History reveals that reform packages commonly prescribed only provide small benefits for countries that tried to adopt it. On the other hand, countries that implemented well-focused reforms in key areas have accelerated their growth. Having that said, we certainly need growth strategy that cater to domestic opportunities and constraints. 17. Economists have concluded that growth accelerations materialize when binding constraints on growth are removed.
Many countries including Indonesia, have keen interest in a growth diagnostic approach, which aims at identifying the most binding constraints on economic activity, and the respective set of policies that should be prioritized and implemented to allow for accelerated and sustainable growth. 18.