The Royal Swedish Academy of Sciences has been announced that the Scottish economist, Angus Deaton (69), has won the Nobel memorial prize in economic sciences for “his analysis of consumption, poverty and welfare”.
Deaton, the son of a Yorkshire miner, was born in Edinburgh, in 1945. He has taught at the Universities of Cambridge and Bristol, before moving to Princeton University, in the United States of America.
In his 2013 book, The Great Escape, Angus Deaton argued that foreign aid did more damage than good to developing countries as he claims the money from western governments has only helped to propel corrupt leaders in those nations, rather than reaching the people who could benefit from the aid. He wrote, “The idea that global poverty could be eliminated if only rich people or rich countries were to give more money to poor people or to poor countries, however appealing, is wrong. These simplistic beliefs are based on a misdiagnosis of what it is that is keeping people poor.”
During a press conference following the announcement of winning the Nobel memorial prize, Deaton stated that although he expects extreme poverty to decrease globally, he doesn't want to be “blindly optimistic”. He said there are “tremendous health problems among adults and children in India, where there has been a lot of progress.”
The award-giving body praised Deaton for his work, which has influenced public policy on aid and poverty. While announcing this prize, the award-giving body said, “To design economic policy that promotes welfare and reduces poverty, we must first understand individual consumption choices... More than anyone else, Angus Deaton has enhanced this understanding.”
US economist, Tyler Cower said Deaton was “a brilliant, excellent selection. He stated, “He truly, deeply understands the implications of economic growth, the benefits of modernity, and political economy.”
