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Marcelo Giugale

Marcelo Giugale

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Poverty in the Era of Data

Posted: 05/12/11 12:43 PM ET

The more you know about your enemy, the easier it is to beat it. This is true for wars against armies, diseases or corruption -- good information will tell you where to best deploy your soldiers, doctors and auditors. The same happens in the fight against poverty. You want your resources to go where they help the poor the most. For that you need accurate, frequent, timely, comprehensive, comparable, consistent, and accessible data. And that is exactly what we are beginning to get. In fact, data is transforming the development profession -- you can call it the revenge of the statisticians.

Here is how that transformation is happening. First, the funding of multilateral institutions -- like the World Bank -- is now more closely linked to the results they promise to achieve. To get money from taxpayers, they have to commit to specific "goals." How much will infant mortality fall? How many children will be vaccinated? How many girls will learn to read and write? What proportion of women will have access to contraceptives? By when? All this is creating a culture of monitoring and evaluation -- "M & E," in development parlance -- that is bringing light to what works and what does not work. For that, you need data.

Second, data is doing to public subsidies today what privatization did to public enterprises two decades ago: it is lifting the veil of inefficiency. With better household surveys, we can identify who exactly benefits from every dollar the government spends -- not surprisingly, this is called "benefit incidence analysis." Take education. Most developing countries spend more bankrolling free public universities than building primary schools. But the main beneficiaries of that subsidized college education are the rich (who could pay tuition) not the poor (who could not). You see the inefficiency? The same applies for subsidies to gasoline (who owns cars?), electricity (who has larger houses?), or pensions (who has formal jobs?). Statistics lets you quantify these aberrations -- and argue that the money should be redirected towards those that really need it.

Third, better data is allowing us to focus on poor people's non-cognitive skills. You see, whether you get a good job -- or any job -- does not only depend on how many exams you pass, how much you know, or what your IQ is. It also depends on things like how conscientious you are, how you react to new experiences, or how well you interact with others -- think of it as the "non-cognitive" side of your resume. Is it better to be smarter or to be on time? To know more or to listen more? To be trained or to be trainable? Household surveys are beginning to gather information that will, one day, allow us to answer those questions -- Peru is a leader in this among emerging economies. And when we get the answers, we will be able to design educational curricula to teach not just the concepts, but also the behaviors that make people more productive.

Fourth, it is possible to determine how personal circumstances affect human opportunity. We all know that children have no control or responsibility over their gender, skin color, birthplace, or parents' income. And yet, those kind of circumstances are sure-shot predictors of a child's access to vaccination, potable water, kindergarten, the internet and many other platforms without which her probability of success is close to nil -- well before she can make any choice by herself. This can now be measured, something that was impossible only a few years ago. The measure is called "Human Opportunity Index," and is beginning to change how social policy is designed.

Finally, we have broken the taboo of experimenting with people. It is no longer unusual for researchers to walk into a slum, offer child care to a sample of mothers, and then monitor whether they work outside the home more hours than those with no child care at all. (FYI: they don't always do). These type of "randomized trials" are proving really useful to assess what policies and what projects work best -- and which are a waste of time and money. From giving cheap fertilizer to farmers to making cheap loans to female micro-entrepreneurs, you can evaluate anything, as long as you have -- or create -- the data.

By now, you are probably wondering where all this data is going to come from. Isn't it true that most national statistical offices in the developing world are somewhere between weak and very weak? After all, those all-important household surveys, when they exist, get published years after they are collected. Millions are rightly being spent to upgrade statistical capacity. But it takes a long, long while before you see results -- which explains why politicians rarely care about it.

Is there a short-cut? Is there a fast way to get the data we need to help the poor? Yes, and it is probably sitting in your pocket, in your purse or on your belt. It is your cell-phone. It turns out that people will happily sign up to answer a couple of short phone surveys a month in exchange for "free minutes" of phone use. How many minutes? On average, less than five dollars worth of minutes per month. (Yes, that's how cheap we all are.) This is a bargain because you don't have to call more than a tenth of 1 percent of your population to get a good reading of how your country is doing.

As the use of cellular telephony expands among the poor -- at flash speed in places like Kenya --the possibility of turning them into data sources becomes real. In fact, some of this is already happening in Latin-America, and may soon catch on in Africa. Others will surely follow. How ironic that, in the end, the war against poverty may be won when those who try to help the poor get to literally listen to them.

