Can Science Save Development Aid?

Ultra high net worth individuals are giving money to philanthropic causes in new ways. The international development community can engage these potential donors by approaching them as partners, using data to demonstrate impact, and drawing on the donors’ personal experiences.

In a randomized experiment in western Uganda, scientists demonstrated the effectiveness of paying rural farmers not to chop down trees since deforestation contributes to CO2 emissions worldwide. They studied for two years the declines in forest cover between a control group (no payment) and the participant group (paid). Building on a United Nations project in which wealthy nations pay poorer ones in an attempt to equalize the costs of responding to climate change, the outcome of the project proves the existence of a low-cost environmental policy solution to stemming rising global temperatures.

The approach of giving cash straight to poor people - rather than funneling goods or services indirectly through the slow, diluted, and complex systems of charities or governments - is nothing new, but evidence of long-term success and sustainability are few. That's why many NGOs and governments are now coupling cash transfers with more comprehensive programs such as job training and financial counseling, as well as addressing some of the root causes that keep people poor, like lack of infrastructure and market access.

Research has shown that "feel good altruism" is making you feel good but is not helping people in need. In order to pivot towards "effective altruism," one must question many factors like effectiveness, beneficiaries, consequences, the probability of success, and areas of neglect. The most effective altruism just might be donating to impactful charities with measurable outcomes.

Researchers from Yale and MIT conducted a poverty study across various countries and found that aid can relieve poverty if it is comprehensive and gives people a productive asset.

California marks the first state in the United States to join the ranks of other countries such as Mexico that saw a significant decline in soda sales and increase in water sales after enacting a sugar tax. Critics of the tax have voiced concerns about the policy's impact on small business owners and infringement on consumer choice, but lawmakers are still moving forward with expanding the tax statewide.

The UN's Green Climate Fund is a mechanism through which money for climate adaptation and mitigation is distributed globally. But funding for renewable energy goes overwhelmingly to wealthier nations. Without more funding, it's unlikely that poorer, less developed countries can meet their 2015 Paris Climate Accord goals.

Direct cash transfers to poor people in developing countries is a newer way to spend foreign aid dollars. GiveDirectly is the prominent charity who pioneered this method of giving cash as a form of aid, with the rationale that poor people are better equipped to decide where a dollar should go than an outside organization. A study sponsored by the United States Agency for International Development aims to compare the effectiveness of cash transfers and traditional nonprofit programs. The results may shape the future of aid in America and around the globe.

In order to create a larger role for aid recipients in conversations about how success and failure are defined for international aid, the What Went Wrong project was founded. People use mobile phones to contact the journalists about a failed aid project, and the journalists gather information about the project, publish reports on social media, and share their findings with the people who originally reported.

A project launched in the United Kingdom uses social-impact bonds to reduce recidivism among prisoners, bringing together public and private resources to implement more effective and cost efficient social programs. Their success is inspiring other countries to follow suit.