UC Berkeley economist explains benefits and impact of foreign aid

Edward Miguel
Edward Miguel
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Edward Miguel, a professor of economics at the University of California, Berkeley and faculty co-director of the Center for Effective Global Action (CEGA), has focused his career on understanding how to improve living conditions for some of the world’s poorest populations. Miguel, whose family immigrated from Uruguay and Poland, observed economic disparities firsthand during visits to relatives in South America and Eastern Europe.

“I got a chance to see how my relatives lived in South America and Eastern Europe,” Miguel said. “They were a lot poorer than us here in the U.S., and that made me wonder why, and what could be done about it.”

In a recent installment of “101 in 101,” a video series produced by UC Berkeley that asks experts to explain their work in 101 seconds, Miguel discussed the impacts of foreign aid. He noted that while foreign aid is designed to help those most in need, it can also serve the interests of wealthier nations.

“That can directly benefit us here in rich countries like the United States,” Miguel explained. “Because then we’re going to be less prone to experiencing disease outbreaks that spread.”

Miguel employs data-driven methods to evaluate innovative forms of foreign aid. In a recent study, he found that providing unconditional cash transfers to poor households in Kenya led not only to stronger local economies but also reduced child mortality rates.

“The households that receive cash actually have much better rates of child survival,” said Miguel. “If you have cash in hand as a poor household, you can access better health services. You can deliver your baby in a hospital.”

The video highlights ongoing research at CEGA aimed at addressing global poverty through evidence-based approaches.



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