 

Follow Marcelo Giugale on Twitter: www.twitter.com/@Marcelo_WB

The more you know about your enemy, the easier it is to beat it. This is true for wars against armies, diseases or corruption -- good information will tell you where to best deploy your soldiers, doct...
The more you know about your enemy, the easier it is to beat it. This is true for wars against armies, diseases or corruption -- good information will tell you where to best deploy your soldiers, doct...
 
 
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03:05 PM on 05/29/2011
I completely agree with "how matters" on her analysis, and particularly with this point:
"Yes, let’s pursue and obtain useful data from the ground, but at a scale at which informatio­n can be easily generated, utilized, and acted upon by those we are trying to serve."
Let's not forget that the local complexities can't be always measured in numbers. Qualitative research is as, if not more, important than statistics. Participatory M
03:23 PM on 05/29/2011
sorry, the comment is missing a part:
2/2 Qualitative research is as, if not more, important than statistics. Participatory M
03:26 PM on 05/29/2011
sorry, the comment is missing a part:
2/2 Qualitative research is as, if not more, important than statistics. Participatory Monitoring and Evaluation, media and ICTs for development are advancing on this quest to "literally listen" to the real development experts: the beneficiaries.
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Marcelo Giugale
07:48 PM on 05/30/2011
Thank you very much for your comments. You are absolutely right: qualitative information is sometimes more important than data. I have experienced that when trying to explain problems (and need for reform) to political leaders. Frequently, those leaders understand single situations better than the aggregate figures that statisticians present to them.
08:47 AM on 05/21/2011
M&E may indeed revolutionise poverty alleviation. Do you see M&E being similarly used for monitoring foreign aid (especially bilateral aid) in the near future, where it could, in theory, save billions from going into private bank accounts, or are there too many diplomatic/bureaucratic hurdles?
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Marcelo Giugale
07:50 PM on 05/30/2011
Thank you very much for your comment. Definitively, the better the data, the less opportunity for waste and corruption. In fact, the "results agenda" that now goes usually attached to aid flows (not all of them, but most) is geared towards accountability through data: did we achieve what we promised to achieve? And if not, by how much did we fail? What can be correct and what can't?
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jabailo
(Participant) Texeme.Construct()
02:58 PM on 05/14/2011
The thing that poor people need is money.
09:27 AM on 05/14/2011
What the quest for better and better data does is to create a nice form of middle class welfare for people like this author. It also provides the sheen that society is doing something when, in fact, we are not doing anything real to address the issues of poverty. Agreed: no one wants to throw money away. But also we do know quite a bit about how to address issues of poverty -- invest in preschool, provide health care, adequate diet and exercise, education, and the like. We do not need more studies to tell us what to do when we already fail to implement, even minimally, what we already know we should be doing.
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Marcelo Giugale
08:11 PM on 05/15/2011
Thank you very much for your comment. I definitively share your idea that we are still not doing enough to terminate poverty, and that a lot remains to be done in early childhood development. What I think the new technologies give us is a tool to see where the money is most effectively used, where it has more impact. Sometimes, a simple look at the situation is enough. But many times, you need large samples that cannot be synthesized in narrative. In those cases, you need data. A good example is demographics: it would be difficult to assess demographic changes without serious amounts of data.
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How Matters
Aid can be better. Let's talk about HOW.
10:43 AM on 05/13/2011
Let's carefully examine the belief that there are technocratic, precise ways of measuring progress in order to make consequential judgments about how to help people in the developing world. The increasing obsession with abstract metrics and experimental design, stemming from a reductive, managerial approach in development, is quite far from the intimate, difficult, and complex factors at play at the local level.

As someone who has worked extensively to build the monitoring & evaluation capacity of over 300 grassroots organizations in southern and east Africa, this latest trend towards results-results-results is especially troubling when it comes to community-led initiatives. The burden of data gathering for donors on local leaders who are in the process of organizing at the grassroots level can be a tremendous drain on their time and scarce resources. Moreover, abstract metrics don’t help local leaders understand their relationship to improving the well-being of the people they serve.

