4. 3. Poor stoves also lead to more rapid deforestation, where 5.8 million hectares of tropical rainforest are being lost annually. The second is that it looks at these returns over a long period of time (over a decade). March 2, 2012 at 3:01 pm. We have all seen the shocking pictures of disfigured children in magazines that ask for a donation for organizations such as Smile Train, which does corrective surgeries for a $250 donation. A million children die from drinking unclean water each year. What does this all add up to? As a profession we should be insisting that these consumer-oriented aid organizations gain third-party certification of impacts for the interventions they market to the public. Fair-Trade Coffee. So how to create an environment where people can help themselves. We need a more thoughtful look at the largest programs — from Medicaid to nutrition programs and tax credits for low-income families — so they really do lift this generation and the next. Gary E. MacDougal’s thought experiment — dividing the total spending on poverty by the number of poor people — is highly misleading; for example, it fails to consider the number of people lifted out of poverty by such programs. Bed nets are also incredibly cheap—only $5-10 dollars. on fair-trade coffee and by Cristia et al. I send a Calendar invite and ask them to schedule a time for us to hang out on a day that will be rough, whether it's because of layoffs or health worries. The opportunity costs are too high. Walden degree and certificate programs are designed to help students explore current market trends, gain relevant skills that can be applied immediately in the real world, and create positive social change in their lives and communities. Survey participants included Chris Barrett (Cornell), Alexander Tarozzi (Duke), Dean Karlan (Yale), Ken Leonard and Pamela Jakiela (Maryland), Betty Sadoulet, Alain de Janvry, and David Levine (Berkeley), Pascaline Dupas (Stanford), Jon Robinson (U.C. They have an excellent design/sample for impact evaluation. I'll be going to my barber regularly. and forthcoming in J. For all the fear and anxiety the pandemic has introduced, it's also brought something else: an opportunity for us to empathize. And the simplicity of this policy makes it less vulnerable to corruption. The consequences of using sanitary pads on menstrual and genital health should also be measured. She said a non-profit here was taking food donations for these kids, so a group of us helped buy and collect food for her to donate. Low impact is due to extremely poor institutional design: growers have to pay for fair-trade “certification,” recouping these costs only in years when the coffee price falls below the $1.41 price floor. My co-authors on fair trade projects have another paper that fair trade "reveals that yields rather than price premiums are most important for increasing net cash returns for coffee growing households", http://www.sciencedirect.com/science/article/pii/S0305750X11002890. While many of us continue to work on issues like microfinance, water, and education, there are a number of interventions that have had very little research carried out on them, some included here. Fair trade coffee efforts, as generally practiced today, is grounded in a flawed economic mechanism that essentially guarantees that it won't work in the long run. Reach out to someone who might need to hear that he's not alone -- your co-worker, your assistant, the barista who keeps you fueled with caffeine so you can get work done. Reply. She was previously director of the Policy Exchange at the Institute for Educational Leadership. Helping people to help themselves provides the best long term improvements. Are you friendly with investors who are still looking for strong bets in this economy? Many development practitioners feel that small libraries in rural villages strongly promote literacy, learning, and development. The Supplemental Nutrition Assistance Program and Medicaid played a critical role helping people in this recession. The countdown to the Annual Meetings is on! Please share this article so that it helps more people look out for one another in this difficult time. It changes a relationship when you show somebody that you care about something she's worried about. Look at the other people around you, and offer what you can to help. They demonstrate how a grower can benefit from being in fair trade temporarily (when coffee prices plunge), but that this benefit is transitory, just like we teach in Econ 101. Over the past few years (or, let's be honest, decades), we've been extremely divided because of politics, media challenges and generational differences. I have my own priors, but even if I think deworming or clean water is best bang for the buck I still spread my money around since I'm uncertain. This is the question the editors of Christianity Today assigned to me for a special issue this month on world poverty. 2. First, because de-worming is so effective at a medical level, it’s cheap, and also because this early intervention was the subject of one of the most famous early randomized trials. The tired call to replace the welfare state with block grants to states does not take seriously the nature of both poverty and the economy. Even if I'm just serving as a  resource, I want to help keep others afloat. Microfinance clearly exhibits some modest positive impacts, but it isn’t the silver bullet in the heart of poverty some had hoped it might be. 7. Little research has been done by economists to evaluate the impacts of these surgeries in developing countries, but medical research shows excellent long-term results. The first is that it specifically focuses on price returns to coffee growers, which is, and should be, the principal focus of any fair-trade effort. One famous WHO study found clean water in a rural village reduces infant mortality by 35% to 50% at a cost of roughly $10 per person per year. Then, he shared the results regarding the people who were struggling (with their approval, I assume). Re “The Wrong Way to Help the Poor” (Op-Ed, Oct. 11): Gary E. MacDougal rightly questions if the current patchwork of public programs is the best way to improve the prospects of our country’s 46 million poor, which includes 22 percent of all children. One the best I know of serving the global poor in this way is Compassion International. However, the budget proposed by Representative Paul D. Ryan, which relies on cost shifts to states, should not be the discussion’s starting point. What are the best things ordinary people living in rich countries can do to help poor people living in developing countries? SHE (Sustainable Health Enterprises) asks donors to provide $28 every 28 days to promote small businesses that make locally produced menstrual pads available to girls and women in developing countries. 