The new Micro-Development Initiative (MDI) concerns itself with causes and consequences of public policy design. The Initiative seeks to create a center of excellence in micro-development research and to provide immediately exciting and relevant conclusions for policy-making around the world. Further, it aims to support teaching by demonstrating ways in which policy can be developed through rigorous and scientific assessment and evaluation, and to contribute to actual policy making on the ground.

The Micro-Development Initiative was created in the past year, and is led by Kennedy School faculty Rohini Pande, Mohammed Kamal Professor of Public Policy, Asim Khwaja, Associate Professor of Public Policy, and Rema Hanna, Amitabh Chandra, and Monica Singhal, Assistant Professors of Public Policy. Current and ongoing projects include Informal Taxation: Financing of Local Public Goods in Developing Countries, Repayment Schedules for Microcredit Clients, Business Training for Women, Education in Pakistan, Bank Liquidity Shocks, and Drug Resistance in Developing Countries.

The Initiative is a part of the Center for International Development, and was founded to improve the effectiveness of international development policies and institutions. To this end, the projects mentioned above have formed collaborative partnerships with organizations in developing countries, including SEWA Bank, Center for Micro Finance (CMF), Lahore University of Management Sciences, State Bank of Pakistan, the Ministry of Education of Pakistan, and the Dubai School of Government. These endeavors are also interdisciplinary, bringing together the fields of development, health, microeconomics, sustainability science, political economy, finance, and education. As a result, the associated faculty members have worked with other Harvard schools such as the Harvard School of Public Health, the Harvard Economics Department, and the Harvard Business School.