enhance the relevance of Bank research by undertaking assessments and surveys of operational (internal) and policymaker (external) clients.<sup>21</sup> In 2005, the Chief Economist, François Bourguignon, commissioned such an evaluation, covering the period 1998-2005. A panel headed by Angus Deaton and comprising some 25 world-renowned development economists was asked to assess the relevance and quality of Bank research. The evaluation report, presented in 2006, was generally favorable, confirming that a strong in-house research capacity is necessary for the Bank, that much of the Bank’s research is of leading quality and that Bank researchers have delivered much more value added to the institution than the very small share of the budget that they command. There were some detailed criticisms, however, in response to which a staff working party was constituted that weighed staff reactions to the evaluation and made recommendations to DECRG management.

# _3.5.4 Resource Allocation & Funding_

Under the new matrix structure created in 1997, the Research Support Budget became the main vehicle to allow economists in the Regions and Networks to participate in research activities in addition to their operational work. For instance, in March 2000, Joe Stiglitz— Chief Economist, then Advisor to the President—in an email to the Managing Directors mentioned that “RSB funds are allocated through a comprehensive review process that considers both quality and relevance to the Bank’s operations and clients. The RSB is the only source of competitively-allocated funding for research. Experience in other institutions confirms that the quality of competitively-funded research is considerably higher than that of research produced under dedicated funds. The fact that these funds are not committed to particular units also provides flexibility, allowing Bank research to quickly address newly emerging problems.” In 2000 and 2001, available resources for research had decreased—as had the willingness of managers in the Regions and Networks to support research.<sup>22</sup> The production of research was concentrated in DEC. There was an unmet demand for funds, reflected in nearly 100 research prospectuses on critical issues submitted by Regions and Networks in response to a request by the Chief Economist. Presented with these regional and network research plans, the Managing Directors approved an increase of 30 percent in the RSB for FY02. A “Regional and Network Research Initiative” was established to support DEC consultations with regions and networks to determine their research priorities and to provide funding for regional and network research on those topics.

Following the 30 percent rise in the RSB, with continuing disincentives to do research in the Regions and Networks, demand for RSB funds from these Bank departments stagnated. Low

> 21 In July 2000, Paul Collier approached the Research Committee for ex-post rating of research pertinence, as part of a broader strategy of building four quarterly indicators of DECRG performance.  In a first round, the Research Committee members were requested to evaluate 33 DECRG outputs published in the last quarter of 1999.  He asked the Committee to assess each product based on its pertinence to the Bank’s operational mission, using the QAG scale (1 = highly satisfactory, 2 = fully satisfactory, 3 = marginally satisfactory, 4 = unsatisfactory).  In May 2001, another 76 reports were sent to the Committee.  However, since Research Committee members were already burdened with a heavy workload, the scoring was never completed and the process was stopped (see May 2001 RC Meeting minutes).

> 22  As recorded in surveys, focus groups and informal discussions carried out by DECRS in 2003-04.

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