Inclusive Growth Diagnostics
An inclusive growth diagnostic (IGD) is an economic methodology to identify the constraints to private-sector growth in a national economy or sector of an economy. IGDs improve selectivity and focus in foreign assistance by offering an explicit, evidence-based rationale for programmatic priorities, leading to better prospects for sustained reductions in extreme poverty.
Across all areas of foreign assistance, IGDs weigh and prioritize the impact of engaging in one sector versus another. They are inherently cross-sectoral and help answer questions about priorities and impact. For example, an IGD can help Agency leadership decide whether it is more critical to invest in education as opposed to rural infrastructure.
Since 2011 USAID has assisted in the development of IGDs in 23 countries across all regions, working with the USG interagency, host-country governments, and bilateral development partners. In the most recent Quadrennial Diplomacy and Development Review (QDDR) (PDF 3.8MB), the U.S. State Department and USAID made a commitment to collaborate on IGDs to advance inclusive growth and increase technical capacity. The State Department has committed to conduct at least one IGD per year for each of its regions.
Link to public IGD:
A jobs diagnostics (JD) is a new cutting-edge approach to identify constraints to private sector job creation in a national economy. JDs are related to inclusive growth diagnostics, but are targeted specifically at the labor market. JDs identify constraints to job creation by analyzing the factors that limit the creation of more jobs, better jobs, and more inclusive jobs.
With the World Bank, USAID is pioneering the development of JDs for use in international development. E3/EP is currently piloting this analysis in Tajikistan and will conduct future jobs diagnostics to inform programmatic priorities associated with employment and inclusive growth.