Thursday, July 23, 2020

Randomised Control Trials and the Alleviation of Poverty in India

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Sattva Vasavada

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Randomised Control Trials and the Alleviation of Poverty in India

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Global Views 360

Publication Date

July 23, 2020

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Poverty in India — A Representative Image

Poverty in India — A Representative Image | Source: Atul Kumar via Unsplash

Abhijit Banerjee and Esther Duflo won the 2019 Nobel Prize in Economics for their “experimental approach in alleviating global poverty”. Their experimental approach encompassed a variety of novel methods to understand and analyse interventions and Randomised Control Trials (RCTs). Their research has been used by policy makers to make informed policy decisions to best help the marginalised.

What are RCTs?

To understand the effect of a policy, intervention, or medicine, decision makers try to measure the efficacy of the treatment. Do deworming pills given to children improve test scores? Does providing chlorinated water improve the health and economic outcomes of villages? These are some causal (read causal, i.e. caused by, not casual) questions researchers are interested in. The best way to analyse causal effects is to randomise the selection of people in the treatment and the control group (for example: children who are given deworming pills versus children who are not given the pills). This random selection of the two groups removes many statistical biases that might affect the results.

RCTs in India:

Many of the RCTs performed by Banerjee and Duflo were in India. They involved short- and long-term impact assessments of various interventions, policies, models, and treatments. We look at a few RCTs implemented in India:

Teacher absenteeism rates:

Troubled by the low attendance rates (or high absence rates) of public-school teachers in India, Duflo assessed the impact of financial incentives on the absence rates of teachers in Rajasthan. The study monitored teacher attendance by cameras, which was tied to a financial incentive if the attendance was high. From a baseline absence rate of 44%, teacher absenteeism in the treatment group fell by 21%, relative to the control group. High teacher attendance caused child test scores to improve too.

COVID-19 and health-seeking behaviour:

In the context of COVID-19, Banerjee tested the effect of sending messages via SMS that promoted health preserving behaviour. The results were very positive. By sending a short, 2.5-minute clip to 25 million randomly selected individuals in West Bengal, the intervention i) found a two-fold increase in symptom reporting to village health workers, ii) increased hand washing rates by 7%, and iii) increased mask-wearing by 2%. While mask-wearing rates increased only marginally, the spillover effects (wearing a mask stops the virus from infecting more people) were moderately high and positive.

Asset Transfers and the Notion of Poverty:

An RCT by Banerjee in West Bengal involving a productive asset transfer accompanied with training found large and persistent effects on monthly consumption and other variables. The treatment group reported 25% higher consumption levels relative to the control group, who did not receive the asset transfer and training. Implications of such RCTs are huge. The notion that the poor are lazy and unwilling to perform strenuous labour is falsified by this RCT. Often, what the poor lack are opportunities that are hard to come by, given their financial status. A small nudge, like the asset transfer, can cause large and positive effects on their well-being.  

Salt fortification to reduce anaemia:

RCTs also help rule out less cost-effective interventions. Duflo and Banerjee evaluated an RCT which distributed fortified salt in 400 villages of Bihar, to reduce the prevalence of anaemia. However, this intervention found no statistically significant impact on health outcomes like anaemia, hemoglobin, etc.  Thus, while RCTs help introduce novel methods of impacting the lives of the poor, they also help in ruling out in-effective measures. A policy maker might try other alternatives to reduce the prevalence of anaemia.

Are RCTs the gold standard?

Maybe. Extrapolating results from a regional RCT to national policies could present problems. Contextuality matters. A study that indicates positive gains for one region might present different, and rather adverse effects for another region. Nation wide effects might not be as prominent as regional results of a single RCT. The good part is that Banerjee and Duflo have a solution. Just perform more RCTs!

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February 22, 2021 11:14 PM

Iran, Turkey, Qatar Alliance: Will this mark a shift in MENA's Balance of power?

Qatar, Iran and Turkey have been forming an alliance—which impacts several countries—especially in the MENA (Middle East and North Africa) region. The move comes after Israel recently established its diplomatic relations with four Arab league countries, namely, United Arab Emirates (UAE), Bahrain, Morocco and Sudan. The article covers how this move can have an impact on the balance of power in the region.

Support for the Palestinian Cause

The three countries are critical of the Israel-Arab ties and support the Palestinian cause. Various Palestinian factions, including Hamas and Fatah as well, are shoring up ties with Turkey and other countries in the region that stand against normalization with Israel.

During his speech in the 75th United Nations General Assembly, Erdogan called out on Israel and proclaimed, “The occupation of Palestine is a bleeding wound.”

Since the Gaza attack, which killed 10 Turkish social activists aboard a ship by the Israeli commandos in international waters, the relationship between the two has only soured. After this incident, Turkey recalled its ambassador from Israel, downgrading the diplomatic status. Yet in 2016—after a few meetings—the relationship was restored. However, after another attack in Gaza in 2018, Turkey called back its ambassadors again and expelled the Israeli ambassador to Turkey. Since then they do not have full diplomatic status.

Following the attacks Erdogan—the president of Turkey—even called Israeli PM Benjamin Netanyahu “a terrorist.” The country has been openly supportive of the Palestinian cause, and has also sent aid for humanitarian relief to the Palestinians. Several Hamas leaders have been visiting, taking refuge, and even meeting with Erdogan.

