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Evaluating the Impact of Development Aid Program: The Role of Randomized Evaluations Esther Duflo Massachusetts Institute of
Technology Department of Economics and Poverty Action Lab Paper prepared for the AFD Conference, November 25, Paris, 2004 "We do not propose that all projects be subject to randomized evaluations. But we argue that there is currently a tremendous imbalance in evaluation methodology, and that increasing the share of projects subject to randomized evaluation from near-zero to even a small fraction could have a tremendous impact on knowledge about what works in development. All too often development policy is based on fads, and randomized evaluations could allow it to be based on evidence. 3 The paper proceeds as follows: Section 1 discusses the methodology of randomized evaluations: we present the impact evaluation problem, review why other current evaluation methods may often be unable to adequately control for selection bias, and discuss why randomized evaluations can be useful in addressing the problems encountered by other evaluation practices. Section 2 reviews recent randomized evaluations in developing countries. Section 3 extracts lessons from the evaluations described in Section 2, and Section 4 reviews an example of current practice, offers political economy explanations for why randomized evaluations are so rare, and discusses the role the international agencies can play in promoting and financing rigorous evaluations, including randomized evaluations. Section 5 concludes" (posted 25/06/05).




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