1-3 target the poorest. But it also offers lots of opportunities to help those in need. Research shows that your diet is the best way to support your skin, so we compiled a list of anti-aging foods to help plump your skin from the inside… READ MORE Baby Probiotics: Are They Safe? Libraries and Literacy. without waiting for the answer. Thanks for the great comments. So among the popular means through which ordinary people try to help the poor overseas, which are the most effective? I think 6,8 and 12 seem understudied to me. Whether your business is thriving or barely surviving right now, you probably need some help. Share your feelings, too. Poor stoves also lead to more rapid deforestation, http://givewell.org/international/health/water, http://www.sciencedirect.com/science/article/pii/S0305750X10001427, http://ideas.repec.org/p/tow/wpaper/2010-14.html, http://www.fairtrade.net/impact_studies.html. What about poverty traps. Excellent points - and I am very happy you brought up both the issue of sustainability and that of sanitation and handwashing, which have more benefits than single access to water in terms of impact on neglected tropical diseases too (Esrey et al 1991). Even the undergrads came up with the same answer for the #1 ranking, so it seems you don’t have to be a development economist to get this one. It would be so easy to develop an alternative fair-trade mechanism that far more efficiently transfers income from drinkers to growers. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). MARGARET DUNKLE Port Republic, Md., Oct. 15, 2012. I have heard anecdotally the same--there are innumerable wells with broken pumps drilled by well-meaning NGOs that sit dormant because of lack of maintenance and a plan to keep them running in the long term. Let's use this crisis as an opportunity to not beat up on the other side; let's find some common ground and look out for one another. At least by some measure, development economics and microfinance have lost that lovin’ feeling. The bang for the buck on this one is at best a whimper, at worst inaudible. We're all wary of the unknown; we all want things to get back to normal. 11. In a paper certain to amplify the caffeine jitters in the fair-trade coffee industry, De Janvry, McIntosh, and Sadoulet (2011) find zero average impact on coffee grower incomes over 13 years of participation in a fair-trade coffee network. Second, there appears to be almost an inverse relationship between marketing hype and rigorously measured impacts. Instead, we should learn from community programs, such as Harlem Children’s Zone and the Strive Partnership of Cincinnati and Northern Kentucky, achieving these outcomes by coordinating services to families, even if the services are financed by different programs or delivered by more than one institution. The coffee has had zero effect on development. But he widely misses the mark when he suggests that Representative Paul D. Ryan’s proposed budget would make things better. (Average Rating: 3.81) The marketing of organizations like the Heifer Project are second to none. Regardless of where you stand on that spectrum, we can all do our part to prevent the spread. The content of this field is kept private and will not be shown publicly. A recent study presented at the NEUDC by Cristia et al. http://wp.me/p1jV1a-46 for how the sector is gradually acknowledging and addressing these problems. Anyone have any insights? Moreover, here is a program that promotes the cultivation of coffee, when it is obvious that coffee growers would be collectively better off if everyone grew less. 10. Last week I ordered Camacho Coffee subscriptions to be sent to our staff at home. Defensive arguments can get heated, diverting conversation from what works, and of course media loves a scandal. Third, we need to diversify our collective research portfolio. But funding cuts or block grants that starve programs will not reduce complexity or improve results. Focusing on that is a much healthier approach for both you and the people around you. Destroying the federal safety net in the name of federalism would have tragic consequences, particularly for poor children and families, and should be rejected on moral and social grounds. TANYA TULL President, Partnering for Change Los Angeles, Oct. 11, 2012. The most interesting paragraph here was the last one noting the value of debunking interventions that have no impact, so money is no longer diverted poorly. It's an understatement to say that the coronavirus outbreak has changed life as we knew it. During a 1995 Congressional hearing, policy makers stepped into the shoes of a working-poor family applying for help from 20 public programs. I have good friends who say the media is blowing this pandemic out of proportion. Interesting list - a couple of quick comments from someone working/researching in the water sector. While impacts of this magnitude are not likely to have external validity in areas with lower worm infestation, there are plenty of places left where deworming impacts would likely be huge. (Average Rating: 1.80) The One Laptop per Child program gives away laptops to kids in developing countries who have at least a thousand