When funding policy advocacy in the rich world, Open Philanthropy Project aims to only fund projects that at least meet the '100x bar', which means that the things they fund need to increase incomes for average Americans by $100 for every $1 spent to get as much benefit as giving $1 to GiveDirectly recipients in Africa. The reason for this is that (1) there is roughly a 100:1 ratio between the consumption of Americans to GiveDirectly cash transfer recipients, and (2) the returns of money to welfare are logarithmic. A logarithmic utility function implies that $1 for someone with 100x less consumption is worth 100x as much. Since GiveWell's top charities are 10x better than GiveDirectly, the standard set by GiveWell's top charities is a '1,000x bar'.
Since 2015, Open Phil has made roughly 300 grants totalling almost $200 million in their near-termist, human-centric focus areas of criminal justice reform, immigration policy, land use reform, macroeconomic stabilisation policy, and scientific research. In 'GiveWell’s Top Charities Are (Increasingly) Hard to Beat', Alex Berger argues that much of Open Phil's US policy work probably passes the 100x bar, but relatively little passes the 1,000x bar.
The reason that Open Phil's policy work is able to meet the 100x bar is that it is leveraged. Although trying to change planning law in California has a low chance of success, the economic payoffs are so large that the expected value of these grants is high. So, even though it is a lot harder to increase welfare in the US, because the policy work has so much leverage, the expected benefits are high enough to 100x the $ benefits.
This raises the question: if all of this true, wouldn't advocating for improved economic policy in poor countries be much better than GiveWell's top charities? If policy in the US has high expected benefits because it is leveraged, then policy in Kenya must also have high expected benefits because it is leveraged. We should expect many projects improving economic policy in Kenya to produce 100x the welfare benefits of GiveDirectly, and we should expect a handful to produce 1,000x the welfare benefits of GiveDirectly.
This is an argument for funding work to improve economic policy in the world's poorest countries. Lant Pritchett has been arguing for this position for at least 7 years without any published response from the EA community. Hauke Hillebrandt and I summarise his arguments here. My former colleagues from Founders Pledge, Stephen Clare and Aidan Goth, discuss the arguments in more depth here.
Updated addendum: At present, according to GiveWell, the best way to improve the economic outcomes of very poor people is to deworm them. This is on the basis of one very controversial RCT conducted in 2004. I don't think this is a tenable position.

I've been following this debate for a while now... Though I tend to agree that deworming is certainly not the most impactful, and probably not the optimal option for EA investments, I'm still puzzled here: What are you proposing, especifically? I mean, what determinate project, with measurable goals, would you propose that someone invest on - which is not already being well funded by international organizations, banks, governments or think tanks?
My point is that I don't think anyone in the EA community disagrees about the importance of economic development - particularly so-called randomistas such as Duflo and Banerjee. I certainly don't - but I have been baffled with how little the field has gained in certainty, despite having way more data, since Nurkse v. Hirschman debates on the "balanced growth theory." I think the problem is that people are not convinced about where is the low-hanging fruit here - or that there's a clear path to take that will actually yield more overall marginal utility.
Notice that the "smell test" does not answer those questions; and though I'm quite hopeful there might be an optimal answer for development economics, I'm also skeptical Pritchett's test actually makes the right question - which, for me, sounds a bit like criticizing a training program for sedentary persons, based on an athlete's routine. And when I think about it, the one "X thing" that developed countries clearly seem to have more is that they are geographically similar and close to each other - except for small nations with outlier trajectories in very peculiarly strategical positions, such as Taiwan, Brunei or Singapore.
Hey, I really appreciate this discussion! I wanted to jump in on one point. You note that the Founders Pledge follow-up to the original growth post (which I co-wrote) concluded that it would be too costly to continue the research to identify funding opportunities. I just wanted to note that taht was the case that because of how FP's funding model works. FP staff don't directly control the pledged funds - the members make the final decision over where to donate, and can take or leave the recommendations.
Since policy orgs are difficult to evaluate, I w... (read more)