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Behavioral insights for development World Bank

Behavioral insights for development By World Bank

Behavioral insights for development by World Bank


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Summary

Brings together a set of experiences from Central American countries in which behavioural insights are applied to different areas of public policy ranging from tax collection to susbsidy reforms, using mixed methods such as RCTs, surveys, focus groups and behavioural games.

Behavioral insights for development Summary

Behavioral insights for development: cases from Central America by World Bank

Behavioral Insights for Development: Cases from Central America brings together a set of experiences that applied behavioral insights to different areas of public policy - in some cases through randomised control trials, and in others using surveys or behavioral games. These experiences collectively show the promise of public policies that are informed by a better understanding of what drives individual behavior. In Costa Rica, for example, informing households of how much water they consume relative to their neighbours reduced water consumption (chapter 1). In Guatemala, altering the way government communicates with taxpayers increased revenue collection (chapter 2). In Nicaragua, an analysis of a cash transfer program found that children in households receiving benefits exhibited significantly higher cognitive development - a result influenced by parental behaviour changes during the programme (chapter 3). In El Salvador, we explore how different biases explain the apparent puzzle of a gas subsidy reform that benefited most of the population yet proved to be widely unpopular (chapter 4). Chapter 5 also uses behavioural insights to analyse subsidy reforms in El Salvador, this time using a different methodology: a set of economic behavioural games designed to evaluate the willingness of individuals to accept subsidy reforms that would affect them directly. Finally, chapter 6 reflects on the progress made in applying behavioural insights in a development context. These cases illustrate, in practice, some of the findings of the World Development Report 2015: Mind, Society, and Behavior. In particular, they demonstrate the possibility of using nontraditional tools, complementary to regulation, in contexts where time and resources are limited. The World Bank has since established a Mind, Behavior, and Development (eMBeD) Unit within the Poverty and Equity Global Practice to mainstream and scale up behavioural science in public policies and programs. We hope these experiences will help to inform other practitioners about the potential of applying behavioral insights in a development context and will encourage them to consider such approaches as a complement to traditional policy measures.

Additional information

NLS9781464811203
9781464811203
1464811202
Behavioral insights for development: cases from Central America by World Bank
New
Paperback
World Bank Publications
2017-09-30
128
N/A
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