Folder Title: General Research Advisory Panel

137
THE WORLD BANK GROUP ARCHIVES PUBLIC DISCLOSURE AUTHORIZED Folder Title: General Research Advisory Panel - Meeting Minutes and Memorandum - Volume 2 Folder ID: 30375009 ISAD(G) Reference Code: WB IBRD/IDA DEC-01-05 Series: Records of the General Research Advisory Panel and the Special Research Advisory Panels Sub-Fonds: Records of the Office of the Vice President, Development Policy (VPD) and the Development Policy Staff Fonds: Records of the Office of the Chief Economist Digitized: 8/7/2019 To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], ISAD(G) Reference Code [Reference Code], [Each Level Label as applicable], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business. The records that were created by the staff of The World Bank are subject to the Bank’s copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers. THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000

Transcript of Folder Title: General Research Advisory Panel

THE WORLD BANK GROUP ARCHIVES

PUBLIC DISCLOSURE AUTHORIZED

Folder Title: General Research Advisory Panel - Meeting Minutes and Memorandum - Volume 2

Folder ID: 30375009

ISAD(G) Reference Code: WB IBRD/IDA DEC-01-05

Series: Records of the General Research Advisory Panel and the Special Research Advisory Panels

Sub-Fonds: Records of the Office of the Vice President, Development Policy (VPD) and the Development Policy Staff

Fonds: Records of the Office of the Chief Economist

Digitized: 8/7/2019

To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], ISAD(G) Reference Code [Reference Code], [Each Level Label as applicable], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business.

The records that were created by the staff of The World Bank are subject to the Bank’s copyright.

Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers.

THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000

1111i1111111111111i1111111111 nii-i 111 t1:1:1 11, 30376009

Arch':' ......... aves

' .· A1990-o4t Other #: 1 Box # 213032B

DECLASSIFIED :~ue~:l 2Research Advisory Panel - Meetln& Minutes and Memorandum -

WBG Archives

FORM NO. 75

(1-76) Tl-IE WORLD BANK

ROUTING SLIP DATE:

October 24, 1978 NAME ROOM NO.

Mr. Bery Fl233

APPROPRIATE DISPOSITION NOTE AND RETURN

APPROVAL NOTE AND SEND ON

CLEARANCE PER OUR CONVERSATION

COMMENT PER YOUR REQUEST

FOR ACTION PREPARE REPLY

INFORMATION RECOMMENDATION

INITIAL SIGNATURE

NOTE AND FI LE URGENT REMARKS:

.

FROM: ROOM NO.: EXTENSION:

D. Turnham D842 75306

TO:

FROM:

SUBJECT:

WORLD BANK/ INTERNATI ONAL FINA NCE CORPORATION

OFFICE MErv10RANOUM Addressees DATE October 24, 1978

',v(/ Warren C. ;?aum, CPSVP

General Research Advisory Panel - Meeting with CPS Staff

The high level external Panel will hold its first meetings this week, starting Thursday, October 26th, with the DPS. A meeting with Central Projects Staff is to be held from 9:30 a.m. to 12 noon on Friday, 27th October, in Room El028. Membership, terms of reference for the Panel, and selected material already made available to them, are shown in the Annex. Since many of the members have h2.d little or no prior experience or contact with the Bank, the main purpose of the meeting is to provide them an initial orientation and exposure to our perspectives on broad issues and concerns in the research field (including issues that the Panel may subsequently address in greater depth).

At this early stage, it is probably most useful to select a few specific activities and illustrate how Bank operational needs and concerns, and the particular responsibilities of CPS, relate to and influence the ongoing research program. For example, ill~strating with respect to particular research projects, how does the origin of the project reflect or emerge from operational problems or concerns; how (if at all) is the conduct of the research related to ongoing operational activities; how do we handle the dissemination of results; how does research feed back to policy formulation and operating guide­lines? An agenda for the meeting is attached. Fe-::- each of the three 35-minute sessions, I suggest that one or two speakers sp2r.d not nore than 15-20 minutes in total describir,g ongoing research and the operational background, leaving 15-20 minutes for 2 question-and­ansi,·er s0ssion. You should also arrange for a staff member to sit in on the session as a whole, including the general discussion.

DTurnham:lcm

Attachment

},ddressces: ?!essrs. Jaycox, Gordon, Carmichael, Pickering, Donaldson

cc: Mcssr~. Balassa, Bery, van der Tak (o/r) ~

CPS MEETING WITH THE GENERAL RESEARCH ADVISORY PANEL

9:30-12:00, Friday, October 27th, Room El028

9:30: Introduction - Mr. Baum

9:50: Urban Projects and IDF - Messrs. Jaycox Gordon

10:25: Agriculture and Rural Development - Messrs. Pickering Donaldson

11:00: Transportation - Mr. Carmichael and Departmental Staff

11:30: Wrap-up discussion

· MEMBERS OF THE GENERAL RESEARCH ADVISORY PANEL

Sir W. Arthur Lewis, Chairman Economic Growth Centre Yale University

Professor O. Aboyade Vice-Chancellor University of Ife Nigeria

Mr. David Bell Executive Vice-President The Ford Foundation New York

Dr. Herbert Giersch Direktor des Instituts fur Weltwirtschaft Kiel Vniversity

Dr. Nural Islam Assistant Director-General FAO, Rome

Dr. Mahn Je Kim President Korea Development Institute

Hr. E. Malinvaud Director General Institut National de la Statistique

et des Etudes Economiques (INSEE) :France

Mr. Carlos Massad Senior Advinor to the United Nations

Economic Conunission for Latin America Chile

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FRELIMHL'.\RY DR~FT

Draft Tenns of Rf_:dercnce for Ov0.rall Rese.:1rch J'...dvisorv Panel (OHA.P)

It has been decided that a review of the entire resaarch

programme of the Bank should be conducted by a small outside pa~el

of experts, in order to assist the management of the Bantin

determining the size and nature of the program;r.e ror the next five

' .. or six years. . .,

The primary task will be to assess whether the size of the -

overall research programme, and its character and bala~ce, is appropri-

ate. This must be decided i~ the light of the Bank's 0~2r2tio~s in

and advisory services to its member countries, and also to the rJle

it should play in increasing world-wide understanding 0£ th~ dcvelo9-

ment process.

+ The character and balance of the prograrnrne has to be re la tcd

to its objectives. These have been defined as follows:

to support all aspects of Bank operations, incl~cins

the assessment of development progress in member

countries,

to broaden,our understanding of the develop~ent proce;s,

to improve the Bank's capacity to give policy advice

to its·members,

to as·sist-~ in developing indigenous f."es2arch ca?0c:i.t~i'

in ~ember countries.

To some extent the stress laid on these differc~t obj2csives

will_also influence the size and cost of the prog~~~~n~.

of thi s influence, and the usefulness of the obj e ctives

Ir. tr:2 li<;h t

it is for considcratio~ whether the latter need elabcr2tion, ~edefinit-

ion, 01~ ~a.nking in iRpcrt2.nce .

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In approaching this task ORAP will be able to draw on the

reports of a number of special panels, some at least of which will

have made recommendations which would influence~ the size of the

pr.ogra.rnme, f.or instance·,~ the degree to which the Bank should promote

or assist in original data collection, and assist in developing

indigenous research capacity. T~ese panels will also have addressed,

in their special spheres, such questions as the operational and

policy relevance of past and ongoing research, whether it is too

concerned with advancing methodology, etc.

Two panels have reported --The External Advisory Panel on Population

The Research Advisory Panel on Income Distribution

and Employme::1t

Fiv~ new ones planned will cover the following areas

of research .

Industrialization and Trade

Education

Public Utilities

Transport

Agriculture~and Rural Development

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The quality and relevance of the research achieved will thus have

already been rather comprehensively reviewed. It is expected that

ORA.P will want to express its own views on this but, to the extent

that it does, its task will have been greatly facilitated and lightened.

The Special Panels will not, however; have been able to

"'-address the question of the priorities between sectors and areas of - ~

research--nor the implications of pursuing original data collection

across the board. Further consideration also needs to be given to

the priority to be attached to the building up of economic research

capacity~~, and whether particular kinds of economic research

capacity should be encouraged.

The relevance of Bank research to its operations and policy

formulation is a constant cause of concern. ORA.~ should consider this

issue in the light of the discussion of the process of dissenination

and assimilation that will have been addressed by the Special Panels.

Dissemination addresses the issue from the producer end of the spectr~~. 1'

: ~This, therefore, relates to the various modes of co~munication employed

by the research co~unity within the Bank. P._ssimilation, however, . addresses the issue.from the recipient (user) end of the process; this

relates to the abili ::Y of the operational depart!r.ents to absorb the -~

research output and ~rogram this activity into its set of on-going

activities.

Finally, OR~P may wish to consider whether the internal

orga~ization of the Bank, and the research decisior.-making processes,

are conducive to the generation of relevant and efficiently conducted

research. This is not however an essential part of the terms of

reference, because the panel may not feel itself able in the time

available to become suffitiently familiar with the organization to

make a judgcme~t.

The \Vorld 8,rnk / 1818 H Strt>et. '-:.\V., \\'Jshi:i~ton. D.C. 1C~33. U.S..~.• Telephone: •:!0~J 393-63'",0 • CJblei: l';T3~f?.~.D

:- Sir W. Arthur Le<.·ris Economic Growth Centre P. 0. Box 19 8 7 ' Yale Station Yale University New'Haven, Connecticut, 06520

,

Dear S·ir Arthur:

October 4, 1978

In preparation for the first meeting of the General Research Advisory Panel in Washington, D.C. on October 26-28, I enclose various materials to provide initial i~:or::-,ation en the Bank and its research progra.r:i. and to provice a general indication of issues on which the panel's guidance and advice are sought. A list of doclli~ents enclosed is at Annex 1. A brief guide to them follows.

, General information on the Bank is provicea by the leaflet "The World Ba::.k" and by the 'Viorld Bar:.k' s i\!1!:U3.l ?.e7Jc::::-t for 1978. You should already have received a copy o ~ the Bank's World Develooment Re?ort 1978. ~

Inforrna tion on Bank research is provided by the t":.rn most recent reports on the World Bank Research ?rcqr2~. Your attention is particularly drawn to the description oi the research cycle on pp. 4-10 of the 1977 report and to the c a se studies ·pro'vided in Chapte r 3 of both reports. The genesis and evolution of the Bank's research progr2.m is outlined in the mernora'r1dwn "T'.he Research Cor::.-;.i tts-e - .u.:1 I:1~0~2.l Sarlv History". Detaile d descriptions ·ot research pro jec~s cu=rently unde rway-are .provide d in the Ab stracts of Cu=rent Stuc.ies. Since the last publ ished issue is a year olci, .it: is suppl e::-,e::1ted by sununary narratives of resea rch projects that have bee::1 adc.eci to the progr2m in the last year. Output f!:'om the Bank's research progrJm 2.s well as other documents produced by the Bank for public circulation are described in the ~log of Publica tions.

Som(! i ssues of particular concern to the Boa !:'d of Executive Directo~s of the Bank are discussed in the fo llowing

' ..

.,

Sir Arthur Lewis - 2 - October 4, 1978

docurr.en ts: the 'Suonle~er.t2r~ Sta t e~ent' o: ~&rc!1 2, 1972 adc.ressed to t!1e Join::. .:..uc:i-c. Cor:i.r:i. i t::.E?e of t:'..e :::-: ecutive Di!'.'ectors, the 'Sucaesticr.s ):)·· Di!:."e:c:- ,::, r s ' o:: ~-!2.:-ch 7, 1978, and the 'Ans,·iers to :,:r. ,: . \..,2.:--.sson's 0'-.:est ions' of March 20, 1978.

As you are aware, the General Panel will be in a position to ben~=it fro~ the =indings ar.d observatio~s o: six specialized research advisory panels which are examining Bank research in t~e areas o: agriculture and ru!'.'al develc?­ment, industrial development and trade, income distribution and employment, public utilities, . con.Tnodities and trans?c~ta­tion. ~n addition, external advisory panels have examined the f~ll range of Bank activities in the tields of population and education. This review includes a discussion of the aan~'s research activities in these :ields and may be of interes~ to the General Panel.

We expect that dra=t reports of the specialized research advisory panels will be proviced to yoµ in late December Dr early Janua.:-y prior to the second ~eeting 0£ the General ?a~el. A schedule of the meeti~gs cf these panels is enclosed as well as lists of panel ~enbers.

Extra copies of all these materials will be available in Washington. In acdition to these ~aterials S?ecial briefi~g papers are being prepared to assist the pa~el in its work. These will be sent to you shortly. •

Hotel reservations have been made for you at the Hay-Adams at 800 16th St. N.~. from Wednesday, October 25 through Sunday, October 29.

- In· case you have any enquiries my tele:;:,hone r:.L'...i.'11b e r at the World Bank is (202) 676-1998; that of Suman Bery, secretary to _the panel is (202) 4 77-6003. The Bank's telex no. is 440098 and the cable address is INTBAF'Rli.D.

Yours sincerely,

.. !\,j·. . ...,,..

Bela Bala.ssa Acting Research Adviser · Reseurch Conunittee

cc: Repcarch CorTu"'Tlittee !1embers Mr. A. Karaosmanoglu

SKBery:lt

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CONFIDENTIAL

IBRD/IDA JOINT DIRECTORS' MEETING - MARCH 7, 1978 or.

