Abhijit Banerjee and Esther Duflo interview: ‘India’s policy frame is not focused on inequality’

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Abhijit Banerjee and Esther Duflo, who won the 2019 Nobel Prize in Economics for their work using Randomized Controlled Trials to evaluate social policies, spoke to The Indian Express about the most important policy challenges facing India. The duo, who co-founded The Abdul Latif Jameel Po

 There are two dramatically different views about poverty eradication in India at present. One view is that India has eliminated all extreme poverty. The other view is that poverty has gone up post-COVID. What has fuelled this debate is the fact that we don’t have official data on poverty since 2011. What is your view on extreme poverty in India?

Esther Duflo (ED): As you note, the data is not there. It’s very difficult to answer these questions in the absence of data. And it’s something that will eventually make it difficult to have an appropriate policy response because it’s really necessary to know what is going on to be able to address the problem. But we are not, at least I am not, better placed than the next person to give you a sense of what might be going on in India on the poverty front since data has not come out for so long.

Abhijit Banerjee (AB): I don’t know what could we say. Even the (other) data sets that are available, diverge. That is often the reason for an authoritative survey that’s credible, and politically insulated, to exist. That’s why every country needs those things.

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