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Policy Research Bulletin
July-September 1999
Volume 10, Number 3

Building economic research capacity around the world

The World Bank has been helping to create and support regional economic research centers in the developing world for more than a decade. This involvement has leveraged increasing support from governments and private foundations that is enabling further expansion of these regional activities. Now the Bank has initiated a program to link these networks internationally—the new Global Development Network.


The need for local research capacity

The problems facing developing and transition economies are far greater than those facing industrial countries—yet the financial, institutional, and human resources to solve them are far more limited. Determining how best to use limited resources to address daunting problems requires extensive experience, expert analytic skills, and comprehensive knowledge of local circumstances, systems, and resources. Training local researchers and creating an institutional environment that supports independent policy research can help developing countries formulate solutions to local problems that are informed by experience elsewhere, tested analytically and empirically, and tailored to their needs.

Creating regional networks

The World Bank has long supported efforts to increase the capacity of economists in the developing world to perform research, analyze policy, and provide advice on development issues. To take advantage of synergies and make the best use of limited capacity-building resources, the Bank has helped link developing countries through regional research networks. These networks allow policy researchers in one country to benefit from lessons learned in others. They create a community of researchers who critique and encourage one another's work, help train one another's students, and share data and new methods.

The creation of regional networks emerged from the notion that countries within a region often share some problems and that these can be addressed most cost- effectively on a regional rather than a national level. These problems differ from region to region:

While specific capacity-building needs differ markedly across regions, all capacity-building programs face many of the same challenges. They need to make research relevant to policy, to balance their activities between improving the quality of research and training new researchers, and to allocate research funds transparently. They need effective, independent governing bodies, rigorous peer review processes, members who participate in the network and in running it, and researchers integrated into the international community of policy research. And they need to ensure that research findings are disseminated broadly and have an effect on policy.

Box 1
Creating incentives for independent research in the Arab countries, Iran, and Turkey

Although economic research institutions exist in the Middle East and North Africa, policy research has too often reflected government preferences. Incentives encourage research findings that are acceptable to national governments rather than being intellectually rigorous. Contact and interaction among regional scholars is limited, and peer review inadequate.

To address these problems, in 1992 the Bank's Middle East and North Africa Regional Office helped to establish the Economic Research Forum (ERF). Headquartered in Cairo, the ERF supports a variety of activities—research, training, publications, an annual conference, a regional data bank. Its annual conferences have brought together hundreds of researchers from throughout the region. All these efforts are aimed at creating a community of economists in which incentives for excellence counter official pressures in determining the standards in economic research. The ERF has been financed by several donors, including the Arab Fund for Economic and Social Development, European Union, Ford Foundation, International Development Research Centre, and World Bank.



Box 2
Facilitating international contacts in Latin America

Unlike other developing regions, Latin America has a large pool of expert economic researchers. But lack of funds has limited contacts and opportunities for collaboration and discussion between researchers from different countries in the region. To aid the international exchange of ideas, the Bank has provided support to the Latin American Econometric Society for more than a decade. And since 1997 it has supported participation by young economists in the Latin American and Caribbean Economic Association (LACEA). The Annual Congress of the LACEA is held in a different Latin American or Caribbean country each year. All costs for the congress are borne by the host country, including its universities and private sector.



Box 3
Training economists for the new market economies in Eastern Europe and the former Soviet Union

As the economies of Eastern Europe and the former Soviet Union moved from state planning to markets, there were few economists with training in the fundamental concepts of market dynamics who could advise on this massive transformation. In response, the Bank in 1996 helped to establish the Economics Education and Research Consortium (EERC), to create independent institutions for economic research and graduate education in Russia and Ukraine, both managed by the Eurasia Foundation.

In Russia the EERC focuses on economic research. The program has supported more than 100 Russian researchers in 60 research projects, financed research and methodological workshops attended by more than 200 young economists, launched professional publications, and extended research capacity beyond Moscow and St. Petersburg.

In Ukraine the EERC established the first master's degree program that meets international standards in curriculum and teaching quality. The two-year program at the National University Kiev-Mohyla Academy is taught by visiting Western faculty, who also provide professional development opportunities for Ukrainian faculty through collaboration in research. The program has placed graduates in strong Ph.D. programs abroad and in internships in agencies at home.

A key to the EERC's success has been the expanding coalition of donors that support and direct its activities. Donors have included the Carnegie Corporation of New York, Eurasia Foundation, Ford Foundation, Norwegian Royal Foreign Ministry, Open Society Institute (Soros), Starr Foundation, and Swedish Foreign Ministry. Also, the Citicorp Foundation, Digital Equipment Corporation, the government of Finland, the International Monetary Fund, and the Pew Charitable Trusts have provided direct or in-kind support. Bank funding has served as a catalyst for other donors, with the Bank contributing only about 12 percent of total funds raised.

