1. AFRICAN ECONOMIC RESEARCH CONSORTIUM (AERC): RESEARCH ACTIVITIES ON POPULATION AND DEVELOPMENT by Germano Mwabu University of Nairobi Prepared for presentation at the Conference on Population Impacts on Economic Development, November 1-3, 2006, London, UK

2. 1. INTRODUCTION Vision and Mission of AERC The AERC was established in 1988 as a public- not-for profit research and training organization The AERC was established in 1988 as a public- not-for profit research and training organization Vision: sustained development in Sub-Saharan Africa, grounded in evidence-based economic management Vision: sustained development in Sub-Saharan Africa, grounded in evidence-based economic management Mission: to build local capacity to undertake economic research Mission: to build local capacity to undertake economic research

3. The AERC pursues its mission by working with institutions in Africa and elsewhere Institutional objectives Enhance the capacity of economists based in national institutions to conduct policy-relevant research Enhance the capacity of economists based in national institutions to conduct policy-relevant research Encourage retention of African economists in national and regional organizations in Africa Encourage retention of African economists in national and regional organizations in Africa Promote application of findings from AERC-supported research especially in countries where the research is conducted Promote application of findings from AERC-supported research especially in countries where the research is conducted Promote Linkage of African researchers with researchers in institutions outside SSA Promote Linkage of African researchers with researchers in institutions outside SSA

4. Structure of AERC Structure of AERC A research program that supports economic investigations by individuals or teams based in public or private institutions in Africa A research program that supports economic investigations by individuals or teams based in public or private institutions in Africa (Thematic and Collaborative Research) A training program based in economics departments in Africa for core courses and at a joint facility in Nairobi for elective courses A training program based in economics departments in Africa for core courses and at a joint facility in Nairobi for elective courses (Collaborative masters and PhD programs (CMAP & CPP)) A small secretariat in Nairobi A small secretariat in Nairobi A worldwide pool of resource persons A worldwide pool of resource persons

5. AERC Objectives for the current plan period (2005-2010) Scale up development of capacity to conduct economic research in SSA Scale up development of capacity to conduct economic research in SSA Incorporate more economic policy research institutions and university economics departments into the AERC network Incorporate more economic policy research institutions and university economics departments into the AERC network Consolidate CPP and dovetail CMAP to enhance synergy between research and training activities Consolidate CPP and dovetail CMAP to enhance synergy between research and training activities Foster recognition of AERC in Africa and beyond as a unique brand of quality economics research and economics training Foster recognition of AERC in Africa and beyond as a unique brand of quality economics research and economics training

6. 2. RESEARCH ACTIVITIES Thematic research Thematic research is conducted around five topics or themes approved by the AERC research advisory committee Poverty, income distribution and labor markets (Group A) Poverty, income distribution and labor markets (Group A) Macroeconomic policies, investment and growth (Group B) Macroeconomic policies, investment and growth (Group B) Trade and regional integration (Group C) Trade and regional integration (Group C) Finance and resource mobilization (Group D) Finance and resource mobilization (Group D) Political economy and sectoral policy issues (Group E) Political economy and sectoral policy issues (Group E) Biannual workshops (held in May and December) are the primary mechanisms for monitoring performance of researchers.

7. Collaborative research Collaborative projects team up African researchers with their counterparts elsewhere for research on a mutually agreed topic. This research modality has three advantages: It sustains interest in African research outside Africa and generates new literature for academics and policy makers based in the region. It sustains interest in African research outside Africa and generates new literature for academics and policy makers based in the region. It facilitates short-term training of African researchers outside the region through twinning arrangements. It facilitates short-term training of African researchers outside the region through twinning arrangements. It allows equal collaboration between African researchers and their counterparts from developed countries, facilitating mutual learning, and perhaps better testing of economic ideas before they are applied. It allows equal collaboration between African researchers and their counterparts from developed countries, facilitating mutual learning, and perhaps better testing of economic ideas before they are applied.

8. Examples of completed collaborative research projects African imperatives in the new world trade order African imperatives in the new world trade order Explaining African economic growth performance Explaining African economic growth performance Poverty, income distribution and labor markets in SSA Poverty, income distribution and labor markets in SSA Managing the transition from aid dependence in Africa Managing the transition from aid dependence in Africa Determinants of foreign direct investments in Africa Determinants of foreign direct investments in Africa Examples of planned collaborative research projects Export Supply Constraints Export Supply Constraints Growth and poverty reduction Growth and poverty reduction Reproductive health and poverty reduction Reproductive health and poverty reduction

9. 3. REPRODUCTIVE HEALTH AND POVERTY REDUCTION IN AFRICA Why this project? Africa has the lowest indicators of both reproductive and general health, and the highest rate of income- poverty in the world. Africa has the lowest indicators of both reproductive and general health, and the highest rate of income- poverty in the world. There is a need to implement policies that would change this situation. There is a need to implement policies that would change this situation. More than any other aspect of health, reproductive health has the potential to substantially influence population growth, age structure, size, patterns of labor force participation, and skill composition. These demographic features are associated with large changes in economic growth and income distribution, the key determinants of poverty levels. More than any other aspect of health, reproductive health has the potential to substantially influence population growth, age structure, size, patterns of labor force participation, and skill composition. These demographic features are associated with large changes in economic growth and income distribution, the key determinants of poverty levels.

