Esther Duflo: Social experiments to fight poverty

Summary

In this thought-provoking talk, the speaker addresses the complexities of aid in poverty-stricken areas, questioning the effectiveness of traditional approaches. Through randomized controlled trials, the speaker explores innovative solutions to social issues like child immunization, bed net distribution, and education, emphasizing the importance of evidence-based policy-making. The talk concludes with a call to action, advocating for small, effective interventions that can lead to significant, measurable improvements in global health and education.

Takeaways

• 🌍 The speaker highlights the disparity in charitable giving, noting that while people respond generously to high-profile disasters like the Haiti earthquake, they often overlook the ongoing, preventable deaths of 25,000 children daily.
• 🤔 A thought experiment is proposed to consider how to effectively allocate aid: Should it be given without question, or should there be skepticism about its potential to do more harm than good?
• 📊 The speaker points out the difficulty in measuring the impact of aid, using Africa as an example where billions in aid have not clearly translated to GDP growth, questioning what the counterfactual might be.
• 💉 The 'last mile problem' in immunization is discussed, where despite the availability of vaccines and infrastructure, a significant number of children remain unimmunized.
• 🛏 The debate over bed nets for malaria prevention is explored, questioning whether they should be given away for free or sold to ensure they are valued and used correctly.
• 🏫 The importance of education in poverty alleviation is raised, but the speaker emphasizes the need to know which specific interventions are most effective in getting children into school.
• 🔬 The speaker advocates for the use of randomized controlled trials in social policy to determine what works, drawing a parallel to their use in medicine to test the efficacy of drugs.
• 📈 In Udaipur, Rajasthan, making immunization easier and providing a small incentive significantly increased immunization rates, demonstrating the power of simple interventions.
• 💰 The cost-effectiveness of incentives is discussed, showing that even small incentives like lentils can be more cost-effective than no incentives at all in achieving health outcomes.
• 🌐 The speaker calls for a shift in approach to social policy, advocating for experimentation and evidence-based decision-making to maximize the impact of aid and social programs.

Q & A

What is the speaker's nationality and how might it influence his perspective?

The speaker is French, which might influence his perspective by providing a European viewpoint on global issues such as poverty and aid effectiveness.

Why does the speaker compare the daily death of 25,000 children to a Haiti earthquake every eight days?

The speaker uses this comparison to highlight the magnitude and urgency of the preventable child deaths, similar to the impact and attention a natural disaster like an earthquake receives.

What is the main dilemma the speaker presents regarding aid to developing countries?

The speaker's dilemma is whether aid is effective in eradicating poverty or if it might exacerbate issues like corruption and dependence, questioning the best way to allocate aid.

How does the speaker suggest using randomized controlled trials to improve social policy?

The speaker suggests using randomized controlled trials to test the effectiveness of different social policies, similar to how medical trials test drug efficacy, to ensure that policies are based on evidence and truly effective.

What was the initial immunization rate in Udaipur District, Rajasthan, before interventions?

Before interventions, only about one percent of children in Udaipur District, Rajasthan, were fully immunized.

How effective was the incentive of lentils in increasing immunization rates in Udaipur District?

Offering a kilo of lentils as an incentive increased the full immunization rate from 6% to 38%, a sixfold increase.

What were the three key questions the speaker identified as crucial for deciding whether to give bed nets for free or to charge for them?

The three key questions were: 1) Will people purchase bed nets if they have to pay for them? 2) Will people use the bed nets if they receive them for free? 3) Do free bed nets discourage future purchases?

What was the outcome of the bed net voucher experiment in Kenya regarding the use of bed nets?

The experiment showed that people used the bed nets regardless of whether they received them for free or had to pay for them.

How does the speaker argue for the importance of evidence-based policy-making in social issues?

The speaker argues for evidence-based policy-making by comparing it to the Industrial Revolution's approach to innovation and efficiency, emphasizing that social policies should be tested and refined for maximum impact.

What is the speaker's view on the potential long-term effects of giving free bed nets?

The speaker suggests that free bed nets do not lead to dependency but rather increase the likelihood of future purchases, as seen in the Kenyan experiment where recipients were more likely to buy additional nets a year later.

What is the significance of the speaker's mention of deworming children in the context of education?

Deworming children is significant because it can lead to increased school attendance and education, with the speaker highlighting that for every hundred dollars spent on deworming, almost 30 extra years of education can be achieved.