Unpacking Development in the World

In this episode of IAF Continued Conversations, Arpita Nepal and Rainer Heufers explore the meaning and measurement of development with economist Lant Pritchett. Drawing on decades of research and practical experience, Pritchett makes a compelling case for distinguishing between national development and individual human flourishing—two processes often conflated in policy debates. The conversation touches on the four pillars of national development: productivity, responsive governance, state capability, and equal treatment of citizens. Pritchett warns that many development agencies have shifted focus away from these fundamentals, favoring short-term, donor-driven interventions over long-term structural change. He challenges the development industry to rethink its priorities, arguing that without a renewed commitment to national transformation—including economic freedom and institutional resilience—aid risks becoming irrelevant. The episode also reflects on the role of development aid in building or undermining state capacity, and what it would take for the global development discourse to become more meaningful and effective again. This is an honest and urgent discussion on what development really means, how it should be measured, and whether current strategies are truly serving the countries they intend to support.