10. Tentative project objectives To determine the types of reproductive health services that are in short supply in SSA, and how they can be effectively delivered to the population. To determine the types of reproductive health services that are in short supply in SSA, and how they can be effectively delivered to the population. To assess the determinants of utilization of these services. To assess the determinants of utilization of these services. To investigate relationships between reproductive health and demographic characteristics such as fertility, infant mortality, maternal mortality, population age structure, and labor force participation at micro and macro levels. To investigate relationships between reproductive health and demographic characteristics such as fertility, infant mortality, maternal mortality, population age structure, and labor force participation at micro and macro levels. To measure, if possible, effects of better reproductive health and demographic changes on consumption, investment, saving and on poverty. To measure, if possible, effects of better reproductive health and demographic changes on consumption, investment, saving and on poverty.

11. Project implementation Preparation of background papers to be used to refine research issues, and to identify areas in which researchers might need training through workshops or twinning arrangements. Preparation of background papers to be used to refine research issues, and to identify areas in which researchers might need training through workshops or twinning arrangements. (Drafts of some of these papers will be presented and discussed in a workshop in Brussels, November 5-7, 2006). (Drafts of some of these papers will be presented and discussed in a workshop in Brussels, November 5-7, 2006). Following the practice established in earlier collaborative projects, research proposals will be requested from research teams from the AERC network. Following the practice established in earlier collaborative projects, research proposals will be requested from research teams from the AERC network. Submitted proposals will be peer reviewed and about 12 will be selected for funding, taking into account regional representation. Submitted proposals will be peer reviewed and about 12 will be selected for funding, taking into account regional representation. Resource persons will be identified to provide technical support to researchers. Resource persons will be identified to provide technical support to researchers.

12. Project timeline: phase one The research agenda will be finalized by January, 2007 and a call for proposals issued in February, 2007. The research agenda will be finalized by January, 2007 and a call for proposals issued in February, 2007. The deadline to receive research proposals will be end of April 2007 and the peer review will be completed by May 2007. The deadline to receive research proposals will be end of April 2007 and the peer review will be completed by May 2007. The selected proposals will be presented to the AERC research advisory committee in June 2007. The selected proposals will be presented to the AERC research advisory committee in June 2007. Grant letters for approved proposals will be issued by September 2007. Grant letters for approved proposals will be issued by September 2007. Research by all teams is expected to have commenced by December 2007, which will be the official starting date for the project. (Researchers will use existing data, but may conduct small scale surveys). Research by all teams is expected to have commenced by December 2007, which will be the official starting date for the project. (Researchers will use existing data, but may conduct small scale surveys). Project duration is expected to be 3 years, and will be implemented in 2 phases. Project duration is expected to be 3 years, and will be implemented in 2 phases. Phase 1 will run from December 2007 to December 2009 by which time first drafts of research reports will be due to the AERC; progress reports will be required every six months. Phase 1 will run from December 2007 to December 2009 by which time first drafts of research reports will be due to the AERC; progress reports will be required every six months.

13. Project time line: phase 2 Phase 2 will be from January 2010 to December 2010. Phase 2 will be from January 2010 to December 2010. By March 2010, all teams will receive comments on their draft reports. By March 2010, all teams will receive comments on their draft reports. Revised reports will be expected at the AERC by September 2010. Revised reports will be expected at the AERC by September 2010. A Dissemination workshop will be held in November 2010. A Dissemination workshop will be held in November 2010. Based on lessons from the first project, AERC will prepare a proposal for the second project in 2011 on poverty and population dynamics, seeking funding for a longer period, say 5-10 years, to collect longitudinal and panel data, to build large-scale macro models, undertake experimental studies to examine causality relationships between reproductive health and poverty, and to provide local training in population economics and demography within the AERC network. Based on lessons from the first project, AERC will prepare a proposal for the second project in 2011 on poverty and population dynamics, seeking funding for a longer period, say 5-10 years, to collect longitudinal and panel data, to build large-scale macro models, undertake experimental studies to examine causality relationships between reproductive health and poverty, and to provide local training in population economics and demography within the AERC network.