WORLD BANK RESEARCH PROGRAM

SUGGESTIONS BY DIRECTORS Ar,, t ., iu;J

WBG ARCHIVES

l. Level of r~sources devoted to research~and setting of priorities:

. ~ ;, process rather empiric and could be improved, same true for dissemination.

(Wah 1 - p. 17)

2. · Early overview necessary (Wahl - p. 18)

3. Room for improvement in presentational aspects of the report.

Helpful to be explicit in responding to concerns of the Board and the Joint

Audit Committee instead of being implicit. (Drake - p.20)

4. ln presentation some sense of time frame would be useful. Report

doesn't give any deadlines for completion.

No timing at all for research studies being done outside the aegiy of the

Research Committee. In individual Departmental studies, don't have a sense

of timing or of the magnitude of the resources being devoted to them. ,.

(Drake - pp. 20/21)

5. Objectives in due course should be modified, brought up to date.

(Drake - p.22)

6. Level of resources: until.major reviews have taken place of the

~ various cate~gories, or at least most of ·the categories of research, no

additional real resources should be contemplated for the program. (Drake - p.22)

7. Report giv~s no clear sense of priority or of theme or of direction

or of balance as between basic and applied or balance among categories.

External panels including overal 1 review wi 11 give SO'lle means of coming to

grips with priorities. (Drake - p.23)

8. Panels should have mixture of extern~l people and people from within

the Bank. Time consuming to bring in outsiders who don't understand the

institution; long process of education invohed. (Drake - p.24)

,.

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9, Dissemination must go beyond publication. Method of dissemination ~

must depend to some extent on the ~ype of research and degree of innovation.

It should be contemplated when the Research Committee approves the project.

One should look not just at its operational impact, but the means of dis­

semination and have some idea even then of allocating resources to t hat.

Bogota study could be very useful tool for urban planners everywhere, but

Bank wi 11 have to· take unusual steps to be sure that that is fully under-

stood. '(Drake - pp. 25/26)

10. Helpful (as expressed by Drake) if concerns of the Board were expl i-

citly reflected in the report; would ·make reception of the document by

authorities much better. (Thahane - p.27)

11. Vould like continuous review and modification, if necessary , of

research priorities Jnd objectives to see their re}£vance to the direction

in which the Bank is moving. Basic research, in some of the areas t hat would

like the Bank to move in, is critical in the identification of the issues

and coming to grips with some of the problems. (Thahane - p. 28)

12. Resources could be increased if a particular case is put tn review-

ing the objectives and the priorities in a given year. But there has to be

constant review. (Thahane - p.28)

13. Publication is one method of dissemination, but should be mo re ..•

• aggressive in bringing the results of research to the borrowing count ri es.

"' ~ To what extent have the Regions taken the question of delivery of Bd nk

services, including research work, to member countries as part of their

responsibilities? (Thahane - p. 29)

14. Time frame is important in putting up these studies ; use f ul t o

have some idea when could expect results. (Thahane - p.29)

' ,.

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15. Wished th.at ovcral 1 review had been done earlier because while

sectoral evaluations were certainly important, wonders whether a number

of sectoral evaluations really add up to an overall evaluation ... sectoral

' evaluations pass by, ~he important question of i--nter-sectoral priorities.

(Narasimham - p.31) ... 16. Not sure that aggregate studies conform to objective that 211

Bank research should really be of operational relevance and significance.

On other hand, wonders whether an excessively micro study really has global

or wider applicability, particularly where taking into account sociological

infrastructure and given the diversity. On one hand have very wide aggre­

gative macro studies and on the other excessively micro studies. Should <#'

avoid the danger of filling between the two stools. Overview would help

to set the correct perspective, give a sense of direction, and particularly

take adv~ntage of the Bank's unique position of wide experience on the

basis of comparative situations in various countries . (Narasimham- pp. 31/32)

17. Choice of subjects based on certain needs: could indicate to

countries that the Bank would welcome suggestions for specific areas of

research. (Narisimham - p.32)

18. Bank s'hould desist from primary ._9ata collection except in col labora-...

~

tion with local authorities. Bank should eitablish research methodology and

hire off as much of the research activities to local agencies as possible, and

if the local agencies aren't there, try to develop them. (Narasimham - p.33)

19. Should be some relationship between country lending programs and

allocation of research activities. This is statins the problem of geographi-

cal priorities in a slightly different manner. (Narasimham - p.33)

' ,,

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20. Process of taking advantage of reseerch findings is complex function

which takes a long time to be accomplished: could be very helpful to implement

a system containing periodical information about the improvement of the re-

search programs. Importance of dissemination of research work and results .

among member countri~s and other specialized agencies: more work to be

done to make more efficient the use of the research results. (Pesqueira - p. 34)

21. Supported first Annual Report that emphasized importance of

broadening our understanding of the development process. This should be

one of the more relevant components of the Bank's non-financial ro,e.

(Pesqueira - p.35)

22. Under] ined the .relevance of the Region's participatlon in research,

mainiy through identification of problems from operational experience anc

assuring appropriate dissemination of results among~orrowers. (Pesqueira - p. 35

23. Useful, as mentioned by Narasimham, to hdve active participation

of countries indirecting research work into fields considered necessary . . Some developing countries, mainly oi 1 exporting countries, face problems

1-

in finding how to link their foreign exchange surpluses with their main

problems of basic needs. (Pesqueira - p.35)

2~. More to be done on question of dissemination, which is closely

related to pra~ti~al orientation, because it is through dissemination ,, . .,.

that the practical_ value of the report can be made useful to others;

(Ryrie p.36)

25. Asked for information about the terms of reference and membership

of the overview panel; would have considerable interest in that. (Ryrie - p.37)

26. Linkage of level of resources to priorities: level of research

expenditure must depend on individual judgments about value of research in

individual areas. That could vary quite a lot from one time to another.

- 5 -

Flexibility necessary; matter of judgment by sectoral panels and overview ~

panel. Agreed with Drake, would be useful if some of the panels were of

mixed membership.· (Ryrie - pp. 37/38)

27. Must not get into research that is too narrowly focused and doesn't

produce useful resu!ts that can be disseminated -widely. (Ryrie - p.38)

28. Welcomed increased emphasis on sociological research. In rural

development might be scope for some additional emphasis on field investiga­

tions as ·opposed to the purely economic investigations which seem to have

rather more emphasis. In this field, some scope for examination of the

role of aid itself as time goes on and we have more experience. (Ryrie - pp. 38 /:

29. Areas, where should be thinking of reduction, are the more academic

studies built on cross-country data of macro-economic issues which have

rather less practical relevance. (Ryrie - p.39)

30. Shared many of the points made by Drake but outside pane! should be

purely external, would car~y much more weight. Of course, they would be

serviced by the staff and papers would be presented to them. (El-Naggar p. 42)

31. Agreed with Ryrie that the Board should have the opportunity to

look at the panel 1 s terms of reference because the panel should not look

only at the scope and priorities of the present research program but also

at the internal organization and mechanism by which research is done. Would

,like to know to what extent the present set-up is the best poss i ble~ Is

: there any alternat)ve? Important to look into panel's terms o f reference

to broaden them to encompass certain elements whi~h are not strictly related

to the priorities and nature of the research program. Should be balance

in the composition of the panel with al I development regions represented.

(El-Naggar - p.43)

.,

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32. In the re~earch program there is too much emphasis on certain

regions and certain countries. Hore could be done on the Middle East and

Western Africa. The Bank should encourage development institutions in

data collection so that the countries can be suLtable for carrying out

research projects (El-Naggar - pp. 46/47)

33. Adaptation of research to needs of operational staff; dissemination-

assimilation: should do much more than we have been doing. More involvement

and more mechanism is needed to associate operational staff with all stages

of the research project. (El-Naggar - pp. 47/50)

34. Hoped that Board will come back to this subject when the External

Panel makes its recommendations. (El-Naggar - p.51)

35. . ~

Agreed with speakers v1ho stressed operational side of the research

program. Should not do too much in macro-economic field, on other hand,

should noi go too much in depth in studies which have a very micro character

and which may in the end have only a local effect. (Looijen - p.56)

36. One of the Important things which the panel should concentrate on

is the question of dissemination and assimilation because that really shows

how operational the program has been and that should be a criterion also

for the resources -which go to research. (Looijen - p.57)

37. Agre~d with EI-Naggar that should fry to inform the Regions · as much

as possible about research, but they are already overburdened so a kind of

balance has to be found. (Looijen - p.57)

38. Agreed with El-Naggar about need for regional balance in research

work but should also be regional balance among research staff. Few Africans

in the research dep~rtments and would like this to be looked into.

\Gyasi-Twum - p.59)

.... ,.

'>

,,.

7 -

39, Dissemination: This should trickle down from the Vice Presidents

and Directors to their staffs in giving directives during the work being

done. (Rota - p.60)

40. Guidelines for studies and fields which should be covered: These

should be established· by the Board and canr.ot be left to an outside panel,

even a mixed panel (Rota - p.60) . "

41. Participating individuals and institutions in research projects:

Bank should try harder to set cooperation from continental European institu­

tions and individuals, and also from Japan. (Wahl - p. 62)

'.

Secretary's Department March 14, 1978 cro/abg

; /

..

International Bank for Reconstruction and Development 'International Development Association

.... -1 FOR ' I

EXECUTIVE I DIRECTORS'

l .. -~~~TIN~- ...... I

~ ~

FOR OFFICIAL l 1SE ONLY

DECLASSIFIED APR t 8 2019

WBG ARCHIVES

> FROM: Vice President and Secretary . ,

WORLD BANI( RESt'.ARCR PP,OGR.~ .. '1

Supplementary State!:lent

r-- - . ·- -- · · --··-- --- ----~

l:.or consideration on Leh 7, 1978

R78-18/2 IDA/R78-11/2

March 2, 1978

TI-le attached supplementary statement dated February 9, 1978 on the

World Bank Research Program was considered by the Joint Audit Committee on ~

~ February 27, 1978. TI-le-Committee recommended that the statement be sent to

the Executive Directors in connection with the President's Memorandum and

Report on the Bank Group Research Program (R78-18(IDA/R78-ll]) distributed

on January 30, 1978. Attached also is an annex entitled "Couiltry Reference

and Collaborating Institutions: Research Proposals Approved in FY77 and

FY78. 11

...

Distribution:

Executive Directors and Alternates President

-Senior Vice President, Operations President's Council Vice Presidents, IFC

.,

Directors and Department Heads, Bank and IFC

I 11" ,l <l, 1111 1\· n I h ;1, .1 r,·,1 11 l· ll'd d 1,11 1 h11 111 , n .111 d "1:11 h, · ~"L'tl ~~- r.:1.: ~-~~11 ;-, ~~~I ~--: ·1;1,.: -I·,··.: ~~,~:~,~~-,1 Pl t!t ,· 11 .. 111 , 1.tl d11t 1, ··. Ii... ,·11n1,· 11i... 11\.1\ ,l<ll 11tli1.· 1·.,1, ,· 11,: d1,,l11~,:d ,1.1111,11.11 \\<11'1d ll .111J.. c1ulhll r11.it1u11 :

~- --- -- ··-· ·---- .. -----------·~----__J

TO:

FROM :

SUBJECT:

' ,.

..

WORLD BANK / INTERNATIONAL FINANCE CORPORATION

OFFICE MEMORANDUM The Joint Audit Committee DATE: February 9, 1978

A. Karaosmanoglu, Dir., Development ~olicy J,I('. World Bank Research Procrram

l. At its meeting on February 2, 1978, the Joint Audit Corrunittee requested·a supplementary note on certain questions raised at its meeting on January 28, 1977 and at the meetings of the Executive Directors on February 15 and February 17, 1977, which were not explicitly referred to in this year's Annual Report 0n Research. The questions were related to the following areas:

Objectives of the Research Program;

The level of Resources Related to Research;

Research-Priorities;

Dissemination.

These are addressed ··in th.e remainder of this 'not3. Since research in the Bank is discretionary in character,it is impossible to avoid a substantial e.le.rnent of judgT.ient in decidi:1g its level and composition; consequently, answers to some of the question~ cannot be definitive.

I. Objectives

2. In the first annual report to the Board!/ four objec-tives were identified for the Research Progr~rn:

To support all aspects of Bank operations, - including the assessment of development progress

in member countries;

To broaden our understanding of the development process;

To improve the Ban.k's capacity to give policy advice to its members;

To assist in developing indigenous research capacity in member countries.

!/ Bank Group Research Program (R73-257, November 12, 1973).

.,

...

The Joint Audit Committee -2- February 9, 1978

At the meeting of the Joint Audit Committee on January 28, 1977, the conclusion was reached tbat ''it might be useful to review the adequacy of the four major objectives (~eport, p. 5) of the Bank's Research Program."!/ These four objectives are rather general in nature, and it may-be useful to describe how they have been inter­preted in practice.

3. The great majority of proposals sucmitted to the Research Committee are intended to be responsive to the needs of the Bank

~in some aspect of its activities. The latter may range from specific sectoral concerns {e.g., utility pricing and investment policy), which are closely connected with lending, to questions of a broader character, in such fields as income distribution. The panels, which review these proposals before submission to the Research Cammitteer are asked to identify the use of the par­ticular research being proposed either to the Bank or ta its member gover~~ents. The panel me~bership is drawn from all parts of the Bank with the majority frequently coming from the opera­tional departments.

