Who decides what research is funded, unethical, at odds with the purpose of the community etc? Initially the head of a department decides on research funding issues. If there is an ethical element to the research this should be carefully considered by all heads of the department. Followed by a public debate of randomly selected peers to resolve any disputes. Each grant can be requested once a year, if the researcher believes there is a bias on the part of the head of the department he can request a public dispute debate to formally demand the grant (if he wins the debate in the eyes of his peers.
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