the power of options in international development
In a recent podcast, Professor Chris Blattman argues against the age old âteach a man to fishâ sustainable development modelâthat if you give a man a fish he eats for a day, but if you teach a man to fish he eats for a lifetime. While training, rather than providing, enables the man to continue to fish, Blattman thinks the man should have the ability to choose whether or not he wants to fish in the first place.
As countries develop, their citizens are presented with increasingly more options. In education, the decisions shift from going to school at all to choosing public or private school to choosing a college and major out of thousands of choices. In healthcare, the decisions shift from receiving care at all to choosing care that is convenient, accessible, high quality, and aligned with personal belief systems. In energy, the decisions shift from having lights at all to which types of technology the voltage in your home can support to finding energy sources that do not harm the environment. In a sense, economic development is the pathway towards increased options.
So why then are economic development programs so prescriptive? For example, the Millennium Villages Project prescribes a cocktail of economic development solutions to lift communities out of poverty including interventions in health, education, and infrastructure. Though these programs do increase the quality of life in these villages, they are missing one key componentâthat these projects, by design, keep people in their villages by not giving them the choice to pursue options elsewhere. If economic development is in fact the pathway towards increased options, the interventions by which to get there should empower beneficiaries to make the best choices for themselves and their families.
The notion of allowing people to pursue the increased options at their disposal as they economically develop makes unconditional cash transfers an intriguing tool. Blattman and others have found that helping people do what they are already doing better, rather than creating entirely new ventures or encouraging them to learn unfamiliar skills, yields better results. While skills are important, Blattmanâs findings show that the main barrier to economic development is capital â which is most useful and flexible in the form of cash.
Furthermore, an impact evaluation by Innovations for Poverty Action in Kenya found that families that received cash with no conditions organically increased spending on education, invested in assets, and increased income, consumption, and overall expenditures; they did not use cash transfers to buy âtemptation goodsâ, such as alcohol and tobacco, or work fewer hours as a result of receiving the cash.
From 2002 to 2012, the World Bank invested almost $9 billion in 93 skills projects, and openly admits that some did not yield positive outcomes. Â What is the opportunity cost of this $9 billion? If you divide it by the 92,370 households in the Millennium Villages Project, each would have received just over $97,400. To put that into context, a Gallup survey in 2012 found the median annual household income in Rwanda to be $1,101. Research shows that if given the cash, these households would have chosen to invest in the things that matter to them mostâhealth, education, and capital, that have the potential to sustain economic development over the long-term without putting funding towards programs or overhead costs.
As more evidence is published that shows positive outcomes of infusing the poor with cash and international development organizations are beginning to doubt the effects of expensive prescriptive programming, giving cash, and with it the freedom of choice, is becoming more attractive.
this post brought to you by team member whitney caruso.Â