4. Thus, the majority of research proposals correspond ta the first and third objectives, support of Bank operations and improvement of the Bank's ca?acity to give policy advice. TherP are some research. proj.ects which correspond to the second obj ec-~i ve, the broadening of understanding of t~e development process, for example,the Project on Patterns of Industrial Development (671-05). However, because of the frequent expressions of interest by the Executive Directors as well as the operational staff in research of'rnore direct operational relevance, they remain a small minority. In practice, the conclusion has been reached that there should be a mix, but the proportion should be weighted on the side of operational or policy concern. Research into the development process itself is undertaken, whenever the Bank sees a need for a . pioneering effort that is unlikely to be undertaken elsewhere. It is always possible that a project which is initi­ally seen as non-operational, takes on a different significance with time. For example, the International Comparison Project, when first undertaken, may not have had so clear a significance for aid allocation as it has now. ~ ,

5 .. - When rese'arch projects are proposed, the question of . co1laboration with outside researchers is routinelv raised. Preference is given to collaboration with develooi;g countries' institutions, and special reasons have to be add~ced if collabo­ration with a developed country institution is being prooosed. Ho~ever, collaboration with developing country instituti;ns is considered, at present, to be a desirable by-product of the research to be undertaken rather than a principal objective. It would re­quire a ~hange in d~r7ction in the Bank's research program and prob­ably a sizeable addition to resources to make . the building up of

1/ Minutes of Meeting of the Joint Audit Corrmittee (JAC/M 77-3).

The Joint Audit Committee -3- February 9, 1978

research institutions in developing cou.~tries a primary objec­tive in the way that the International Development Research Centre in Ottawa, for example, does.

II. The Level of Resources Devoted to Research

6. The Joint Audit Com.~ittee at its meeting of January 28, 1977 expressed its concern that "suitable ~idelines were· needed

> to determine the amount of research to be carried out by the Bank." Similar views were expressed at the meetings of the Executive Directors•on February 15 and February 17, 1977. In the event, the establishment of such guidelines has proved elusive. In the first place, the Bank is a unique institution, and there is no basis for a suitable comparison with other insti­tutions.

7. It would appear that the appropriate way to reach a judgment on the proper level is to proceed incrementally rather than by aiming at comprehensive guidelines. The activities that are subsumed under the -single heading of research are very varied.

~ The decision whether the resources devoted to any single sub­category should be increased or decreased has to be weighed against the alternative uses of resources, not only under the he?~-

ring of research, but ·also under other headings: It is very doubtful whether a single fo:::rnula could be found to embrace the corpus of all these judgments.

8. 1his is, in fact, what has been done in practice. To the extent that the research program has appeared to be unsatis­factory, effo::-ts have been made to rr:orm it . .At t.he present time, the improvement of dissemination has .. ~come an important issue, as noted in this year's Annual Report (paragraph 1.8) and in the subsequent section IV of t~is note. If the capacity of potential users to assi~ilate the output of research is seen as a bottle­neck, the appropriate remedy may be either to alter the shape of the program making it more easily assimilable, or to spend more on promotion and application, since the line bet~een research and teaching peo?le·to use research by demonstrating its application is u fine one. Once the program is regarded as fully satisfpctory and there is an unsatisfied demand for its output., t:1ere may be a c~se for increasing the resources devoted to it, even in the face of competing cemand from other activities.

9. There is, moreover, certain kinds of research-related activity not now undertaken. For example, the 3ank has only marginally entered the field of prL~ary data collection, and use~ ful research in many countries is severely linited by lack of data. In most cases the Bank now relies on data collected routinely or ad hoc by others. This, of course, is one of the reasons why the Bank's research tends to be rather country-con­centrated. Pri~ary data collection covors a wide range from improved data on income distribution to more specific field work on projects. In either case, if carried out on any scale, it

The Joint Audit Committee -4- February 9, 1978

would be expensive in both external costs and, if assembled and prepared for analysis, in staff time. A decision for or against such an activity would clearly make a substantial difference to the preferred level of resources. In a simil.ar category is the support of developing country research institutions with the primary objective of building up their capacity rather than the joint undertaking of projects of mutual interest (referred to in Section I on Objectives). The Panel, which ~ill shortlv report on the Bank's . progra.-rn of research in_Income Distribution

~-and Enployment, is expected to address itself to the questions ~ of data collection and institution buildi~g.

10. In light of these considerations, it was decided that, until major reviews of the various categories of research had been completec. ( through various kinds of par:.els) , it would be difficult to set forth ·a comprehensive account of the kinds of decisions that may have to be made, much less a rationale for an overall level. This may take two or more years, for reasons stated in Section III on Priorities. In the interim, an internal review by the Research Committee ~as undertaken in order to form a short­run view of requi=ed resources, pending t..~e formulation of a

~ longer-term view. The result of this assessment is that addi­tional external resources for researc~ cannot be just~fied in t~e short-run, because the additional staff requi=es to complement these resources would hot be available.

,..

11. It seems likely that in the long run the size of the progra.-rn can. bes-c be judged by its success. Within very wide levels one can say that it is too sr:iall if it is provi~g more useful at the margin than other activities--and vice•versa. The long-ru.~ limitations may well be ~anageability of the program and capacity of potential users to assimilate its output.

III. Priorities

12. Last- year's Annual Report on Research stated the intention to undertake the first- of a series of reviews bv out­side panels of research on particular s'J.bjects 0r g~OU?S ~f sub­jects. y It w~s hoped that, once a nu.'11:)er of such reviews of this kind, covering - the bulk of t.~e research topics, had been unqertaken, the basis would exist for an overall assessment of the program as a whole and for the de~er:nination of priorities for future work. During 1977, the first such panel was appointed as noted in this year's report on research. 2/ In the meeting on February 15, 1977, when last year 1 s report was discussed, some Exe_cutive Directors expressed the view that an external panel to review all research ~~uld be desirable.

1/ World Bank Research Program, January 13, 1977, paragraph 1.33. 2/ World Bank Research Program, January- 23, 1978, paragraph 1.11.

The Joint Audit Committee -5- February 9, 1978

13. The merits of the two possible courses of action, immediate appointment of an overall external panel or deferment of c.onsideration of priorities until a nurr.ber of sectoral panels have reported, weia carefully considerdd. The latter course was finally chosen because a review of all the Bank's research activities, an assessment of their relationship to the Bank's operations and other activities and the formulation of recommen­dations for future priorities across the board would be an extremely demanding task. It seemed out of the questfon that highly quali­fied people would be, available to undertak~ such a task for the

> length of tL~e required to do it justice in the absence of prior sectoral reviews.

14. It was, the~efore, decided that it would be best to undertake t:1e sectoral reviews first. Moreover, by adopting this course, acvantage can be taken of panel reviews of all Bank activities in a sector, including research, such as that already undertaken on population and that now being started on education. The report of the panel on income distribution and a~ployment, which has been somewhat delayed by adventitious circumstances, is now expected in the ~atter part of March. While primarily concerned with the particular subjects under review, it is expected that some of the broader issues affecting all research will be raised in that context.

~1s. As pointed out in this year's report (paragraph 1.12), other panels are under consideration. -The timing and scope will depend on a variety of factors. For example, the st~ge which research on a particular subject has reached is an important factor. In t~e field of urbanization, for example, even the initial results of major research under way will not be avail-able for at least two years. It will not, of course, be absolutely necessary to complete a full cycle of reviews before undertaking an overall assessment of priorities, but it should certainly make the task mere manageable, if the greater part of the research has been covered by sectoral reviews.

IV. Dissemination

16. The Bcar'd and the Joint Audit Corr.mittee have expressed concern that insufficient attention may be being paid to the­dissemination of the results of research work. This concern is" shared by m~ny staff member3, including those most concerned with research and with publications.

17. A necessary but not sufficient factor in dissemination is the intrinsic interest and relevance of the work. But even where this is unquesticnable, its influence may be less than it should be if the channels of communication are inadequate, or if the addressee does not have the time to absorb or use it.

The Joint Aud~t Committee -6- February 9, 19,8

18. The kind of dissemination needed varies very much with the end-product of research. Much of it is sufficiently and properly .. conveyed by being made available in the form of Working Papers, articles in learned journals, or books, supplemented in some cases by the author's participation in seminars or conferences. Since most addressees of dAvelopment literature are busy, it is very important that publications should be reasonably terse in themselves, or at least have a ccncise i~troductory stat~~ent which says in plain language_what the repo=t is about and what its main ~onclusions are. Authors and editors need always to strive for improveme~t in this respect. So far as external publications are concerned, the Information and Public Af=ai~s Depar~uent has issued guidelines for the preparation of man~scripts.

19. Of c0urse, potential users rnust also be aware of the publications. Many thousands of CO?ies of ~e Bank's catalogue are put out for t~e benefit of external users. In addition, there are nearly 300 depository libraries in developing cou~tries, which receive all issued material free. But, so far as books are concerned, the ccrrunercial publishers also have an important role to play. Although these may not be as active as could be desired,

~ the case for the Bank doing it3 own publishing has yet to be established.

\.

2~. It is not felt that lack of awareness is ~he problem so far as Bank staff are concerned. The time of t.~e stu!£, and the operational relevance of the material, are the governing ~actors. It should also be noted that operational dapar~~ents for. which some research is most closely relevant will always have been aware of it and its results, long befcre the latter e..-nerge in the form of a working paper or other publication.

~ 21. The relevance of -the research to O?erations is a constant cause for concern. This concern is reflected in the fact that alJ. research proposals must contain a discussion of their operational relevance, and that t~e panel3 which evaluate research pro?osals before they come to the Research Corrr:nittee often incluce a major~ ity of members fr~m operational depart=1e~t£. The same is tr~e of the panels which · evaluate past research projects. It never­theless remains ~rue that operati.~g depa~t~ents play limited direct rol~s in the genesis· of research projects. ·

22. We turn now to the kind of end-products where sufficient dissemination may imply more than publication; an element of training may be required. This is the case with techniques which are unfamilia~ not only to operational st2.ff in the Bank but also to potential users in developing countri2s. T!1ere are two stages of dissemination in such cases. The first is the spreading of the gospel through p':..L,':)licati.ons a.nd discussions. Only if sufficient agreement is thereby es"tablished that such :net.hods should be promoted in the Bank's own work, or if a demand is created in developing count~ies, is there a need for fu~ther education and possibly for adap~ation to a production-line basis.

The Joint Audit Committee -7- February 9, 1978

23. Examples of the process have been given in the two case studies in the third chapter of this year's and last year's annual reports. l'.not..~er exarr:ple of the above stages has been work on the methodology of project analysis. The origi~al research was carried out outside the Bank. Further development took place in the Bank in an attempt to provide a better foundation for Bank appraisal work. The first stage, that of reaching sufficient agreement, has taken a long time. There is now, however, a sutf­icient consensus that some increased effor~ should be put into the absorption of these techniques, and plans for doing so are

~~ being made. Anot:1er example is the possi:dle use of social accour.­ting matrices (SAMs). This technique is still in the first stage described. ·,

24. . There are ot~er areas where greater cemar.ds are necessarily made on the addressee, and where the seconc s~age of dissemination may be particularly dif=icult. An exa~ple ~s the construction and use of computerized ~odels for plannir.g, in a country or a region, a time-series of inves~~ents in ir.dustrial sectors where economies of scale are i..-nportant. This is a case where ap9lications of the technique, c.evelopec in t::e BanJ<, tave been mace in Egypt, the .;.SE.A.."7 cou..'1t=ies and the A...'7DE..c"\.N cor..rnon market countries, and where the I~dustrial Projects sta=f sees an import~nt poten~ial. An active and ccr.tinuec use of large sectoral models (e.g., the CF...AC agricultural model) , or cour. try­wide models would make even greater denands o:i. t::e user :i.n te ... ats

of updating inputs ar.d adopting the mcc.els to c~anging ecor.omic relations and improve~e~ts in methodology. Ulti~atG dissc~ir.a­tion might mean the crea~ion of specialized units in developing countries to handle t:i.e innovation, provic.ed of course, t:-~ere is a continued conviction of its operational value. Where an appropriate unit already exists, dissemination can be arranged ~y visits on the part of the researc~ sta~f, and by inviting ~ey personnel to Washington. T!'lere have been a ::11.:.r:1..:Jer o: con~acc:s o: this kind made :iy research depa::-tnents i:1 connec-:.ic:1 wi t:i ever all and sectoral planning. Probably more resou=ces should be devoted to this.

. 25. It is only fairly recently ~~at these ~ore se~ious problems of d~ssemination, involvir.g all parts of the Ba:1x, have become apparent. Certain steps have. been taken (e.g., ~orksho?S), lfot it is no.t yet clear whether t:iey are t.::.e right ones. It is an

.. open question, for example, ho~ much ef=ort should be put ir.to ~the first stage. It is undesirable to appea::- to be forcing things

down peoples' throats, but, on the other hand, there must be adequate institutio<lal capacity in bo~~ the 3ank,and in develooi~G countries,to jucge t.::.e value of innovations, a:1d i= necessa~y, adapt t~em for use. It is certain that tl:.e protle~ has to ~e

-approached from both ends, an increased participation of poten~ial users as well as the kinds of research undertaken. It is r.ot mere~y a matter of improving channels of communication by some conventional service, such as holding rno::-e semina=s. ?or the Bank, the question is one of allocation ot r e sources . Operatior.al activities at one extreme and research uer seat the other com-

"-- -pete for the resources needed for the process o: dissemination and assi~ilation. It will be necessary to e nsur2 that suf:icient resources are available for whatever balance between these func­tions is decided upon.

