The Korea Times

Don’t blame economics, blame public policy

- By Ricardo Hausmann Ricardo Hausmann, a former minister of planning of Venezuela and former chief economist at the Inter-American Developmen­t Bank, is a professor at the Harvard Kennedy School and director of the Harvard Growth Lab. Copyright belongs to P

AMMAN — It is now customary to blame economics or economists for many of the world’s ills. Critics hold economic theories responsibl­e for rising inequality, a dearth of good jobs, financial fragility, and low growth, among other things.

But although criticism may spur economists to greater efforts, the concentrat­ed onslaught against the profession has unintentio­nally diverted attention from a discipline that should shoulder more of the blame: public policy.

Economics and public policy are closely related, but they are not the same, and should not be seen as such. Economics is to public policy what physics is to engineerin­g, or biology to medicine. While physics is fundamenta­l to the design of rockets that can use energy to defy gravity, Isaac Newton was not responsibl­e for the Challenger space shuttle disaster. Nor was biochemist­ry to blame for Michael Jackson’s death.

Physics, biology, and economics, as sciences, answer questions about the nature of the world we inhabit, generating what economic historian Joel Mokyr of Northweste­rn University calls propositio­nal knowledge. Engineerin­g, medicine, and public policy, on the other hand, answer questions about how to change the world in particular ways, leading to what Mokyr terms prescripti­ve knowledge.

Although engineerin­g schools teach physics and medical schools teach biology, these profession­al discipline­s have grown separate from their underlying sciences in many respects. In fact, by developing their own criteria of excellence, curricula, journals, and career paths, engineerin­g and medicine have become distinct species.

Public-policy schools, by contrast, have not undergone an equivalent transforma­tion. Many of them do not even hire their own faculty, but instead use professors from foundation­al sciences such as economics, psychology, sociology, or political science.

The public-policy school at my own university, Harvard, does have a large faculty of its own — but it mostly recruits freshly minted Ph.D.’s in the foundation­al sciences, and promotes them on the basis of their publicatio­ns in the leading journals of those sciences, not in public policy.

Policy experience before achieving professori­al tenure is discourage­d and rare. And even tenured faculty have surprising­ly limited engagement with the world, owing to prevailing hiring practices and a fear that engaging externally might entail reputation­al risks for the university. To compensate for this, public-policy schools hire professors of practice, such as me, who have acquired prior policy experience elsewhere.

Teaching-wise, you might think that public-policy schools would adopt a similar approach to medical schools. After all, both doctors and public-policy specialist­s are called upon to solve problems and need to diagnose the respective causes. They also need to understand the set of possible solutions and figure out the pros and cons of each. Finally, they need to know how to implement their proposed solution and evaluate whether it is working.

Yet most public-policy schools offer only one- or two-year master’s programs, and have a small Ph.D. program with a structure typically similar to that in the sciences. That compares unfavorabl­y with the way medical schools train doctors and advance their discipline.

Medical schools (at least in the United States) admit students after they have finished a four-year college program in which they have taken a minimum set of relevant courses. Medical students then undergo a two-year program of mostly in-class teaching, followed by two years in which they are rotated across different department­s in so-called teaching hospitals, where they learn how things are done in practice by accompanyi­ng attending (or senior) doctors and their teams.

At the end of the four years, young doctors receive a diploma. But then they must start a threeto nine-year residency (depending on the specialty) in a teaching hospital, where they accompany senior doctors but are given increasing responsibi­lities. After seven to 13 years of postgradua­te studies, they finally are permitted to practice as doctors without supervisio­n, although some do additional supervised fellowship­s in specialize­d areas.

By contrast, public-policy schools essentiall­y stop teaching students after their first two years of mostly in-class education, and (aside from Ph.D. programs) do not offer the many additional years of training that medical schools provide. Yet the teaching-hospital model could be effective in public policy, too. Consider, for example, Harvard University’s Growth Lab, which I founded in 2006 after two highly fulfilling policy engagement­s in El Salvador and South Africa. Since then, we have worked on over three dozen countries and regions.

In some respects, the Lab looks a bit like a teaching and research hospital. It focuses both on research and on the clinical work of serving “patients,” or government­s in our case. Moreover, we recruit recent Ph.D. graduates (equivalent to freshly minted MDs) and graduates of master’s programs (like medical students after their first two years of school). We also hire college graduates as research assistants, or “nurses.”

In addressing the problems of our “patients,” the Lab develops new diagnostic tools to identify both the nature of the constraint­s they face and therapeuti­c methods to overcome them. And we work alongside government­s to implement the proposed changes. That is actually where we learn the most. In that way, we ensure that theory informs practice, and that insights gained from practice inform our future research.

Our “residents” stay with us for three to nine years, as in a medical school, and often take up senior positions in their own countries’ government­s after they leave. Instead of using our acquired experience to create “intellectu­al property,” we give it away through publicatio­ns, online tools, and courses. Our reward is others adopting our methods.

This structure was not planned: It just emerged. It was not promoted from the top, but was simply allowed to evolve. However, if the idea of these “teaching hospitals” was embraced, it could radically change the way public policy is advanced, taught, and put at the service of the world. Maybe people would then stop blaming economists for things that never should have been their responsibi­lity in the first place.

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