Think Positive, Climb out of Poverty? It鈥檚 Just Not So Easy!

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Social mobility in Brazil: Positive thinking and ambitious aspirations can create lots of frictions鈥

A few weeks ago, from Northwestern University published an in which she discussed the role of positive thinking and of believing in oneself for overcoming poverty. Jayachandran argues that there is “growing evidence that it can used as an anti-poverty strategy”, while also warning about placing too much emphasis on positive thinking alone. This post will dwell on the latter point, arguing that we should pay much more attention to limitations and broader contexts of positive thinking in development. I do not want to deny the role of self-worth and forward-looking aspirations for poverty reduction and quality of life more generally, but I will emphasize the importance of considering their role only as part of a broader policy mix.

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Poor Behavior, Good Behavioral Policies? Double Standards for the North and South

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Behavioral approaches to development economics and policy have gained momentum in recent years. A growing number of papers studying behavior of people in poor countries have been published in top journals, accompanied by the rise of randomized controlled trials (RCTs). In 2015, the was dedicated to behavioral and cognitive research and policy. Papers studying how to or have become classics in the field. Lots of hope has been placed into social experiments and behavioral policies .

Behavioral policies are of course not reserved for policy-making in poor countries. In fact, nudges became famous with a . Many behavioral instruments have been discussed and tested in and for rich countries. But there has been an important difference as compared to the debates in development economics: when debating behavioral policies in rich countries, scholars have also devoted lots of time to consider normative and ethical concerns. For example, following Thaler and Sunstein鈥檚 exposition of (see also ), a debate unfolded on whether nudges could be anti-libertarian (, , , or ). Implications of the use of nudges as a new form of government policy have been analyzed, for example, from a , or with a focus on . have been written about . The debate has reached a great level of differentiation, e.g. when authors argue that so-called (these are nudges that seek to stimulate voluntary cooperation in social dilemma situations) may be justified for different reasons than those targeting individual welfare. Overall, the debate has become really sophisticated, and the autonomy, welfare, and dignity of citizens in rich countries as well as consequences of the use of behavioral policies for these countries鈥 modes of government have received lots of careful scrutiny (recently again ).Read More »

Towards a Critical Pluralist Research Agenda in Development Economics: Some Bricks from Berlin to Build Upon

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By Svenja Flechtner, Jakob Hafele & Theresa Neef

Much has been said about what鈥檚 going wrong in development economics 鈥 on this blog (for example by Adel Daoud, Ingrid H. Kvangraven, or Jacob Assa) and elsewhere (for example by , , and ), as well as . Much has been written, too, about alternative perspectives and approaches to economic development thinking (this gives an overview of many of them). But is it possible to build a coherent pluralist and critical framework out of these approaches? If so, what could a critical and pluralist research agenda for development economics look like?Read More »