Solving the education puzzle? Test scores and growth

There has long been a mystery in why the rapid growth of education in poor countries did not pay off in growth of production per worker, above all in Africa (best captured by a classic paper by Lant Pritchett, Where has all the education gone?, ungated here) Eric Hanushek at Stanford has been working for the past several years on test scores as a possible resolution of the puzzle. If education doesn't translate into higher test scores, then there is something else wrong along the way, which likely includes well-known problems like absent teachers and missing textbooks. He showed this picture in a 2008 paper, and he has a stream of papers since, all with coauthor Ludger Woessman.

Growth is growth of income per person 1960-2000. Both growth and test scores are measured "conditionally," that is how well they do relative to a country's initial educational enrollment and income in 1960.

Of course, test scores are a potentially sensitive subject, as some will think they are tests of intrinsic intelligence. Is this whole area of research racist?

Not necessarily, of course. Let's take racist stories of differing intelligence between nations off the table, and consider all the other factors that could be reflected in such widely varying test scores relative to educational enrollment and income.

Read More & Discuss

Lant Pritchett on what Obama got right about development

by Lant Pritchett, Kennedy School of Government, Harvard University Obama's speech at the MDG conference and the announced US Global Development Policy are the result of long preparation and internal discussions within the administration as part of the Presidential Study Directive, lead out of the NSC, announced a year ago, and the QDDR, prepared by State, both processes having been watched over by the Washington think tanks and advocacy groups.

While one could immediately focus on the "architecture" part of the speech and read the Beltway tea leaves of who is up, who is down, and what that means for this organization or that, it is worth at least first stepping back and asking where this first official US development policy came down on the big debates on development, where, I think it comes out a big winner on four big ideas.

First, the speech and policy put economic growth front and center as objectives of development and development policy.  It might seem obvious that economic growth that increases people's command over resources is the single most powerful force to improve nearly any indicator of well-being -- from poverty to food security to health to education -- but, surprisingly, that point can get lost.  The "development is about more than growth" backlash, which had important elements of truth, easily got carried away into "development isn't at all about growth" and it is good to see economic growth back front and center of development objectives.

Of course growth these day must carry some adjectives as baggage -- "sustainable" and "broad based" can never be too far away -- but both of those are perfectly legitimate qualifiers and a small price to pay for the primacy of growth.

Second, the speech came down hard, and right, on the debate between improving systemic capability and programmatic action.  This was of course not easy to do in the context of a speech on the MDGs, which lend themselves to a programmatic vision of development.  Functioning systems of education have multiple and complex objectives -- spreading a common socialization, improving learning of the basics, identifying and promoting excellence.  The goal of development is that a country can have an education system that, as a natural part of its operation as a system composed of many actors and pressures, sets and achieves goals, some of which are then mapped into particular programs.  The same is true of all other spheres of social and governmental action -- infrastructure, law and order, health, economic policy.  The speech clearly identified building this capability as a central (and difficult) part of development.

This resists a very powerful tendency to reduce development to a series of specific targets, each of which can be addressed by the implementation of sufficiently resourced programs (programs which can be cocooned or stove piped around systemic dysfunction), which can be crudely caricatured as the "show me the money" approach.

The MDGs are correctly interpreted as what will be accomplished when there has been development -- not vice versa.

Third, the speech gets right the need for innovation, with rigorous evaluation as an important component of an environment for innovation.  The endeavor of "development" as a conscious acceleration of the progress of nation-states is now at least 50 years old.  If it were easy and obvious then as a social movement it would have disappeared under the weight of its own success and be a historical curiosity, like abolitionists.

The paradox of the external organizations that attempt to support development is that people tell them "we'll give you your budget if you tell us for sure what you are doing will work."  This leads to a powerful culture of pretending that much more is known about the "theory of change" that leads to development that really is known.  The fact that the wealthiest and most powerful country in the world has just spent eight years devoting fantastically high level of resources to "develop" Afghanistan (with security as one element of that) with results that range from mixed to shambolic should make it obvious that we need much greater openness within the development community to an approach of structured experimentation -- on all fronts.

The same skepticism about "one size fits all" that made "Washington Consensus" two dirty words should be taken to the range of "expert" advice in sectors from education to health to public sector governance to "institution building." All of which is mostly just repeating the conventional wisdom and closing off, rather than opening up, space for novelty and innovation.

