Nobel Laureates Use Economics to Study Global Poverty Crisis
By: Sophia Andritsos
On October 14, 2019, it was announced that the winners of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2019 was awarded jointly to Abhijit Banerjee, Esther Duflo, and Michael Kremer. Husband and wife, Banerjee and Duflo are both researchers from the Massachusetts Institute of Technology, while Kremer is a researcher from Harvard University. At 46 years old, Duflo is the youngest individual to have ever won the Nobel Prize in Economics, and is the second woman in history to have won this award, following in the footsteps of Elinor Ostrom in 2009. Together, these individuals used developmental economics to study the real-world applications of one of our world’s most pressing problems: the global poverty crisis.
On October 14, 2019, it was announced that the winners of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2019 was awarded jointly to Abhijit Banerjee, Esther Duflo, and Michael Kremer. Husband and wife, Banerjee and Duflo are both researchers from the Massachusetts Institute of Technology, while Kremer is a researcher from Harvard University. At 46 years old, Duflo is the youngest individual to have ever won the Nobel Prize in Economics, and is the second woman in history to have won this award, following in the footsteps of Elinor Ostrom in 2009. Together, these individuals used developmental economics to study the real-world applications of one of our world’s most pressing problems: the global poverty crisis.
From left to right: Nobel Laureates in Economics, Abhijit Banerjee, Esther Duflo, and Michael Kremer
Photo courtesy of nobelprize.org.
Photo courtesy of nobelprize.org.
The basis of their experimental study in economics is theoretical in nature, but these individuals collectively wanted to use their expertise and passion for the field to affect change in the lives of those who need it the most. The crux of their study focused on the life-changing elements that have the potential to break the cycle of poverty and empower individuals in various third-world countries, which primarily include access to healthcare and education.
Hailing from India, Banerjee is heavily involved in studying poverty and witnessing the lives of those affected by it firsthand. In 2003, both Banerjee and Duflo co-founded the Policy Action Lab, an international research organization which specializes in this area of study. Additionally, Banerjee has been involved in the political sphere in India, serving as an economic advisor advocating for the allocation of resources for the poor.
These economists conducted various field experiments that have provided much insight into the necessary changes that must be made in order to optimize access to healthcare and education to improve the quality of life for these individuals in need.
On the topic of education, these economists discovered that in areas such as rural Kenya and India, access to additional textbooks, educators, and resources did not improve the levels of learning retention in young students. Rather, factors that proved to be quintessential in academic improvement were short-term contracts for teachers (so as to improve their work attendance), lesson plans that were more applicable to real-world experiences, and direct tutoring for students who were struggling with coursework comprehension.
On the topic of affordable healthcare in India, mobile access to immunization proved to be a particularly effective means to improve the quality of life for children suffering from parasitic infections. According to the Associated Press, more than 700 million people live in extreme poverty and five million children a year die from easily and affordably treatable diseases. The Associated Press also stated that the rate at which parents gave their children medication to heal parasitic infections increased by 57% when said medication was available free of charge as opposed to the government-subsidized price of $1.
Such revelations made by this brilliant group of individuals possess the power to inspire and save millions of lives. They have used their remarkable intelligence in conjunction with their passion for economics, for the ultimate, compassionate pursuit of helping the lives of those in need. Additionally, the fact that this prize in economics was awarded in part to the youngest woman in history is especially momentous. In her own words, Duflo said, “Showing that it is possible for a woman to succeed and be recognized for success I hope is going to inspire many, many other women to continue working and many other men to give them the respect that they deserve like every single human being.”
Hailing from India, Banerjee is heavily involved in studying poverty and witnessing the lives of those affected by it firsthand. In 2003, both Banerjee and Duflo co-founded the Policy Action Lab, an international research organization which specializes in this area of study. Additionally, Banerjee has been involved in the political sphere in India, serving as an economic advisor advocating for the allocation of resources for the poor.
These economists conducted various field experiments that have provided much insight into the necessary changes that must be made in order to optimize access to healthcare and education to improve the quality of life for these individuals in need.
On the topic of education, these economists discovered that in areas such as rural Kenya and India, access to additional textbooks, educators, and resources did not improve the levels of learning retention in young students. Rather, factors that proved to be quintessential in academic improvement were short-term contracts for teachers (so as to improve their work attendance), lesson plans that were more applicable to real-world experiences, and direct tutoring for students who were struggling with coursework comprehension.
On the topic of affordable healthcare in India, mobile access to immunization proved to be a particularly effective means to improve the quality of life for children suffering from parasitic infections. According to the Associated Press, more than 700 million people live in extreme poverty and five million children a year die from easily and affordably treatable diseases. The Associated Press also stated that the rate at which parents gave their children medication to heal parasitic infections increased by 57% when said medication was available free of charge as opposed to the government-subsidized price of $1.
Such revelations made by this brilliant group of individuals possess the power to inspire and save millions of lives. They have used their remarkable intelligence in conjunction with their passion for economics, for the ultimate, compassionate pursuit of helping the lives of those in need. Additionally, the fact that this prize in economics was awarded in part to the youngest woman in history is especially momentous. In her own words, Duflo said, “Showing that it is possible for a woman to succeed and be recognized for success I hope is going to inspire many, many other women to continue working and many other men to give them the respect that they deserve like every single human being.”