What are the best strategies for boosting GDP growth in low-income countries?

Economic diversification is a complex and lengthy undertaking, requiring a multifaceted approach that encompasses a long-term planning vision, the implementation of appropriate policies, and the ongoing evaluation of these policies to determine their efficacy and impact. To achieve meaningful progress in this area, it is necessary to establish clear targets and benchmarks against which to measure achievements and assess the success of diversification efforts.

When undertaking institutional reform, the normative pillar of the institutional environment plays a crucial role. It entails rules that introduce a prescriptive, evaluative and obligatory dimension into social life, which are usually reinforced by the regulative pillar. In my experience, to ensure successful institutional reform, we must determine whether maintaining the normative status quo aligns with society's general interests, such as fostering GDP growth, or if it primarily serves self-interested stakeholders. In cases where powerful interests are at play, any enhancements in legislation or bureaucracy must be meticulously designed to avoid promoting undesirable path dependence. This is critical in low-income countries.

Forget the Green and cut tax rates, regulations and the size and scope of government. Believe in free markets. Respect property rights. Stabilize your currency or link to the dollar. Have faith in your citizens and give them freedom. Stop listening to the experts and start handing power back to the people.

Je ne crois pas qu’il existe une approche spécifique pour stimuler la croissance dans les pays à faibles revenus, les règles sont valables pour toutes les nations. Elles impliquent des politiques telles que l'investissement dans l'éducation, les infrastructures, la recherche et le développement, ainsi que la promotion d'un environnement commercial favorable. Il est également important de veiller à la bonne gouvernance, d’encourager l'entrepreneuriat, d'améliorer la productivité et de favoriser l'innovation.

There’s at least one key strategic dimension that is missing: investments in infrastructure. One may boost human capital and enhance institutional effectiveness - but a lack of solid transport systems, effective energy grids and quality telecom networks will still constitute a huge barrier to development, if not a bottleneck. Investment in quality infrastructures should be a key dimension of all strategies aiming to support economic development. Boosting innovation and accelerating digital transformation are also key: while they connect to human capital development (e.g., mainstreaming basic digital literacy and specialist digital skills through formal education and lifelong training) they also go beyond - e.g., investments, policy reforms.

Développer les capacités technologiques Cela veut dire de renforcer les compétences de base des populations en sciences, en informatique, en mathématiques et en intelligence artificielle, de former plus de chercheurs, d’encourager les entreprises à faire de la recherche, de créer des partenariats entre les universités et les entreprises, de mettre sur pied des centres de recherche dans les branches sectorielles, de coopérer avec les pays développés pour favoriser le transfert technologique, de promouvoir la transformation systématique des ressources naturelles nationales avant leur exportation, en y incorporant un minimum de technologie.

Pour moi, un enjeu : ce qui stratégique, sur ce qui quand il ne fonctionne pas, tout le reste est insignifiant ou est peu porteur d’impacts. Il s’agirait alors de penser comme Stephen Covey ? Begin with the end in Mind ? ou Simon Senik ? WHY? ? Les axes du débat sont connus et constamment rappelés.

Introduce entrepreneurial development through import replacement. Initiate human Creativity Low GDP countries need to grow innovative behavior using hands on education.