minutes

International Economic Association
Minutes of the newly elected Executive Committee

Buenos-Aires, Argentina

Thursday 26 August, 1999
8.00 p.m. -11.00 p.m.

Minutes

Present:

 

President

Robert SOLOW - Chairman

Vice President

Vittorio CORBO

Members

Bina AGARWAL
Maria AUGUSZTINOVICS
Eliana CARDOSO
Jacques DREZE
Gene GROSSMAN
Seppo HONKAPOHJA
Valeri MAKAROV
Andreu MAS COLLEL
Mustapha NABLI
Adrian PAGAN
Kotaro SUZUMURA

Outgoing E. C. Members

Tony ATKINSON
Erich STREISSLER
Alan WOODLAND

Observer

Victor A. BEKER
Member of the Directive Council of the AAEP

Secretary General

Jean-Paul FITOUSSI

IEA Secretariat

Véronique de LABARRE
Catherine FUSS

Absent

Jacob FRENKEL
Hans Werner SINN
Michael KASER

The President opened the meeting with a cordial welcome to the new Executive Committee members present, and, in particular, to Victor BEKER, Representative of the AAEP. He regretted the absence of Jose DELFINO, President of the AAEP.

He then turned to the agenda:


1. CO-OPERATION WITH THE WORLD BANK

Meeting with Joseph STIGLITZ and Lyn SQUIRE

1.1 Description of the project

The President introduced Joseph STIGLITZ (Senior Vice-President and Chief Economist of the World Bank) and Lyn SQUIRE (Acting Senior Vice- President). They presented the projects of collaboration with the World Bank. The World Bank wants to promote groups of researchers to study development issues and to strengthen the overall economic capacity in the developing world. Some networks already exist since about ten years. These have been successful in promoting training activities in Africa (AERC) and organising conferences around the world. The World Bank has also been instrumental in creating networks in the Middle-East.(Economic Research Forum). The idea of the GDN is to put together networks from both developing and developed countries. It is a global issue

The World Bank disburses around 10 millions $ to support the networks. The funds are allocated to individuals on the basis of peer review. The transparency of the system may persuade other donors to come in and provide money as well.

Lyn Squire described the global activities that have already been undertaken:

- The global research project relates to four thematic papers - Aggregate growth, Markets and economic growth, Microeconomics of growth- Political economy of growth- (see country studies). There is no common discussion among the different regional networks yet but a meeting will be held in Cairo at the end of October where all authors will meet The aim of the project is to identify researchers and resource persons on these topics.

- The survey of research institutes in LDCs: the purpose of the survey is to identify the services that the GDN may provide to institutions. The survey has been pre-tested and is now ready for dispatch to more than 100 institutions world-wide. Results will be available in October.

- The World Bank has also been trying to collaborate with donors to check their interest in supporting some of theses activities.

- Bonn Conference: (see the preliminary program). This Conference will not only be an occasion for an exchange of views on research, but also for the possible organisation of links between research institutes and donors.


1.2 BONN Conference

Lyn Squire explained that they were expecting some specific goals out of the Bonn Conference -beyond the opportunity for researchers to share their work):

    1. To obtain funding for the country study project (the World Bank finances it partially but will try to get other donors to support the project).
    2. To have announcement that one of the countries will be willing to host a second meeting. The Japanese government has already agreed to host it in Tokyo in December 2000.
    3. To identify the key areas where research institutes need more assistance.
    4. The Japanese government would like to have an annual award which goes to the best piece of research done by an economist from a developing country.
    5. To reach an agreement on a governmental structure for the GDN.

1.3 Interaction with the IEA

He then mentioned the few areas where there may be possibilities of interaction between the IEA and the network:

- Global research project: this will be the most comprehensive study existing. As the thematic papers become available, IEA might want to organise an independent review of these papers.

- Survey: the results of the survey will be available in October. These will be available for the IEA. The current survey focused on institutes; it could be replicated for individuals. The IEA could play a major role in this.

- Active participation of the IEA in the Bonn Conference: the IEA could organise a session, or send papers without organising a session.

