In this episode, Dan Banik speaks with economist Dean Karlan, the Frederic Esser Nemmers Distinguished Professor at Northwestern University and former Chief Economist of USAID, about his effort to build a new evidence-driven office inside the world’s largest bilateral aid agency. Drawing on his experience from 2022 to 2025, Dean reflects on the ambition behind creating the Office of the Chief Economist, the challenges of navigating congressional holds and bureaucratic resistance, and the excitement of assembling a team committed to cost-effectiveness and rigorous, science-based decision-making.
Dan and Dean explore what it means to introduce institutional reform in an agency as sprawling and politically exposed as USAID, how internal processes shape billions of dollars in global programming, and why transparent learning (including acknowledging failure) remains essential but difficult in development. They also discuss the dramatic shift that followed recent political changes in Washington, the speed with which parts of USAID’s architecture were dismantled, and what this means for partner countries, soft power, and the future of global development cooperation.
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