Economic research: Challenges and the way forward

Research is a methodological search for finding solutions to problems mankind faces in order to improve the quality of living standards.  Research helps reduce knowledge gaps by creating new knowledge and translating knowledge into action. All innovations are outcome of systematic research efforts conducted by a society and hence its progress and development critically hinges on  the stock of knowledge, science and technology developed by problems-solving researches which may also be defined as applied research.
Economics is a well-defined and powerful social science. Economic researches are certainly devoted to looking for answers to economic malaise of mal-functioning of a economic system or a subsystem. People living in a society always look for economic and social well-being performing economic activities individually and collectively.
Resource creation and allocation are essential in any economic system. Therefore, resources have to be put into best alternative uses as resources are scarce to get, for attainting best value for money. Economists know better than any other discipline of social science how to allocate resource efficiently and hence best alternative use of resource can be studied to get the appropriate answer of the alterative use of resource at a low cost.  
Many questions pop up in the mind when one sees an economy is not running to its full potential: why is there a large unemployment? why is there a black market? why does stock market crash? why does famine happen? why is agricultural productivity so low?  why do prices of available commodities sometimes go up?   Researchers can only have the true answers for the short-run and long-run consequences of economic malaise a society is beset with. Asking the right and pertinent questions and looking for answers are the core of good economic research.  
The pace of growth depends on how much we can afford to spend for problem-solving researches. In economics science, everyone knows spending on research and development (R&D) is very much rewarding. In America, as research finding revealed, one-dollar investment in applied research yielded return of 10 dollars in course of time. In our country, too, one agricultural economics researcher revealed that one taka investment in agricultural research gives return of taka four. Well, it is not a debatable issue; perhaps everyone would agree that there is high return on any research investment in any discipline if research design is well-thought-out.  
We have achieved commendable achievements in fishery, rice, vegetables, wheat, fruit and animal husbandry and this success can be attributed to the research effort of our agricultural universities and National Agricultural Research Systems. We all know rice production increased three and a half times from the early seventies. Sixty five per cent supply of fish in the markets of Dhaka comes from pond aquaculture in Mymensingh area. Fishery research Institute at Bangladesh Agricultural University has a big contribution in this. Summer tomatoes, poultry broilers and eggs have now flooded the markets. Low-cost saline solutions saved millions of children from diarrhea. In short, all these successes in solving food, nutrition and health problems can be attributed to quality home-grown research.
In order to  progress and to rapidly transform the economy to an industrial society there is no doubt that we have to emphasise and depend on research endeavours of our scientists. As of our sixth five year plan, we spend only 0.6 per cent of our GDP (gross domestic product) for conducting basic and applied researches which was initially proposed to raise to one per cent of GDP. Certainly we realise the importance of researches in our rapidly changing economy, particularly when our economic development is at the efficiency-driven stage. We have already surpassed  the  factor-driven stage of economic transformation where land and labour resources played key roles. We have severe land scarcity and labour is  also getting scarcer (real wage of labour increased 3.25 fold than the seventies). We have to attain efficiency at every level of production (now, we are at efficiency-driven stage of economic transformation) where productivity has to be increased for  inputs (land, labour and capital). There is the need for  skill development and quality education should get the topmost priority in development planning. Economic research at this stage of development has strong bearing on finding out optimum mix of resource utilisation for attaining higher productivity. Passing of efficiency-driven stage of economic transformation leads to the higher stage of economic development which is then driven dominantly by innovations. Innovations are outcomes of mostly applied researches. So, no one should play down the role of research both at efficiency- and innovations-driven transformation of the economy towards a developed industrial economy.
There are many challenges in the field of economic research in Bangladesh:
 a) Resource constraint:  The country is growing rich at a high pace but the government is still poor, having the lowest revenue-GDP (gross domestic product) ratio in the world (11.6 per cent in 2013-14). Efforts are underway to raise revenue by re-structuring VAT laws and Tax system. Restructuring and rationalisation of a huge subsidy amount in public spending may save resources for research and development for innovation, technological improvement and development. Total amount of subsidy and 'incentive payment' stands around Tk 340-350 billion (34-35 thousand crore) Taka in annual budget while salary and allowances of public servants in the country stand at TK 270 billion (27 thousand crore).
b) Human resource constraint: There is serious shortage of skilled manpower and talented people. This soil has produced brilliant persons, but pull effect of developed countries put us into the trap of continuous brain drain since independence. We have to find out ways to stop brain drain. Contributing researchers should be rewarded graciously. They should be freed from bureaucratic tangles if any, and allowed to work in self-propelling environment under institutional freedom with accountability.  
Researchers also can show their patriotism by not falling into the trap of brain drain.  Ways for according national recognition to outstanding researchers in any field should be in place.
c) Institutional capacity challenge:  This is the consequence of lack of appropriate manpower and dearth of fund. Topmost priority should be given to Human Resource Development in the seventh five-year plan which is in the process of preparation now. Results-based performance evaluation should be there for public sector research institutions.
d) Contribution of the corporate sector: The public sector alone  cannot do all the researches. The corporate sector, including banking, manufacturing and industrial sector, has grown. Eighty per cent of total investment in the country is from the private sector. This sector can also play an important role in research and development (R & D) for the improvement of quality and innovating new product(s) by independent researches of their own.  Some portion of corporate responsibility funds may also go for research and development. Regulatory compulsion may also be there for this.  

Professor Dr. Shamsul Alam is Member, General Economics Division, BangladeshPlanning Commission.
 [email protected]