- Governance structure of the GDN: Since the idea of the GDN is to generate and share knowledge about development issues, the GDN should be as open as possible. The question of governance becomes: how do you move from the wishes of this large membership and make sure they are reflected in the action of the secretariat. The suggestion is to organise a small Executive Committee which would consist of the heads of the six networks plus representatives of five international agencies (UNDP, IEA, OECD, World Bank, ODC). Alternative proposals may be made before or during the Bonn Conference.


1.4 Structure of the GDN

Maria AUGUSZTINOVICS suggested to expand the themes of development, beyond the economic view of development, to other social sciences( Sociology, Ecology..). Lyn SQUIRE pointed out that this issue could be decided by the Executive Committee of the GDN. He remarked that the growth project could be developed thanks to the existing experience of the African network.

In response to a question raised by Bina AGARWAL, Lyn SQUIRE explained that the role of the Executive Committee of the GDN will be to set up the broad guidelines of the GDN, and to appoint the Secretariat. (There will be no legitimacy of the initial Executive Committee, but this may be reviewed later on). He further explained that each network chooses a director but that the right to vote will be based on some criteria (professional capabilities, for example) Robert SOLOW noted that it is not necessary that all networks have the same functioning.

Valeri MAKAROV pointed out that one difficulty of such networks is to bring together in the same project new people, different institutions or communities from the same region (small and large ones). Lyn SQUIRE estimated it is one of the most difficult problem to solve. Differences between networks are an important issue. This may concern, for instance, funds allocation. The GDN may have feedback on the way funds have been allocated to open up this new knowledge.

Joseph STIGLITZ remarked that LACEA has done a lot of work on research projects that involve different research institutions. Co-ordinating research institutions (from the regions, and from outside the region) may promote the exchange of ideas on research issues to have some common research methodology .

Robert SOLOW noted that the Bank is interested in opening up this network. It is very difficult for small groups to identify the best way of having access to the large numbers of global projects. This is an area where the IEA can help.

Joseph Stiglitz mentioned that one of the main proposals of the World Bank is to make a broader map of researchers.

About the governance of the GDN, Maria AUGUSZTINOVICS suggested to expand the co-operation to other specialised agencies of the U.N. on development issues. Lyn SQUIRE thought however that there must be a limited number of members (5) of the Executive Committee, so that the 6 regional networks have the balance of power.

Bina AGARWAL wondered whether the 6 regional networks would be inclusive of the different intellectual traditions and approaches to development that coexisted in many parts of the world. There was a risk that the networks might largely promote research that is dominated by the concerns and approaches of the World Bank. Joseph STIGLITZ pointed out that the IEA might have a role in enlarging the network.

Bina AGARWAL further noted that in the eleven member composition of the GDN Executive Committee proposed by the World Bank (6 network representatives, one World Bank representative and 4 other members) only the 4 "other" members would potentially be independent of the Bank, given that the hitherto close association of the networks with the Bank, including, for instance, through the financial support they receive. Also in the proposed Executive Committee of the GDN, the IEA would be the only professional academic body. This would mean that the Executive Committee may not be autonomous and the IEA may not be in a position to play much of a role in the Executive Committee.

Joseph STIGLITZ insisted that the World Bank has no intention to make the GDN part of the World Bank, and that one of the reason to involve the IEA is precisely to broaden the basis people who are implicated. Joe STIGLIZ hoped that other fund providers will arise in the future. This would increase the autonomy of the GDN. He noted that, for example, the World Bank is not allowed to provide more than 15% of the funds in the African network (once the network has been established).

Alan WOODLAND remarked that the ability of the network to become more inclusive may depend on the structure (for instance, how and by whom the directors are appointed).

Lyn SQUIRE suggested to adopt the procedure that already exists in the Middle-East and African networks, the regional membership choosing the heads of regional networks.

