Prof. Michael Kremer
Development economist Michael Kremer (University of Chicago) has introduced a new approach for obtaining reliable answers to this question. It involves dividing this issue into smaller, more manageable questions – an experimental approach for which he and his colleagues Abhijit Banerjee and Esther Duflo were awarded the 2019 Nobel Prize in Economics.
Michael Kremer has been able to test a range of interventions using field experiments since the mid-1990s, for example for improving educational outcomes or child health. Kremer questions general recipes for development aid – neither the complete rejection of all financial aid nor the glorification of development aid as the only way out of the debt trap for African countries are worthwhile. His focus is on evidence – that is, on whether a measure makes sense economically and improves the health of those affected. “I see my role as providing that evidence,” explains Kremer.