The Bank has supported other institutions in Russia and Eastern Europe: the New Economic School in Moscow and the Center for Economic Research and Graduate Education at Charles University in Prague. The Bank has also collaborated with the Open Society Institute, which established a third center, the Economics Department at the Central European University in Budapest.

A recent report on a needs assessment in 20 transition economies proposes three programs of graduate economics in Central Asia, the Caucasus, and Southeastern Europe, and a fourth for countries in the region not already involved in an international economic research program. A meeting with European foundations and other donors will be held in Berlin on November 6 to discuss the report and expansion of the program. (For a copy of the report, "Proposed Strategy to Address Critical Economics Education and Research Needs in Transition Economies," contact Boris Pleskovic at bpleskovic@worldbank.org.)



Box 4
Repatriating Chinese researchers to increase capacity in China

China's pool of skilled economists is large, but many of its top researchers live abroad. The China Center for Economic Research (CCER) at Beijing University was established in 1994 to create the core of an economic research community in China. The CCER has been supported by the Asia Foundation, Ford Foundation, Friedrich-Naumann Foundation, Hong Kong Chinese University, International Food Policy Research Institute, Rockefeller Foundation, and World Bank, among others. The program includes a graduate economics program, fellowships for visiting scholars, computer laboratories, paper and Internet report series, and national conferences on economic research.

The task of repatriating Chinese researchers is a difficult one given the huge pay differences between Chinese and OECD economists and the absence of a strong research community in China. But many Chinese are willing to help their country's transition, and have permanently returned to China after having participated in the CCER's visiting scholar program. The visitor program has also brought domestic visitors from government agencies and other universities both within and outside Beijing to the CCER. By mixing researchers with different backgrounds and perspectives, the program has created invaluable opportunities for the exchange of information and ideas-exchanges that will improve the policy relevance of economic research both inside and outside government.



Box 5
Improving the quality of research and creating an esprit de corps in Sub-Saharan Africa

The plethora of problems facing Sub-Saharan Africa has made the challenges for policy researchers there acute, particularly given the region's limited resources. And yet the program to strengthen local capacity for policy-related economic research in Sub-Saharan Africa has been extraordinarily successful. According to an independent review of the program, the consortium "combines within one institution and under one roof some of the best characteristics of such eminent U.S. economic research agencies as the Economic Research Division of the National Science Foundation and the National Bureau of Economic Research."

The African Economic Research Consortium (AERC) was established in 1988 following a pioneering initiative by the International Development Research Centre. It is supported by the African Capacity Building Foundation, Canadian International Development Agency, European Union, Ford Foundation, government of Norway, MacArthur Foundation, Ministry of Foreign Affairs of Denmark, Ministry of Foreign Affairs of the Netherlands, Rockefeller Foundation, Swedish International Development Authority, Swiss Agency for Development Cooperation, U.K. Department for International Development, U.S. Agency for International Development, and World Bank. The program seeks to achieve a balance between activities that establish rigorous professional standards and those that build indigenous capacity for economic research.

The consortium fosters economic research in four basic ways. First, the research program has established a network of researchers in the region, which supports their research on themes identified by the AERC's advisory committee as most pertinent to policy needs. Second, the AERC provides small grants to groups made up of researchers from both academia and policy institutions. Including both types of researchers helps ensure that the research both benefits from the frontier knowledge in the discipline and is sensitive to policy concerns. Third, the AERC's Secretariat builds the skills of local researchers by providing technical advice and up-to-date literature. It also conducts methodological workshops. Fourth, the AERC holds thematic research workshops—a key tool for monitoring the implementation and quality of research, creating effective peer pressure, fostering international participation in the network, and enforcing scheduled delivery of reports.

Besides improving the quality of research in Sub-Saharan Africa, the AERC has played a critical role in bringing together African economists and creating an esprit de corps in a region in which professional isolation has long retarded professional growth and engagement. The AERC has also enabled African economists to stay close to the professional frontier by supporting contacts with the rest of the world.



The need for a Global Development Network

For more than a decade the Bank's Research Committee has provided grants to help establish and strengthen regional networks of research organizations in Bank member countries. Over time the value of developing a worldwide network of development researchers became increasingly apparent. In June 1998 representatives of 22 think tanks in the developing world attended a meeting on "Capacity Building for Knowledge Institutions" to discuss how best to accomplish this. Following that meeting, the Bank held a series of seminars on capacity building for think tanks, and a research support program began awarding research grants through competitions organized by regional networks. The following spring the International Economic Association, six regional networks, and the World Bank agreed to start the Global Development Network.