Bina AGARWAL suggested that for ensuring inclusiveness and democracy, it was important to lay down some guidelines also for the governance structure of the regional networks, rather than leave the question of regional structures completely open-ended for each network to decide. Lyn SQUIRE answered that the networks should decide on how to construct a democratic structure. Mustapha NABLI underlined that the question is not the functioning of the networks, (the GDN is not running the regional network) but whether the activities initiated and co-ordinated by the GDN are open or not.

Joseph STIGLITZ and Lyn SQUIRE left the meeting and the discussion continued among the IEA Executive Committee members only.

The President asked the Executive Committee :

1. Whether the IEA should participate in the Bonn Meeting?

He suggested that the IEA should organise a session on Latin America, and that some IEA Executive Committee members attend the meeting and participate in the Conference and get some sense of what the GDN would be like. Jacques DREZE mentioned that there have been many papers on Latin America presented at the 12th World Congress, that could form a basis for such a session. Mustapha NABLI suggested to choose a topic that goes beyond the regions, as this is the aim of the GDN because regional networks are supposed to organise sessions on their own regions. The President remarked that there is not much time left to organise this, and suggested to follow Jacques Drèze's suggestion.. Eliana CARDOSO proposed herself to review the papers. The Secretary general mentioned that, since one of the Conference volume is on this topic, editors have already been appointed (Daniel HEYMAN, Enrique BOUR and Fernando NAVAJO)

It was decided that Eliana CARDOSO, Vittorio CORBO and Enrique BOUR will review the papers and attend the Bonn Meeting.

2. Whether the IEA should participate in the Executive Committee of the GDN in the way it has been proposed?

Vittorio CORBO found this proposal appealing, because it may be a way to ensure the inclusiveness of the GDN.

Adrian PAGAN raised the question of the means that the Executive Committee of the GDN has to oblige a network to be inclusive. He estimated that the OECD should not be part of the Executive Committee.

The Secretary General proposed that other associations of economists that could be included are the International Social Sciences Council (a non-governmental organisation) which is similar to the IEA and the CEPR which has good knowledge on development. He also suggested that if the IEA was to designate a representative, it should specify the form of the representation. The President then said that the Executive Committee of the IEA may designate a member for three years, who will report to the Executive Committee each year, which, in return, will decide to re-appoint him/her or not.

Bina Agarwal mentioned that while it was true that the IEA could, if necessary, use the exit option if it found that its involvement wit the GDN was impinging on its independence, using the exit option would not help IEA influence GDN functioning. For that it was important to have more voice that carried weight. Over time, many kinds of issues could come before the proposed GDN Executive Committee, such as what types of research projects should be taken up, which researchers should undertake the research, who should review the proposals, and so on. It was therefore important for the GDN Executive Committee to include a large number of independent professional academic bodies, such as the IPA , the ISA, etc. If the Bank is interested in independent research, as it says it is, then it might also welcome our suggestions on including such professional bodies.

Jacques DREZE suggested that the IEA may designate an eminent specialist as an independent person not representing any organisation. Robert SOLOW noted however that the IEA may not be in a position to do so, because it is the role of the GDN's Executive Committee.

3. Whether the IEA should participate in the research project, i.e. review the 24 thematic papers, send the papers to referees or make some recommendations about referees ?

This question was left for further discussion.


2. PROJECTS UNDER PREPARATION

The Executive Committee reviewed the following projects:

- "REVITALISATION SAVING AND INVESTMENT IN SUB-SAHARAN AFRICA", Nairobi (Kenya). The African Economic Research Consortium will be consulted again on the possible organisation of this conference

- "THE BALANCE BETWEEN PUBLIC AND PRIVATE POWER" London (UK). In spite of difficulties to obtain the necessary financial support it is still expected to hold this meeting in the future.

- "GLOBALISATION AND LABOUR MARKETS". St Andrews, (UK). David Greenaway is in charge of this conference. This conference was agreed. The Secretary General suggested to broaden the conference so as to take into account the perspective from emerging countries.

Tony ATKINSON agreed that developing countries should be more involved in the program. The President suggested to propose someone from outside the United Kingdom. The Secretary General reminded that the normal size of a program committee is of 4 to 5 members. Then, Robert SOLOW suggested that this Conference may serve as an experiment for electronic publishing.


