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
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