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VoxDev Development Economics

S6 Ep2: Rethinking evidence in development economics

Jan 15, 2025
Lant Pritchett, a renowned development economist from the London School of Economics, joins Tim Phillips to challenge the reliance on rigorous evidence in policy-making. They discuss the limitations of RCTs and the importance of local context in understanding policy impacts, using Indonesia as an example. Pritchett calls for a return to holistic strategies over mere poverty alleviation, while also examining how emerging economies like India and China are reshaping development debates. The conversation highlights the critical balance between economic growth and sustainable development.
28:43

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Podcast summary created with Snipd AI

Quick takeaways

  • Relying solely on randomized controlled trials for development policy is flawed, as context-specific insights from traditional methods can be more applicable.
  • The future of development economics should emphasize sustained growth and enhancing state capabilities, ensuring that policies address governance alongside economic improvements.

Deep dives

Limitations of Relying Solely on Rigorous Evidence

Relying exclusively on rigorous evidence, such as randomized controlled trials, for policymaking in development economics is a flawed approach. While rigorous evidence can provide valuable insights, it should not overshadow traditional methods like ordinary least squares (OLS) estimates, which can be more applicable in certain contexts. For example, in selecting the appropriate approach for understanding the impact of education systems, evaluating the local context and inherent biases can result in better predictions than relying solely on averaged results from systematic reviews. This suggests that the emphasis on testing the external validity of experimental findings may lead to misguided decisions that overlook critical local information.

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