Capacity Building 39984 or the last 15 years, the World Bank and its partners—private foundations and governments—have supported the “centers of excellence” for build- Fing capacity in modern economics education and research in developing and transition countries. To scale up these efforts, the Central European Univer- sity (CEU) and the World Bank jointly organized a conference entitled “Scaling Public Disclosure Authorized Up Capacity Building in Economics Education and Research: Lessons Learned and Future Directions,” which took place at the CEU campus in Budapest, Hungary, on June 14–15, 2005. The joint conference brought together representatives of the following in Economics Education and Research regional centers of excellence: the African Economic Research Consortium (AERC) in Nairobi; the Economics Department of Central European University (CEU) in Budapest; the Economics Education and Research Consortium (EERC) in Kyiv and Moscow; the New Economic School (NES) in Moscow; the Center for Economic Research and Graduate Education (CERGE) in Prague; the China Center for Economic Research (CCER) in Beijing; and the Global Development Network (GDN) in New Delhi. Public Disclosure Authorized In This Volume Foreword by François Bourguignon; introduction by Aehyung Kim and Boris Pleskovic; opening remarks by Yehuda Elkana and Alan Gelb; and keynote address by János Kornai. Capacity Lessons of Experience and Future Directions. Papers by William Newton-Smith, Gur Ofer, Justin Yifu Lin, László Csaba, Ramona Angelescu and Lyn Squire, William Lyakurwa, and Robert Campbell; comments by Marek Dabrowski, Jeffrey Miller, Ugo Pagano, Tom Coupé, Alan Gelb, and Sergei Guriev. Regional Perspectives. Papers by Mauricio Cárdenas and Guillermo Perry; Building Benno Ndulu, Michael Crawford, and Peter Materu; Homi Kharas; Ulrich Hewer; Shantayanan Devarajan, Manuela V. Ferro, Shekhar Shah, and Priya Public Disclosure Authorized Shyamsundar; John S. Earle; Jan Svejnar; and Jong-Wha Lee; comments by in Economics Education John P. Bonin, Mauricio Cárdenas, Ekaterina Stepanova, and Ellen S. Hurwitz. Scaling Up Capacity Building to Underserved Regions. Papers and comments Bourguignon • Elkana and Research by Jeffrey Fine, Eva Sundquist, and Regina Yan. Pleskovic François Bourguignon YeYehudahuda EElkanalkana Public Disclosure Authorized Boris PleskoviPleskovicc ISBN 0-8213-6595-9 EdEditorsitors Capacity Building in Economics Education and Research Capacity Building in Economics Education and Research François Bourguignon,Yehuda Elkana, and Boris Pleskovic Editors THE WORLD BANK Washington, D.C. © 2007 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington,DC 20433 Telephone 202-473-1000 Internet www.worldbank.org E-mail [email protected] All rights reserved. 1 2 3 4 : : 10 09 08 07 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank.The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Direc- tors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work.The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank con- cerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting por- tions or all of this work without permission may be a violation of applicable law.The International Bank for Reconstruction and Development / The World Bank encour- ages dissemination of its work and will normally grant permission to reproduce por- tions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher,The World Bank,1818 H Street NW,Wash- ington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. Customers in Europe should order copies of this book through the Central European University Press 1051 Budapest, Október 6 utca 14 E-mail: [email protected] Telephone:+36-1-327-3138 Web site:http://www.ceupress.com ISBN-10: 0-8213-6595-9 ISBN-13: 978-0-8213-6595-3 e-ISBN: 0-8213-6596-7 DOI: 10.1596/978-0-8213-6595-3 Contents Foreword ix Acknowledgments xi Introduction1 Aehyung Kim and Boris Pleskovic Opening Remarks9 Yehuda Elkana Opening Remarks 11 Alan Gelb Keynote Address: Disciplines of Social Sciences: Separation or Cooperation? 