The Growth Lab at CID

Sustained economic growth is the single most important determinant of persistent increases in living standards and reductions in poverty. The large income differences between the richest and poorest countries -- which stand at a ratio of 70 to 1 -- and the massive incidence of global poverty reflects the inability of poor countries to achieve sustained growth.

Led by Ricardo Hausmann, Lant Pritchett, and Dani Rodrik, CID's Growth Lab works to understand the dynamics of growth and translate those insights into more effective policymaking in developing countries. The Lab serves as the global hub for Structural Transformation, which places complexity at the center of the development story and uncovers how countries can shift to industries that offer increased productivity.

Research and experience over the last 50 years have helped illuminate how economic growth occurs. Yet, policymakers have been unable to diagnose constraints to growth in specific country settings and to design solutions suited to each nation's conditions. This experience reveals the limitations of conventional policy: a critical new set of tools is needed.

The Growth Lab:

• Conducts theoretical and empirical research on the determinants of growth and its social, political and environmental sustainability. It improves the diagnostic tools and techniques with which economic analysis and assessments are made.
• Brings the Lab’s lessons to a global audience of policymakers and practitioners. Recently, we presented our work to President Calderón of Mexico, the Council of Ministers of Azerbaijan and senior officials in Singapore, and initiated discussions with the Dominican Republic to study issues of growth and trade. The CID also launched the Caracas Project, an interfaculty collaboration focused on safety and security.
• Invites leading academics and policymakers from around the world to spend time at CID as Visiting Research Fellows.
• Hosts conferences featuring development and country topics, seeding interaction among academics and policymakers.
• Integrates research into the master's degree curricula and executive education for senior economists and policymakers.