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Thursday, July 23, 2020

Randomised Control Trials and the Alleviation of Poverty in India

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Sattva Vasavada
Sattva Vasavada
South Asia

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Sattva Vasavada

Article Title

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 4, 2021 4:36 PM

Black Lives Matter: Solidarity protests in Western Europe

The killing of the African-American George Floyd in the hands of Minneapolis police commanded world attention. It witnessed Pan-American protests against police brutality and racism. Countries across the world have stood in support of these protests against racial violence. These protests in America have triggered a number of protests across Western Europe to localise them and condemn racism in their own countries.

Protests against racial violence and police brutality drew large numbers across European capitals and other prominent cities as well. Paris protests alone saw an estimated 20000 people near the Eiffel Tower who protested against the death of George Floyd. These protesters tried to localise the issue of racial violence and police brutality by taking up the case of Traoré, a young black man whose family claims that he died due to suffocation under police custody at Persan (north of Paris) in 2016. These protests have been going on consistently for over a week. Despite the police ban on demonstrations in Paris due to the risk of COVID-19, the demonstrations couldn’t be curbed. Parallel protests were also reported in other cities of France like Lyon, Rennes and Marseille.

Berlin also has been sustaining its ‘Black Lives Matter’ protests for over a week. Demonstrations were held in other German cities such as Cologne, Frankfurt and Dusseldorf. The Bayern Munich footballers wore T-shirts with slogans that read ‘Red card against racism- Black Lives Matter’ in their match against Leverkusen to raise awareness against racial violence. Various German activists believe Floyd’s death has not only triggered anti-racist protests but also multiple questions regarding equitable distribution of resources and representation of diverse races that co-habit in Germany.

In the United Kingdom, too, despite the COVID-19 risk, a large number of protestors stood in solidarity with the U.S protests. In Bristol, demonstrators pulled down the statue of slave trader Edward Colston on 7 June, 2020. Even though these protests were against racial violence, the chords of the protests mainly struck with issues of blacks during COVID-19. British government data showed that blacks living in British were four times more likely to die from COVID-19 as compared to whites. This discrimination by the virus can be attributed to the institutionalised nature of racism and the lack of equitable access to resources for minorities living in Britain.

Protests were held widely in Spain. The U.S embassy outside Madrid has become one of the hotspots for protestors to gather. Hundreds gathered to mourn the death of Floyd and observed silence for him. The city of Budapest too observed silence and chanted songs outside its U.S embassy.

European media has also played a key role in actively condemning Trump for his actions of using military force to tackle the protests. While the French Newspaper Le Monde in its editorials has dubbed Trump as ‘President of division’ the Spanish newspaper El Pais’s headlines read ‘The U.S. Faces Its Worst Racial Conflict in Half a Century’. Trump’s actions to use federal force and active duty military personnel have made the European media to cover the protests more extensively. Newspapers coupled with social media have acted as catalysts in spreading the cause of the protests at a much faster rate.

Floyd’s killing sparked protests against racial violence and systematic racism around the world. However, it resonated at a deeper level with Western European countries primarily due to their rising number of immigrants from African and Arab countries. These countries, for decades, have struggled with accommodating these minorities equally with the mainstream population. The approach to localise these protests has helped to not only denounce racial violence in America but also in their own home country. The nature and extent of these protests have pointed out that governments no longer have the luxury of gradualism and have to instead take up swift actions to eliminate institutionalised racism and police brutality.

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