--·· -·

Project No.

671-45

671-46

671-47

671-48

' , J,

·t COUNTRY REFERENCE AND COLLABORATING INSTITUTIONS:

,, " · tm"SEhRCH PROPOSALS APPROVED IN FY77

Title

Program.~ing and Designing Investments: The Indus Basin

Appropriate Technology for Water and Waste Disposal

Strat~gic Planning to Accom­modate Rapid Growth in Cities of Developing Countries

UrDan Labor Markets in La tin lunerica

~ount~y­

(i) Pakistan

(!)Afghanistan (ii) '!'he .. Bahamas

(iii)Brazil (iv)Cameroon

(v)Ghana (vi)Greece

(vii)Iran (viii)Ivory Coast

(ix)Kenya (x)Halaysia

(xi)N.icaragua (xii)Pakistan

(xiii)Peru (xiv) 'I'hailand (xv) 'l'unisia

(xvi)Turkey

(i)Colombia

(i)<;olombia (ii)Peru

(i)

(ii)

(iii)

(i)

(ii)

(iii) (iv)

(v)

(vi)

(vii)

(viii)

Collaborating Institutions 1/

Water and Power Development Authority, Pakistan Pakistan Institute of Develop­ment Economics IIARZA Engineering Pakistan~/

Asia Institute of Technology­nangkok, Thailand National Environmental Engineer­ing Research Institute, Nagpur, India Ms. I. Nieves, INCAP,Guatemala Mr.M. Blackmore,Ministry of Local Govt. and Lands,Botswa na Mr.A.M. Hright,University of Science and Technology, Ghana Mr. R. Estrada, Centro Mesa Americana de Estudio3 Sobre Technologia Appropieda, Guatemal, Dr. P.A. Oluwande, University of Ibadan, Nigeria Ross Institut~ of Tropical Hygi er London School of Hygiene & Tropical Medicine, U.K.

, (i) Corporacion Centro Regional de Poblacion, Colombia

(i) Cat~olic University of Peru

1/ Includes names of consultants associated with the collaborating institutions. 1/ Thrrmgl· · ·NDP Project.

Project No.

671-49

671-50

671-51

671-52

671-53

671-54

671 ..... 55

671-56

671-57

' , Title ,.

Education and Rural Development in Nepal and,Thailand

- 2 -

Country

(i)Nepai (ii)Thailand

Economic Role of Railways (Phase I)

Appropriate Industrial Technology

Occupational Structures of Industry

...

El Salvador Health Study {i)El Salvador

Economics of Educational Radio

·•

Retention of Literacy/Numeracy Skills Among School Leavers

Marketing Manufactured Exports

Distribution of Income Through the Extended Family System

...

(i)Brazil (ii)Israel

{iii) Kenya (iv)Korea (v)Nicaragua

(i)Egypt

Ci) Colpmbia

(i)Senegal

Collaborating Institution

(i) Hr. M. Seetisarn, Chiang Mai University, Thailand

(ii) Dr. L. C. Coombs, The University of Michigan,U.S.A.

(iii) New ERA, Nepal (iv) Mr. L. Lau, Stanford University,USA

(v) Mr. Daidya, Nepal (vi) Social Science Research Center,

Thailand

(i)The Institute of Nutrition of Central America and Panama

(i) International Extension College, U .iK.

(ii) Everyman's University, Israel (iii) Korean Educational Development

Institute, Korea (iv) Kenyan Inntitute for Adult

Studies, Kenya. (v) Stanford Unfversity,Institute for

Mathematical Studies . in the Social Sciences, U.S.A.

(i) National Center for Educational Research, Cairo

(ii) Ministry of Education, Cairo (iii) Faculty of Education, Ain-Shams

University

/ ., (i) Societe National des Etudes de

Developpement, Senegal (ii) Mr. A . . Slama, Centre National

D'Etudes Agricoles, Tunisia

(iii) JRrFt~ut~~K8Rgfmental d'Afrique ' : ~ ~ \

,. COUNTRY REFERENCE AND COLLABORATING INSTITUTIONS:

RESEARCH PROPOSALS APPROVED IN FY78 (As of 12/317 78)

Project No.

671-58

\ ' Title ~

A General Algebraic Modeling Systems (GAMS)

Country Collaborating Institutions!/

1/ ~/

671.-59

671-60

671-61

671-62

671-63

Small-Scale Enterprise Development

Textbook Availability and Educational Quality

Socio-Economic Aspects of Fertility Behaviour.

India: Impact of.Agricultural Development on Employment and Poverty - Phase I

Labour Migration and Manpower in the Middle-East and North Africa

(i)' Japan (ii) Korea.

(iii) Colombia (iv) India

(v) Philippines (vi) Taiwan

(i) Mr. T. S. Papola, The Girl Institute of Development Studies, India

(ii) Others to be identified

. . (i) Nicaragua . (i) Programa de Estudios Conjuctos de

Integracao Economica Latino-Americana Mr. P. Suppes - Institute of Mathe­matical Studies in the Social Sciences, Stanford

(ii) Philippines 2/ -(ii)

(i) Botswana

(i)

(i) (ii)

(iii} (iv)

(v) (vi)

(vii)

India

Algeria Libya

~ Iraq Iran Saudi Arabia l<uwait United Arab Emirates

(i) Botswana Central Statistics Office

(i) Indian Statistical Office

' To be identified•

(viii) Dahrain (ix) Oman

(x) Qatar

Includes names of consultants associated with the collaborating institutions. IEA data from India, Iran, Thailand, Chile, Bot~wuna and ECIEL data from Mexico, Peru, Bolivia, Paraguay, Argentina and Orazil will also be used.

Project No.

671-64

671-65

671-66

671-67

671-68

671-69

671-70

,, \

Title

Food Deficits of Target Groups

Small Enterprise Financing: Role of Informal Credit Market

World Development ;Report

Effects of Increased Imports of Manufactured Goods from Developing Countries

Key Institutions and Expan­sion of Manufactured Exports

Capital Market Imperfections and Economic Development

Case Studies of Determinants of Recent Fertility Decline

- 2 -

(xi) (xii)

(xiii) (xiv)

(xv) (xvi)

(xvii) (xviii)

(xilC)

Country_

Egypt Jordan . Syria YAR PDRY Morocco 'l'unisia Turkey Sudan

(i) Morocco (ii} Bra.zil

(iii) India

(i) India

"' East Asian &

Latin American countries .... to be identified.

(i) Taiwan ·c ii) Indonesia

(iii) India (iv) Korea

(i) Sri Lanka (.ii) India

Collaborating Institution

To be identified

' . ..

(i)Free University, Brussels

(i) Demographic Unit, Sri Lanka (ii) Bureau of Economics and Statistics,

India

TO:

FROM :

INTERNATIONAL DEVELOPMENT I INTERNATI0~/1\L f,N;K FOR ASSOCiATION RECON STRU CTION AND i)EVELOf'MENT

INTERNATIONAL FINANCE CORPOi'<ATION

OFFICE !V1EMORANDUM Research Advisory Panel

Hollis B. Chenery, VPD ~ DATE: October 25, 1978

SUBJECT: Development Research in the World Bank

This memorandum comI'.lents on some of the questions suggested for discussion by the Research Advisory Panel and is designed to provide a background for its first meeting.

Characteristics of World Bank Research

The existing program of development research is the result of a decision in 1971 to establish a standing committee to forinu­late guidelines for Bank research and to administer a central research budget. (See "The Research Committee: An Informal Early History.") In its first two years, the committee identified priorities and set out budgetary guidelines by field (first annual report on the Bank Group Reaearch Program, November 1973).

In this formative period, there was also a general reorgani­zation of the Bank and a significant reallocation of Ban}: research personnel. Since 1973, however, both the internal research capa­bility and external research expenditures have remained essen­tially fixed (see fifth annual report on research, January 1978).

A joint review of the activities of the principal inter­national agencies and private foundations (sponsored by the Canadian IDRC, U.S.A.I.D., Ford and Rockefeller Foundations and the Bank) was undertaken in 1974. That discussion tended to confirm the Bank's preliminary views of its comparative advan­tages(and disadvantages) in relation to the international research community and also brought out several deficiencies in the international system--notably the lack of adequate support for collection of data needed for development research. Several of the sectoral programs of the Bank were reviewed in subsequent informal meetings sponsored by this group.

Apart from the Development Research Center, Bank res0arch is carried out in departments which also have responsibility for country and sector studies, policy analysis and (in several project departments) lending operations as well. This form of organization has advantages in bringing researchers close to operational needs and facilitating informal dissemination of new techniques through trial applications in the course of country missions. It has corresponding disadvantages in making it more difficult to organize large-scale, continuing projects in a number of fields, where the ability to supervise outside consul­tants and institutions becomes a limiting factor.

- 2 -

The following four objectives for Bank research were set out in 1971 and have been maintained with minor revisions since then:

(1) The establishment of a factual and conceptual basis for Bank policies on particular aspects of development;

(2) Support for Bank operations in particular sectors;

(3) Increasing knowledge of the basic development process;

(4) Development of institutional capacity for research in the developing countries.

Several issues have arisen as to the relative importance of these criteria and the nature of the results that have been produced:

1. Are research findings related sufficiently closely to the operat~.onal and policy requirements of the Bank (see RAPIDE Report, Executive Directors' corrunents)?

2. Should the Bank devote more resources to support of information-gathering activities?

3. Should ·the support of research in developing countries be made a separate objective (which would imply substantial changes in the present style of Bank research)?

4. Does the Bank have a responsibility to undertake or underwrite more "basic" research in certain areas?

These issues can be discussed more usefully after con­sidering the Bank's comparative advantage in the several fields in which it undertakes research.

The Bank's Comparative Advantage in Research

In designing its research program the Bank has identified eleven functional areas of major concern (see Table 1). The extent and form of Bank involvement in each field reflects in part the Bank's comparative advantages as a research institution and the nature of ongoing work elsewhere.

- 3 -

TABLE 1

External Expenditure FY75 to FY78, Compared to Guidelines (Percentage of external expenditure)

Category

IA. General Planning

IB. Income Distribution

IC. Growth/Country Economic Analysis

II. International Finance and Trade

III. Agriculture and Rural Development

IV. Industry

V. Transportation

VI. Energy, Water and Telecommunications

VII. Urbanization

VIIIA. Education

VIIIB. Labor and Employment

VIIIC. Population, Nutrition, and Health

Others

Guidelines

1.0

14.0

10.0

4.0

20.0

10.0

10.0

5.0

10.0

5.0

5.0

5.0

1.0

100.0

1/ Actual for FY75 to FY78 (in FY79 $).

Source: Report on Research, 1978.

Actual 1/

11.4

13.4

6.4

17.9

6.5

11.0

8.1

7.8

4.6

7.5

4.7

0.7

100.0

\

- 4 -

The Bank's country analytical work, involving regular contacts with its member countries and the accumulation of comparable data on a variety of topics, is an important element in its comparative advantage. A second is its stock of econo­mists interested in policy analysis. These characteristics lead to a focus on comparative country analysis in most fields. In addition to general characteristics related to its lending activities, the Bank has also built up analytical capacities in several fields which are inadequately covered by other institutions or in which the Bank is undertaking new initiatives.

Considerations such as these have led the Bank to establish a somewhat different research posture in each sector. At a minimum, the -Bank tries to assimilate research results produced elsewhere and to apply them in its own policy analysis. At the other extreme, there are a few fields in which the Bank has tried to be a leader in analyzing topics that are inadequately studied elsewhere. The following classification is illustrative of the current differences among fields and topics:

A. Attempted Bank Leadership: highway design and construction, sectoral planning (industry, power), income distribution.

B. Signific~nt Bank Contribution: appropriate technology for public services (sites and services, waste dis­posal), employment, trade and industrialization, development strategies, rural degelopment.

C. Limited Involvement: population, education, energy.

In fitting together the Bank's needs and its comparative advantage, it is sometimes necessary to consider the Bank as a "residual supplier" in areas where there is little existing capacity elsewhere. For example, we have found it necessary to conduct an extensive evaluation of rural development projects and to undertake a substantial urban study even though both implied recruiting staff and designing methodology for the purpose.

Questions of the proper balance between basic and mere applied research and the operational relevance of the Bank's research output can be discussed against this background. The questions rarely arise in the fields of limited involvement but are quite important for topics in Group A. Since several of these are fields in which there is not a satisfactory theoretical basis, the research program will often take up theoretical and methodological aspects first and produce usable applications only after several years. Relevance to operational use is therefore in part a matter of the time horizon applied. Whether we have achieved a proper balance can only be judged on a sector by sector basis.

- 5 -

irr.e Research Portfolio

The Bank's comparative advantage in particular research areas, the availability (or non-availability) of outside research in these areas, and the Bank's perceived needs for research results in these areas should determine the Bank's research portfolio. The process of determining the portfolio has three interconnected phases: (a) choice among research fields; {b) choice within fields; and (c) choice among research projects.

Shortly after the Research Committee was established, its functions were defined to include "recommending an overall research budget and allocating the resources among different subject areas and individual projects." The initial priorities are shown in the numerical guidelines for allocations to major research areas (Table 1). The submission of research projects has largely reflected the interest of research staff and, in reviewing projects, considerations of quality rather than a desire to assure correspondence with the guidelines have generally predominated. In general judgment as to priorities within fields has been left to a large extent to the research depart­ments.