3. FUTURE OF THE I.E.A.

3.1 Relationship with member associations

Tony Atkinson outlined that this item has not been discussed at the Council meeting . Relationship with member associations is not satisfactory at the moment and should be developed.

Adrian PAGAN outlined that the IEA is well-known to students through its publications. He suggested that Newsletters from member associations should include news about the IEA. Some of the material from the IEA could be extracted and printed in these Newsletters.

Alan WOODLAND noted that the World Congress offers an unusual opportunity to enlarge the email list. He suggested that the Newsletter be sent by e-mail to individuals as well as to associations. This would facilitate further diffusion.

Robert SOLOW proposed to ask member associations to give their e-mail list. Gene GROSSMAN noted that they may not be willing to do so because it may be a way to check membership. The Secretary General suggested to put the Association's Newsletter on the IEA web-site and to advertise it.

As regards membership, Maria AUGUSZTINOVICS noted that only 30 out of 56 associations pay their membership fees and that only 4 replies were received in answer to the last questionnaire sent out.

Robert SOLOW answered that, probably, many of these organisations have no regular office. This may be also due either to the fact that member associations are being sent too many questionnaires, or that representatives of member associations change. He suggested that when asking for the next settlement of the annual fee, member associations be requested to inform the IEA how to improve best communication.


3.2 Specialised Conferences

The President reminded that the Atkinson committee report suggested that perhaps they had outlived their usefulness. He underlined that the Executive Committee should be more active in this process suggesting topics for future activities and ways and means to obtain financial support, etc…, rather than expecting proposals from member associations. Tony Atkinson suggested to look for cross-disciplinary conferences. Eric STREISSLER stressed that organising and getting funds for Conferences has become more and more difficult. Although specialist conferences serve a specific role, they receive less and less interest in Western Europe. He suggested that the IEA should have one yearly conference organised in conjunction with the annual meeting of an IEA member association. The papers of the conference may not be published except if they are of international interest or interdisciplinary. The President suggested to appoint a sub-committee of three persons to study these questions and make suggestions.


4. PUBLICATIONS

The Secretary General asked the Executive Committee whether it wants to keep Macmillan as publisher or switch to another one. He also informed the Executive Committee that Macmillan no longer proceeds to the distribution of IEA volumes of proceedings to member associations contrary to the agreement reached in the past.

Adrian PAGAN remarked that there will be too many Conference volumes for the Buenos Aires Congress. The Secretary General clarified that there will be three volumes, two for invited papers and one from a selection of Latin America papers.

Bina ARGAWAL suggested that IEA consider switching to another publisher which has more international reach and coverage, such as Oxford University Press which has a presence in North America, Europe, as well as in developing countries. Macmillan now appears to be largely publishing textbooks in South Asia. Another alternative would be to think of having a co-publishing deal. For instance, many universities presses in the USA co-publish with other presses in developing countries. She further noted that sales also depended on the themes of the volumes. Volumes on new emerging areas of interest tend to sell better. For instance, the conference volume which has sold the largest number of copies was the one on "Women, work and the world economy" since gender analysis was a significant emergent area of research. Environmental economics was another such new area. She suggested that the World Congress should such new emergent issues. Perhaps some ideas on priority research issues could also be generated by soliciting suggestions from IEA members via email.

The President said that the letter received from Oxford University Press was not enthusiastic about publishing IEA Conference volumes. He suggested to wait for suggestions from the sub-committee, and to re-contact Oxford University Press if good conferences emerge.

Kotaro SUZUMURA suggested that conferences organised jointly with member associations may also be published in the journal of the association when it exists.


5. OTHER BUSINESS

The Secretary General reminded the Executive Committee that the application received from the LACEA to become an associate member of the IEA should be accepted.

He also said that advisers to the Executive Committee should be nominated.

These issues will be discussed later.

Adrian PAGAN raised the question of the election of Honorary Presidents. The President referred to the procedure adopted in the Council. He also asked that the Executive Committee members email list should be circulated as soon as possible.


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