Yesterday, it was announced that the 2015 Nobel Prize for Economics would be awarded to Angus Deaton, a Scottish economist and longtime professor at Princeton University.
As a student of international policy and fan of economics, this news was pretty exciting. All of Deaton’s work is considered a “must read” in several of the courses I’ve taken so far, particularly his award-winning book, which paints a very optimistic picture of modernity, called The Great Escape: Health, Wealth, and the Origins of Inequality. In it, he argues that while most people in the world have improved in terms of health and well-being from GDP growth over the last few decades, there are many groups that are excluded, particularly if societies are examined beyond the most commonly used measures.
I’ve found his arguments incredibly compelling, which is why I’m very happy he is the recipient of this award.
Deaton is winning this award for his analysis of consumption, poverty, and welfare. Rather than studying elaborate models or big national data, his work argues that the best way to understand poverty is by studying how specific human beings and households behave.
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Via the Nobel Prize
So you are probably thinking what singles Deaton out as an economist?
This is important for the simple reason that if policymakers want to improve conditions for those who are worse off, they need to know who they are and how to measure improvements for their wellbeings. His work also has broader ramifications for governance.
“The political equality that is required by democracy is always under threat from economic inequality, and the more extreme the economic inequality, the greater the threat to democracy” states Deaton. If democracy is compromised, there is a direct loss of wellbeing--people have good reason to value their ability to participate in political life, and the loss of that ability is instrumental in decreasing the quality of life for citizens.
Lastly, Deaton’s previous work highlights importance of vaccinations and the impact health aid can make. “The improvement of public health required action by public authorities,” Deaton writes, “which required political agitation and consent and could not have been accomplished through the market alone.” He is not wrong, the biggest killers in the developing world today are --tuberculosis, malaria, diarrhea, and lower respiratory infections — which can be solved through adequate water and sanitation measures. To achieve this, we need to collectively take action to press leaders to take notice.
Reached by phone after the award was announced in Stockholm, Sweden, Monday morning, Deaton said, "I'm absolutely delighted" to win. For someone who has dedicated their life’s work to focusing on the world’s poor, to be recognized with the prestige of a Nobel, is absolutely delightful indeed.