BRIDGING POLICY AND PRACTICE: TRAINING PROGRAM ON CGE MODELING FOR ECONOMIC POLICY ANALYSIS IN SOUTH ASIA
About Computable General Equilibrium (CGE) modeling
Economic policies shape the trajectory of nations, guiding them toward development, stability, and transformation. However, effective policymaking requires robust analytical tools to anticipate the impact of shocks, structural changes, and reforms. Computable General Equilibrium (CGE) modeling is one such tool that provides policymakers with a comprehensive, economy-wide perspective. CGE models can strengthen policy decision making by evaluating potential impacts of different choices, comparing alternative scenarios and assessing the associated trade-offs.
Recognizing its significance, the International Food Policy Research Institute (IFPRI), the South Asian Network on Economic Modeling (SANEM), and the Indian Council of Agricultural Research-Indian Agricultural Research Institute (ICAR-IARI), with support from CGIAR, organized an International Training Program on Foundations of CGE Modeling for Economic Policy Analysis in South Asia. The weeklong program, held from March 17 to March 21, 2025, at ICAR-IARI in New Delhi, aimed at building capacity among researchers and policy analysts from across the region, equipping them with the necessary skills to apply CGE modeling in real-world economic scenarios.
Building analytical capacity for smart policy decisions
The training program introduced participants to IFPRI’s Standard CGE Model, providing both theoretical foundation and hands-on application. Participants learned to simulate real-world scenarios and predict the potential consequences of policy decisions. The course also included a post-training research assignment, enabling participants to apply their knowledge to a policy issue of their choice, with continued mentorship from SANEM and IFPRI researchers.
Reflecting on IFPRI’s long-standing commitment to capacity building, Dr. Shahidur Rashid, Director-South Asia Regional Office, IFPRI, underscored the importance of modeling in policy formulation. “South Asia is one of the fastest growing sub-regions but also faces new and emerging challenges. Policy modeling can be an important tool to help governments and policymakers identify those and understand the linkages in the system to find possible solutions and accelerate development”.
A platform for innovation and future collaboration
To commemorate the success of the and inspire participants for the 2025 edition, two policy briefs were launched during the inaugural session of the training. Authored by participants of the 2024 training cohort, these policy briefs showcase how newly acquired CGE modeling skills were applied to real-world policy issues transforming post-training assignments into insightful, simulation-based analysis.
Stressing the necessity of such data-driven tools, Dr. Ch. Srinivasa Rao, Director and Vice Chancellor, ICAR-IARI, remarked, “Economic policies are the torchbearers of transformation. It is essential to understand how policies interact under different scenarios, determine success factors, and balance stakeholders’ needs effectively.”
One of South Asia’s key challenges has been to tackle the underutilization of data-driven policy tools. Many economic decisions are influenced by short-term considerations rather than a thorough cause-and-effect analyses. Dr. R. C. Agrawal, Deputy Director General – Agricultural Education, ICAR, highlighted the importance of skill-building in impact analysis and policy modeling. “Our longstanding partnership with IFPRI has focused on strengthening analytical capabilities within ICAR institutions and state universities. These tools allow us to monitor policy impacts, course correct when necessary and identify new research and investment areas”.
Empowering policymakers for a dynamic future
While technical expertise forms the foundation, truly impactful economic modeling also demands foresight and creativity to envision future scenarios and design innovative, evidence-based solutions. Dr. P. K. Joshi, President, Agricultural Economics Research Association (AERA), India, encouraged participants to develop a forward-thinking mindset. “In addition to data analysis skills, having a clear vision of the future you want to shape is crucial. Skilling, re-skilling, and upskilling are essential for staying relevant in an evolving economic landscape.”
A steppingstone for future policy research
As South Asia navigates a rapidly changing economic and environmental landscape, the ability to model, predict, and adapt will be a key differentiator in shaping a sustainable and prosperous future. Investments in training and skill development will ensure that institutions across the region can design and implement effective, evidence-based policies that promote inclusive and resilient growth.
The International Training Program on CGE Modeling organized by IFPRI and ICAR has built a strong foundation for sustained learning, collaboration, and innovation. By fostering a deeper understanding of economic interactions and policy impacts, the program continues to empower its participants to contribute meaningfully to future policy discourse and decision-making.