Fourth, one thing the speech gets right it does so by omission.  There is no dollar figure.  The message "lets do more" is always popular because it also means "business as usual" for what is already going on.  "Let's do better at what we are doing" is a tough internal sell, but one that is useful -- including, I believe, to people who are actually on the ground, doing the work.  Anyone who has actually worked inside the development industry knows how much better things, at least potentially, could be, but also how tough achieving that will be given the inertia of massive organizations.  So while tackling policy and "architecture" might seem arcane relative to the apparent obvious gain of spending more money.  More is better, but better is better too and more is even better after better is better.

As to whether the proposed changes can advance the correct development agenda of growth, expanded public capability, innovation with evaluation, and improved assistance...well, that's a topic for another day.

Read More & Discuss

Lant Pritchett and the hot Indian shower

A great story from Lant Pritchett, writing in the comments section of David Roodman’s blog, about how the development industry sets goals and targets. The way we articulate our goals affects how we set about achieving them.

I was living in India and discussing arrangements for household water supply with some development colleagues of mine. After about half an hour of pretty fruitless discussion I said, “Let’s step back. Tell me your long-run vision of the household water sector in India.”

They said “Our vision is that India meets the target that every household lives within half a kilometer of an improved water source capable of providing 40 liters of safe per person per day.”

I said, “I see the problem. My vision of success is that every Indian can take a hot shower inside their own home.”  The difference is that one can imagine meeting the first goal “programmatically” or with a series of “interventions” while the latter clearly requires endogenously functional systems.

No one I know wants to have to go to a group meeting to take a hot shower. They want to turn the tap and it works.

Their whole discussion, on whether microfinance is an example of “aid building a thriving, disruptive industry that enriches the institutional fabric of nations” or “an unfortunate work-around for the failures of mainstream financial systems to serve the poor,” is worth reading.

Read More & Discuss

How is the aid industry like a piano recital? A defense of aid

In 1991, India faced a looming balance of payments crisis. India’s leaders responded, making what are now generally agreed to be some very good decisions: they devalued the exchange rate and instituted a systematic set of economic reforms that lowered high trade barriers and eliminated repressive internal regulations, helping to dismantle India’s notorious license-permit Raj. These reforms averted what might have been years of stagnation or slow growth (avoiding the fate of a Mexico or a Brazil in the 1980s). The reforms also paved the way for the next decade and a half of accelerated growth, and helped some 300 million people escape extreme, grinding poverty. Lant Pritchett, Professor at Harvard’s Kennedy School for Government, argues that the aid industry deserves credit for these reforms and the associated huge improvement in human well-being, but not quite in the way you might expect.

It wasn’t that the World Bank and the IMF required India to make those reforms through conditionality. Instead, Pritchett says, it was the existence of a broad, international movement called “Development,” and an industry called “Aid” that created the conditions for Indian leaders to act as they did.

How so? First, many policy makers involved in India’s reforms spent their early careers working abroad for multilaterals, gaining exposure to ideas not prevalent in India at the time, and gaining experience watching these ideas either work or crash and burn in countries around the world.

Second, the aid industry funds the thousands upon thousands of obscure, detailed economics papers and studies that make up the knowledge base of the movement called Development. Without the painstaking work behind those studies, the movement of Development would never have a chance at producing those rare, brilliant insights with the power to transform hundreds of millions of lives.

To produce those fortuitous moments of brilliance, where the right policy meets the right person and the right opportunity, the movement called Development has to have the depth and breadth within it to produce detailed technical knowledge on a million different topics from tariff codes in India, to migrant remittances in Spain, to firm governance in Korea. Here’s where the piano recital part comes in:

I see the aid industry a lot like a piano recital. It’s kind of boring and it’s tedious and most of the people are wasting their time. But every now and again by God we make a difference and when we do make a difference it really transforms economies and lives for a very long time....

Any movement, be it development or classical music, has to maintain its core.  Music has thousands of young aspiring pianists performing bad recitals that no one but their parents want to hear, all for the purpose of producing just one virtuoso Vladimir Horowitz or one innovative Philip Glass. Aid projects that can’t demonstrate impact and economics papers read by an audience of ten are the development movement’s equivalent of a million and one timid and dissonant renditions of Für Elise performed in student piano recitals the world over. But they are the core that allows for the possibility of “transformational excellence” in a movement.

