The Anti-Poverty Experiment

[MachineGhost]

[quote=http://www.wsj.com/articles/the-anti-po ... 1433517539]Until recently, most governments, development agencies and nongovernmental organizations aiding the poor didn’t rely on the scientific method to figure out what works, what doesn't and why.

So, says MIT economist Esther Duflo, “We are trying to promote a culture of learning that will permeate governments and NGOs and businesses to such an extent that it will become par for the course.”

Much of the randomistas’ fieldwork is built on the findings of modern psychology about the limitations of the human mind, gleaned largely from experiments in the world’s richest countries.

“The daunting realization is that we don’t know what the hell we’re doing in most fields of life, especially the ones that involve people,” says Richard Thaler, professor of behavioral science and economics at the University of Chicago Booth School of Business and author of the new book “Misbehaving: The Making of Behavioral Economics.” He adds, “The alternative to guessing is to run experiments.”

Figuring out what makes and keeps people poor isn’t a trivial challenge. Anyone who has ever traveled in the developing world knows that even the planet’s most desperately poor people aren’t lazy or stupid. And if poverty were caused by economic geography (hot climates hostile to agriculture and hospitable to disease) or a lack of modern infrastructure, then bombarding poor countries with money would long ago have ameliorated the problem.[/quote]

[Libertarian666]

Until recently, most governments, development agencies and nongovernmental organizations aiding the poor didn’t rely on the scientific method to figure out what works, what doesn't and why.

So, says MIT economist Esther Duflo, “We are trying to promote a culture of learning that will permeate governments and NGOs and businesses to such an extent that it will become par for the course.”

Much of the randomistas’ fieldwork is built on the findings of modern psychology about the limitations of the human mind, gleaned largely from experiments in the world’s richest countries.

“The daunting realization is that we don’t know what the hell we’re doing in most fields of life, especially the ones that involve people,” says Richard Thaler, professor of behavioral science and economics at the University of Chicago Booth School of Business and author of the new book “Misbehaving: The Making of Behavioral Economics.” He adds, “The alternative to guessing is to run experiments.”

Figuring out what makes and keeps people poor isn’t a trivial challenge. Anyone who has ever traveled in the developing world knows that even the planet’s most desperately poor people aren’t lazy or stupid. And if poverty were caused by economic geography (hot climates hostile to agriculture and hospitable to disease) or a lack of modern infrastructure, then bombarding poor countries with money would long ago have ameliorated the problem.

If they run the experiments honestly, I'll bet they won't publish the results, as they will be VERY politically incorrect.