The issue is then as to how one can ensure that a "balanced" research program, reflecting the above considerations, is estab­lished and implemented. It may be suggested that the establish­ment of a balanced research program would require the prepara­tion of research programs in particular areas which often extend beyond single departments.

According to the RAPIDE report, while research on income distribution has been carried out according to priorities deter­mined in advance (Appendix B, p. 1), in the employment field "the impression created is a series of papers that do not relate to any clear research strategy, although clusters of interests can be identified" (Appendix C, p. 1). An internal review conducted by the Research Committee also noted the lack of a consistent research program in the area of agriculture and rural development and in population, health, and nutrition research, with recommendations made "for the coordination and integration of the research program." The draft report of the education panel also calls for an integrated research program on educatton in the Bank. An internal Industry and Trade Steering Group has been created for the purpose of setting Bank research priorities. in this general area.

Apart from easing the task of the Research Committee to develop a research program for the Bank, research programs in particular areas would permit the Committee to assume "a more

- 6 -

active management role in positively stimulating the research that the Bank wants especially to see done" (RAPIDE report, p. 21). At the same time, it should be recognized that the development of research programs in particular areas would involve considerable effort on the part of the high-level Bank operational and research staff on a continuing basis.

The internal review of Bank research concludes that research projects have largely been generated by producers rather than by users in the Bank. This, in turn, is said to have led to a 'mismatch' between the supply of, and the demand for, research that is alleged to have hindered the application of research results in operational work. Where this is the case, the development of research programs in individual areas should try to ensure the better balance between the supply of, and the demand for, research.

Internal Dissemination and Application of Bank Research

·The inadequacy of dissemination and application of research in the Bank has been given considerable emphasis in recent annual reports on Bank research, and a variety of suggestions have been put forward to improve the dissemination and application effort. Several of these proposals are described below with attention given to the cost involved.

One of the simplest channels of dissemination is the organi­zation of seminars or workshops. This can be done on a Bank-wide basis on particular subjects or in smaller groups on several subjects. The latter alternative, applied recently in the South Asia region, has the attraction that it permits transposing operational staff to a different environment by concentrating on research for, say, a two-day period. However, this solution is much more time-consuming for research staff than Bank-wide seminars.

The objective of dissemination and application of research results in operational work would further be served by the pre­paration of brief reports on the findings of individual projects. Such reports may be prepared at several stages of the research project and would become part of the project's documentation at the time when the Completion Report is submitted. The prepara­tion of such reports would be highly cost-effective although its time requirements should not be underestimated.

Note has been taken above of the desirability of preparing "state of the art" papers that report on the findings of researchers within and outside the Bank as well as on the methods of investi­gation applied. Performing this task would again necessitate researcher time, especially since the papers would need to be periodically updated. At the same time, one may consider involving operational staff, well-trained young professionals, and out-siders in the writing of these papers.

.... 7 -

It may be suggested that increased demands for dissemina­tion and application reflect the fact that the research program has come of age. Under present budgetary and staff allocations, these demands can only be satisfied by reducing the research effort. Correspondingly, if Bank research is to continue at present levels, a new allocation would have to be made for dis­semination and applications.

Related Issues

There are a number of related issues not covered in this introductory comment that the Advisory Panel will wish to con­sider. Among the most important are the desirability of extending the scope of the Bank's interests to encompass the collection of basic information and more effective support of research institutions in developing countries.

The RAPIDE report expresses the view that "the objective of fostering research in the developing countries has been honored in its breach. Research efforts have gravitated to where the data have been most accessible and where indigenous research efforts have been most developed" (p. iv). The report adds that "institution building cannot be pursued as a by-product" and suggests "forging closer and more diversified ties with develop­ing country research institutions".

The Bank's experience to date with research projects carried out in cooperation with developing countries' institutes has not been very favorable. For diverse reasons, such a~ the paucity_ of good researchers, their frequent redeployment L_an-d changes in priorities in these institutions, there have often been delays in the implementation of research projects and some compromise with quality. Thus, it seems that there is frequently a trade-off between the efficiency of research and the objective of institution building.

Although opinions on this matter may differ, my own view is that the Bank staff should make further efforts to make the existing approach to collaborative research .more effective before adopting more direct methods of supporting research in member countries. Once the internal research effort has reached greater maturity in particular fields it will be much easier to undertake various forms of external collaboration and support.

The subject of data collection can be better assessed after other specialized panels have commented on this subject and the Bank has completed its own study of priorities for extending its statistical activities. In the meantime the case made by the RAPIDE panel is worth discussing.

HBChenery:BBalassa:nf:di

J • · 1·,, t CJ ~:_(!,> ', !I " , .· { '

r· ,~ T\) ;~ C MC:C' C ::.l! 'f S 0:( the Ge !1er2.l f.(.!:;~!c:Y C rl .i',(l\· j so:cv Par.c.; l

Th.c foJ.l oi: .. T.i ng a J:-,2 tl1e dF~·tcs selcctcc1. ))J' n:c.:~.11 ). ) !, , \

General Pane l fo r U 12 i r l a t er meeting s :

c c cond n ccting (Ja n 15 - Feb 28 )

Thi J:-d nee. ti. "1':

(!\pr J. - ; ·., V i. :· ~. . -·------ ----.

Giu:.-s c h

Hc.,.1 il-i-J a ucl

,Ja n 18 - 20 LT a.n 25 ·- 27

Feb 15:..17 Feb 22-24

J\p:c 5 - 7 May L. G·· L 8

Apr 19-21 May 10-12

Massad Jan 15-31 not available in Feb.

Apr l8-Mc1y 12 not available Ma y

Bell Feb 22-24 Ap:r_S-7 Apr 12-14

not av. April

Tbe four oth~r members (Lewis, liboyade, Kim and Islam) have ·expressed no preferences.

"j Q- ·). -- ---

There is no easy congruence between these preferences. Given 1-~assad' s unavaiJ.abili ty throughout February, ,January 18-20 o~ January 25-27 are possibilities for the second meet.ing . April 5-7 and May 10-12 scan the best choices for the third meeting, with the later date per:1aps p:coferable from tbe point of view of the co~nittee's work.

Please let me know if you would like me to check specific dates with the Panel.

cc: Mr. B.B. Balassa

SI03ery: lt

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Bank uad IDA: Trends In Lendla&:, by Sector 1 USS rnilliOM. fiscal >·••rs.)

IDA Total Bant

19'5

IDA Total 11:ank

A¢culture 6-16.5 309.4 9S5.9 1.221.5 636.1 1,857.5 1,209.2 o~,·clopmenl

finance .:omranks

EJu.:ation Ekctric pov.cr JnJustry ls unproje.:t Population

:,nd nulriti,,n

Tc,hnkal as,-isuan..:c

Td,-commu· nicntion,;

Touri~m Transrurtation C rbaniz:uion Water supply

and

309.0 134.4 7H.9 309.1

16.0

(,(i,S 30.6

733.:? t.8.0

36.2 JS.7 13.5

I09.7 :?3S.O

17.0

5.0

41.4 16.0

223.8 4S.O

34S.2 153.1 769.4 418.8 23S.0

17.0

107.9 46.6

9S7.0 113.0

469.S 126.7 47S.7 66S.3 195.0

96.0 30.7

815.8 70.5

34.S 97.1 28.0

12S.0 325.0lll

IS.O

103.0

17:?.9

S04.0 223.8 503.7 790.3 S20.0''1

40.0

199.0 30.7

988.7 93.0

149.2 :?4.S li3.7 128.0 17.1 14~.I --- --- --- ---

697.1 244.9 690.3 501.0

7S.O

:?S.8

13.0

S9.0 21.0

1.114.7 79.6

2465

1916

IDA Total Sant

418.4 1,627.6 1,637.8

6-l.O 76.4

:?S9.0 IOS.O 3S4.0"'

19.0

5.2 10.0

2S6.2

88.1

761.1 321.) 949.3 606.0 429.0"1

2S.8

3:?.0

64.2 31.0

1.370.9 79.6

730.7 ::10.1 7~4.S 720.8 126.S

I.S

140.0 98.6

87S.6 t:?8.:?

:?62.S

3.:? 18.4 l.09S.2 4.313.6 4.319. 7 1,Si6.2 S.895.8 4.977. t ''1 1.6SS.3

Dttal11 mar nat add IO totala becaUJC or rowidJns. m Incllldu s: 15 mUlion for "Maintenance lmporu." '" Indudes s:oo millloa for wMaintctl3nce lmp,.•ru." ,., ln~ludn µ77.1 mlllion lent OIi Third Wlnclo..- term•. ( 41 Include, s::.:?..6 million lent on Third \.\'indow terms.

l\:mk and IDA: Trends in Lending, by Sector n:ss millions. Fiscal yc:irs.)

Acricuhurc and rural development

Education

Encrl!Y Industrial dc\'elopmcnt

:inc.I sin:incc lndus1ry

N'onprojcct Population and

nutrition Power Technical assis1ance

T decommunic:ations Tourism Transportation Urban development Wat~r supply and

sewerage

To1al

1916

Bank IOA

1,209.2 418.4 244.9 76.4

49.0

697.1 64.0 SOI.O 105.0

7S.O 3S4.0

2S .8 690.3 259.0

13.0 19.0 59.0 5.2 21.0 10.0

1,065.7 2S6.2 79.6

246.S 8S.I

4,977.1 111 J,6SS.3

Total

1,627.6 321.3 49.0

761.1 606.0 429.0

25.8 949.3

32.0 64.2 31.0

1,321.9 79.6

334.6

6,632.4

D~ail1 may not add 10 IN:ils hccause of roundin11. <11 Jn.:ludes S4i1.S million lent on Third Window terms. m Includes s::!::.6 million lent on Third Window terms.

Bank

1,637.8 210.) 150.0

730.7 570.8 126.S

42.5 784.S

I.S 140.0 98.6

875.6 128.2

262.5

5,759.3'"

1977

lDA

670.1 78.S

2S.S 16.0 90.0

4.8 167.0

I S.4

172.0 30.0

38.2

J,307.S

To1al

2,307.9 288.6 IS0.0

756.2 586.8 216.S

47.3 9SI.S

16.9 140.0 98.6

1,047.6 158.2

300.7

7,066.8

Bank

1,929.0 ~68.9

829.S 364.8

80.0

2S.O 900.0

11.0 153.6 so.o

918.1 222.4

34S.4

6,097.7

1977

IDA Total

670.l 2.307.9

2S.S 78.S

167.0 16.0 90.0

4.8

7S6.:? 288.6 9SI.S 736.8 216.S

47.3

IS.4 16.9

140.0 98.6

172.0 1,047.6 30.0 IS8.2

38.2

1978

IDA

1,340.7 83.0

80.4 '.!7.0 7S.O

33.1 246.2

9.3 67.S

174.8 146.2

29.8

2.313.0

300.7

Tollll

3,269.7 351.9

909.9 391.8 1~5.0

S8.t 1,146.2

20.3 2::1.1

50.0 1,092.9

36S.6

37S.2

8.410.7

r~

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~ k~. N-~5S-:Y~ ~· ~ ks I., ~,~/s(.

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.. Bela Bal assa October 26, 1978

QUESTIONS FOR THE OVERALL PANEL ON : BANK RESEARCH

I. Research Objectives and Priorities

1. Objectives for Bank Research

Are the present (internal and•~ternal) objectives of Bank research

appropriate? Should these be amended, should new objectives be

added?

2. The "Balance" of ·the Bank's Research .Programme

Where does the Bank ' s comparative advantage lie among and within

research area~ such as industry, education, and transportation

economics? To what extent should the Bank act as a "residual

supplier" in t hese areas? Where, does this leave us ·as to the

appropriate balance of Bank research among and within research

areas?

"'3. Types of Bank Research

What is-the appropriate balance as far as types of resea:Pah

(basic vs. applied research, data-intensive vs . speculative

research) are concerned? To what extent should the Bank's

research be oriented towards its own operational needs?

II. The Relevance of Research fo r Bank Operations

1. The Generation of Research Projects

Can one increase the operational relevance of Bank research by

modifying the process of generating research projects? In pursuing

this objective, what role should .be assigned to the following: the

preparation of research programmes for various research areas;

increased contacts and exchange of personnel between rescdrch­

producing and research-using departments; assistance to operational

departments in preparing research orooosals: and ca:rryincr out joint

research?

- 2 -

2. Dissemination of Research Results

What are the appropriate channels for the internal dissemination

of Bank research results? What is the potential role of seminars

and workshops for operational'staff; reports (interim and final)

of research results, indicating their operational relevance;

and .the preparation of !S~tate of art" papers on internal and

external research.

3. Application of Research Results

How can one ensure the application of research methodologies

developed in the Bank and elsewhere in the work of the operational

departments? What is the appropriate role of researchers, special·

staff oriente·d towards applications, and operational staff in this

process?

III. Institution Building in Developing Countries

1. Generation of Research

To what extent should the Bank involve research institutes in

developing countries in the development of its own research

programme? What are possible ways of doing so: influencing the

choice among research areas; choice within research areas; choice

of research projects?

2. Participation in Research

How can the objective of institution building be served through

the Bank's research progranme? What role can be assigned to

cooperative research and to Bank financing of research by develop­

ing country institutes?

- 3 -

3. Dissemination of Research Results and Hethodologies

What are the appropriate channels of disseminating the findings

of Bank research in developing countries? What role can be

assigned to the written and to the spoken word? What role, if

any, can the Bank perform in advising on research in the deyelop-

-ing countries?