more pressing needs. study in Mongolia  find modest impacts: increases in entrepreneurialism and business investment, but little or no increase in income. Whether you are liberal or conservative, that’s the American way. This way to help the world’s poor is surprisingly simple. Is education no longer a way up the proverbial socioeconomic ladder? Pray … I'm blessed to be a healthy 30-something during this crisis; others are not. Recently, a friend asked me how he could save money on volume purchases, and I mentioned trying group purchasing. There is some evidence that libraries may be a cost effective alternative or supplement to investments in schools, where the cost of a child reading an extra book a year is estimated to be between $0.74-$1.30. A couple of the lesser-used interventions were omitted for space considerations in the main article, but I include them here with an abbreviated synopsis of the commentary. Expensive, but effective. On a related topic, I am surprised that no one has commented on local menstrual pads' place at the bottom of the list. It’s great that more “ordinary” people are wanting to help than ever, especially in the economy that we’re currently in. I also have good friends who think we're all going to die. More information here if you're interested: http://www.fairtrade.net/impact_studies.html. Miguel and Kremer’s celebrated study found that regular de-worming treatment in worm-infested areas of the developing world could reduce school absenteeism by 25% at a cost of $0.50 per year. I think Bruce makes an excellent point saying that we need to diversify our collective research portfolio. But it also offers lots of opportunities to help those in need. Menstrual Pads for Young Girls. Courtesy of the web, today it is not just big governments and multinational organizations that do all of the heavy giving. The number of poor people is swelling because of covid-19. But water is so primal among human needs, and the welfare payoff is so high per dollar, we might want to focus on doing water better than doing something else. Cleft Palate and other Reparative Surgeries. Mr. MacDougal is right to focus on results — children who are healthy and school ready, adults with the skills needed to compete. Are we as economists too dependent on a few studies? (Average Rating: 6.00)   Indoor air pollution is worse than many people previously thought: about 1.6 million people are believed to die prematurely each year from it. Another consequence of poor menstrual hygiene - using inappropriate material- is that it leads to infections. (Average Rating: 6.86) Paul Glewwe, Laine Rutledge, and I did a BASIS-sponsored study on the long-term impacts of Compassion International’s child sponsorship program. Vivien Williams: Poor sleep may increase your risk of conditions such as heart disease, obesity, depression, dementia. Clearly a case where development economists are aware of the deficiencies of a program, but word hasn’t “filtered down to the average Joe.”. We used a regression discontinuity/IV framework based on age eligibility at program rollout that examined adult life outcomes for children who were sponsored in six countries through Compassion’s program during the 1980s and 1990s. Over the decades there have been movements to bring greater levels of transparency into the consumer product industries, the medical industry, and now the financial industry. Have I missed something? I believe the best way to help the poor is to live among them. Child Sponsorship. Providing Clean Water to Rural Villages. Gary E. MacDougal is right that candidates should pay more attention to poverty and that low-income families too often face a confusing maze to get help. Some states might do a great job, but others surely would not. For this reason, I believe menstrual health should be fully incorporated in water, sanitation and hygiene programmes and evaluated as such. There's an obligation as a community to support those who have been hit hard so we can get through this together. He cares for us. 12. Now, I'm asking, "Really, what can I do to help?" study in Morocco, and the new Attanasio et al. The quicker we can get past this, the quicker we -- and our businesses -- can recover. Many of the things above were inspired by seeing others be kind. (Average Rating: 1.94) How can fair-trade coffee, as it is commonly practiced, continue to thrive when the most rigorous evidence shows that it doesn’t work? These are all assets you can share to help others survive. To want to help yourself you want to know that you will be allowed to enjoy the fruits of your efforts. Thanks for your comments and well written article. I asked her how I could help with that. Santa Cruz), Sarah Baird (George Washington University), Paul Glewwe (University of Minnesota), Judith Dean (Brandeis and World Relief), Chris Ahlin (Michigan State), Julie Schafner (Tufts), and David McKenzie (the World Bank ). That they find zero long-run benefit to fair trade makes perfect sense after you think about it a while: why should there every be excess returns in a market with free entry? People who know me well would tell you I'm super thrifty, but you better believe that as soon as social distancing isn't needed, I'm going to be eating out every night to support local restaurants. One of the better ways to help the poor and needy people is to give them a … Ordinary people give to the overseas poor now more than ever. 9. In terms of the most impact ones, I'm not sure which charities do good work on 1-3 and 5? Organizations like Heifer face difficult issues related to targeting. I decided to take a poll of our peers and have each rate, on a scale of 0-10, some popular interventions. 