HBR IdeaCast A Nobel Prize Winner on Rethinking Poverty (and Business)
Nov 26, 2019
Esther Duflo, an acclaimed MIT economist and 2019 Nobel Prize winner, shares her transformative journey from charity work to reshaping economic policies aimed at alleviating global poverty. She emphasizes the importance of field research, asserting that effective policies often challenge conventional wisdom. Duflo discusses innovative solutions, such as the free distribution of insecticide-treated bed nets in malaria prevention. She highlights recent progress in poverty reduction and the vital role of business leaders in creating impactful change through responsible practices.
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Early Influences
- Esther Duflo's mother, a doctor, worked in developing countries, exposing Duflo to the realities of poverty.
- Duflo volunteered in soup kitchens and with an NGO in Madagascar, shaping her interest in economics.
Shifting Perspectives
- Duflo found soup kitchen work unsatisfactory, wanting to address the root causes of poverty.
- Working with a local NGO in Madagascar showed her the importance of systemic solutions, not just charity.
Rigorous Experimentation
- Duflo's research uses randomized control trials, similar to drug testing, to evaluate poverty solutions.
- This approach provides rigorous data on what works, leading to more effective policies.
