Syndicate content

Human Behavior

Human Nature is Not Always Rational- How Behavioral Science can Aid Development

Paolo Mefalopulos's picture

I am not sure if I was more surprised, glad, or excited to see the recent 2015 World Development Report published by the World Bank Group. Knowing well this institution, I admit I did not expect to see the day when it would acknowledge that human behavior is not necessarily guided by rational considerations and that behavior change is not a linear process and needs to reflect the complexity of factors affecting such process. The possibility that rational thought is not at the basis of every human action is something quite revolutionary, at least within the mainstream boundaries of economic discourse.

The WDR entitled “Mind, Society and Behavior” seems to suggest that economists might actually have something to learn from behavioural scientists! However, such concepts have been floating around for a quite some time. A handful of social scientists, development scholars, and practitioners have been exploring, advocating, and applying to a different degree principles, which are now illustrated in the WDR and applying approaches that promote human agency and facilitate social change.

The People Who Can Connect the Dots – Graduates of 2013 Summer Institute

Shamiela Mir's picture

The Third Summer Institute in Communication and Governance Reform came to a close on June 7, 2013. The participants completed a very intense yet extremely enriching two weeks of learning from world-class researchers and thinkers in strategic communication in a close-knit setting.

As mentioned in my previous blog, the program was developed with an understanding that successful implementation of policy reforms requires behavior change which can only be induced when non-technical, real life issues that relate to people and politics are treated as priority along with technical issues.  Human behavior is at the core of why things happen the way they do, whether we are talking about why some people smoke, or why some politicians implement policies that are detrimental to their country.

Incentives and Values in Conflict-Prone Countries

Eliana Cardoso's picture

One of the most extraordinary examples of the use of economic principles comes from the beginning of the 19th century, when England used to send a huge number of prisoners to Australia. The government originally paid the ship captain a pre-determined amount for each prisoner that boarded the ship, but half of them would die during the journey. In 1862, Edwin Chadwik, knowing that people respond to incentives, told the U.K. government to pay captains according to the number of prisoners that actually disembarked in Australia. With this adjustment, the survival rate increased from 50% to 98.5%.

This example illustrates how incentives can do wonders in some circumstances. Yet, human actions are not always guided by the same calculations made by a profit maximizing ship captain. Behavioral economists have emphasized that we respond to a deep ingrained sense of fairness. Culture and values are crucial in understanding human behavior and promoting healthy and stable societies.