IV. Extending the Research Programme

1. Data Collection

Should the Bank consider the collection of data~on e.g. income

' distribution, as a priority task? What should be the Bank's

input, if any, in data collection (money, staff, methodology)?

Should the Bank play~ role in furthering the continuous

collection of certain economic and social data and, if so,

what kind of data?

2. Research by Country Economic Staff

Should one extend the research programme to include research

by coun~ry economists? What is the minimum critical mass of

such research and what are its administrative preconditions?

3. Research Related to Investment Projects

What is the role research can play in the preparation of investment

projects? How can one ensure that·such research is efficiently

done and that it has relevance beyond the needs of the investment

project? What is the role of research in monitoring and evaluating

investment projects?

V. The Research Programme

1. The Size of the Research Progranm1e

\•:hat is the right size of the Bank's res2arch prograrrw1e,

exclusive of research financed from the l>udget of investment

- 4 -

projects? What is the appropriate phasing for the expansion

of the research programme, if this is considered desirable?

2. Staff vs. Financial Constraints

What are the principal constraints of Bank research: staff or

financial resources? What is the appropriate mix of staff

and consultants in Bank research projects? How is this mix

affected by institution building in developing countries?

3. Research and Applications

What i s the desirable mix of research and applications in the

Bank? To what extent should this vary among0

research areas?

October 27, 1978

PRELIMINARY REACTIONS TO BALASSA AGENDA

1. Objectives for Bank Research.

Postpone consideration.

2. The Thrust of Bank Research.

Distinction between "operational" and "non-operational''

research is not valid. The Bank designs investment projects,

and does project-related research. The Bank also analyses the

economic situation of countries and advises on economic policy.

It is also concerned with the world economic situation as it

affects member countries' prospects and strategies. For this

second "general" function the Bank uses all kinds of economic

analysis, and in this sense almost any kind of research may be

relevant to Bank activities.

Project related research. Every project requires pre­

investment study, some more intensively than others. Our

impression is that Bank does pre-investll'.ent work more thoroughly

for engineering and agricultural aspects of projects, and is

least thorough in pre-investment work where social aspects are

prominent, e.g. in projects intended primarily to improve the

condition of the poor. Also not clear that the more general

conclusions of pre-investment study are transmitted and used in

other projects. Also disputed whether enough is put into

evaluation and monitoring of executed projects or implications

used in designing new projects.

General research. This area is enormous and Bank

should strictly ~onfine itself to topics which meet one or

other of following conditions:

(a) The Bank needs analytical models or data urgently

for its work, and such work is not being done

elsewhere.

(b) The Bank has better access to the relevant data

than other researchers. This is especially

likely where international comparisons are , involved.

2.

(c) The project needs to be done on a large scale, (IV A, rt<. u,,

involving several man years of professional time 4'_ ~ 1 .. ~ .

~~-,( k> W1

HGre we note that in case (a) above it will sometimes be. feasible

to arrange for the research to be done by an institution in a

developed country. This may .be costly to the Bank in supervisory .,

manhours , but should be preferred if the cost is not excessive,

and if neither (b) nor (c) applies. In area of general research

projects, consideration should be given to having a small

number of large projects rather than a large number of small

projects.

Bank research is set up for economic and some

engineering studies, but there is little provision for

3.

sociological research, which has become more necessary with (, . I'j _' I ) , [\,~

recent changes in Bank lending policies. \,\,1.'-01/,,....._, [f ~~,·,·- 1 'l cf C'\l.A. c;~ . ..,_J 5r~-v-.C,t.,, t~ _)1.A~~.1..... (,'~c~ 4~~ -~it~ r:f(l..v.~,,V,

(1.,.,.-.11 C-.a (\,"'-' z·v1-vv-- I 3. Control of Research Activities.

'\

Research Committee might have outside members. More

use of outside consultants in designing research projects.

More staff for Research Committee.

4. Relations with Regional Departments.

Tension exists between the departments doing research

and research-users. This could be reduced (but not eliminated )

in various ways:

(a) Allocate 30 percent of research~budget to a fund , - ,

under the joint control of regional departments.

(b) Provide two or three manyears of professional

research time in each regional department.

(c) Encourage joint research studies between central

and regional staff.

(d) Require each region, in making programme of

economic and sector work to include needed

research.

(e) Alternatively, provide central staff to assist

regional staff in formulating research proposals.

( /) O_r~;7,""~ '.'."'1 .-1 rb ;,.~'-~~ 11f'·"-",v-i,. ... _,r"' r i _i-4,{ ,~ri"' ru.-1~1,,~~ 5. Dissemination of Results. r f-vv..-7'"' cl OJStf1'.-•~ ,

/ ;, Me ;;;rKiil&t:.

~ . t<;,'v{r :

4.

6. Implementation of Research.

Problem is not how to get Bank project or country

staff to use results of Bank research, but how to keep improving

staff skills so that all relevant research, whether Bank or

otherwise, is absorbed by Bank professional staff. Bank appears

to lack regular provision for updating professional skills of

its staff.

7. Multiplication of Research Results.

In cases where Bank research .. Pioneers new analytical

techniques, Bank is asked to send staff out on technical

assistance to member countries to apply and teach application of ., ., . ' the technique. Not clear whether Bank provides adequately for

·this service.

8. Institution Building tn· DeveTop'ing countries.

In preparing research proposals Bank should, wherever

relevant, consult with institutions in developing countries which

do or may be interested in doing similar work.

Ban~ should use a larger proportion of its research

budget to finance joint studies with research institutions in CM~w--~ .

de,reloping countries. ~ ~ rv,..u...,,/. a. ~~ ~ ~ ~ I'- ~~ ~-

Bank should, where approp~iate, invite local institu-

tions to participate in monitoring or evaluating Bank projects .

Research Liaison officers might be appointed to field

offices.

Problem here is that institution building by Bank

staff is a managerial and frequently political technical

s. assistance function for which researchers may not be specially

competent. They run risk of being penalised if their joint

projects fail for reasons beyond their control; and may therefore

be reluctant to be involved in such exercises.

Earlier remarks re extension to social research apply.

9. Data.

Data collection is very expensive. Bank should spend

substantially more in this ·area, but confine itself to collecting

data required for its research projects. Frequently problem is

data processing rather than collection.

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• ....... - . ·'--'---- - --FOR ' ' "40. 75

·i:"l..'. THE WORLD BANK -HUUTING SLIP

DATE: Oct. 31, 1978

NAME ROOM NO.

~

cc. /c)~ l:"o Rc.JQ".lr.io.

-APPROPRIATE DISPOSITION NOTE AND RETURN -~-APPHOVAL NOTE AND SEND ON

CLEARANCE PER OUR CONVERSATION

COMMENT PER YOUR REQUEST

FOR ACTION PREPARE REPLY

INFORMATION RECOMMENDATION

INITIAL SIGNATURE

NOTE AND FILE URGENT

REMARKS:

Please see Mr. Chenery's response on your Routing Slip. The longer part, I believe, reads: "I think we could use 50-100 replies, mainly from researchers but some manaEJers. Balassa can decide how to handle. ''

~ l,VU"-J -=-

FROM: ROOM NO.: EXTENSION:

Hollis via Doris · ., • r: ~ 1; • ~-..,..

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1,

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FC~~M NO. 75 · ,,-73k

~ ~:. : ~ 1S7& WORLD BANK GROL

1)'

DATE 1978 ROUTING SLIP October 31,

NAME ROOM NO.

Mr. Chen~

/K~ I•

I I . .

APPROPRIATE DISPOSITION NOTE AND RETURN

APPROVAL NOTE AND SEND ON

COMMENT PER OUR CONVERSATION

FOR ACTION PER YOUR REQUEST

INFORMATION PREPARE REPLY

INITIAL RECOMMENDATION

NOTE ANO FILE SIGNATURE .

REMARKS

1. You may wish to review the attached 'check list' of follow-up action.

2. I attach a possible draft of the 'appeal for gaps'. Should this go from you, B(lassa~or myself? Is ~he ~tion too wide? ~

rt,;..). ~ ~ u.,..t ., p, t crO

i~~~ /Vi~J ~ ~ G,,,tW...

J-~ --~· ti' ~L..-G~·

FROM

·suman Bery/JU:, ROOM NO.

E1~~8J'N F1233

. " ' . ~r.· + V • '

J I.

J

,.

'

I

I : 'I

. . · ... ,

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I.

..

• Check List of Follow-up Action to First Meeting of General P-anel

Follow-up memo {by Bery to panel members)

Confirming dates of future meetings

Confirming sectoral assignments

Reminding of obligation to prepare a note once report of specialized panel has been received and reviewed

- . Requesting such notes to be sent to us for information

Informing of memo to Specialized Panels (attached)

Informing of memo to Bank staff.

. Attaching revised "notes c.-1 first meeting"

a) To all Panel Members:

. 1--,n,, ,..~, (j t·( ,·,

. / ""' ... J l,....,.,u.,,·

Report of the External Advisory Panel on Population (Berelson Panel)

b) Per specialization:

Documentation on specialized panels: background notes, lists of members, terms of reference, work program memoranda, RPO assignments.

Divisional work programs of OED Divisions:

Public Finance; Industry Employment & Rural Dev. Population & Human Resources Complete Set

' •' '

Giersch Islam, Aboyade

- . Kim Bell, Massad

.. ..

III. Forthcoming documents (to al~panel members)

)• . ~ . 1. •'Memo by C!i,enery /Wright on forms of research

·· funding outside the research budget. '·

0 , , ,h• ( .I._.: ./JI f!.. (!_. \ •

2. r Memo by Chenery,\ on options available to Bank in data collection. •

3. Draft reports of Specialized Panels.

IV. Other Action

1. Memo to. Chairmen of Specialized Panels requesting identification .of gaps (done).

2. Memo to professional economic/technical staff requesting identification of gaps. (Draft attached).

' ~ ·1?

, .. I • J f. I '1-l,... ~ .. ,., I'

. . I ( I-'\ 1,,., •~ I, I·{ ,,

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2.

' ,'·

Those Listed B~low. •/' ~ , c_~ ... t f ·~

. h f J • • Hollis B. C ~he , Vice-President Jle-vefopment Policy

Research Advisory Panel

DRAFT SKBery:lt October 30, 1978

The Research Advisory Panel has just concluded its

first meetings in Washington. To .assist it in the task of 1-.I .. , / , .,.tl

defining research priorities, i-t 'has requested that Bank staff

provide their·assessments of areas in which lack of knowledge

is an important constraint on policy formulation. The Panel

has requested that such statements be short (no longer than

two pages), and that . they concern themselves with major gaps

in knowledge, rather than with specific research proposals.

Respondents are not required to restrict themselves either

to the field of their immediate work or to issues in

economics alone.

These statements should ·be sent to Mr. Suman Bery,

Secretary to the Panel,no later than December 15, for

forwarding to the panel.

Distribution:

CPS, DPS and Regional Pr ofessional

WDR Core Group

·,

INTERNATIONAL DEVELOPMENT I INTERNATIONAL BANK FOR I INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION

OFFICE MEMORANDUM TO: Chairmen, Specialized Research DATE: October 30, 1978

Advisory Panels \~LA FROM: Hollis B. Chenery, Vice President, 19"~

Development Policy ' SUBJECT: Work of General Research Advisory Panel

1. As you know, one purpose of the reports of the Specialized Research Advisory Panels is to provide a basis for the work of the General Research Advisory Panel, chaired by Sir Arthur Lewis.

2. The General Panel has just concluded its first meetings in Washington. To help define priorities for Bank research, the Panel has requested that each Specialized Panel include in its report a discussion of those areas where lack of knowledge is an important constraint on policy formulation.

3. The General Panel has also set out some hypotheses as to certain strategic and organizational issues affecting the Bank's research effort. These observations are attached. The Specialized Panels are encouraged to provide their views on these and related issues.

4. The General Panel has assigned sectoral responsibilities among its members as follows:

Sir Arthur Lewis (Chairman)

Mr. 0. Aboyade) Mr. Nurul Islam)

Mr. David Bell

Mr. Herbert Giersch

Mr. Kim Mahn Je

Mr. E. Malinvaud

Mr. Carlos Massad

Income Distribution and Employment

Agriculture and Rural Development

Education

Industrial Development and Trade

Commodities; Population

Public Utilities; Economy­wide Models

Transportation

Documentation prepared for the Specialized Panels will be forwarded to the relevant members of the General Panel. In addition, the draft reports of the specialized panels will be provided to all

- 2 -

panel members as these become available. These will be reviewed by the panel prior to its next meetings in Washington, which are to be from March 5-7, 1979. It is anticipated that panel members will be in touch with the Chairmen of the Specialized Panels as appropriate. Biographical sketches and addresses of panel members are attached.

5. Further information on the General Panel may be obtained from Mr. s. Bery, Secretary to the Panel (Room F-1233, Ext. 76003).

HBChenery/SBery:nf

Attachments

cc: Members of the General Panel Directors and Secretaries of

Specialized Panels DPS, CPS Directors Mr. W. Baum, CPSVP Mr. B. Balassa, VPD

1.

Notes on First Meeting of the Research Advisory Panel*

Objectives for Bank Research.

Postpone consideration.

2. The Thrust of Bank Research.

October 28, 1978

Distinction between "operational" and "non-operational"

research is not valid. The Bank designs investment projects,

and does project-related research. The Bank also analyses the

economic situation of countries and advises on economic policy.

It is also concerned with the world economic situation as it

affects member countries' prospects and strategies. For this

second "general" function the Bank uses all kinds of economic

analysis, and in this sense almost any kind of research may be

relevant to Bank activities.

