In order to find out what works in the field of development, we must try to determine the impact of a policy or intervention by comparing the outcome of the policy or intervention to what would have happened without it. The best way to do this is with a randomized controlled trial, in which some people are randomly assigned to participate in an intervention and others serve as a control group. Without randomization, it is difficult to attribute a causal link from the program intervention to the change in outcomes. Selection biases, both due to who chooses to join as well as whom programs target, often prevent non-experimental evaluations from showing this important causal link. For more on randomized trials see:
http://www.poverty-action.org/ourwork/approach.php.

What kinds of organizations does IPA work with?
IPA works with both for-profit and non-profit organizations, as well as government entities and multi-lateral and bi-lateral donor agencies. We work across a broad set of sectors, mostly poverty related (but not always). We work with organizations that are willing and eager to learn what works, what does not, and why, and adhere to experimental protocols in order to learn the answers. IPA works mostly internationally, but also in the United States on select issues.

What do IPA partner organizations gain from their involvement in IPA projects?
IPA partners gain important insight into which of their interventions work and why they work, and also have the opportunity to adopt innovative and proven IPA-designed programs. Additionally, IPA partners gain valuable experience conducting rigorous evaluations of their services, since our aim is to empower local organizations to continue to use such rigorous evaluation methodologies. Our partner organization, the MIT Jameel Poverty Action Lab, offers executive education two to three times per year to help guide organizations in successfully conducting randomized evaluations.

What does IPA do other than impact assessment?
IPA strives to transform its findings and insights into innovative action. We disseminate the evidence we generate to development practitioners and, where appropriate, we work closely with partners to facilitate the replication of effective programs to other areas of the world. In many cases we work with organizations or firms to create the innovations in program design that are then evaluated. Examples of IPA-developed innovations that have been implemented by partner organizations include: A commitment-to-savings product that encourages savings among bank clients in the Phillipines and a financial incentives scheme to reduce teacher absenteeism in rural schools in India.

Who funds IPA projects?
IPA’s expertise is provided as a service to its partners. Funding typically comes either from an organization’s evaluation budget or from donors (large and small) who are particularly interested in learning the impact of their dollars invested. On occasion, IPA will secure direct funding for research and evaluation and then search for partners to evaluate specific innovations or programs. IPA also often works with its partners to identify potential funding sources and submit joint proposals. Studies have been funded either directly or indirectly by a variety of foundations in the academic, development, and policy research communities, including the National Science Foundation, The World Bank, USAID-BASIS, the Asian Development Bank, and the Consultative Group to Assist the Poorest (CGAP), and the Ford Foundation.

How can organizations afford randomized control trials?
Randomized evaluations cost less than people think relative to non-randomized evaluations. Evaluations, of course, can be expensive, but should be thought of as an investment in order to learn how to best allocate future resources. In the short run, randomized evaluations can cost less than some quasi-experimental evaluations because they allow for smaller sample sizes. In the long run, experimental evaluations are less risky and hence less costly because they provide more reliable information for improving operations.

How long do IPA studies take?
Studies can take as little as a few months, and as long as several years to complete, depending on the length of the intervention and the outcomes of interest. For instance, in the case of microfinance we are interested in learning how certain approaches are more or less effective for generating new clients. These can be done more quickly, since the outcome of interest is merely signing up for the service. Studies which measure impact clearly take longer, since one needs to wait a reasonable time period for the impact to occur.

Is IPA affiliated with a particular university?
IPA is a US-based 501(c)3 nonprofit organization and does not have an institutional relationship with a particular university, but our associated researchers are professors at several leading universities, including Yale, MIT, Harvard, UC Berkeley, Columbia, NYU, Chicago, Princeton and Dartmouth.

What is IPA’s relationship to the Jameel Poverty Action Lab (J-PAL) at MIT?
Both IPA and J-PAL maintain the same rigorous research standards and focus on randomized evaluations. Many IPA researchers are also Lab Affiliates or Directors of J-PAL. Therefore, many IPA projects are joint initiatives with J-PAL.