New PEP special collaboration initiative to strengthen analytical capacity within Chadian government - funded by the UNDP

 

Strengthening local capacity in the construction and simulation of a CGE model for the economy of Chad (project funded by the UNDP)



PEP standard CGE models

In February 2011, the UNDP Country Office in Chad officially requested PEP to submit a proposal for a collaboration project, between the Ministry and PEP, to be financed by the UNDP.

A joint project initiative

 

Parties
  • International team of PEP resource persons: (coordinator), (scientific director), , Helene Maisonnave and Lulit Mitik (senior economists)
  • Local resource team in Chad: eight quantitative economists, from the Ministry, working under the supervision of the Director of Planning and Studies

And the project is funded by the United Nations Development Program (UNDP).

Objective

The main objective of the project is to build a CGE model of the Chadian economy, from the collection of basic statistical data to the analysis of final simulations results, while ensuring complete transfer of competences and analytical techniques to the local economists involved in the project.

Time frame

March 2013 to September 2014 (18 months)

  • Phase I - month 1 to 6
    Updating the GAMS and modelling knowledge of the Chadian counterparts.
    Identification of the relevant economic issues that will be analyzed with the CGE model (CGEM)
    Designing the format of the social accounting matrix (SAM) that is best suited for the analysis of such issues and constructing the SAM.
  • Phase II
    Calibration of the first version of the CGEM, followed by a series of experimental simulations that may lead to modifications in the first model and the design of further rounds of simulations.
  • Phase III
    In-depth interpretation of the final simulations.
    Defining a research agenda for the future.
    Writing and submitting the final project report.

Project update

Advanced training for local participants

In order to complete the transfer of competences, and to further strengthen institutional capacity within the Chadian government, a team of 8 local economists (most of them based at the Ministry of Finance) has been provided with a series of intensive training workshops in the application of advanced CGE modeling and policy simulation techniques.

With these new skills, and after building the country's new Social Accounting Matrix (SAM), the participants decided to devote the most recent of these workshops (held in March 2014) to explore the Chadian labour market - and the importance of the informal sector in this market.

The expansion of the oil sector in recent years has also induced major changes in the country's economy, and Chadian officials are aware of the necessity to develop, internally) appropriate analytical tools/expertise in order to define the best policy options.

To find out more about other PEP collaborations around the world, visit: PEP special initiatives

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