Professor Louka T. Katseli is Director of the OECD Development Centre, in . Professor of Economics at the University of Athens, Louka received her Doctorate in Development and International Economics from Princeton University in 1978, has spent most of her academic career at Yale University (1977 -1985), and the University of Athens (1988 – present), where she was chair of the Economics Department from 1997 to 2001. She also has been associated with the Centre for Economic Policy Research in London as a Research Fellow since 1984. Her many publications have focused on issues such as the linkages between foreign investment and trade in developing countries, the economics of migration, public policy effectiveness and institution-building in developing countries, and exchange rate policy in emerging markets.

Prof. Katseli also has worked extensively with international organisations and her national government. She was a member of the United Nations Committee for Development Policy, where she has served as Rapporteur and Vice-Chair, and served as ’s representative to the international conference on Financing for Development in Monterrey in 2002. She has represented Greece at the European Union in a range of capacities, including as a member of the EU Monetary and Economic Policy Committees and on the “Comité des Sages” for the EU Social Charter. She has also worked as a consultant for the European Commission, United Nations and UNCTAD.

From 1982 to 1986, Prof. Katseli served as the Director General of the Center of Planning and Economic Research (KEPE), a Greek development think-tank that provides economic development policy advice to the Greek government. She served as economic advisor to the Greek Prime Minister from 1993 to 1996, and as advisor to the Greek Minister of Education from 1996 to 1998.

Prof. Katseli is married and has two children.

Tell us a little about your own background and the Centre

The OECD Development Centre which I have been directing for the past four years is a unique organisation. Created in 1962 to provide a bridge between developed and developing countries, it is viewed today as the OECD's knowledge centre on development. With twenty eight countries on its Governing Board - including some of the major global emerging economies such as , and - it serves development policy makers through its evidence-based policy dialogue activities, comparative analyses of emerging policy issues and networking services among governments, think tanks, civil society and business. The objective of its activities is to contribute to development and poverty reduction through improved policy making and the effective implementation of reforms. The politics and economics of managing structural change and promoting reforms have been at the centre of my own interests for many years. Raised in Greece during the military dictatorship in the late 60s, I soon became intrigued by the links between institutional change, participatory democracy and the process of economic development. These interests guided my studies in public policy and economics in the United States as well as my professional career. As an academic

1 economist and University Professor at Yale and the University of Athens, I have tried to analyse and explore the determining factors which shape developing countries' capacity to adjust to external and internal shocks and mobilise their available resources for development. As a policy practitioner while serving as Director of the Centre for Planning and Economic Research in Greece or as Economic Advisor to the Prime Minister of Greece, I have experienced the difficulties of effective communication and policy implementation and have come to appreciate not only the need for setting up participatory processes in decision making and providing for monitoring and evaluation mechanisms but also the importance of managing people's expectations and providing sustained leadership throughout a reform process. It is these experiences that have spurred my interest in organisational psychology.

Does the psychology of work play a role in these activities?

Industrial and organisational psychology, including what has come to be known as the psychology of work, lies at the heart of the political economy of reforms and of development. Its focus on motivation and leadership, group and organisational behaviour, as well as managed change and organisational dynamics, provides invaluable insights into how "people factors" influence behaviour, performance and outcomes. The same policy instrument can have very different impact effects if introduced and managed appropriately, namely with due consideration of the aspirations, expectations, capacity and incentives of the agents of change and the stakeholders of development. Unfortunately, such considerations more often than not lie outside the radar screen of policy advisers and policy makers.

How prominent is "I/O Psychology" in your field?

I think it is accurate to say that I/O Psychology is not prominent in the study of economics. The same can be said for law and public policy studies. However, the issues tackled by I/O Psychology are gaining ground in the context of institutional economics and certainly in business and management. As a public policy analyst and practitioner in development economics I wish I had received such additional training.

How could it be more so?

I am sure it could in academia, in international organisations and in public policy making. It would involve setting up programmes of study, teams, mechanisms and fora promoting more interdisciplinary approaches to development issues, development cooperation and public policy. To give only two examples, I am sure that the delivery of development assistance would become more efficient and effective if aid professionals addressed systematically the psychology of aid and the interpersonal dynamics that shape the donor- recipient relationship. The same can be said for the management of migration flows

2 where the psychology of the migrant and the family left behind and the incentives provided to them are important drivers of success or failure.

From your perspective, and with your experience, how could the profession help, do you think?

Successful interdisciplinary collaboration in tackling policy issues and effective dissemination of the positive results of such collaboration is probably the best practice in raising awareness and demonstrating the value-added of such an approach. The profession can also help by addressing a number of standard development policy questions from an I/O Psychology perspective and highlight the insights and gains of such an outlook for practitioners and policy makers. It is not an easy task, but I think that the time is ripe for a more innovative approach to analysing what works and what does not work in developing and emerging economies.

Thank you for a most illuminating, thought-provoking and insightful set of reflections. I feel sure that TIP readers will find an abundance of food for thought in these high-level perspectives and experiences kindly given.

3