Guest blog written by Manuela Fulga
This is a blog series written by the alumni of the Leading Economic Growth Executive Education Program at the Harvard Kennedy School. Participants successfully completed this 10-week online course in July 2020. These are their learning journey stories.
The pandemic threatens to erase years of progress made by developing and emerging economies towards sustainable development. The World Bank estimates that between 71 and 100 million people could be pushed into extreme poverty in 2020, increasing the global extreme poverty rate for the first time in more than 40 years.
This realization convinced me to apply to the “Leading Economic Growth” course at Harvard Kennedy School. My objective was to explore and learn practical strategies that countries can adopt in the current context, particularly with limited resources and tight fiscal spaces, in order to protect their population without forgetting the important investments necessary to achieve the Sustainable Development Goals (SDGs) by 2030.
The 10-week online course allowed me to take the key concepts from the lectures and readings and apply them to a specific country, developing a plan for the recovery. It truly felt like a journey, and more specifically like a climbing expedition: professors Hausmann and Andrews were the expert guides, leading the way and setting the trail for us; the video lectures and readings were the manuals we read before starting to climb; the weekly assignments – deep-dives to help us develop our own country strategy – represented key milestones, or the most difficult trails where we had to reflect on the learnings and apply them to our strategy; the feedback of the teaching assistants was our anchor and rope, setting us on the right path to success.
This course opened my eyes to new ways of thinking about economic growth and particularly to innovative approaches that can support governments in identifying game-changing policies. These are the four key takeaways that have forever changed my view on development and economics, and that have the potential to help countries build back better from COVID-19 towards a more resilient future.
Focusing on problems rather than solutions
The dominant theory of change in development is that great governments emerge when a savvy leader takes the opportunity of a crisis to implement the right policies and holds power long enough to drive implementation. In reality, the story is far from simple: it is not about one solution applicable for all, forced down the system by a powerful individual. Development is a complex matter, where many social and economic factors are correlated and interact with each other, causing at times unexpected consequences, and requiring multiple iterations to achieve true impact.
This is why “problem-driven iterative adaptation” (PDIA) is a more hopeful concept than “solution- and leader-driven change” (SLDC): countries do not have to wait for a brilliant leader to change their faith, but can adopt a new approach by engaging distributed groups of agents in a gradual and iterative search for the best policy to drive economic growth. PDIA materializes when governmental agents interact and exchange information in new ways, yielding locally determined responses to economic challenges by constructing and deconstructing bottlenecks preventing growth. This enables governments to transform tangled and complex problems into manageable issues, by revealing the root causes and addressing them step by step, identifying quick wins.Continue reading 4 Ways to Rethink Economic Growth During COVID-19