13 János Kornai LESSONS OF EXPERIENCE AND FUTURE DIRECTIONS Lessons in Capacity Building from the Open Society Institute 29 William Newton-Smith Teaching and Research in Modern Economics in the Russian Federation: The Experience of the New Economic School 41 Gur Ofer Creating a Market-Oriented Research and Education Institution in a Transition Economy: The Experience of the China Center for Economic Research at Peking University 65 Justin Yifu Lin v vi CONTENTS Comments Marek Dabrowski 77 Jeffrey Miller 84 Ugo Pagano 89 Innovation, Imitation, and Adaptation: The Experience of 15 Years of Upscaling Hungarian Higher Education in Economics 95 László Csaba Capacity Building and Policy Impact: The Experience of the Global Development Network 109 Ramona Angelescu and Lyn Squire The Experience of AERC in Research, Capacity Building, and the Development of Collaborative Training Programs 135 William Lyakurwa The Economics Education and Research Consortium 161 Robert Campbell Comments Tom Coupé 190 Alan Gelb 195 Sergei Guriev 198 REGIONAL PERSPECTIVES Accelerating Poverty Reduction in South Asia by Scaling Up Economics Education and Policy Research 207 Shantayanan Devarajan, Manuela V.Ferro, Shekhar Shah, and Priya Shyamsundar Capacity Building in Economics Education and Research: A Note on the Experience of Latin America and the Caribbean 219 Mauricio Cárdenas and Guillermo Perry Supporting Capacity Building for Economics Education and Research in Africa 243 Benno Ndulu, Michael Crawford, and Peter Materu Economics Education and Research in the East Asia and Pacific Region: Experience and Directions 255 Homi Kharas CONTENTS vii Capacity Building in Modern Economics in the Caucasus and Central Asia 267 Ulrich Hewer DEVELOPING GRADUATE ECONOMICS EDUCATION PROGRAMS Developing Graduate Economics Education from Scratch: The Case of the Central European University 277 John S. Earle CERGE-EI: The American-Style PhD Program in Economics for Transition Economies 301 Jan Svejnar Comments John P.Bonin 317 Mauricio Cárdenas 323 Ekaterina Stepanova 326 Why American University–Central Asia Should Develop an Economics MA Program 331 Ellen S. Hurwitz The Quantity and Quality of Higher Education in Transitional Economies 333 Jong-Wha Lee SCALING UP CAPACITY BUILDING TO UNDERSERVED REGIONS Capacity Building in Economic Policy Research: Outcomes and Future Steps 341 Jeffrey Fine The Experience of the Swedish Government in Capacity Building in Russia and Eastern Europe 345 Eva Sundquist Scaling Up Capacity Building to Underserved Regions 349 Regina Yan Contributors 351 Foreword THIS VOLUME IS A VALUABLE CONTRIBUTION TO OUR UNDERSTANDING OF BUILDING local capacity in economics education and research in developing and transition countries. Over the past 20 years, the World Bank and its committed partners have supported developing and transition countries in building viable educational and research institutions that can help to effectively transform these countries’ stagnant economies into more dynamic and forward-looking economies. The conference which gave rise to this volume was a joint effort between the World Bank and its partners. On behalf of the World Bank, I thank our partners— the Open Society Institute and Soros Foundation, the Carnegie Corporation of New York,the Citigroup Foundation, the Eurasia Foundation, the Ford Foundation, the John D.and Catherine T.MacArthur Foundation, the Starr Foundation, the U.S. Agency for International Development, and the Finnish, Swedish, and Norwegian governments—for their steadfast support in improving economics education and research in developing and transition countries. Over an extended period the World Bank has provided substantial support for capacity-building in economic research through the Research Support Budget as well as through the Development Grant Facility and the Global Development Net- work.The main focus of this work has been on Africa and Europe and Central Asia, most recently the Caucasus.Today we have several “centers of excellence” in eco- nomics education and research in a variety of developing and transitional countries. These institutions include the African Economic Research Consortium in Nairobi, the Central European University (CEU) in Budapest, the China Center for Eco- nomic Research in Beijing, the Center for Economic Research and Graduate Edu- cation in Prague, the Economics Education and Research Consortium’s M.A. program in Moscow and at the Mohyla Academy in Kyiv,the New Economic School in Moscow,as well as many others. These “centers of excellence” in economics are recognized as leaders in educa- tion and research in their respective country