Saturday, April 24, 2021

[quotes] Poor Economics, a Radical Rethinking of the Way to Fight Global Poverty - Abhijit V. Banerjee and Esther Duflo 2011

 

"So it is not that the lack of food could not be a problem or isn't a problem from time to time, but the world we live in today is for the most part too rich for hunger to be a big part of the story of the persistence of poverty. This is of course different during natural or man-made disasters, or in famines that kill and weaken millions. As Amartya Sen has shown, however, most recent famines have been caused not by lack of food availability but by institutional failures that led to poor distribution of available food, or even hoarding and storage in the face of starvation elsewhere."

"Is is probably the same reason that in Kenya, traditional healers and preachers have been particularly in demand to cure HIV/AIDS (their services are proudly advertised on hand-painted billboards in every town). There was not much that allopathic doctors could really do (at least until anti-retrovirals became more affordable), so why not try the traditional healer's herbs and spells?"

"In the end, the mistrust of incentives for immunization comes down to an article of faith for both those on the right and the left of the mainstream political spectrum: Don't try to bribe people to do things that you think they ought to do. For the right, this is because it will be wasted; for the conventional left, which includes much of the public health community and the good doctors from Seva Mandir, this is because it degrades both what is given and the person who gets it. Instead, we should focus on trying to convince the poor of the benefits of immunization."

"For the same reason that those who live in rich countries live a life surrounded by invisible nudges, the primary goal of health-care policy in poor countries should be to make it as easy as possible for the poor to obtain preventive care, while at the same time regulating the quality of treatment that people can get... All this sounds paternalistic, it certainly is. But then it is easy, too easy, to sermonize about the dangers of paternalism and the need to take responsibility for our own lives, from the comfort of our couch in our safe and sanitary home. Aren't we, those who live in the rich world, the constant beneficiaries of a paternalism now so thoroughly embedded into the system that we hardly notice it?"

"The curriculum and organization of schools often date back to a colonial past, when schools were meant to train a local elite to be the effective allies of the colonial state, and the goal was to maximize the distance between them and the rest of the populace."

"The school Abhijit went to in Calcutta had a more or less explicit policy of expelling the bottom of the class every year, so that by the time the graduation exam cam around, it could claim a perfect pass record."

"In the treatment areas in Matlab, this change was faster than elsewhere - the community health worker, who tended to be a relatively well-educated and assertive woman, was both the embodiment of the new norm and the carrier of news about the shifting norms in the rest of the world."

"The right space for policy is not so much to replace the family as it is to complete its action and, sometimes, protect us from its abuses. Starting from the right understanding of how families function is crucial in being able to do so effectively."

"It is too hard to stay motivated when everything you want looks impossibly far away. Moving the goalposts closer may be just what the poor need to start running toward them."

"The emphasis on government jobs, in particular, suggests a desire for stability, as these jobs tend to be very secure even when they are not very exciting. And in fact, stability of employment appears to be the one thing that distinguishes the middle classes from the poor."

"This statement was a good reflection of an institutionalist view that has strong currency in development economics today. The real problem of development, in this view, is not one of figuring out good policies: It is to sort out the political process. If the politics are right, good policies will eventually emerge. And conversely, without good politics, it is impossible to design or implement good policies, at least not on any scale. There is no point in figuring out the best way to spend a dollar on schools, if 87 cents will never reach the school anyway. It follows (or so it is assumed) that 'big questions' require 'big answers' - social revolutions, such as a transition to effective democracy."

"Acemoglu and Robinson define institutions as follows: 'Economic institutions shape economic incentives, the incentives to become educated, to save and invest, to innovate and adopt new technologies, and so on. Political institutions determine the ability of citizens to control politicians."

"As a result, the agents of the government (the bureaucrats, the pollution inspectors, the policemen, the doctors) cannot be paid directly for the value they are delivering to the rest of us - when a policemen gives us a ticket, we complain, but we don't offer him a reward for doing this job well and keeping the roads safe for everyone. Contrast this with the grocery store owner: She delivers value by selling us eggs, and when we pay her for the eggs, we know we are paying for the social value she is delivering."

"This simple observation has two very important implications: First, there is no easy way of assessing the performance of most people who work for the government. This is why there are so many rules for what bureaucrats (or policemen, or judges) should and shouldn't do. Second, the temptation to break the rules is ever present, both for the bureaucrat and for us, which is what leads to corruption and dereliction of duty."

"This is one important reason why government programs (and similar programs run by NGOs and international organizations) often do not work. The problem is inherently difficult and the details need a lot of attention. Failures are often not the result of sabotage by a specific group, as a lot of political economists would have it, but come about because the whole system was badly conceived to start with and no one has taken the trouble to fix it. In such cases, change can be a matter of figuring out what will work and leading the charge."

"The rules were (obviously) not designed with the objective of undermining the effectiveness of the entire health-care system in India. On the contrary, they were probably put on paper by a well-meaning bureaucrat, who had his own views of what the system should do and did not pay too much attention to what that demanded on the ground. This is what we call, for short, the 'three I's' problem: ideology, ignorance, inertia. This problem plagues many efforts to supposedly help the poor."

"We have no lever guaranteed to eradicate poverty, but once we accept that, time is on our side. Poverty has been with us for many thousands of years; if we have to wait another fifty or hundred years for the end of poverty, so be it. At least we can stop pretending that there is some solution at hand and instead join hands with millions of well-intentioned people across the world - elected officials and bureaucrats, teachers and NGO workers, academics and entrepreneurs - in the quest for the many ideas, big and small, that will eventually take us to that world where no one has to live on 99 cents per day."

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