Development

New research by Prof. Tavneet Suri and Prof. Abhijit Banerjee explores how to most effectively direct cash to low-income households, reports Dylan Matthews for Vox.  Suri and Banerjee compare “three groups: short-term basic income recipients (who got the $20 payments for two years), long-term basic income recipients (who get the money for the full 12 years), and lump sum recipients, who got $500 all at once, or roughly the same amount as the short-term basic income group,” writes Matthews. “Suri and Banerjee found that the lump sum group earned more, started more businesses, and spent more on education than the monthly group.”

Prof. Tavneet Suri discusses GiveDirectly, the world’s largest universal basic income (UBI) program, which has been providing almost 5,000 people in Kenya with “a payment of about 75 cents (62p) a day since 2017,” reports Philippa Kelley for The Guardian. “We do see people leaving low wage jobs,” says Suri. “They are going and starting businesses, and the businesses are doing great because there’s money around.”

New York Times reporter Conor Dougherty spotlights DUSP graduate student Nick Allen MS '17 and his work advocating for Land-value taxes (LVT) in distressed US cities.

David Moinina Sengeh MS ’12, PhD ’15 speaks with Ted Radio Hour host Manoush Zomorodi about his research in developing a more comfortable socket for prostheses. Sengeh “pioneered a new system for creating prosthetic sockets, which fit a prosthetic leg onto a patient's residual limb,” writes NPR.

Fast Company reporter Nate Berg spotlights the work of Liminal, a non-profit research group developed by students from MIT and Harvard that is focused on sustainable development in small towns. “Liminal brought 18 architecture and urbanism students from MIT to Abruzzo for a three-week immersion in the region,” writes Berg, “to learn about local priorities and develop design visions for the future of its small towns.”

VoxDev spotlights the work of Prof. Abhijit Banerjee, Prof. Esther Duflo and graduate student Garima Sharma in studying the long-term effects targeted programs have on helping poor households escape the poverty trap. “Using a randomized controlled trial that tracked these households four, seven and ten years after the intervention, the authors find that ten years later, treated households consume about 20% more than control group households and earn about 30% more,” writes VoxDev.

James Arthur Jemison II M.C.P ’94 has been appointed Boston’s first planning chief by Mayor Michelle Wu, reports Saraya Wintersmith for GBH. "I'm incredibly grateful to Mayor Wu for the opportunity to bring my expertise and passion for equitable development back to Boston,” Jemison said. “I am honored to have the opportunity to work with Bostonians to reform the development process and create the kind of growth that reflects our values.”

A new study by MIT economists finds that a one-time economic boost can help improve a person’s income, mental health and productivity even a decade later, reports Kristin Toussaint for Fast Company. “There is one very common concern, that somehow they will become lazy as a result of getting this opportunity; and if anything, we find the opposite. They work a little harder,” says Professor Abhijit Banerjee. “But most importantly, they’re enterprising.” 

During CNBC’s Technology Executive Council summit, Prof. Christopher Magee related how “allocating R&D resources efficiently is a critical skill, but one that most companies struggle with,” according to CNBC reporter Susan Caminiti. Magee's latest research “uses AI to predict the speed of the development of specific new innovations, all with the goal of deploying resources smartly and effectively,” writes Caminiti.

Nigerian economist Ngozi Okonjo-Iweala MCP ’78, PhD ’81 has been selected to lead the WTO, writes David McHugh for the AP. “Her first priority would be quickly addressing the economic and health consequences of the COVID-19 pandemic, such as by lifting export restrictions on supplies and vaccines and encouraging the manufacturing of vaccines in more countries,” writes McHugh.

New York Times reporter Ana Swanson highlights how MIT alumna Ngozi Okonjo-Iweala MCP ’78, PhD ’81 has been named the new director-general of the WTO. Okonjo-Iweala will be the first woman and first African to lead the WTO. “It’s been a long and tough road, full of uncertainty, but now it’s the dawn of a new day and the real work can begin,” she said.

TIME reporter Justin Worland writes about the selection of Ngozi Okonjo-Iweala MCP ’78, PhD ’81, an MIT graduate and the former finance minister of Nigeria, as the new director-general of the WTO. Okono-Iweala believe that “global trade can help ease the COVID-19 pandemic, tackle climate change and restore faith in the system of cooperation that has faltered in recent years,” writes Worland.

Alumna Ngozi Okonjo-Iweala MCP ’78, PhD ’81, a former Nigerian finance minister, has been named the new director- general of the World Trade Organization, reports William Wallace for the Financial Times. “Okonjo-Iweala sees an opportunity for the organization to rediscover some of its original purpose of raising living standards across the board and to bring its outdated rule book up to date at a time of accelerating change,” notes Wallace.

Meghna Chakrabarti of WBUR’s Radio Boston speaks to Puerto Rico Governor Ricardo Rossello ‘01 about the needs and the status of the island, plans to rebuild infrastructure, and how the new tax plan will affect Puerto Rico’s economy. Rossello was in Boston for the MIT Conference on the Resilient Reconstruction of the Caribbean. 

Boston Globe reporter David Abel reports on Puerto Rico Governor Ricardo Rosselló's ’01 visit to MIT for the Conference for the Resilient Construction of the Caribbean. The governor shared his frustration with proposed federal tax policies while expressing optimism about working with MIT on solutions for climate-resilient reconstruction after this fall’s hurricanes.