Tuesday, 29 September 2015

Notes on "More than good intentions: how a new economics is helping to solve global poverty" (Dean Karlan and Jacob Appel)

More than good intentions: how a new economics is helping to solve global poverty
Dean Karlan and Jaccob Appel
Publisher: Dutton, Penguin group (U.S.A.) Inc., London, England (2011)

We need more than good intentions in order to solve problem.

Jeffrey Sachs: give more
Bill Easterly: focus on small, agile, homegrown programs
Behavior economics is important:
Not everything that matters is dollars and cents have different priorities.

Marketing is useful to make programs more effective. (based on behavior economics)
è “sell” development solution
è Advertise

Important to test the programs:
Randomized control trial
The two-pronged attack: 
  • understanding the problems we face
  • Rigorous evaluation

Test specific theories of human behaviour
The poor people are unaware of the resources already available.
Microcredit/saving/education/health
=>need to be carefully managed/don’t be optimistic/things could go well and badly/tess are important to find out fields needed to be unproved.

(Details could also be seen in the book “poor economics”)

There is no one-size-fits-all solution

Possible solutions:
  • Microsavings:
    • Saving is important
  • Reminders to save:
    • Cheap and effective ways to mobilise savings among the poor.
  • Prepaid fertiliser sales:
    • Boost in productivity and agricultural output
  • deworming:
    • simple
    • dort-cheap and tremendously powerful.
  • Remedial education in small groups:
    • Proven to be effective.
  • Chlorine dispenses for dean water:
    • Efficient and self-sustaining
  • Commitment devices:
    • Make significant improvements to houreholds
    • Help women (the SEED commitment savings ccount)
    • Let people make their vices more expensive and their virtue cheaper
    • Help people make more virtuous choices

No comments:

Post a Comment