Tag Archives: Development

Fighting Poverty Effectively – Experiments Are Not Just For Scientists

Here’s a question for you: how do we know that all the aid given to Africa has had any effect? The tricky thing about trying to answer this question, and analyzing problems such as global poverty, is that the world cannot be treated as a laboratory experiment. We cannot create two identical Africas and give aid to one and not the other, keeping all the other variables such as political conditions, climate, and population, constant.

What happens in fields such as medicine, when we want to know whether a drug works or not? Suppose we’ve developed a new pill which, we think, prevents headaches. We find two chronic headache-sufferers who are identical in terms of gender, age, and general health, and X takes the pill every day but not Y. After a month it turns out that X no longer suffers headaches but Y does. What can we conclude? Well, nothing at all. Because we have no way of knowing what would have happened if X hadn’t taken the medicine – maybe his headaches would have disappeared anyway because he finally started wearing his glasses.

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Graphics: Why investing in girls and women is key to development

What exactly leads to development is a topic of great debate in academic and practical circles. Proposed cures for underdevelopment vary from providing infrastructure to enacting large-scale macro-economic reforms. Yet, often, there is little conclusive evidence of many solutions’ consistently marked effects on different countries’ economic prosperity or social and environmental cohesion. One factor that does stand out, which is frequently promoted in reports by the likes of the World Bank, United Nations (UN), the OECD, ActionaAid and even Forbes Magazine as the key to achieving all Millennium Development Goals, is investment in the health, education and equality of women.

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Theory Bites: Development, Underdevelopment and Dependency

The contemporary common language of development divides the world between developed and underdeveloped countries. This common-sensical classification also guides us to think of the two groups as rich and poor. Or even further, that the developed world, despite its imperfections, is “fine” and its people are happy—they represent the way human society should generally be—while the underdeveloped, for whichever reason, has just fallen behind—its people suffer and are not an example of what we’d like to see for humanity. The assumption is that everyone would prefer to live in a city, drive their car to work, and enjoy air conditioning and washing machines, since humans can and should “achieve” much more than washing their clothes by hand or farming for their own survival.

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Irrationality and Heuristics: What can international development learn from behavioural economics?

In a perfectly rational world, Ted the taxi driver works long hours on days with many customers and goes home early on bad days to save money on driving. On the other side of the world, Mexican farming couple Carlos and Verónica send their children to the new school built in the next town, because they know that education will lead to a job that will make up for the time not spent on the farm. Ted, Carlos and Verónica demonstrate what is a central tenet of classical economic theory : the belief in homo economicus, the rational economic man—a being that makes fully calculated decisions in a rational manner to achieve the best possible outcome for himself. Read More »

Guest Roast: From Crisis to Resilience: Rethinking Macroeconomic Vulnerability

By Anuradha Seth

The frequency of global financial and economic crises has increased over the past decade and a half, and they appear to have become a systemic feature of the international economy. The risk of economic growth and human development achievements being undermined by such volatile international developments is fostering an overall re-think about the inner nature of crises, the growing vulnerability of developing countries and their capacity to be resilient in the face of these shocks. Read More »

INESAD News: Crowd Sourcing Solutions to Poverty—What Do You Think?

Over the last two days I have been involved in a global experiment – a 48 hour brainstorming session between 1,600 people, from 50 countries who identified the barriers to solving poverty and put forward ideas for solutions.

The experiment was set up in a form of a game called Catalysts for Change. The more you contributed by putting down your thoughts, critiques, questions and ideas in less than 140 character soundbites, the more points you collected. In the end, the two short days yielded over 18,600 soundbite playing cards covering a range of topics from improving education to challenging capitalism itself. Read More »

The First Principle of Development: It has to come from within

By: Lykke E. Andersen*

There are many ways for a country to develop, but there is no way to develop a country: Development has to come from within.

Just as you cannot help a child develop by doing his homework, giving him all the toys and candy he wants, and protecting him from all potential dangers, you cannot help a country to develop by giving it money, writing its poverty reduction strategies, or protecting it against basic market forces.

You don’t help a child develop by constantly telling him that he is stupid, ignorant, retarded and helpless, just as you don’t help a country by labeling it poor, underdeveloped, indigenous, and hopelessly indebted.

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