UC Berkeley economist explains how foreign aid benefits both poor and wealthy nations

Thursday, October 23, 2025
12th Chancellor of the University of California, Berkeley | University of California Berkeley
UC Berkeley economist explains how foreign aid benefits both poor and wealthy nations

Edward Miguel, a professor of economics at the University of California, Berkeley and faculty co-director of the Center for Effective Global Action (CEGA), has focused his career on addressing global poverty. Drawing from his background as the son of immigrants from Uruguay and Poland, Miguel says he observed economic disparities early in life.

“I got a chance to see how my relatives lived in South America and Eastern Europe,” Miguel said. “They were a lot poorer than us here in the U.S., and that made me wonder why, and what could be done about it.”

In a video series called 101 in 101 produced by UC Berkeley, campus experts are challenged to explain their work in just over a minute and a half. In his segment, Miguel discusses foreign aid’s impact both on recipient countries and wealthier nations.

Miguel points out that foreign aid can help prevent disease outbreaks globally. “That can directly benefit us here in rich countries like the United States,” he said. “Because then we’re going to be less prone to experiencing disease outbreaks that spread.”

His research often relies on data analysis to evaluate new forms of aid. He recently published findings indicating that unconditional cash transfers to poor households in Kenya not only strengthen local economies but also improve child survival rates.

“The households that receive cash actually have much better rates of child survival,” Miguel said. “If you have cash in hand as a poor household, you can access better health services. You can deliver your baby in a hospital.”

Miguel’s work at CEGA continues to focus on scholarship aimed at alleviating global poverty through evidence-based approaches.

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