The prestigious Sveriges Riksbank Prize in Economic Sciences for 2019 was presented to three esteemed individuals: Abhijit Banerjee, Esther Duflo, and Michael Kremer. This distinguished recognition was bestowed upon them for their innovative experimental approach towards alleviating the global issue of poverty. The laureates’ novel methodology involves dissecting the larger issue into smaller, more manageable problems that can be thoroughly examined to find the appropriate solutions.
New Approach to Global Poverty
This trio of laureates has brought a new way of approaching the problem of global poverty – by turning to reliable, evidence-based methods. They utilize randomized trials, a statistical procedure ensuring that each participant has an equal chance of being assigned to any group in the study, to apply their theories to real-life situations, consequently evaluating the results to establish optimal solutions.
Real-Life Application: Case of Immunization in India
Their pragmatic approach was demonstrated in India regarding immunization efforts. Despite the availability of free immunization services, many mothers were not taking advantage of this provision for their children. In response, Banerjee and Duflo introduced a policy giving bags of pulses to mothers who brought their children in for vaccination. This incentive significantly increased the immunization rate in the area, illustrating the effectiveness of their evidence-based, field-work oriented tactics.
Impact on Development Economics
This innovative approach, grounded in practical application and tangible results, has drastically changed the landscape of developmental economics, making it a more potent tool in policy-making processes. The laureates’ experiment-focused methods have paved the way for development economics to evolve into a thriving research field.
| Fact | Details |
|---|---|
| Improvement in Indian Education | Over five million Indian children have benefited from the laureates’ experimental research methods through remedial tutoring programmes in schools |
| Notable Achievement of Esther Duflo | Duflo has become only the second woman to win this prize, after Elinor Ostrom of the USA (won in 2009). Furthermore, she is also the youngest recipient of this award. |
Conclusion
The work of Abhijit Banerjee, Esther Duflo, and Michael Kremer in tackling global poverty stands as a testament to the power of innovative thinking and evidence-based research. Their practical, experiment-oriented approach has not only provided effective solutions but also revolutionized the field of developmental economics.