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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 5:04 PM

Kosovo and Serbia- A never ending saga of conflict

Kosovo is a small landlocked country in the Western Balkans with a majority of ethnic Albanians and Muslims. The country formerly was a part of Serbia but declared independence in 2008. While Kosovo’s independence has been recognized by nearly a hundred nations including the US, countries like Russia and China along with a few European Union nations have sided with Serbia against Kosovo.

Kosovo and Serbia have been at crossroads for a long time. Kosovo used to be a Serbian province under the communist-run Yugoslavia. However, the dissolution of Yugoslavia and the move by Serbian leader Slobodan Milošević to bring Kosovo directly under Belgrade’s administration fuelled war between the two regions.

The situation worsened with the violence in the Bosnian War ensuing from 1992-95 which was termed as “ethnic cleansing” of Muslims. By 1996, the Kosovo Liberation Army (KLA), a paramilitary group had been formed in response to the campaign of Milošević. The situation remained tense with Serbian Police killing nearly 50 people of a KLA member’s family in 1998.

Violence continued to escalate from both sides as international calls for putting an end to the violence grew. "We are not going to stand by and watch the Serbian authorities do in Kosovo what they can no longer get away with doing in Bosnia," US Secretary of State Madeleine Albright reportedly said. The UN banned the sale of arms and ammunition to Serbia as NATO began to plan an intervention in 1998.

However, the situation escalated to a worse in the "Račak Massacre" of 1999, wherein Serbian special police killed 45 ethnic Albanians. The NATO then initiated a 77-day air campaign which ended with the withdrawal of the Serbian army and the paramilitary force of Kosovo. Kosovo became a self-governed territory post the NATO campaign under the United Nations.

Despite several efforts from the European Union and the UN, the two countries have failed to arrive at a common ground till date. Kosovo declared independence in 2008 but Serbia does not acknowledge it despite having no formal control in the region.

In 2016, the countries yet again saw each other at crossroads when Kosovo sought to attain 80% shares of the Trepca mining and metallurgical complex in the northern region which is dominated by Serbs. The dispute became so pressing that it became one of the agendas for the UN Security Council.

In early 2017, Belgrade, the capital of Serbia, issued an international arrest warrant for former Kosover guerrillas including Ramush Haradinaj who served as a commander in the 1998-99 war against Serbian rule. He also briefly served as Prime Minister of Kosovo in 2004 and 2005.

As Kosovo asked the EU to press Serbia for dropping the charges, government and opposition leaders called for an end to the EU-mediated talks between Serbia and Kosovo. Serbia’s move to give the nod for Haradinaj’s extradition from France where he was being detained was met by Kosovo’s move to cancel Serbian President’s visit to a mainly ethnic Serb town in Kosovo on the eve of Christmas Day.

The gunning down of Oliver Ivanović, an ethnic-Serb politician in northern Kosovo in 2018 was yet another setback for the worsening ties between the two countries. Then Serbian President Aleksandar Vucic termed it an “act of terrorism”.

Late in 2018, Serbia blocked Kosovo’s bid to join Interpol, a move that saw Kosovo raise customs duties on Serbian imports by 100%.

In May 2019, Kosovo carried out a large anti-corruption and anti-smuggling drill wherein it detained nearly 23 people including two UN personnel and fired tear gas as well as live ammunition as per a few reports. The entire drill was concentrated in a Serb-dominated region in the North.

Serbian president Aleksandar Vucic reacted by saying that he wants to "preserve peace and stability", but that Serbia "will be fully ready to protect its people at the shortest notice". The European Union, the United Nations Interim Administration Mission in Kosovo (UNMIK) and KFOR (the NATO-led international military presence) all called for the two countries to maintain peace. However, the situation remains critical.

With Serbia being under pressure from international peacekeepers, it’s highly unlikely that it will intervene through its military forces. However, its influence in the Northern region of Kosovo means that both the countries will have to work towards maintaining amicable ties with each other as Kosovo hopes to become a UN member and a fully functional state.

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