analysis.
rior to 1997, the Harvard Institute for International Development (HIID) was one of the government’s important economic consultants. However, the financial crisis in 1997 was considered a big failure for HIID. In 2000, it was dissolved and later replaced by the Center for International Development (CID).
Recently, an expert from the CID came to Jakarta and delivered a lesson on economic planning, namely on the Diagnostic Growth Approach. The CID raised the issue of the underperformance of Indonesian economic growth compared to several of its developing peers, and then proposed the new methodology in the analysis.
They propose the second-best approach instead of the usual best solution, contrary to the mainstream. According to the CID, many of the theories in economic development and practices in the field are based on ideal situations.
In the presentation, it criticized either the original Washington Consensus or the augmented one, because it was based on simultaneous reforms. The CID proposes the need to analyze the complementarity and substitution between reforms, identifying the binding constraints.
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