Randomized trials in Busia, Kenya revolutionized development economics by optimizing aid strategies.
The groundbreaking study debunked assumptions about aid effectiveness, leading to a focus on remedial education.
Deep dives
Development Economics Revolution in Bussia, Kenya
In Bussia, Kenya, economist Michael Cramer initiated a groundbreaking study involving giving textbooks to school children. Surprisingly, the study results showed no significant difference in average test scores, challenging preconceived notions. This led to a shift in education reform towards emphasizing remedial education for struggling students.
Impact of Randomized Trials in Development Economics
The use of randomized trials in Bussia by economists like Michael Cramer and Esther Duflo revolutionized development economics. Studies tackled various issues, from promoting school attendance through deworming medicine to evaluating aid distribution methods. The approach helped optimize limited resources and reshape global aid strategies.
Legacy of Randomized Trials and Economist Collaboration
The success of randomized trials in Bussia spurred a global movement in development economics. Economists expanded to other regions, conducting trials to address poverty and health challenges worldwide. The approach led to substantial policy impacts, increased aid effectiveness, and improved understanding of interventions' outcomes.
In the early 90s, when a young economist named Michael Kremer finished his PhD, there had been a few economic studies based on randomized trials. But they were rare. In part because randomized trials – in which you recruit two statistically identical groups, choose one of them to get a treatment, and then compare what happens to each group – are expensive, and they take a lot of time.
But then, by chance, Michael had the opportunity to run a randomized trial in Busia, Kenya. He helped a nonprofit test whether the aid they were giving to local schools helped the students. That study paved the way for more randomized trials, and for other economists to use the method.
On today's show, how Busia, Kenya, became the place where economists pioneered a more scientific way to study huge problems, from contaminated water to low graduation rates, to HIV transmission. And how that research changed government programs and aid efforts around the world.
This episode was produced by James Sneed with help from Willa Rubin. It was engineered by James Willetts. It was fact-checked by Sierra Juarez and Emma Peaslee. It was edited by Molly Messick. Jess Jiang is our acting executive producer.