For Pritchett, what aid does best is to “form the base of the pyramid that creates the possibility of the top.” And the power of successes in development—the rare policy insight, or the competent handling of a potentially disastrous crisis—is so great, and has the power to transform so many lives, that those successes justify the existence of the whole flawed movement, many times over.

Agreements or counter-arguments, anyone?

You can watch Lant Pritchett’s full presentation from the 2010 DRI annual conference, in which he argues this case much more skillfully (and employing other entertaining metaphors), in the audio slideshow below. The audio file of the Q&A following the talk is also posted.

Lant Pritchett: The Best of Aid

Lant Pritchett Q&A
[audio:http://aidwatchers.com/wp/wp-content/uploads/2010/03/11-Afternoon-QA-Lant-Pritchett1.mp3|titles=Q&A Lant Pritchett]
Read More & Discuss

Live Tweeting from Our "Best and Worst of Aid" Conference

  1. indabamf Excitedly listening to opening session, Development Research Institute, NYU: Aid & Development Today
  2. indabamf @bill_easterly notes that lack of transparency & specialization are 2 factors that have made AID less effective than it could be
  3. indabamf There has been a upward trend to providing AID to corrupt countries
  4. altmandaniel @bill_easterly gives award for Worst of Aid to Defense/Diplomacy/Development approach of US, UK, Canada
  5. indabamf Worst of AID Oscar goes to the 3Ds approach in development: integrating development w defense and diplomacy.
  6. indabamf "Rather than face the trade-offs, deny they exist, & so disguise that developmnt is being traded off 4 defense & diplomacy" -
  7. indabamf @bill_easterly gives kudos to mobile-based tech: M-PESA @Ushahidi @FrontlineSMS in his presentation
  8. indabamf The AID Oscar for Best of AID: the Giving Well movement
  9. hotdamnation http://twitpic.com/16qwsg - Development conference w @bill_easterly ... No one wants your old shoes!
  10. kristentitus Best of Aid Award goes to... the new movement to give well rather than to just give.
  11. indabamf Thanks @bill_easterly & Development Research Inst, NYU for a great conference 2day. Varied perspectives. Brain sufficiently overstimulated!

Live T only from opening session, except for last. Conference (see agenda here)  finished at 2pm. Further news coming on this blog from material presented at conference by speakers Yaw Nyarko, Bill Easterly, Clare Lockhart, Isabel Guerrero, Andrew Mwenda, and Lant Pritchett.

Read More & Discuss

This Friday: “Best and Worst of Aid” Conference

For aid watchers in New York, this post is a reminder of Development Research Institute’s upcoming conference this Friday, from 9 am to 2 pm, in NYU’s Kimmel Center. Called “The Best and Worst of Aid: Incentives, Accountability and Effectiveness,” speakers and participants will present new findings and discuss and debate the best and worst of what happened in aid this year.

(According to some rumors, the irrepressible light-hearted side of DRI will give Oscar-style Best of Aid Awards – and of course, Worst of Aid Awards – in several important categories).

9:00 am: Welcome and Introduction Yaw Nyarko, Professor of Economics and Co-Director of DRI

9:10 am: Aid and Development Today: The Best of Times, The Worst of Times William Easterly, Professor of Economics and Co-Director of DRI

10:00 am: The Best and the Worst of International Effort on Failed States Clare Lockhart, CEO, Institute for State Effectiveness

10:50 am: Coffee Break

11:05 am: Keynote: What Works and What Does Not Work in Aid and the Transformative Challenges Ahead Isabel Guerrero, Vice President, South Asia Region, World Bank

11:50 am: Thoughts on Aid from a Ugandan Perspective Andrew Mwenda, Founder & Owner, The Independent, Uganda

12:30 pm: Lunch Served

12:45 pm: Lunch Keynote: Historical Lessons: What Did Development Aid Do Best? What Did It Do Worst? Lant Pritchett, Harvard Kennedy School

The event is free and open to the public, but registration is required. (More details here. Register here.)

Read More & Discuss

Is USAID about Aid or Development?

Guest blog by Lant Pritchett, Professor of the Practice of Economic Development, Kennedy School of Government, Harvard University The name of the United States Agency for International Development (USAID) is too clever by half. By forming the acronym “aid” it attempts to create popularity (who could be against “aid” broadly interpreted as “assistance” to the world’s poorest?) at the expense of perhaps confusing everyone, including itself, about its actual mission. There are many ways of providing assistance to people in poor countries that do little or nothing to produce development. While we might all whole-heartedly agree that de-worming is demonstrated to be cost-effective assistance, its impact on development is, at best, tiny. An existential question the next leader of USAID has to face is whether USAID is about assistance—in whatever forms and for whatever goals political support can be mobilized and logistics can be arranged—or whether it really is an agency whose mission is to promote development.