On August 22, 2020, Hamas leader Ismail Haniyeh met Erdogan in Istanbul. Jibril Rajoub, secretary of Fatah’s Central Committee, as well arrived in Turkey on September 21, 2020 to meet with Haniyeh and his deputy Saleh al-Arouri and discuss ways to end the internal Palestinian division.

On the same day, Palestinian President Mahmoud Abbas phoned Erdogan and thanked him for his support for the Palestinian cause. The two have shared several calls since—discussing political developments and US pressure on the region to normalize ties with Israel and ways to face such pressure.

Turkey has tried to balance its relations with both Saudi Arabia and Iran, who happen to be arch rivals. But after the recent growing closeness with two of Saudi Arabia’s rival countries, Iran and Qatar, Turkey might end up straining its relations with Saudi Arabia.

Qatar-Saudi Arabia conflict

This diplomatic conflict is also known as the Second Arab Cold War (the first one being the Iran-Saudi Arabia Cold War). There is an ongoing struggle between the two countries to gain influence in the Gulf. Their relations strained especially after the emergence of Arab Spring. During that time, Qatar became in favour of the revolutionary wave, whereas Saudi Arabia was against it. Both the States are allies of the United States, but have a tussle in their ideologies. Both have avoided direct conflict with each other.

There are other issues between them which leads to further tussle-

1. Qatar broadcasts a news channel, Al Jazeera, which favours the Arab Spring.

2. Qatar has good relations with Iran, Saudi Arabia's rival.

3. Qatar also allegedly supported Muslim Brotherhood in the past. Which it denies.

The Qatar diplomatic crisis became worse in 2017. Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic relations and trade ties with Doha, and imposed a sea, land and air blockade on Qatar, claiming it supported “terrorism” and was too close to Iran. Yemen, the Maldives and Libya's eastern-based government also followed later. Qatar rejected the claims and said there was “no legitimate justification” for the severance of the relations.

How does this new alliance affect the other countries in the region?

The new alliance seems to lead into formations of two alliance groups or blocs in the region, with some countries siding with Iran, Qatar and Turkey and others with the Saudis and their allies. Another point to keep in mind is that Saudi Arabia is supported by the US, while two countries from the former alliance—Turkey and Iran—are supported by Russia. This will lead to further division among the Middle Eastern countries.

President Trump, Minister of Foreign Affairs of Bahrain, Israeli Prime Minister, and Minister of Foreign Affairs for the UAE Signing the Abraham Accords | Source: Trump White House Archives

This alliance can also affect the trade among these countries, and can severe the ties of many Middle Eastern countries. The biggest beneficiary is going to be Israel, which doesn’t have good relations with most of the Muslim world, except the ones which established diplomatic ties recently by signing the Abraham Accords.

In North Africa countries like Egypt and Morocco recognise Israel. However, most of the North African countries also supported the Arab Springs, which is against the ideas of Saudi Arabia. The Islamic holy land seriously seems to have less Arab allies when it comes to opposing the Arab Springs.

In fact, there can be impacts on trade and diplomatic ties with other countries outside the Middle East and North African region as well. Countries will have to balance their relations with both these groups.

How does it affect the Balance of power in the region?

In international relations, balance of power refers to the posture and policy of a nation or group of nations protecting itself against another nation or group of nations by matching its power with the power of the other side.

There has been a Cold War situation between Iran and Saudi Arabia as they are very (perhaps most) influential powers in the region. But Saudi Arabia is still more influential as a business as well as a soft power—it has a richer economy, oil exports, and most importantly, being the holy land where every Muslim comes for Hajj pilgrimage—it has Mecca and Medina. It is the land where the Prophet Muhammad first delivered his messages and teachings. Iran may try to compete in the economic part, but isn't equally as challenging in the religious part—although it is an important country for the Shia Muslims.

There have been arms embargo on Iran by the UN for arms race. Russia and China have been eager to supply Iran with advanced jets, tanks and missiles, which is quite alarming for its Gulf Arab neighbours, especially its primary adversaries like Saudi Arabia and the UAE.

On 14 September 2019, drones were used to attack the state-owned Saudi Aramco oil processing facilities at Abqaiq and Khurais in eastern Saudi Arabia. The Houthi movement in Yemen claimed responsibility, joining it to events surrounding the Saudi Arabian intervention in the Yemeni Civil War and stating that they used ten drones in the attack from Yemen. Saudi Arabian officials said that many more drones and cruise missiles were used for the attack and these originated from the north and east, and that they were of Iranian manufacture. The United States and Saudi Arabia have stated that Iran was behind the attack while France, Germany, and the United Kingdom jointly stated Iran bears responsibility for it. Iran has denied any involvement. The situation has only exacerbated the Persian Gulf crisis.

By forming this new alliance, supporting the Palestinian cause—with Qatar—even supporting the idea of Arab Springs; the Iran-Turkey-Qatar alliance has a new power with them. What remains to be seen is the other Middle Eastern country’s decision—whether they support this new alliance and the Palestinian cause or go for yet another fragile “peace-building” initiative in the already disturbed region.

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