Labels matter. Girls who are reminded of stereotypes about how girls perform in math do worse on math exams (in some circumstances). Publicly revealing the caste of students in India led to worse performance of students from castes that were traditionally lower in the caste hierarchy. In the U.S., posting a banner with vegetables in the form of cartoon characters increased schoolchildren’s consumption of vegetables by 90 percent. These are all forms of labeling. New research suggests that labeling matters in school scholarships – merit-based versus needs-based – as well.
In June 2015, after two days of heavy rain, flood water washed away Sarah’s small store in Accra, which provided for her family of three (1). The flood that hit the city in June 2015 affected around 53,000 people in the city and caused an estimated US$100 million in damages. Slum areas in the Odaw basin were among the worst hit.
Developing countries made considerable gains during the 2000s, resulting in a large reduction in extreme poverty and a significant expansion of the middle class. More recently that progress has slowed—and the prognosis is for more of the same, given an environment of lackluster global trade, a lack of jobs coupled with skills mismatches, greater income inequality, unprecedented population aging in richer countries, and youth bulges in the poorer ones. As a result, developing countries are unlikely to close the development gap anytime soon.