CZECH REPUBLIC: STRONG SUPPORT FOR (CERGE-EI)

UNCLAS SECTION 01 OF 02 PRAGUE 001415

SIPDIS

USAID FOR GEORGE LIKE, DCHA/PVC-ASHA

E.O. 12958: N/A
TAGS: ECON EZ
SUBJECT: CZECH REPUBLIC: STRONG SUPPORT FOR (CERGE-EI)
CENTER FOR ECONOMIC RESEARCH AND GRADUATE EDUCATION --
ECONOMIC INSTITUTE

REF: STATE 159943


1. SUMMARY: Post strongly supports ASHA financial
assistance for CERGE-EI, the leading economics doctoral
program in the region, fully-accredited in both the Czech
Republic and the United States. CERGE-EI has the best
economics library in the country, containing a wealth of
American texts and journals that teach and promote
market-based economics. END SUMMARY.

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Demonstration Center for American Ideas and Practices in
Education
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2. CERGE-EI was founded in 1991 "to meet the post-communist
countries' critical need for economists, to educate a new
economic leadership for the region in the region." CERGE-EI
provides an "american-style" education and is accredited by
the New York State Board of Regents. Its four-year doctoral
program consists of two-years of course work followed by
two-years of supervised dissertation research. The working
language of the institution is English, and CERGE-EI
encourages its students to conduct part of their dissertation
research at partner institutions in Western Europe and North
America.


3. CERGE-EI's English Department is unique among major
doctoral programs in economics, and provides students with
the skills necessary to successfully participate in economic
research and publication at the highest levels. As
increasing percentage of students in doctoral programs in the
U.S. come from non-English speaking backgrounds, visitors to
CERGE-EI frequently observe that the innovative program at
CERGE-EI and the integral role English instruction plays in
its doctoral program provide a model that should be adopted
at their own institutions.


4. The Executive and Supervisory Committee of CERGE-EI draw
distinguished economists from top U.S. universities: Joseph
Stiglitz from Columbia University; Philippe Aghio of Harvard
University; Orley Ashenfelter, Richard Quandt and Henry
Farber of Princeton University; Jan Svenar and Jan Kemtna of
the University of Michigan; Gerard Roland, Michelle White
and Roger Gordon from the University of California system.

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Importance and Quality of CERGE-EI in the Field of Education
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5. One of CERGE-EI's primary goals is to educate future
economic leaders of countries in transition throughout the
world. The student profile is as follows: 60 percent men;
40 percent women; 25 percent from Russia, Ukraine and
Belarus; 24 percent from the Czech Republic, 20 percent from
the Balkans; 18 percent from Poland, Hungary and Slovakia; 11
percent other former Soviet states; 2 percent from the rest
of the world. 80 percent of CERGE-EI graduates are employed
in the region. The average grade point average of entering
students is above 3.6 (out of 4.0).


6. A glance at CERGE-EI alumni profile speaks to the
importance and quality of its program; 38 percent of CERGE-EI
graduates find employment in the public sector (ministries,
central banks and international organizations),25 percent in
university teaching, and 37 percent in the private sector.
Graduates include economists at International Financial
Institutions (IFIs) such as the International Monetary Fund,
the World Bank, and the European Bank for Reconstruction and
Development. Czech National Bank Governor Zdenek Tuma is a
former CERGE-EI faculty member. Graduates in the private
sector are employed by private banks Citibank Komercni Banka)
and consulting firms (e.g. McKinsey & Company, the Boston
Consulting Group). Graduates teach in Universities in the
region, in Western Europe and in the U.S. (e.g., Tilburg
University in the Netherlands, University of Iowa). When the
World Bank commissioned a major study calling form reform of
Czech capital markets, CERGE-EI professors joined the study
team to provide local expertise and CERGE-EI students were
employed to conduct data analysis.


7. Recognizing the critical impact of economic training on
the success of reform, CERGE-EI offered to provide doctoral
study in Prague for two Iraqi students. As such, CERGE-EI
has been at the crux of transition countries' struggle to
from a totalitarian, centrally-planned economies to market
democracies. In the words of CERGE-EI, "experience in the
post-communist world has demonstrated that early intervention
to establish an effective higher education system is a
critical component of supporting the enormous political and
social changes necessary to build democracy and prosperity."

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Competence in Professional Skills, Sound Management and
Financial Practices
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8. CERGE-EI is a tax exempt (IRS 501C3 status) institution
subject to U.S. audits. Its 2003 budget was USD 3.0 million,
excluding grant-finance expenditures on research and other
programmatic activities. 2003 income sources break down as
follows:

26.7 percent Academy of Sciences of the Czech Republic;
22.1 percent affiliate Charles University;
13.5 percent Corporate Donations;
14.4 percent International Organizations;
8 percent Earned Income including Grant Overheads;
7.7 percent Individual Donations;
6.7 percent Interest & Endowment Income;
0.9 percent Foundation & Government grants.

2003 expenses breakdown as follows:
26.4 percent Permanent Faculty;
18.4 percent Student Stipends & Mobility;
12.7 percent Physical plant & Building renovation.
10 percent library;
8.6 percent support staff
7.1 percent materials & supplies;
6.4 percent Development & Public Relations;
4.4 percent Senior Part-time faculty;
4.3 percent Computer Department;
1.7 percent seminar & research support

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The Library
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9. Established in 1992, it is simply the best economics
library in the Czech Republic, and one of the best in Central
and Eastern Europe. Econoffs toured the library and were
impressed by the number of recognizable U.S. economic texts
(used for introductory and intermediate micro- and
macro-economic courses) and U.S. economic journals. The
estimated number of registered users of the library is
currently about 2000. The library contains 25,000 books and
270 periodicals, including journals published by: American
Economic Association, American Statistical Association,
Brookings Institutions, University of Chicago Press,
University of Wisconsin Press, MIT Press, Cornell University.
Over 600 full-text on-line journals are available in the
electronic library..


10. The CERGE-EI library contains THE most extensive and
up-to-date economics collection in Central and Eastern
Europe, with over 80,000 printed items and subscribe to over
250 periodicals and electronic databases. One of the first
open-stack facilities in the region, the CERGE-EI library is
widely used by the general public as well as by students from
other institutions. Since December 1994, it has been a
depository library of the World Bank. Computer facilities
include a UNIX lab with high-capacity works stations and
several PC labs. The ratio of computers to students is among
the highest in Europe.

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Local & Embassy Comments
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11. Econoffs conducted interviews with four local contacts
from government and business sectors, as well as with
locally-hired staff at the Embassy who interact with
CERGE-EI. CERGE-EI is a highly regarded institution,
particularly known for its independent, intellectual and
theoretical academic content, and with the best library in
the country. Any criticism of CERGE-EI tends to be its
"over" emphasis on theory versus applied economics. In June
2005, the Ambassador commended CERGE-EI for its continued
leadership in higher education and success in building
partnerships with American and other international university
and training programs. In the Embassy's efforts to support
Czech-American cultural and educational exchanges, we are
continuing our partnership with CERGE-EI through the
Embassy's Office of Public Affairs.CABANISS