Nobel Laureate Esther Duflo Defends Development Aid Amid Rising Skepticism

In a compelling op-ed, Esther Duflo, the Nobel Prize-winning economist, defends the importance of development aid as a crucial investment rather than a mere expenditure, particularly as global aid levels have shrunk to their lowest since 2005. As the fourth International Conference on Financing for Development takes place in Seville, Duflo highlights the stark reality of decreasing international aid, especially after the absence of the United States from the talks and its withdrawal from funding commitments, notably to GAVI, the global vaccine alliance.

Despite the downturn in aid, Duflo points to significant strides in alleviating extreme poverty over the past three decades, with the number of people living in extreme poverty dropping from 2 billion in 1992 to 713 million in 2022. This decrease now represents approximately 8.5% of the global population. In addition, she cites improvements in health outcomes, such as life expectancy in Sub-Saharan Africa rising from 52 to 63 years between 2000 and 2023, attributing much of this progress to the support provided by development aid.

Duflo warns that the growing inclination to abandon international solidarity could reverse these gains, stressing that development aid has been vital in enhancing global public goods and addressing pressing issues. She strongly argues that instead of being viewed as a waste, development aid is essential for sustainable progress in developing nations and for managing crises effectively.