Adjustment and Debt

9832 Public Disclosure Authorized The World Bank Research Program 1990 Public Disclosure Authorized Abstracts of Public Disclosure Authorized Current Studies Public Disclosure Authorized THE WORLD BANK RESEARCH PROGRAM 1990 ABSTRACTS OF CURRENT STUDIES The World Bank Washington, D.C. Copyright @ 1991 by the International Bank for Reconstruction and Development/Ihe World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. All rights reserved. First printing: July 1991 Manufactured in the United States of America ISSN 0258-3143 ISBN 0-8213-1885-3 RESEARCH AT THE WORLD BANK The term "research," in its broadest definition, en- Policy Council (RPPC) chaired by the Senior Vice Presi- compasses a wide spectrum of Bank activities. Much dent, Policy, Research, and External Affairs, sets priority economic and sector work - analytical work to support guidelines for all Bank-supported research. RPPC mem- operations - generates new knowledge about member bers are drawn from the ranks of Bank senior managers, countries. Outside the Bank, this work might well be seen mainly vice presidents. as research. By convention, however, Bank research is Bank research is funded through two sources: de- defined more narrowly to include only analytical work partmental resources, mainly staff time, and the Research designed to produce results with relatively wide applica- Support Budget. The RSB also supports severa activities bility. Although clearly motivated by policy concerns, that, while not properly research projects, add to the value Bankresearchisusuallydriven notbytheimmediateneeds of Bank research and enhance the Bank's image as an of a particular Bank lending operation or a particular intellectual leader in the field of development research. country or sector report - but by longer term concerns. The Annual Bank Conference on Development Econom- Bank research is an investment that will add to our under- ics, the Visiting Research Fellow Program, and the Bank's standing of development, thereby improving the intellec- research journals are examples. TheRSBisalsothesource tual foundation for future lending operations and policy of funding for the Bank's direct contributions to research advice. In contrast, economic and sector work takes the capacity building in its member countries, providing sup- product of research and adapts it to specific project or port for several research networks in Sub-Saharan Africa country settings. Both activities are critical to the design of and Latin America. successful projects and effective policy. Departmental inputs into Bank research are deter- In its effort to expand our understanding of the mined initially by department directors and their staff, and developmentprocess, Bank research does not always yield reviewed and revised through work program reviews at specific and immediate operational advice or guidance. vice presidential and senior vice presidential levels. Re- Work in this area tends to focus on basic issues - for search projects that are funded only by departmental re- example, improving estimates of agricultural supply resources make up about half of the Bank's overall research sponses, increasing understanding of labor markets in program and takeplace mainly in thePolicy,Research, and developing countries, predicting the responses of house- External Affairs complex. holds and individuals to policy-induced changes in their The Research Support Budget is a unique effort on environment, studying the root causes of poverty, and the part of Bank management to introduce flexibility, working on the political economy of adjustment. Bank competitiveness, and openness into the research process. work distinguishes itself from academic research in that it The RSB is administered by the Research Committee, is clearly directed toward a recognized policy issue in a which is chaired by the Bank's Chief Economist and Vice way that will eventually yield better policy advice. President, Development Economics. When the Bank's research program was formalized To be considered by the Committee, proposals must in 1971, it had four basic goals: be sponsored by a Bank department (the RSB does not * To support all aspects of the Bank's operations, support free-standing external research) and are generally including the assessmentofdevelopmentprogress in mem- expected to be part of the department's larger research ber countries. program. RSB funds go mainly for the support, of research- * To broaden understanding of the development ers outside the Bank (the RSB cannot be used to support process. Bank staff salaries), and departments, especially those in * To improve the Bank'scapacity to provide advice PRE, are expected to contribute staff time to RSB-funded to member countries. proposals. The RSB supports research managed in PRE, * To assist in developing indigenous research ca- Operations, and Finance, Legal, and the IFC. Although all pacity in member countries. RSB-funded research must be relevant to Bank operations, While these basic goals remain intact to this day, the Research Committee is careful to ensure that these they provide only broad guidelines for Bank researchers. funds go mainly for longer term research with relatively Within these guidelines the Research and Publications broad implications for the institution. iii' CONTENTS INTRODUCTION Special Emphases for Research in 1990 3 Serving the Bank's Other Program Objectives 6 Providing Leadership in the Policy Research Community 10 ABSTRACTS Index of Studies 13 Adjustment and Debt 21 Private and Public Sector Reform 60 Financial Intermediation 77 Human Resources Development and Poverty Reduction 81 Natural Resources, Environment, and Forestry 102 Basic Infrastructure and Urban Development 120 Economic Management 124 V INTRODUCTION INTRODUCTION The World Bank's broad and varied operational THE ENVIRONMENT AND FORESTRY. Research on the needs demand a program of research that is anchored environment proceeded along two parallel and comple- firmly in traditional areas of operationalactivity but also mentary strands in fiscal 1990. One strand comprises six able to respond quickly to new priorities. This research is research areas in the Sector Policy and Research (PRS) intended to support all aspects of the Bank's operations, to wing of PRE. The second involves research by other PRE broaden understanding of the development process, to departments and divisions. We turn first to research being improve the Bank's advice to member countries, and to developed in the Environment Department. help develop local research capacity in member countries. * Natural habitats. This work focuses on reducing Bank research covers a broad range of development- the destruction of habitats, especially deforestation andthe oriented issues in roughly 60 countries, with most research degradation or conversion of rangelands, and includes undertaken or supervised by the Bank's staff. Whenever issues of biodiversity. A report, Conserving the World's possible, collaborators from client countries are also in- Biological Diversity, was published by the Bank jointly volved in the research. The range of topics covered by the with the WorldResources Institute, the InternaticinalUnion research portfolio reflects the diversity of policy advice for the Conservation of Nature and Natural Resources, and information sought by member countries and the data Conservation International, and the World Wildlife Fund. requirements of the Bank as a leading development insti- * Land degradation. This work covers the manage- tution. ment of land resources under rainfed conditions. Its main Theseabstractssetforth theobjectives, methodology, focus is on identifying policy, managerial, and technical and achievementsofongoing orcompletedresearchprojects failures and proposing remedial measures. Several work- during fiscal 1990. This basic information is presented to ing papers have been prepared on these issues. The bring development practitioners and researchers up to date drylands issue, especially for the Sahel, is receiving special on the Bank's activities, with the intention of maintaining attention. A major publication, prepared jointly with the and expanding the dialogue on development issues. Asia Technical Department, deals with "Watershed Devel- This introduction begins with a review of efforts to opment in Asia: Strategies and Technologies." increase research activities in three areas identified for * Water resources degradation. Competing claims special priority in fiscal 1990 and beyond (the environ- forwaterfrom growingpopulation andeconomic activities ment, private sector development, and socialist econo- and the underlying causes of water stress are being studied, mies). It then provides highlights of research completed in with a focus on how to improve the efficiency of water fiscal 1990 and shows how that research serves other management. Research on integrated water resource institutional needs. The final section discusses the dis- planning cuts across traditional sectoral lines, linking, for semination of Bank research inside and outside the example, irrigation and municipal water supply issues. institution's walls. * Urban, industrial, and agriculturalpollution. A broad range of air, water, and land pollution effects due to Special Emphases for Research in 1990 urban, industrial,andagricultural toxic effluents,emissions, and wastes is under study. Industrial, agroindustrial, and Last year's annual report on research promised sig- urban case studies are examining the effectiveness of

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