Development economics in the fight against poverty

• Main Author: Lukić Zlata
• Format: Article
• Language: English
• Published: Association of Serbian Banks 2020-01-01
• Series: Bankarstvo
• Subjects: abhijit banerjee; esther duflo; michael kremer; the nobel prize; development economics; poverty; the united nations; the world bank; sustainable development; experimental approach; education
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2020/1451-43542001075X.pdf
• ISSN: 1451-4354; 2466-5495

Eradicating poverty in all its forms is one of the fundamental goals of the United Nations' plan for sustainable development. In this context, it is not surprising that the Swedish Royal Academy of Sciences has decided to award the 2019 Nobel Prize in Economic Sciences to the economists who have focused their research efforts in this direction. Namely, Abhijit Banerjee, Esther Duflo and Michael Kremer won the award "for their experimental approach to alleviating global poverty". By examining the different factors of each individual problem, as well as the behaviour of subjects in the natural environment, using the method of randomised controlled trials (RCTs), these three scientists came to concrete, practically applicable observations. The combination of these insights and an understanding of the local and institutional context provides solid guidance for development policies and enhances the capacity of international development organisations and institutions to record a visible impact in alleviating global poverty within the set deadlines.