10. The results of the poll appeared in the cover story article for the magazine this month. What they observed from this single cooperative (that more people enter into fair trade when it is profitable to do so) is exactly what we would expect in other situations as well. Do you know where something low in stock can still be acquired? They would like to target the poorest of the poor with farm animals, but in many cases these households lack the resources to properly care for one of the major farm animals. Meanwhile, a 10-year review of academic literature on Fairtrade (33 case studies) found “higher returns and more stable incomes as clear benefits enjoyed by Fairtrade producers,” and also added that “non-income impacts of Fairtrade are at least as important as income benefits for smallholder farmers… (e.g. economist.com. Secondly, the water and sanitation sector is a great example where the potential benefits are huge, but the sector needs to use its existing resources better as well as getting more money. (Average Rating 1.60) Lack of access to sanitary pads can result in lost days of schooling and work, and are thought to reduce education in girls and have numerous other negative consequences. The writer is a lead research scientist at the department of health policy of George Washington University. Giving young girls pads but nowhere safe/ dignified to get changed at school is likely to be a factor leading them to stay home while on their period. I don't know whether he ended up doing anything with that information, but I at least connected him to a person who was a lot smarter than I am on the topic. This is the question the editors of Christianity Today assigned to me for a special issue this month on world poverty. If there's one good thing to come out of this, it will be our ability to care for each other. Often, people ask how they can help you. capacity building, stability of income, market information and access, self-confidence, access to credit, national representation etc)”. In my experience, one of the best ways to help ourselves is to help others. Even if people think this is overblown, let's do our best to look out for others. Hi Seth, Evans and Kremer’s (2008) shorter-term study in Kenya also finds big impacts. Look for organizations that are committed to the local church and are faithfully proclaiming the gospel, even as they minister to the physical and relational needs of the poor. Following are the few ways to help the poor and needy people. If you approach this in a way that doesn't burden them, but helps them see your humanity, you'll be doing them a real service. On water-related interventions, they haven't yet recommended a charity: http://givewell.org/international/health/water. In strictly economic terms, there is an opportunity cost, yes, but I have observed that usually there's quite a few egos involved, too. For example for $15 you can buy one of the new high-tech rocket stoves. Bruce's piece in Christianity Today links to a number of charities under each point above. Yes, absolutely. There are so many better ways to help coffee growers than what the FLO and Transfair are doing presently: scholarship fund for coffee grower kids, some of the top-5-rated interventions mentioned here, other things to wean them away from coffee growing so that prices increase to those who continue in coffee will benefit from the reduced supply. My businesses are online, so I'm not seeing the swift impact that some of my neighbors are. Another big bang for the buck. A pandemic is crippling for lots of people and businesses. We need to do a better job of getting the word out about what works and what doesn’t. What makes us alike is much greater than what separates us. 5. No doubt. What do you think the best way to help the poor is? Thanks for the interesting article. The new nets last for several years without needing to be re-treated, and reduce instances of malaria by 50% and malaria mortality by 20%. I'm not judging anyone -- I think most people are feeling like there's more that we don't know at this point. This is a time to mean it. (Average Rating: 4.19)  Development economists now are nearly all aware of one major fact about microfinance: it’s astounding growth over the years is significantly larger than its impact. The surplus the receive goes away as more growers become certified to grow fair trade when it pays to become certified. (Trust HIM to send help into your life.) Responding to Seth and Reykia: The McIntosh et al. We’ve noticed this in the field. I think 3ie is doing a systematic review of agricultural extension impacts and ag extension might also be added to the list of ways to help. The adults who as children providentially lay on the right side of the age-eligibility cutoff were more likely to complete secondary school, have a white-collar job, marry and have children later, and have a house with electricity. People close to me are immunocompromised; I also have friends in their 70s and other friends whose parents are enduring chemotherapy. Malaria is a leading killer of children in developing countries, accounting for nearly one in five deaths of children under five in sub-Saharan Africa. I can think of no better example than this article to display William Easterly’s, Planners and Searchers shown in The White Man’s Burden. Improved wood-burning stoves deal with both of these issues in one go, with big impacts on both. (Average Rating: 7.81) This one was probably ranked high for three reasons. Add/view comments on this post. 6. Moral Consolation . What are the best things ordinary people living in rich countries can do to help poor people living in developing countries? Intervention is expensive, but respondents had little doubt about impacts. So much focus is on the first things that come to mind- money, water, and educational opportunities- which is good, but we need to diversify our focus to other things, some listed above. The aid industry needs to be next. Indoor air pollution is worse than many people previously thought: about. But that means we can't just stand on the sidelines and lick our own wounds. 5. It is a question many people like my parents worry about, people who would like to give money to causes that help poor people overseas, but to put it simply, have little clue about what actually works. Farm Animal Donation.