POVERTY, with Esther Duflo

Two dollars (about 1.85 euros) per day to cover all needs. This is the benchmark set by the World Bank to define extreme poverty, already accounting for differences in purchasing power among different countries around the globe. 

Esther Duflo, awarded with the Nobel Prize in Economics in 2019 for her work on alleviating extreme poverty, provides insights on how to address inequalities. The author advocates for «practical solutions», arguing that «it is much easier to think about the effect of something than its caus»" and reveals how small measures can have a significant impact.

 The economist advocates a methodology based on a «plumber mentality». With this strategy, she demonstrates how important it is to experiment various solutions until arriving at one that solves the problem.

In this interview, the Nobel laureate in Economics explains how small changes in access to healthcare and education have long-term implications for the lives of the poorest. Using the example of deworming children in Kenya, she demonstrates how this measure has led to health improvements but also contributed to a reduction in school absenteeism, providing students with better learning outcomes.

Throughout the conversation, Esther Duflo also emphasizes the contribution of immigration to the economies of countries, explaining that the workforce and youth of immigrants contribute to the development of nations rather than impoverishing them.

In the fight against poverty, climate change is fueling new inequalities: the wealthiest countries are the major polluters, but it is the poorest who are suffering the most intense consequences of the climate crisis. Duflo thus calls for a global approach to this problem.

For further info: 

• Nobel Prize website; 
• Prize Lecture: Esther Duflo, Prize in Economic Sciences 2019; 
• HEC TALKS with Esther Duflo: Good Economics for Warmer Times; 
• Ted Talk «Experimentos sociais para combater a pobreza»;
• MIT Esther Duflo, Randomized Controlled Trials and Policy Making in Developing Countries; 
• A Podcast of One's Own with Julia Gillard - Nobel Prize winner Esther Duflo on economics as a lever of action for the world;
• Ted Talk «Taken for Granted: Esther Duflo wants you to think like a plumber»; 
• The Guardian article; 
• El Pais Brasil interview