Apparently not what developing country policy-makers want to know about. Jeffrey Hammer has a fairly damning report from the recent IGC conference in Lahore on the World Bank blog. The IGC funds research by many of the world's top development economists, and apparently none of them are answering the kind of policy questions that were posed at the conference by the Chief Minister of Punjab, Pakistan (a state of more than 100 million people). He wanted to know about how to allocate resources across sectors (which requires value for money and cost-benefit analysis, not just impact evaluation), and how to raise more revenues. What he got was precisely identified studies on the impact of policy tweaks, without any costing.
"The Chief Minister posed serious questions that have traditionally been the bread and butter of the economics profession. Unfortunately, we are not even trying to answer them any more. The specific question was “Should I put more money into transport? Infrastructure (power, roads, water)? Law and order? Social services? Or what? And where am I going to get the money?” What questions could be more solidly part of the core of economics than these? Unfortunately none of these were even remotely the focus of the “evidence-based” policy making discussed.
Almost all of the cases analyzed were single, simple policy “tweaks” that were, first of all, isolated from the broader market context in which they occurred and, second, had no conception of opportunity cost – what we would have to give up to pursue these things?"