Tashkent, Uzbekistan (UzDaily.com) -- Laureate of the Nobel Prize in Economics Abhijit Banerjee, speaking at a conference in Tashkent, said that standing here today, he feels the spirit of change in Uzbekistan and is proud to be able to say "let’s do it"!

In Tashkent, at the Hilton Tashkent City hotel, the II International Forum was held on the topic: “Application of best practices in poverty reduction”, organized by the Center for Economic Research and Reforms (hereinafter referred to as CERR) together with the Ministry of Employment and Poverty Reduction of the Republic of Uzbekistan (hereinafter - the Ministry of Employment), with the support of the United Nations Development Program (UNDP) in Uzbekistan and the Representative Office of the United Nations Children’s Fund in Uzbekistan (UNICEF).

The winner of the Alfred Nobel Prize, co-founder of the global initiative to combat poverty J-PAL - Abhijit Banerjee addressed the participants of the Forum with a greeting.

A. Banerjee noted that governments around the world are strengthening their social protection programs in response to the coronavirus pandemic, in particular, about 3856 programs have been planned or implemented to date.

“Speaking, for example, about Uzbekistan, the tools that are used to create social programs, how do you determine the right target audience, what do they need, how do you support them, how do you support entrepreneurship, how do you separate the poorest and those who need initial support. The fact that you understand that different target audiences need different solutions to problems, and how effective are the various programs adopted, how the education system is structured - all this is quite a difficult job, but I am glad that your country shows by its example to other countries how to fight poverty. Standing here today, I feel the spirit of change in this country and I am proud that I can say “let’s do it,” the expert said.

In his presentation, A. Banerjee noted that in expanding access to programs and benefits, many countries relied on existing software platforms, demonstrating the importance of investing in social protection systems and institutions. J-PAL researchers have evaluated social protection programs in India, Bangladesh and Ghana, among other countries. According to A. Banerjee, well-designed randomized evaluations can test specific hypotheses and reveal their causal relationships. They provide insight into the mechanisms that can make a difference, and their results will surprise us all.

Speaking about the social programs adopted in the world, A. Banerjee said that very little is known about which programs really work and which do not. At the same time, decisions on the implementation of such programs are made more intuitively than on the basis of actual data. The expert noted that India has the largest number of people in the world living in conditions of multidimensional poverty (25% of the country’s population).

A. Banerjee emphasized that economic theory is only a starting point in the development of an effective policy.

“Economic theory is based on assumptions, it does not give a complete picture of the real situation, and assumptions are often untestable and inconsistent. At the same time, economic models are very good at warning us about the various possible mechanisms, but they do not tell us which of these mechanisms actually work and which do not. However, there are various effective solutions, taking into account economic efficiency,” the expert emphasized.

Speaking about proven mechanisms in the field of education, three promising approaches were noted by the expert: 1 - support for underachieving students through a remedial education program; 2 - providing additional training materials using machine learning; 3 - focusing on a specific skill with a Read-a-thon program to improve reading skills.

The expert also touched upon the topic of the impact of ecology on the level of well-being of households. He noted that indoor air pollution poses a serious threat to health around the world. Thus, about a third of households in the world use fossil fuels, including coal. Women and young children are disproportionately affected by the resulting indoor air pollution.

What possible solutions come to mind? Installing more modern stoves and hoods in households, and using cleaner fuels. However, will improved stoves be able to positively affect health? Will they consume less fuel and will there be less emissions into the atmosphere? Are people willing to use them? The results of a randomized trial in India showed that improved cooking stoves did not improve health outcomes due to low consumption. One reason is that households did not use improved stoves regularly and properly.

“It is important to understand how new technologies fit into the lives of people in poor households. For example, cooking stoves could not be taken outside, which could explain why people abandoned them. Randomized trials have been the right method to find answers to these questions because they allow us to test a specific hypothesis, measure causal effects, and understand the mechanisms of interaction. It is encouraging to see that over the past two decades there has been a significant increase in rigorous assessments in measuring multidimensional poverty and significant progress in using evidence to inform public policy decisions. So, our 20-year work on the actual data has affected the lives of 600 million people around the world,” the expert noted.

A. Banerjee outlined possible areas for evidence-based research in Uzbekistan:

What will help make social protection programs more effective? As Uzbekistan increases its investment in social protection, it is useful to assess the targeting of these measures and other design features to ensure they reach the right people and have the desired impact.

What types of business support are most effective? Can we find ways to identify high potential entrepreneurs who could benefit from additional support? How do new entrepreneurs respond to various tax breaks? What measures can be particularly effective in supporting women’s entrepreneurship?

What forms of vocational training are effective for successful employment of employees? What formats are most cost effective in supporting successful employment outcomes? What other support might workers need besides training?

How can the quality of schooling and educational achievement be improved? What types of pedagogical interventions could be useful to improve primary and secondary education outcomes? As access to early childhood education expands, what other measures might be needed to encourage enrollment and improve quality?