On Wednesday, Angus Deaton published an op-ed in the New York Times that paints a compelling picture of the depth of poverty in America, and the need for more money and more policy attention to fix it. It's a sobering read, and we strongly agree that America’s most destitute deserve far more support. But in comparing US poverty to poverty in developing countries, we think he’s got his numbers wrong.
CGD Policy Blogs
Chart of the Week #3: Why the World Bank Should Ditch the "Doing Business" Rankings—in One Embarrassing Chart
Last week the World Bank's Chief Economist, Paul Romer, told the Wall Street Journal the Bank had manipulated its own competitiveness rankings to undermine Chile's socialist government, and hinted Chile might not be alone—then he retracted the claim. Romer's conspiracy theories probably aren't credible, but neither are the Doing Business numbers.
One of the mysteries of development economics is why more people in subsistence agriculture don't migrate to cities where incomes are much, much higher. New data suggests one answer: when they move, their incomes may not go up as much as we thought.
The World Inequality Report updates and extends the famous elephant curve, showing slower gains for much of the globe, and even more concentration of economic growth in the top 1 percent.
As economic indicators deteriorate, the Tanzanian government has jailed an opposition leader for questioning the Bank of Tanzania's growth statistics. It's time for the World Bank and the IMF to speak up. If it's illegal to question a government's statistics, why should anyone trust them?
"There are better ways to improve test scores," "food is expensive," "most kids would eat anyway," and other counterarguments contain some truth, but fail to overturn the basic economic logic of free, universal school feeding in poor countries.
Last summer, the Liberian government delegated management of 93 public elementary schools to eight different private contractors. Given the intense controversy around the program, the government—with some encouragement from our colleagues at Ark Education Partnership Group, who helped manage the program—agreed to randomize the allocation of schools during the pilot, and the three of us partnered with Innovations for Poverty Action (IPA) to evaluate its impacts.
Two recent books reveal an internal debate about the value of childcare and women's work at the Inter-American Development Bank. Impact evaluations show home visitation programs are cheaper and better for kids than center-based childcare. But a new volume argues the cost-benefit calculation may change once impacts on women, and not just children, are added to the equation.
How USAID’s Demographic and Health Surveys Overestimate Literacy around the World—and How to Fix That
Three cheers for the DHS! However, the value of the DHS literacy data is significantly undermined by a small, easily fixable flaw in the way the survey is administered.
A commission led by the UN's special envoy for education, Gordon Brown, is calling for a doubling of global aid for education, without any clear reform agenda to raise learning levels in the world's failing school systems. That might be ok: bad schools in poor countries still seem to produce big benefits.