Aiding the global exchange of knowledge

The Global Development Network aims to strengthen the capacity of developing country research institutions to perform policy-relevant research, to help them to establish themselves as effective spokespersons on behalf of civil society, and to support their efforts to introduce the results of research into the policy debate.

A key aspect of the Global Development Network is the sharing of knowledge—about development, about research methods and techniques, and about the implications of research for policy. Communication is thus critical. Much of this communication will take place electronically, through electronic mail and the World Wide Web. Other mechanisms—creating incentives for cooperation, developing interlocking research themes, establishing mentoring programs—can also help networks in different parts of the world share what they know.

In regions where networks do not exist, the Global Development Network is working with local organizations to create them. In regions where networks are already in place, the Global Development Network is working with regional organizations to extend their reach. Eight regional institutions or networks are now participating in the Global Development Network (box 6).

Box 6
Participants in the Global Development Network

  • African Economic Research Consortium (P.O. Box 62882, 8th Floor, International House, Nairobi, Kenya; GDN contact: Delphin Rwegasira, aerced@form-net.com)
  • East Asian Development Network (coordinating institute: Institute of Southeast Asian Studies, Heng Mui Keng Terrace, Pasir Panjang, Singapore 119 596; GDN contact: Chia Siow Yue, chia@merlion.iseas.edu.sg)
  • Eastern European Network (coordinating institute: Center for Economic Research and Graduate Education-Economic Institute Foundation, P.O. Box 882, Politickych Veznu 7, 111 21 Prague 1, Czech Republic; GDN contact: Randall Filer, randall.filer@cerge.cuni.cz)
  • Economics Education and Research Consortium (18 Malaya Pirogovskaya, Suite 101, Moscow 119435, Russia; GDN contact: Eric Livny, elivny@eerc.ru)
  • Economic Research Forum (7 Boulos Hanna Street, Dokki, Cairo, Egypt; GDN contact: Heba Handoussa, erf@idsc.gov.eg)
  • Latin American and Caribbean Economic Association (GDN contact: Almudena Ocejo, Inter-American Development Bank, 1300 New York Avenue, NW, Washington, DC 20057, almudenao@iadb.org)
  • New Economic School in Moscow (Nakhimovsky Prosp. 47, Moscow 117418, Russia; GDN contact: Valery Makarov, nes@nes.cemi.rssi.ru)
  • South Asian Network of Economic Institutes (coordinating institute: Indian Council for Research on International Economic Relations, Habitat Centre, Core 6A, 4th Floor, Lodi Road, New Delhi, 10003, India; GDN contact: Isher Ahluwalia, director@icrier.res.in)


The Bank is providing financial, administrative, and intellectual support to the Global Development Network. To ensure that research funds are allocated objectively, proposals for funding are reviewed by professionals from both inside and outside a region. In the past some governments and private foundations were reluctant to finance research because of doubts about the quality and value of the work being done. By putting in place a rigorous and competitive grant allocation process, the Global Development Network hopes to assure donors that their grants will be well spent. Bank support of the network will thus be catalytic, helping to attract other sources of funding that eventually will support the Global Development Network. While the Bank has played an important role in initiating the network, management and governance of the network will be handled by the regional networks and other international organizations, such as the International Economic Association.

Launching the Global Development Network

The Global Development Network will be officially launched December 6-8, 1999, in Bonn. About 400 people are expected to attend the launch meeting—about half of them from developing countries. The meeting will establish the network's governance structure and secure funding commitments from donors. It will also showcase the work of think tanks and research institutions in developing countries, share experiences and best practices for managing research institutions, and provide a forum for developing countries to participate in debates on global issues. Perhaps most important, the conference will allow face-to-face networking, helping to build a global community of development research institutions.

Choosing network services

To determine what activities and services the Global Development Network should support, the Bank will survey more than a thousand research institutions throughout the developing world to find out which services they consider most valuable. Services being considered include:

Results of the survey will be presented and discussed at the launch meeting in Bonn.

Joining the Global Development Network

Information about the Global Development Network initially will be available from: The Global Development Network, World Bank, 1818 H Street, NW, Washington, DC 20433. It will also be available on the Web at www.gdnet.org. In addition, researchers may subscribe without charge to the Global Development Network newsletter at the above address, or to the email version by completing the subscription form on the network's Website or sending an email to info@gdnet.org. Whether subscribing to the paper or email version, please include your full name, position or title, the name and address of your organization, and your country of residence.

All funding of research through the Global Development Network is now being handled by the regional networks. Researchers interested in receiving funding should thus contact their regional network directly. Opportunities to apply for funding through the regional networks will be announced through the Global Development Network. Information about funding through other sources, including the World Bank and bilateral donors, will also be provided.

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