The difference matters. One reaction to the critics of aid effectiveness who point to failures in development despite historically high and sustained levels of foreign assistance is to circle the wagons by arguing the goal of aid is just assistance, full stop. In this case the debate is only about whether aid is assistance: “Did this aid support an activity that has some positive benefit to human well-being?” This makes the question easy to address with available methods, likely to often produce a positive answer, and almost certainly irrelevant to development.

Development, for better or worse, has always been defined as a deliberate acceleration of modernization, conceived as a synchronized (if not simultaneous), complex, four-fold transition of economy, polity, administration, and society. Modernization is a one-word description of what the West accomplished from the nineteenth century onwards. Development, as accelerated modernization (which may or may not follow exactly the West’s historical trajectory or modalities), is what Japan accomplished following the Meiji Restoration, rising from an isolated backwater to global power; development is what Korea achieved from 1962 to today, rising from a poor, weak, powerless, post-conflict state to what it is today. The goals that are the aim of development—having a productive and prosperous economy, a polity guided by the wishes and in the interests of its citizens, a administratively capable state, a cohesive society—are desirable goals. Moreover, development is the only demonstrated and sustained way to achieve the objectives of increased well-being.

Being an agency for international development implies more than that the agency provides assistance to improve the well-being of individuals in countries that are not developed, but that the central goal of the organization is to promote development. Promoting economic development, for instance, means supporting actions and policies that create widespread opportunities for people to improve their incomes. Unfortunately, as any reader of this blog likely realizes, this is much more difficult—and much less photogenic—than planting the flag over the delivery of specific services addressing popular causes.

A new leader could make USAID exclusively about aid and focus on the narrowly prescribed goal of making aid effective assistance, but the real problem pressing the Obama administration is not that aid has not been effective assistance but rather that development needs to happen. Development needs to happen in Pakistan, in Afghanistan, in Iraq, in Somalia, in Zambia, in Guatemala, in Bolivia—and continue to happen in India and China. Even addressing a series of important problems for well-being like vaccinations, schools for girls, HIV/AIDS prevention or malaria does not add up to a development agenda. If the next leader of USAID does not own that objective and mission—putting the big “D” in USAID and not just little “a” in aid—he or she is sealing USAID’s irrelevance.

Read More & Discuss

DRI to Host Conference on Aid Evaluation

On February 6th, NYU's Development Research Institute (DRI) will host What Would the Poor Say: Debates in Aid Evaluation, a one-day conference with the leading thinkers in development economics. The conference will take place at New York University, where participants from universities, NGOs, the independent media and the private sector will add to the dialogue on how to make aid agencies accountable for the most effective solutions to global poverty. A list of speakers and panelists follows, but for a complete schedule of events, go to DRI's website. The conference is free and open to the public, but space is limited and filling up quickly. To reserve a place, RSVP to aidwatch@nyu.edu with your name and affiliation.

--

Yaw Nyarko (NYU), Welcome and Introduction

Esther Duflo (MIT), The Evaluation Revolution and the Aid Providers

William Easterly (NYU), The Big Picture on Aid Accountability

Panel 1: Evaluation: Issues in Transparency and Accountability

Andrew Mwenda (The Independent, Uganda), Independent Media in Africa and Foreign Aid

Nancy Birdsall (Center for Global Development), New Methods for Motivating Results in Aid

Dennis Whittle (Global Giving), Accountability in Decentralized vs. Centrally Planned Aid Systems

June Arunga (BSL Ghana Ltd.), Foreign Aid from the African Business Point of View

Lant Pritchett (Harvard), The Political Economy of Evaluation

Panel 2: Issues in Evaluation

Leonard Wantchekon (NYU), Independent Evaluation and the Reaction of Official Aid Agencies

Ross Levine (Brown University), Evaluating the Economics: Finance and the Aid Agencies

Karin Christiansen (Publish What You Fund), Aid Transparency as a Prerequisite

William Duggan (Columbia Business School), Pragmatic Learning from Success and Failure

Read More & Discuss