
The World Bank today posted a
request for proposals for Indian research organizations interested in modeling the long-term economic impact of AIDS in India. The RFP is significant for two reasons. First, most models addressing the economic impact of AIDS look simply at current productivity losses. The World Bank, on the other hand, seeks a more sophisticated approach based on overlapping generations (OLG) models that consider human capital accumulations (translation for the rest of us: when parents die, their immediate productivity disappears, but there are also many other negative repercussions for the next generation). The second significant feature of this research program is that the Bank seeks to have Indian research institutes lead the process (rather than Bank economists), which should increase the quality, relevance and acceptance of results.