Project related research. Every project requires pre­

investment study, some more intensively than others. Our

impression is that Bank does pre-investment work more thoroughly

for engineering and agricultural aspects of projects, and is

least thorough in pre-investment work where social aspects are

prominent, e.g. in projects intended primarily to improve the

condition of the poor. Also not clear that the more general

conclusions of pre-investment study are transmitted and used in

* These notes have been prepared for the use of the Panel by its Chairman and its Secretary. They are intended to reflect the panel's discussion of the attached set of questions provided by Mr. Balassa, Acting Research Adviser.

October 28, 1978 2.

other projects. Also disputed whether enough is put into

evaluation and monitoring of executed projects or implications

used in designing new projects.

General research. This area is enormous and Bank

should strictly confine itself to topics which meet one or

other of following conditions:

(a) The Bank needs analytical models or data urgently

for its work, and such work is not being done

elsewhere.

(b) The Bank has better access to the relevant data

than other researchers. This is especially

likely where international comparisons are

involved.

(c) The project needs to be done on a large scale,

involving several manyears of professional time

or a lot of money.

We comment later on Bank relations with LDC research institutions.

With regard to relations with research institutions in developed

countries, we note that it may be feasible in case (a) above for

the research to be done either inside the Bank or in such an

institution. The latter alternative may be costly to the Bank in

supervisory manhours, but should be preferred if the cost is not

excessive, and if neither (b) nor (c) applies. In area of general

research projects, consideration should be given to having a small

number of large projects rather than a large number of small

projects.

October 28, 1978 3.

Bank research is set up for economic and some

engineering studies, but there is little provision for sociolo-

gical research, which has become more necessary with recent

changes in Bank lending policies. The question of integrating

members of other social sciences into the research structure

requires further examination and organization.

3. Control and organization of Research Activities.

Research Committee might have outside members. More

use of outside consultants in designing research projects.

More staff for Research Committee.

4. Relations with Regional Departments.

Tension exists between the departments doing research

and research-users. This could be reduced (but not eliminated}

in various ways:

(a} Allocate 30 percent of research budget to a fund

under the joint control of regional departments.

(b} Provide two or three manyears of professional

research time in each regional department.

(c} Encourage joint research studies between central

and regional staff.

(d} Require each region, in making programme of

economic and sector work to include needed

research.

(e} Alternatively, provide central staff to assist

regional staff in formulating research proposals.

October 28, 1978

(f) Assigning staff of regional departments to

research departments for temporary periods.

5. Dissemination of Results.

Closer link with EDI.

6. Implementation of Research.

4.

Problem is not how to get Bank project or country

staff to use results of Bank research, but how to keep improving

staff skills so that all relevant research, whether Bank or

otherwise, is absorbed by Bank professional staff. Bank appears

to lack regular provision for updating professional skills of

its staff.

7. Multiplication of Research Results.

In cases where Bank research pioneers new analytical

techniques, Bank is asked to send staff out on technical

assistance to member countries to apply and teach application of

the technique. Not clear whether Bank provides adequately for

this service.

8. Institution Building in Developing Countries.

In preparing research proposals Bank should, ~herever

relevant, consult with institutions in developing countries which

do or may be interested in doing similar work.

Bank should use a larger proportion of its research

budget to finance joint studies with research institutions in

developing countries, and should, in such cases, also meet a

substantial portion of local costs.

October 28, 1978

Bank should, where appropriate, invite local institu­

tions to participate in monitoring or evaluating Bank projects.

Research liaison officers might be appointed to field

offices.

5.

Problem here is that institution building by Bank staff

is a managerial and frequently political technical assistance

function for which researchers may not be specially competent.

They run risk of being penalised if their joint projects fail

for reasons beyond their control, and may therefore be reluctant

to be involved in such exercises.

Earlier remarks re extension to social research apply.

9. Data.

Data collection is very expensive. Bank should spend

substantially more in this area, but confine itself to collecting

data required for its research projects. Frequently problem is

data processing rather than collection.

10. Amount of expenditure on research.

Postponed.

Bela Balassa October 26, 1978

QUESTIONS FOR THE OVERALL PANEL ON BANK RESEARCH

I. Research Objectives and Priorities

1. Objectives for Bank Research

Are the present (internal and,external) objectives of Bank research

appropriate? Should these be amended, should new objectives be

added?

2. The "Balance" of the Bank's Research Programme

Where does the Bank's comparative advantage lie among and within

resea:l'ah a:l'ea~ such as industry, education, and transportation

economics? To what extent should the Bank act as a "residual

supplier" in these areas? Where'. does this leave us as to the

appropriate balance of Bank research among and within research

areas?

;3. Types of Bank Research

What is-the appropriate balance as far as types of resea:t'ch

(basic vs. applied research, data-intensive vs. speculative

research) are concerned? To what extent should the Bank's

research be oriented towards its own operational needs?

II. The Relevance of Research for Bank Operations

1. The Generation of Research Projects

Can one increase the operational relevance of Bank r~search by

modifying the process of generating research projects? In pursuing

this objective, what role should be assigned to the following: the

preparation of research programmes for various research areas;

increased contacts and exchange of personnel between res~drch­

producing and research-using departments; assistance to operational

departments in preparing research proposals: and c~rr:ina out joint

research?

- 2 -

2. Dissemination of Research Results

What are the·appropriate channels for the internal dissemination

of Bank research results? What is the potential role of seminars

and workshops for operational'staff; reports (interim and final)

of research results, indicating their operational relevance;

and .the preparation of '';:;tate of art 11 papers on internal and

external research.

3. Application of Research Results

How can one ensure the application of research methodologies

developed in the Bank and elsewhere in the work of the operational

departments? What is the appropriate role of researchers, special·

staff oriente·d towards applications, and operational staff in this

process?

III. Institution Building in Developing Countries

1. Generation of Research

To what extent should the Bank involve research institutes in

developing countries in the development of its own research

programme? What are possible ways of doing so: influencing the

choice among research areas; choice within research areas; choice

of research projects?

2. Participation in Research

How can the objective of institution building be served through

the Bank 1 s research prograiUI!le? What role can be assigned to

cooperative research and to Bank financing of research by develop­

ing country institutes?

- 3 -

3. Dissemination of Research Results and Methodologies

What are the appropriate channels of disseminating the findings

of Bank research in developing countries? What role can be

assigned to the written and to the spoken word? What role, if

any, can the Bank perform in advising on research in the deyelop-

ing c~untries?

IV. Extending the Research Program..~e

1. Data Collection

Should the Bank consider the collection of data~on e.g. income

' distribution, as a priority task? What should be the Bank's

input, if any, in data collection (money, staff, methodology)?

Should the Bank play~ role in furthering the continuous

collection of certain economic and social data and, if so,

what kind of data?

2. Research by Country Economic Staff

Should one extend the research program.~e to include research

by coun~ry economists? What is the minimum critical mass of

such research and what are its administrative preconditions?

3. Research Related to Investment Projects

What is the role research can play in the preparation of investment

projects? How can one ensure that·such research is _efficiently

done and that it has relevance beyond the needs of the investment

project? What is the role of research in monitoring and evaluatinF

investment projects?

V. The Research Programme

1. The Size of the Research Programr.1e

What is the right size of the Bank's research programme, ·

exclusive of research financed from the liudget of investment

- 4 -

projects? What is the appropriate phasing for the expansion

of the researc;:h programme, if this is considered desirable?

2. Staff vs. Financial Constraints

What are the principal constraints of Bank research: staff or

financial resources? What is the appropriate mix of staff

and consultants in Bank research projects? How is this mix

affected by institution building in developing countries?

3. Research and Annlications

What is the desirable mix of research and applications in the

Bank? To what extent should this vary among'research areas?

GENERAL RESEARCH ADVISORY PANEL

Sir w. Arthur Lewis Economic Growth Centre P.O. Box 1987 Yale Station Yale University New Haven, Connecticut, 06520, USA Tele: (203) 436-8418 (office)

Professor o. Aboyade Vice-Chancellor University of Ife, Ile-Ife Nigeria Tele: ILE-IFE 2291-2299 (9 lines)

Dr. Herbert Giersch Direktor des Instituts fur Weltwirtschaft 23, Kiel, Dusternbrooker Weg 120/122 West Germany Tele: 8841

Dr. Kim Mahn Je President Korea Development Institute P.O. Box 113 Cheongryang Seoul, Korea Tele: 966/5165 or 967/8811-6

Mr. E. Malinvaud · Director General Institut National de la Statistique et des

Etudes Economiques (INSEE) 18 Boulevard Adolphe Pinard 75675 Paris, Cedex 14 France Tele: 540.13.11

Mr. Carlos Massad Senior Advisor to the United Nations Economic

Commission for Latin America Casilla 179 D Santiago, Chile Tele: 485051, Ext. 318

Mr. Nurul Islam Assistant Director General Economic and Social Department FAO Rome, Italy Tele: 5797

Mr. David Bell Executive Vice President The Ford Foundation 320 East 43rd Street, New York, New York 10017 Tele: (212) 573-5000

Biographical Data

General Research Advisory Panel

Sir W. Arthur Lewis

Sir Arthur Lewis was born in 1915 and is currently with the Woodrow Wilson School. From 1970-73 he was President of the Caribbean Development Bank, while prior to that he has held academic posts in the U.S., West Indies and England.

His many publications have been mainly concerned with development planning and economic growth.

David Bell

Mr. Bell is a U.S. national and is currently the Executive Vice-President of the Ford Foundation. He is also the Chairman of the Education Research Advisory Panel.

Carlos Massad

Mr. Massad a Chilean national, was born in 1932. He was educated at the University of Chile and the University of Chicago where he obtained an M.A. in Economics in 1959. He was the Director of the Institute of Economics of the University of Chile and then professor at the Faculty of Economics from 1963 to 1970.

His non-academic career includes the following posts that he has held: Chairman of the Board of Governors of the Center for Latin American Monetary Studies (1968-70); Vice­Chairman of the Chilean Planning and Development Association (1968-70); Governor of the IMF and IBRD for Chile (1965-1970); Vice President and then President of Central Bank of Chile (1964-1970) and then the Executive Director· for Chile at the IMF. He is at the moment, Senior Advisor to the United Nations Economic Commission for Latin America.

Herbert Giersch

currently Institute Ge rmany.

Professor Giersch is a German national. Professor of Economics and the Director of World Economics at the University o f He h a s., in the past, served as a member

He is of the Kiel, of the

Council of Economic Advisors in Germany and was, formerly, Professor of Economics at the University of Saarbrucken, in Germany. He has done a considerable amount of work on the Theory of Economic Policy.

E. Malinvaud

2.

Mr. Malinvaud is a French national and is currently Director of the Institut National de la Statistique et des Etudes Economiques. He was formerly President of the Inter­national Economic Association, Professor of Economics and Statistics at the Ecole des Mines, and also President of the Econometric Society. He has written extensively on economic theory and econometrics. His career has included research at the Cowles Foundation and he has taught at the University of California, Berkeley. In 1974, he was the President of the Statistical Society of Paris and also an officer of the Banque Nationale de Paris.

o. Aboyade

Mr. Aboyade is a Nigerian national. He is currently the Vice-Chancellor of Ife University in Nigeria. Prior to that he was the Chairman of the Department of Economics at the University of Ibadan, Nigeria.

He was born in 1931 and was educated at the Univer­sity of Hull, England and obtained his doctorate in economics from Cambridge University, England. He has been a member of a team working on the Nigerian National Accounts and the Editor of the Nigerian Journal of Economics and Social Studies. He has taught at the University of Michigan as a Visiting Lecturer and has participated in the work of the UN Economic Commission for Africa.

Mr. Aboyade has been regularly involved with public policy and advisory services in Nigeria and also served as the Head of the Economic Planning Unit in the Federal Ministry of Economic Development and Reconstruction in Lagos from 1969 to 1970. ·

Nurul Islam

Mr. Islam is a Bangladeshi national. Currently he is the Assistant Director, General Economic and Social Department in FAO. Prior to that he was a Visiting Fellow at Queen Elizabeth House, as well as at St. Anthony's College, Oxford University.

3 •

From 1955 to 1963 he was Professor of Economics at Dacca University. Followingthat he was Director of the Institute of Development Economics in Pakistan between 1964 and 1971, and then Deputy Chairman of the Bangladesh Planning Commission between 1972 and 1975. He is the author of numerous books and articles on economic development planning, and international economic problems and policies.

Kirn Mahn Je

Mr. Kirn Mahn Je, a Korean national, is currently President of the Korea Development Institute. He obtained his Ph.D from the University of Missouri. Since 1974, he has also been a Director of the Korea Atomic Energy Research Institute and has been closely involved with economic policy formulation in Korea. He has had an important role in the formulation of the Five-Year Plan and is currently involved in developing the long term prospective plan for Korea.

TO:

FROM:

INTERNATIONAL DEVELOPMENT I INTERNATIONAL BANK FOR I I NTERNATIONAL FI NANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION

OFFICE MEMORANDUM Those Listed Below

Hollis B. Chenery, vPD \K'{Yv DATE: November 14, 1978

5UBJECT: Defining Research Priorities

The Research Advisory Panel has recently concluded its first meetings in Washington. To assist it in the task of defining research priorities, the Panel has asked me to invite Bank staff to provide assessments of areas in which increased knowledge of particular aspects of the development process would be especially helpful for Bank operations and the formu­lation of development policies.

