Published this week: the latest VoxDevLit covers microfinance. After many decades, microfinance is pervasive and popular in developing countries but is often controversial. What have we learned about what works, how it works, and who it helps – and what is there still to understand? Authors Simon Quinn, Muhammad Meki, and Jing Cai talk to Tim Phillips about the problems of evaluation, the surprising uses to which microfinance has been put, and the lessons that policymakers can learn from the story of microfinance so far. Read the full show notes here: https://voxdev.org/topic/finance/what-have-we-learned-about-microfinance Read and download the VoxDevLit from our new look website here: https://voxdev.org/voxdevlit/microfinance

Tim Dobermann, Research Director at the International Growth Centre, and Francesco Caselli, Professor at the London School of Economics, discuss the changing landscape of economic development. They explore unorthodox policies needed to adapt to new global challenges, from Brexit to climate change. The impact of COVID-19 on trade and the importance of digital technologies are highlighted. They also assess AI's role in job creation and the fiscal policies nations must adopt to encourage growth while managing crises.

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.

Lin Tian, an expert affiliated with INSEAD, discusses the economic impact of internet connectivity on developing countries. She explores the surge of internet access, particularly in rural areas, and the disparities it creates. The conversation highlights how internet connectivity enhances productivity, education, and employment opportunities. Tian also shares insights on how platforms like Alibaba empower small businesses by connecting them to global markets. Additionally, she discusses the transformative impact of AI on these economies and the importance of strategic government policies.

Chris Woodruff, a University of Oxford professor and non-executive director at British International Investment, shares insights on the intersection of research and investment. He highlights the challenges BII faces in promoting sustainable growth in emerging markets. The discussion dives into evidence-based strategies for businesses, using randomized control trials to address hurdles faced by micro and large enterprises. Woodruff also reevaluates the significance of external validity in investment decisions, advocating for a thorough understanding of general equilibrium effects to enhance DFI impact.

Amit Khandelwal, a Yale economics expert, Isabela Manelici from the London School of Economics, and Arvind Subramanian, former chief economic advisor to India, dive into the challenges facing emerging economies in global trade. They discuss how protectionism affects trade dynamics and the need for smart strategies. The role of multinationals is examined, highlighting their dual impact on local economies. The conversation also covers industrial policy's effectiveness and the varied responses of nations like India and Vietnam to changing global dynamics and climate challenges.

David Yang, a Harvard researcher and author on protests, joins Noam Yuchtman from the University of Oxford to unravel the dynamics of modern protest movements. They discuss how social media shapes activism and the changing nature of protests post-Arab Spring. The conversation explores economic motivations behind protests, emphasizing how poverty and unemployment fuel discontent. They also highlight the pro-social motivations of individuals involved, reframing the narrative around protesters as committed to public welfare rather than just discontent.

In our final episode based on this year’s BREAD-IGC virtual PhD-level course on the economics of cities in low and middle-income countries, Matthew Kahn of USC and Siqi Zheng of MIT focus on sustainable urbanisation. They tell Tim Phillips about how cities can adapt in the face of climate change, both its inhabitants and its buildings. Read the full show notes on VoxDev: https://voxdev.org/topic/migration-urbanisation/how-urban-environment-can-adapt-climate-change

Marianne Bertrand, a labor markets expert at Chicago Booth and Co-Chair of J-PAL, joins Stefano Caria from the University of Warwick to explore effective skills signaling for job seekers in low and middle-income countries. They discuss the challenges job seekers face in proving their qualifications amid information asymmetry. The conversation reveals how standardized certifications can enhance job outcomes and the role of social networks in hiring practices. They propose solutions like wage subsidies to improve hiring efficiency and suggest scaling up skill-signaling programs to boost employment.

Ugo Gentilini, a lead economist for social protection at the World Bank and author of "Timely Cash," dives into the rich 2,500-year history of cash transfers. He discusses how historical debates illuminate current arguments about social safety nets. Explore ancient roots and their impact on modern welfare systems. Gentilini highlights the persistent themes of poverty and inequality, underscoring the importance of adapting cash transfers to address contemporary challenges like climate change and migration.