Yes, let’s pursue and obtain useful data from the ground, but at a scale at which information can be easily generated, utilized, and acted upon by those we are trying to serve. Data gathering can easily become data “extraction” implemented solely for the purpose of accountability can undermine the effectiveness of the very programs it is trying to measure. Let’s always consider what is the appropriate cost and complexity needed for measurement (especially given the size and scope of programs and organizations) aiming for proportional expectations so we ensure data is a tool for learning, not policing.
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Marcelo Giugale
12:19 PM on 05/13/2011
Thank you very much for your comment. I completely agree: we need to take into account cost and complexity before entering into massive data-gathering exercises. I feel, though, that we start from such a low base, especially in relation to the poor, that an additional effort using new communications technologies could pay off.
09:53 AM on 05/13/2011
An underlying problem with cell phone surveys is nonresponse bias. The characteristsics of non-responders may be - often are - very different from responders. And that's apart from the population without cell phones, i.e. the extremely poor. So while the cell phone approach holds promise, it is hardly a panacea. The risk lies in making policy based on faulty, or at least non-representative, data.
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Marcelo Giugale
12:22 PM on 05/13/2011
Thank you for your comment. You make a very valid statistical point: non-respondents count too. On the population withouth phones, I have seen very good initiatives in South Sudan (the country that will come to independent life on July 9) and in Tanzania where the government or its donors pay for the cell-phones (even solar-powered ones). It is a first step in solving the "sample selection bias" (that is, the problem that the poor may not have the phones).
07:17 AM on 05/13/2011
"...data is doing to public subsidies today what privatization did to public enterprises two decades ago: it is lifting the veil of inefficiency."

Actually, econometric data from countries forced to suffer neoliberalization in exchange for World Bank loans demonstrate the catastrophic social and economic consequences of privatization.

Please stop pretending that the World Bank is interested in "the fight against poverty." Be honest about what your institution has been since the purge of Keynesian influences in the early 80s, an instrument for the brutal extraction of wealth from the masses in "developing" countries - an ideological term that mistakenly implies that capitalism is the final stage of history.
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Marcelo Giugale
12:26 PM on 05/13/2011
Thank you very much for your comment. You imply an image of a World Bank that is monopolist­ic (only lender to developing countries)­, omniscent (knows it all) and autocratic (imposes conditions­). That image is undeniable­. But it is also old. That Bank exists no longer. Actually, it has not existed for over 10 years. Reason: globalizat­ion. Developing countries now have plenty of access to finance other than the Bank, all technical knolwedge is available on the internet, and democratic­ally elected government­s cannot accept conditions against their peoples' will. So, the new Bank is now forced to be useful, not influentia­l. As for big companies, they now complain that the Bank's environmen­tal and fiduciary safeguards are too strict! The transforma­tion has been fairly remarkable.
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OneTop
Uh, is that a beer hall?
01:22 AM on 05/13/2011
Taylorism for the great unwashed masses.

Regardless of the quality or amount of data, it will end up in the hands of the few to hold over over the many. As you have already admitted to in your article:

"Second, data is doing to public subsidies today what privatization did to public enterprises two decades ago ..."

Nothing could be worse Public policy than what the IMF and WB have done in the past with respect to Water, perhaps the most basic of human needs.
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Marcelo Giugale
12:31 PM on 05/13/2011
Thank you for your comment. I agree with your central point: data that is not open and available to all ends up being an instrument for exclusion. That's, to me, the reason why we need to make sure that not only we improve our statistics but that we also make them an open platform. I don't know whether you know but, a few months ago, the World Bank unilaterally enacted an internal policy whereby every piece of data we have is automatically available to the public. Just like that. Check the website, and if you don't find the data you want, it's simply that we don't have it. Incredible as it may sound, it is a new reality (a new World Bank). [NB: as far as I know, only the World Bank has done this.]
11:03 PM on 05/12/2011
The World Bank has a long and tragic history of exploitation of the poor in developing countries. Furthermore, its governance is composed of a small group of non-elected people from "developed" nations, working on behalf of multinational corporations, who are not accountable to anyone: the WB, for example, cannot be sued by nations or individuals who have suffered as a result of imposed WB policies. Current "investment" in development countries--Africa, especially--by the corporate "elite" has nothing to do with helping people, and everything to do with laying the groundwork for future exploitation of their natural resources.

Read Paul Hawken's "Blessed Unrest" for more on the WB:

http://www.amazon.com/Blessed-Unrest-Largest-Movement-Restoring/dp/0143113658/ref=sr_1_1?s=books&ie=UTF8&qid=1305255492&sr=1-1

In particular, the chapter, "We Interrupt This Empire."
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Marcelo Giugale
12:37 PM on 05/13/2011
Thank you very much for your comment. I completely agree with your main point: if development finance is not accountable to people, it does not work. We have improved on that quite a bit. Not only do we have an "Inspection Panel" (to which any citizen in the world can present a grivance against a World Bank project, and have it inspected by independent experts), but our internal safeguard mechanisms (social, environmental, financial management, procurement, ect) are now so integral to our work that many stakeholders complain that we are "too slow".
10:53 PM on 05/12/2011
Politics doesn't respond--and has never responded--to data. It never will.

