Girum Abebe Tefera

Principal Economist

International Finance Corporation (IFC)

the World Bank Group

Ph.D. in Development Economics (’11)

Please tell us about your career path so far. What is your area of specialization and how did you come to work in this area?

I studied Economics as an undergraduate at Addis Ababa University in Ethiopia and completed my graduate studies at GRIPS in Japan. So, I am an economist through and through. After completing my PhD in Development Economics, I returned to Ethiopia to work as a Research Fellow at the Ethiopian Development Research Institute (EDRI), which was rebranded as the Policy Studies Institute (PSI) in 2018. The institute offered an intellectually stimulating and policy-relevant research environment, surrounded by highly skilled colleagues and policy technocrats. It also maintained strong ties with leading global academic institutions involved in cutting-edge development research, providing ample opportunities for continuous learning. During my time there, I gained valuable insights into the political economy of policymaking, including the negotiation processes, decision-making criteria, and the economic and non-economic parameters that shape the development agenda. I also honed my ability to bridge the gap between academic research and policy, articulating development challenges and applying the technical skills needed to offer evidence-based solutions to development problems such as unemployment, lack of firm growth, investment and industrial development, among many others.

In the field in Dembel, Somlai Region, Ethiopia, October 2023

After more than a decade of incredible experience at EDRI, I joined the World Bank's Africa Gender Innovation Lab (AGIL) as a Senior Economist. My role at AGIL included designing and implementing research projects that study the impact of innovative interventions that can potentially narrow the gender gap in entrepreneurship, agriculture, and wage employment. For example, I designed and led projects that use innovative and low-cost interventions to improve the functioning of labor markets and promote the inclusion of disadvantaged youth and women into formal employment. AGIL also afforded me an opportunity to work with a range of exciting projects, such as designing and implementing field experiments to study the impact of novel business training programs on Micro and Small Enterprises (MSEs) and job search support programs on young women. I also looked at ways to make social protection programs more responsive to the needs of socially disadvantaged groups, such as women and refugees. Additionally, I served as a thematic lead for the unit's Private Sector Development and Entrepreneurship thematic area. Working with talented and dedicated scholars at AGIL was truly rewarding. I experienced a strong sense of camaraderie and deeply valued the shared passion for development research that united the team.

I recently transitioned to the International Finance Corporation (IFC) to take on the role of Principal Economist. As the largest development financial institution, IFC focuses on investing in private sector enterprises mostly within emerging and developing countries. Our core mission is to foster private sector development and stimulate economic growth with the aim of reducing poverty and enhancing the quality of life. I am part of an analytical team of researchers and experts dedicated to improving the development effectiveness of our global investments. Our research focuses on optimizing project design and providing continuous learning opportunities to advance both private sector growth and the development agenda side-by-side. I am truly excited about the journey of research that awaits us ahead.

Girum presenting at the Nobel symposium in Economic Sciences, Cape Town, South Africa, March 2024.

My career has spanned various sectors and regions, with a strong focus on urban areas. My research portfolio primarily examines labor markets, firm growth, and gender disparities, and my work in labor markets is widely recognized and well-published. Allow me to share a few words on how I became involved in these work streams. I began focusing on labor markets immediately after completing my PhD. My interest in this area was sparked by the Center for African Studies (CSAE) at the University of Oxford, which was developing a new research program on labor markets in Africa at that time. Starting with a small pilot project, I collaborated with CSAE and Oxford's Economics department to secure substantial research funding and expand the program into one of the first and largest labor market evaluation in Africa. The rest, as they say, is history.

You are currently serving as a Principal Economist at the International Finance Corporation, the World Bank Group. Please tell us about your main roles and responsibilities.

My primary role involves leading the generation and application of high-quality, operationally relevant data and research to support IFC's advisory services and investments. I conduct experimental evaluations to credibly assess the effects of our technical support services and investments on development impacts - specifically, how our work transforms lives in low-income and emerging economies. My work involves providing technical guidance to more effectively measure, quantify, and articulate our development impact, helping us credibly highlight successes while also identifying areas for improvement. These insights allow us to learn what works and what doesn't, enabling us to make smarter decision to enhance the development effectiveness of our investments and to better inform both our current and future projects.

Girum at the National Bank/World Bank joint conference March 2024

What are your professional goals and where do you see yourself in ten years' time?

I aim to continue engaging in exciting research projects that explore innovative topics while also focusing on those that generate valuable evidence to inform decision-making regarding project selection and necessary course adjustments. I hope to see this approach grow and gain a solid foundation.

I also aspire to mentor young researchers interested in development issues in Africa and to share insights from my experiences working in public think tanks and global development institutions. I envision a robust work program to emerge at IFC where impact evaluations are central to our global development efforts. Perhaps in ten years, I imagine writing a book that weaves together the evidence on the effects of active labor market policies.

What are some of the biggest challenges you face in your work? And what have been the most interesting or rewarding aspects of your career thus far?

A significant challenge in my work is convincing policymakers and project leaders to commit to experimental evaluations, including Randomized Controlled Trail (RCT-based) evaluations. They often seek immediate results, while RCTs require patience, a willingness to delay certain project components, and substantial effort and time commitment. I've come to realize that simply focusing on the technical requirements of designing a study isn't enough. Beyond technical expertise, strong relationship management skills, the ability to empathize with others, and a readiness to negotiate are essential. This work demands perseverance to continually advocate for well-structured research, and the mental resilience to stay calm, even when it feels repetitive or when facing resistance or misunderstandings. It's a job that requires dedication and grit--definitely not for the impatient and faint-hearted. Additionally, I have experienced instances where my efforts, both intellectual and in terms of time investment, have been rendered futile due to factors beyond my control. I have learned the hard way to let go and cut my losses.

Regarding the second part of your question, some of the development issues I grapple with are so compelling that once you start thinking about them, it becomes difficult to focus on anything else. It is never dull to implement research on exciting and complex development challenges. I find immense satisfaction seeing my work influence the design of large-scale national programs targeting thousands of vulnerable women and young job seekers. For instance, our research has deepened the understanding of labor market frictions in urban areas and has identified a range of policy options to mitigate their impacts on socially disadvantaged groups, such as women and uneducated youth. Beyond top-tier publications, this has led to the implementation of several active labor market policies in development projects in Ethiopia.

What led you to GRIPS? What is the most important thing you got out of your studies, and how has your experience at GRIPS prepared you for future endeavors?

Girum with Sonobe-sensei when he was visiting Washington D.C. in September 2024

?

My former institute, EDRI, had established research collaborations with GRIPS, which initially brought me to GRIPS to pursue a master's degree and subsequently continue with my PhD studies. At GRIPS, I was introduced to empirical research, where my professors, Sonobe-sensei and Otsuka-sensei, played a pivotal role in shaping my decision to focus on micro-development research. They often advised me against trying to be a jack-of-all-trades, emphasizing instead the benefits of concentrating on a specific area and excelling in it. It was at GRIPS that I also learned to distinguish between development "band-aids" and genuine cures. The rigorous training instilled in me the importance of perseverance and the need to keep pushing forward until reaching the finish line. While no graduate program or training can fully prepare you for life's challenges, GRIPS provided me with a strong foundation.

Have you had any involvement, professional or otherwise, with Japan since your graduation?

Yes, while I have not traveled to Japan, I have led and supported research projects commissioned by the Japan International Cooperation Agency (JICA), particularly those related to the evaluation of the Kaizen training program for Ethiopian enterprises.

You have been living away from your home country for quite some time. What do you like about living in the United States? And what you miss about Ethiopia?