The paper reviews two critical challenges facing research organization
s and governments in the region: obsolete institutional structures and
lack of stable funding for agricultural and natural resource manageme
nt research. The paper describes recent trends in research investments
, financing alternatives, and the institutional evolution of research
organizations in order to meet those challenges. A preliminary conclus
ion is that the current low level of funding research, together with t
he dramatic organizational changes taking place in several public rese
arch organizations in the region, provide an opportunity to develop tr
uly national agricultural innovation systems. (C) 1998 Elsevier Scienc
e Ltd. All rights reserved.