McCourt School hosts founder of Innovations for Poverty Action

On September 26, 2023, the McCourt School of Public Policy’s Master of International Development Policy program hosted Dean Karlan, founder of Innovations for Poverty Action, director of the Global Poverty Lab at Northwestern University and current chief economist at USAID, for a keynote lecture on building income and wellbeing for poverty-stricken households.

Karlan, whose research focuses on microeconomic issues of poverty and whose work spans more than 20 countries worldwide, including both low-income countries and the United States, discussed the role that rigorous evidence plays in policy design and implementation.

Karlan shared advice on measuring cost-effectiveness versus cost-benefit analysis — a “pain point for economists,” he said — and a series of outcomes that shaped his thinking on the causes of poverty, including mental health.

“Ultimately, cost-effectiveness is just driven by the recognition that there’s only so much money, and we can’t solve all the problems of the world,” said Karlan. “With scarce resources, how can we make the biggest bang for our buck?”

When it comes to successfully implementing income-generating activities, “psycho-social health is the primary outcome,” he said. “Money is a means to an end, but we should focus on happiness, and psycho-social health is strikingly moveable.” 

Following Karlan’s lecture, Associate Professor Andy Zeitlin moderated a period of Q&A with audience members, including more than 80 Georgetown students, faculty and staff.

When asked how to balance multiple desired outcomes effectively, Karlan advised “focusing on the outcome that’s driving the policy” and “asking people for their preference for outcomes rather than programs.”

Learn more about the McCourt School’s Master of International Development Policy program here.