Highly decorated economists Banerjee and Duflo (Economics/Massachusetts Institute of Technology) relay 15 years of research into a smart, engaging investigation of global poverty—and why we're failing to eliminate it.
Aiming to change the stigma that revolves around poverty, the authors explore not just how many find themselves in economic quicksand, but why. They suggest that policymakers, economists and philanthropists alike fail to understand the unique problems that lead to poverty; as such, attempts to eradicate it are often misguided. The poor need more than food, the authors write; they need programs that empower them with a real, fighting chance. Through a blend of on-the-ground observations, social experiments and psychological analysis, Banerjee and Duflo showcase an expansive understanding of poverty's traps and its potential solutions. They extol the virtues of such practices as microsaving and microfinance, which cut out debilitating interest rates and predatory moneylenders. But even these solutions aren't without their issues, including lack of trust in the lender and an unwillingness to take risk. The authors advocate for increased access to family planning, as family size is often a leading cause for why many are saddled with financial burden. They also investigate why many forego free or low-cost medical care or education.
A refreshingly clear, well-structured argument against the standard approach to poverty, this book, while intended for academics and those working on the ground, should provide an essential wake-up call for any reader.