Any Bank staff member is invited to respond to this request. Statements should be short (no longer than two pages) and should be concerned with major gaps in knowledge rather than with specific research proposals. Respondents are not required to restrict themselves either to the field of their immediate work or to issues in economics.

These statements should be sent to Mr. Suman Bery, Secretary to the Panel, no later than December 15.

HBChenery/BBalassa/SBery:nf

Distribution:

Directors, CPS, DPS and Regional Offices Division Chiefs, DPS WDR Core Group

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OR~ANISATION DES NATIONS UNIES POUR L'ALIMENTATION ET L'AGRICULTURE

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ORGANIZACION DE LAS NACIONES UNIDAS PARA LA AGRICULTURA Y LA ALIMENTACION

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATION$·

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Via delle Terme di Caracalla ROME Cables : FOODAGRI ROME Telex : 61111 FOOOAGRI Telephone : 57117

Ref.

•••

26 January 1979

Dear Mr. Bery,

Attached herewith is a copy of the letter which I have addressed to Professor Chenery. The letter is self-explanatory. I suspect that Professor Chenery is not back from his tours. This is the reason why I am sending a copy to you.

In . order to take urgent action, I suspect you have to get in touch with him wherever he is at the moment and get his agreement and authorization to act if he agrees along the lines suggested in nzy- letter and inform the Personnel Department of Professor Chenery•s decision.

Therefore, I am requesting you to kindly get in touch with Professor Chenery immediately to let him know the present state of affairs in terms of~ membership on the Advisory Panel. Please let me know at the earliest by cable what, if any, action has been taken by the Bank in response to~ letter. ·

With best regards,

Mr. Suman Bery Development Policy Staff and Secretary, Research Advisory Panel World Bank 1818 H Street, N.w. Washington, D.c. 20433 u.s.A.

Yours sincerely,

Nurul Islam Assistant Director-General

Economic and Social Policy Department

Of;GAN!St. TION DSS NATIONS UNIES POUR L'A:...EviEi"4TATION ET L'AGRICUL TURE

ORGANIZACION DE LAS NACIONES UNIDAS PARA LA AGRICULTURA Y LA ALIMc:NTACION

\,

FOOD AND AGRICULTURE OR/3ANIZATION OF THE UNITED NATIONS

Vi.: dtll~ Ttrme. ci Car:i::al!a ROME ca:,1es: FOCOAGRI ROME Telex: 61181 FOOOAGRI Telephone : 5797

26 January 1979

Dec.r Prof. Chenery,

I j,.ist received the copies of correspondence between 1.rr. Groe:1 of your ?e: ... scm-:121 Il2r,art!:ii·2nt a::-id the Director of t:he Persom1el Division cf FAO, copies at·;:;,,c:~~.;; J (z..~tach.:':lsr.-~s I and II). As you i-rnuld. readily a?prec::.ate 1 tnis is e:·:act ~- ; .:.:12.:'.; I a.r_ticipa.ted. would come to pass if the sug0es-'cions i-.-:1.ic!l I IJc.,:fa :-.i.1 ,~- le,tter cf 7 Ho;-er:ber 'lrnre r.ot f'olloi:ed (c:.ttach:::ent III 1 tr.ire. para.).

To ::•ec2cpi tulate, Hr. M2.c1'!a;r.a.ra requested the Director-Ge!'leral, F..;.c, i:::. tis letter c-: 22 J'U.:'.le (attac:m::ent IV) that I should. ·ce permitted. to serve 0:::1 tl:e Ge::..er2.l Pc:.::.el a::d t~·.tZ.t the::-·,=; ;rnuli ·be three raeetings of -~he Generc,l Res,3e..:::-ch Ac.·,.;iscr:,,r Par:.el ,,·rdch I i-;c"cl:;.d ce :'8·:::u.irerl to attend.o The::-e 1--:m .£2 r::er:t:.on that :;: 1-;ould be required. to serve 2.s :::;, __ co:·.,_suh,1,,~ '\..md.er the rules of consultancy of the lforld. :J:'.e.:-'-< for ,r2,:-io:1s nerio'.3..s "us-t·;:2e:1 Cctoc2r 1978 and Jtme 1979. Hnile this is the forr..at ;·:hlci your pe:-so::r.el c._c::2.:::-··: :ient 112.s c:wsen fa:- the otner nembers of the Pa:iel, t:ho are ir::.eei ~-:0:-,:1.r:; as ~c1:s·..1lt2.Y1ts, t:.:is clicl not apply to me.

I fa::_1 to ·...,1..'1dersta.nd. wby the Perso::ine 1 :Dcpartr::ent of t::e ;;orld 3.3.,_'>( n:r.1.s-: i::...sist tl1a t .1. wo.st 1:0:'l·: as a co:r:sttl-tant for vari o:is perio.:13 bet11een Octo·oer 1 S:78 a~d. J\::,:e 1979" Tl~i3, a.2 I ha.-ve e)'_plE::..i11ed in rrr.J letter of 7 I·Iover.i0e.r 1 is conple~ely lL'"Lie(:ES­

s:.:::;:: for ,r~/ e.ffecti v,~ functionin5 as a neraber of the Pc>.r:el. In fc>.ct, I su.g-s=stec:. :J. fo::.·:·.r..1lat.ion in par2-erc,ph tbrec of my letter of 7 :t.~cve::1oer i·:hich cc·.1:d l-.ave t?..ken c:..::.;,,:, of all tnese un:1.ecessary co:nplicatio!l.3 and wonld. h::\'e fol:.o:;ec: striGt:.:r t::i~ c":-:J.Gh:.al rec;:t~est l ,;-; :.fr. l'.iacl~arr.-:ira aai the re.sponse of the ?.-!O .Ji:::-·~c-: :)r-G-e21er2,l (att. V) c.:.:_:::·c-si~:~ ·co -::;:; :::.e::102rsl!ip o~ ';h3 Par..el. l'ncler the circ-u::-:s"ta!:ces if -:j1e furu,: is still :.~1i: c:r,ts":ed ir. r.;y co::1·l;i:r.uin::; as a member of the P2.ne 1, alo:::s -::.1e li~:c3 of :::tv' su;·gesti.:m, ' 1 1 " , • • L • ' t .l. t' • • 1 • .I:' , • 1 • u ' .l. 1 -:;.:L•) :::·:<· ·.-:?y 't'.) 0..0 :::a l.S -CO re';er uO 11C Ol'l.['1.!1a ::'.'E:(IUC,,.; 0- 1·.I'e 1·.Z..C11ar.i.ara c..!1C. 1,Il9ll

::C .;2.~r t:-~r t::, p::;1~;,ua:::c the :=irecto:--General to re-;urn to the orici:::.2.1 po3itio::. C':Hio-..-:.s ly the :2an..'-< ·.-.ould r.ot 1 tL'.i.erefore, 6·d 2.r,, u;;ree::e:r.t fro;:; F::',O to £Ct r.~r services as a -::~ns1:.}:~?.-:~~ er ot!' .. zrt;:ise, for 1.111JE-fincci 1)e:' :tc:_l3 i~te~:.:it-::er.tl .. ,,. Oe~~--·een C:toCer Jq-18 - ··- --- ' , 2.::id ..i'·,z1e 'iS:75 e::cc;,::t to at"~tmd the t~·!O re::F:i:ii1,:; r::ee-z.i::,0s. .ir. c2.se 'the :Ban;,: stic~;:s to i~.s : ·c,rr:r..ihtion of the letter of ?Iovenoer 28 from I.~r. Gro2n, :: a.m af'ra.id. ?..: .. o would :1Jt p2:~;-::i i; r::s to a.ct a.s a ~ember of the :2}:tern.2..l :.ese2.r~h 11.c.::iso:::; Fa.:-,el.

Pref. 2ollis E. Chenery '/::..c~ ?rc:,i.d.ent, Develcpment Policy

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... h'hen you passed through Rome, I did not know the negotiations between the

two person .. "le 1 departments and the consequences thereof; therefore, I ,rnuld like to k1ow your posi t::.o:i in this respect at your earliest~ Please sen.d. a ca.ble clarifyir:g the position to all concerned with copies to r:ie if you a:;ree with c;, Si.l6:S'estion.

I must th2.n.'c you for suggesting my nar.ie to Prof. Carl Kaysen for invi ti:r:g me to -;;he cele'cration of Edward lls,so::i's 80th birthday. As you have ris:::tly poir.ted c""J.t ·:1:is is linked up ui th my visit to l:c~shington for the meetinE_· c;.~ the Advisory Pa::J.-c: l. I can.:.,ot reply to their enquiry if I am not going to visi"t :-:~sni:::gt 0:1. 2.s e. me::i::;er c,f the Panel at that tir.ie. This er:ipi1:1sizes the extreme i..1..:-se:1cy on :tou:=­part as to what you would do as to revising your request to FAO a-oout T1'!J' t!emcer­~~i~ on the ?8.nel.

i:uru1 Is l?.m Assistant Directer-General

Eco0.1omic and Social Policy Departmen.t

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DECLASS:WIED APR 1 8 2019 ·

WBG ARCHIVES

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RA/di cc: D u'"ector--General

Mr. Skoufis AF ·Mr. Islam ES/

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Food and Agriculture Organization (FAO) Via delle Ter~e di Caracalla 00100 Rome, Italy

Attention: Personnel Departt:1ent

Gentle:.n~en: I

November 28, 1978

?l~ase refer to the letter of agreement dated October 5, 1978 regardi~g Mr. Nurul Islam's assignment as a Consul~ant o~ the ~0rld Bank's E:-:tcr,,2.l Res.:?arch Advisory Panel.

I am uriting to you that paragr2.ph 3 of this letter should be az:e::.ded to say that: Mr. Islan's services ~ill be required inter.:itte4t:y for the pl'rlod C..:tohct" 1. 1973 to June JO, 1979. Tn ndclitl~:1. contr:-,ry to the asst.:..sptio~ as reflected in the letter dated October 5, 1978, ,;.:e :10.J

ur-..ci·~:-stc.:i.c that FAO will cor:.tinue to pay }:[r. Isl.::.:i:.' s salary and r2.l:ated stafi be~efit costs during that period.

All othe:- terns and conditions mentioned in the letter of c.g::-e~::ent tlat2d October 5, 1978 r2n:2.in the sa:1:2.

Plc~se indicate your agrcerr.ent with the foregoing by sif:ling a.~c r,:tur:iing the enclosed .:opy of this letter.

E:1closure

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cc: E:r·. Sur.an Ber;:,, World Bank Er. :3ela 3c'.:.lassa., World Bank

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. . INTE.::?NATIO NAL SAN K FO~ J:.SCONSTRUCTICN AND DEVELOPMENT

INTERNATJONAL C-EV::LO?MENT ASSO'C IAT ION

W A S HIN v T O N , D. C . 2 0 ..,33 U. ? , A .

?C:.7CH

Ec.ouarc. Saouma ~i~ectcr Ger.eral ?cc~ an~ Aqricul ture Orga n ization

c= -=11e "C:ii~ed ~.-.i.2~ c..elle 'I'err:,e ::::c:::e, !t2.ly

i'~ation s di Caraca lla 00100

June 22, 1978

Over the past seven years the 't}orld Bank has ca~=iEi o~ a sabstantial progran of ecc~omic research. ~:tho~~h ~e regularly review i~dividual research projects -:.-.-:.. t~-:.:.:: ::he :Sank as they 2.re cc:-::?lete:5., i:.,e r..c.-1 ~ ... ,ish to seek e~~s=~~l advice on cur ?ro;ra~ a~d on t~e fut~re ~irectio~s cf ccr ~esearch. Accordingly, I have c..ecic..ed to establish ~ ~2=8ral Res2arch Advisory Panel co~sistin; of octst~nd­~=; i~~ivii~als concern2d with develc?~ent =esearch tc assess ~~2 3ank's prcgra~.

T~e purpose of t~is letter is to as~ whette= ~=- N~rul !sl2~, Assist~nt Director Gene=~l on your staff, ~c~l~ be able to serve en the General Panel in his personal c2.~2.:::i ty. Sir Ar<:l:.'J.r Lewis, I?ro::esscr of Econcmics at ?:-2.:'~·:2t:]I1 Ul1i-,.rersit~1 c..nd a~ t!1e C11ive~s·:.-:.y of ':.he ~--~est I:idies, ~as as=aet ~o serve as the C~air~&n. ~ list of those being 2::.s:-:2d to oe r.:2~,'.bers of the Panel is enclosed. I also e~clc2e a {raft terffis of refere~ce, wiich i~dicates ~he ki~d cf :..s s ·~2s the:. ·:. rr.2y be cons ic:.ered b:; the sro:ip. The .?anel itsel~ Kill establish the act'J.al ter~s cf reference.

: a=ticipate that t~er2 will b2 ~tree ~eeti~gs cf tbe :;.esea:.:-c~1. Acivisory P2::.nel ::iet,,;ee:1 Octcoer 197 8 and J\ .. L-:E: 1979. Eacl1 raeeting r,1ay last t"i,'O or three days. 'Ihe Ba~~ will, of course, bear Mr. Isla~'s expenses in connection

.. ~1r. Edouard Sa·ouma 2

I very much hope that :Mr. Islam will be able to participate in this exercise.

With best regards.

Sincerely,

U4fM.,,L ____ /~ --Robert S. HcNw""Tiara

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Ralph ,.,,.;: Phillips f~r Oirector G~n!r&i

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