Investigating the Inclusive-Performance Tradeoff in Agricultural Cooperatives: Evidence from Nepal (New Working Paper!)

In my new (and first!) working paper, I address the question of whether agricultural cooperatives can benefit the poorest producers while maintaining market competitiveness. Using a dataset that covers 2,856 households across 108 smallholder livestock cooperatives in Nepal, I investigate the inclusive-performance tradeoff in agricultural cooperatives. My results suggest that including the most vulnerable producers in a cooperative’s membership may damage market performance, but providing more opportunities for existing members to participate in cooperative activities may improve market performance.

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Development in a Global Pandemic

This post first appeared on P4H Global’s Redefining Aid blog.

As the world shuts its doors and braces for the most challenging crisis in a century, we are all getting used to a new way of life. We self-isolate, work from home, wash our hands constantly and rely on a secure social safety net to protect us from financial ruin. In the midst of a global pandemic, we are likely to lose sight of the fact that developing countries will be hit more severely and for longer duration than what most people around the world will experience.

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The Dangers of Disaster Relief: Holding Organizations Accountable in the Wake of a Natural Disaster

By: Scott Miller and Dr. Bertrhude Albert

 

This post first appeared on P4H Global’s Redefining Aid blog.

 

In recent days, we watched as a category 5 hurricane made landfall on the Bahamas and left behind a trail of devastation. In the immediate aftermath, we know that at least seven people were killed, and that number is likely to rise [1].

 

In the wake of every natural disaster, communities around the world are desperate to help those affected. Currently, thousands of humanitarian workers are flooding into the Bahamas to provide critical food, shelter and medical help to those in need. While this type of relief can be life-saving immediately following a disaster, it often leaves behind a second trail of devastation. If we are not careful about how we approach relief in the wake of a natural disaster, we risk damaging the affected communities for years to come.

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The Case Against Empathy

This post first appeared on P4H Global’s Redefining Aid blog.

 

I recently came across a book titled “Against Empathy: The Case for Rational Compassion,” written by the Yale psychology professor Paul Bloom, and I am convinced that it needs to be added to a list of must-read books for anyone interested in international development. Below I summarize a few of the main arguments that Bloom makes for the case against empathy, along with my thoughts on how these arguments align with a better vision for international development.

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Broken Feedback Loops and Evidence-Based Development

Fighting global poverty requires finding solutions to some of the world’s most complex problems. Solving any complex problem requires a clear and simple feedback loop. Learning from our mistakes over time is what leads us toward the solutions that work. The problem with development work is that this feedback loop is almost non-existent.

 

An important example of the broken feedback loop is apparent with popular microloan programs. Over 45% of employment in developing countries is generated by small businesses, yet over half of these business lack access to formal credit [1]. It has long been hypothesized that increasing access to credit in developing countries would support small businesses and lead to higher incomes for their employees. While this certainly seems like an effective intervention, we have to carefully evaluate its impact to understand if this program actually works.

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Skin in the Game: How Good People Continue to Hurt Vulnerable Communities

This post first appeared on P4H Global’s Redefining Aid blog.

The non-profit industry is ripe with good-hearted people who are passionate about changing the world. Yet, many organizations cause more harm than good and create more poverty than they alleviate. If the non-profit industry is full of good intentions, why is it plagued with poor results? How do good people continue to harm the communities that they are trying to help while maintaining the belief that they are doing good for the world?

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Haiti’s Fuel Subsidies are Hurting People – So Are Plans to Get Rid of Them

This post first appeared on P4H Global’s Redefining Aid blog.

Haiti, like many low-income countries around the world, subsidizes the price of oil for its citizens. While these subsidies are intended to keep fuel prices low, they are damaging to economic growth and lead to a dependence on foreign aid. Fuel subsidies are expensive, mainly benefit the wealthiest households and drain government revenue that would otherwise go to health, education and infrastructure. In Haiti, 93% of fuel subsidies go to the wealthiest 20% of the population.[1] At the same time that the government spent millions on subsidies, many public-school teachers went unpaid for nearly three years because the government could not afford their salaries.[2]

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The 16%: Reaching a Tipping Point in Education Systems

This post first appeared on P4H Global’s Redefining Aid blog.

“A bad doctor can kill a patient; a bad teacher can kill an entire generation” [1]

A country’s education system is intrinsically linked to its economic growth and standard of living [2]. A country with an effective education system has better doctors, lawyers, engineers and inventors. A population that is well educated is more politically engaged and likely to have a more accountable government. An educated workforce attracts more businesses from abroad and creates new businesses of their own. The quality of education in a country directly affects the economic, societal and physical wellbeing of everyone in it.

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Transaction Costs, Market Efficiency and Economic Development

Economic activity is defined by transaction costs. There are a world of “hidden” costs involved in any exchange of goods or services. It is widely known in economic theory that these “transaction costs” explain the way in which our economies operate. In the developed world, we have markets, firms, and technologies that all exist to reduce the cost of doing business. However, many developing countries are plagued with high transaction costs that lower income, investment and economic growth. Continue reading “Transaction Costs, Market Efficiency and Economic Development”

A Mile Wide and an Inch Deep – Why Organizations’ Top Line Numbers are Missing the Point

This post first appeared on P4H Global’s Redefining Aid blog.

The goal of any nonprofit is to have a real, meaningful impact on people’s lives. But all too often, the way that organizations demonstrate their success is through top-line numbers that show how many people their programs reach [1]. While the scale of a program provides meaningful context, it certainly misses the most important point — how each of the individuals in a program are being impacted.

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