Why? Because data is about facts, but politics is about values.

Data doesn't change minds in politics. It hardens them. It's used as a weapon. It's also used to distort the truth as much as it's used to show the truth.

Which is why the most important questions will never be "how do we measure this?" or "how do we make the best use of our budget allowance?" They will be "what do we stand for" and "what are our priorities?" Data doesn't help answer those questions. It can be (and often is) used to undermine them.
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Marcelo Giugale
12:39 PM on 05/13/2011
Thank you for your comment. You are righ in saying that data is no substitute for values. With good statistical technologies, hopefully we will not have to choose between the two.
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lrobb
Southern Rational
05:45 PM on 05/12/2011
Why are we not doing this as a matter of course in the US? The great majority of our poor have cell phones, and we have some of the best statistical resources on the planet.

It is extremely difficult for dogma to prevail in the face of incontrovertable fact.
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07:08 PM on 05/12/2011
Because this author thinks it is OK to experiment with people...

'There are three kinds of lies: lies, damned lies, and statistics
Mark Twain
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lrobb
Southern Rational
07:54 PM on 05/12/2011
So--how do you feel about medical clinical trials where half the control group gets placebos?
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08:29 PM on 05/12/2011
Huh? You mean "pilot projects" where researchers try something on a small scale to determine whether it could have the anticipated impact before rolling it out more broadly? Why would you object to that?
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OMEGA MAN
A wise man learns by the mistakes of others, a foo
05:29 PM on 05/12/2011
I never answer those types of surveys with the truth.
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Marcelo Giugale
04:51 AM on 05/14/2011
Thank you for your comment. I don't blame you: I don't answer them either when they don't give me something concrete in return. The blog refers to surverys to which people sign up ahead of time in exchange for something (say, free phone minutes per months), rather than the usual random calls that tend to annoy us all so much.
03:56 PM on 05/12/2011
I object to the dogmatism contained in the claim that privatisation proved that public enterprises are inefficient. Tell that to the British who still curse the privatisation of the railways.
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Marcelo Giugale
12:47 PM on 05/13/2011
Thank you very much. Excellent point: privatization has not always worked. (In fact, neither has nationalization). The key is, to me, accountability for results, not necessarily ownership.
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dctackett
01:30 PM on 05/13/2011
I think he's referring to the old days, when government had a monopoly on services... not what we experience now.
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Marcelo Giugale
04:54 AM on 05/14/2011
Indeed. The idea is that those that provide the service should be accountable to the client. If it is a private company, markets will make it accountable (when there are many suppliers). If it is public (or if it is a private monopoly), then it should be accountable to the consumer through a regulatory authority that includes the voice of the people. The central issue in my experience is that non-accountable service providers tend to provide no service.
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grammasher
03:34 PM on 05/12/2011
Sorry, I can't go along with any of this. These days we have too many people punching numbers into computers that produce nothing rather than actually doing anything meaningful to help the poor. Gathering statistics will do nothing to house or feed a hungry family.
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Marcelo Giugale
12:52 PM on 05/13/2011
Thank you very much for your comment. Like you, I think that data without action is not very useful. I don't think we have to choose between them, especially if data is open and widely distributed (so we can focus our actions where they might help most).
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grammasher
03:42 PM on 05/13/2011
I appreciate your thoughts, and I know it would be best if we wouldn't have to choose between action and data. However, it's much easier and cheaper for people to choose just the data. We continually have more and more studies only to have people determine that we can't afford to do what the studies suggest.

Living in a rural area, most data tends to show that it's not cost effective to do the things that data collection might say needs to be done. Because of our small numbers, we're rarely the recipients of action that "might help most."
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dctackett
01:30 PM on 05/13/2011
yes, let's act with less information... unknowledge is power!
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grammasher
03:35 PM on 05/13/2011
Collecting data does not necessarily give you more information. It gives you more numbers to manipulate to support your ideology. People are not numbers, and numbers never consider the human factor.
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01:01 PM on 05/12/2011
"Finally, we have broken the taboo of experimenting with people." Wow
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Marcelo Giugale
12:57 PM on 05/13/2011
Thank you for your comment. It is really "Wow", as you say it. But it is not about experimenting "on" people but "with" people. That is, both academics and development organizations now run small projects with a limited beneficiary population, see whether they work and, if they do, then offer them to all. That's the central idea: to see what works in practice and what doesn't.
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02:47 AM on 05/14/2011
Who determines if the pilot programs are working? The subjects or the developers?
It is the inequality that is inherent in theses two words.. subject or developer that's the problem.