Today, hard-won progress is at risk.
In past decades, the world has made important gains in reducing poverty and creating opportunities for people and families to thrive. Behind these gains lies a strong foundation of economic growth, political will, smart investments, innovation, and a growing commitment to use data and evidence to inform policy. But existential challenges remain.
700 million people still live in extreme poverty. 42 million people in the United States live below the poverty line. Clean water, basic health care, and stable employment remain out of reach for many. Budgets are tight and foreign assistance is being cut, raising urgent questions about the future.
With fewer resources, the stakes are higher—but so is the potential for impact if we focus on solutions that are both effective and cost-effective. Data and evidence can help prioritize programs that truly make a difference.
This Evidence Effect page and accompanying blog series share what we have learned about improving the lives and livelihoods of people who are experiencing poverty. We discuss how these lessons have changed thinking, investments, and people's lives. This page offers powerful examples of effective development programs that reflect these lessons.
As we enter a new era marked by tighter budgets, growing inequality, and intensifying scrutiny, our hope is that these ideas contribute to debates and decisions on the future of development spending.
What we’ve learned from working with the private sector for inclusive growth
The private sector is a fundamental force for driving global prosperity. For corporations and investors, there’s enormous opportunity in low- and middle-income countries’ growing markets and talent. What’s less clear is how to partner most effectively for maximum impact: How can multinationals, local businesses, investors, governments, and catalytic donor capital work together to deliver growth, expand access to higher-income jobs, and scale market-based solutions?
Evidence in action
The Evidence Effect highlights examples of life-changing programs that warrant more attention, investment, and consideration for scaling. Explore them below, drawn from more than 1,200 completed randomized evaluations led by researchers in our network.
Targeted job training can open doors
Well-designed job training programs help people land better-paying jobs.
Finding and financing businesses that are ready to grow
Tailoring financing for small and mid-sized businesses that are most likely to grow can unlock their potential to increase sales and profits, create jobs, and strengthen the local
Soft skills training leads to success
Soft skills training can help people get and keep jobs, improve performance at work, and increase business profits—but design matters.
Making markets work for small businesses
Helping small and mid-sized businesses make connections with new buyers, and with each other, leads to growth, higher productivity, and better jobs.
Making markets work for farmers
Stronger connections between farmers and buyers enable farmers to invest and earn more.
Rethink microcredit for greater impacts
Innovations in microcredit design can improve business growth and borrower wellbeing.
Bringing crop innovation from the lab to farmers’ fields
Flood-tolerant seeds help farmers adapt to extreme weather without sacrificing their yields, making investing in change worthwhile.
Effective and fair taxation
Governments can adopt high- and low-tech approaches to raise resources through improved taxation.
Mobile phone monitoring for better government services
Phone-based monitoring is a cheap, accessible way to ensure government service providers are doing their jobs well.
The objectives of aid are often unclear.... Reaffirming the most basic principle would provide clarity: The goal should be to invest in projects that will have the largest impact on the quality of life of poor people around the world.
—Abhijit Banerjee and Esther Duflo, The Financial Times, March 2025
Read more about The Evidence Effect
Discover more perspectives from the J-PAL network
Radical simplification: A practical way to get more out of limited foreign assistance budgets
Center for Global Development
The Future of U.S. Foreign Aid: A series of virtual conversations
Harvard Center for International Development
Esther Duflo, Nobel laureate: 'Development aid is not a waste of public money'
Le Monde
Photos:
(1) Two farmers uproot rice seedlings for transplantation during monsoon season in India. Credit: Shutterstock.com
(2) A woman laughs as an enumerator measures her height in her home in Borong, East Nusa Tenggara, Indonesia. The measurement was part of an impact evaluation of an information campaign focused on preventing malnutrition. Credit: Miranda Putri, J-PAL
(3) Credit: Official, Shutterstock.com