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Poor Economics: Rethinking Poverty And The Ways To End It, by Abhijit V. Banerjee, Esther Duflo
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Imagine you have a few million dollars. You want to spend it on the poor. How do you go about it? Billions of government dollars, and thousands of charitable organizations and NGOs, are dedicated to helping the world s poor. But much of their work is based on assumptions about the poor and the world that are untested generalizations at best, harmful misperceptions at worst. Abhijit V. Banerjee and Esther Duflo have pioneered the use of randomized control trials in development economics through their award-winning Poverty Action Lab. They argue that by using randomized control trials, and more generally, by paying careful attention to the evidence, it is possible to make accurate and often startling assessments on what really impacts the poor and what doesn t. Why would a man in Morocco who doesn t have enough to eat buy a television? Why is it so hard for children in poor areas to learn even when they attend school? Why do the poorest people in Maharashtra spend 5 percent of their total budget on sugar? Does having lots of children actually make you poorer? Drawing on their research at the Poverty Action Lab and their fifteen years of fieldwork in India and across the world, the two economists ask many such questions and show why the poor, despite having the same desires and abilities as anyone else, end up with entirely different lives. Revelatory and impassioned, Poor Economics is a pathbreaking book that will help you to understand the real causes of poverty and how to end it.
- Sales Rank: #3477486 in Books
- Published on: 2011-03-15
- Original language: English
- Number of items: 1
- Dimensions: .0" h x .0" w x .0" l, 1.10 pounds
- Binding: Hardcover
- 320 pages
Review
“Compelling and important. . . . An honest . . . account about the poor that stands a chance of actually yielding results.”
—Forbes.com (Wall Street Journal)
“Excellent. . . . Move[s] the debate to the crucial question: What kind of aid works best?”
—The New York Times (Financial Times)
“Marvelous, rewarding. . . . The sheer detail and warm sympathy on display reflects a true appreciation of the challenges their subjects face. . . . They have fought to establish a beachhead of honesty and rigor about evidence, evaluation and complexity in an aid world that would prefer to stick to glossy brochures and celebrity photo-ops.”
—The Wall Street Journal (Cleveland Plain Dealer)
“It is the rich and humane portrayal of the lives of the very poor that most impresses.”
—Financial Times (Financial World (UK))
“Gloriously instructive.”
—Cleveland Plain Dealer (Fast Company)
“Incisive, scientific, compelling and very accessible.”
—Financial World (UK) (Kirkus Review)
“Reads like a version of Freakonomics for the poor.”
—Fast Company (The Guardian)
“A smart, engaging investigation of global poverty and why we’re failing to eliminate.”
—Kirkus Review (Library Bookwatch)
“A refreshingly original take on development.”
—The Guardian
“In an engrossing new book they draw on some intrepid research and a store of personal anecdotes to illuminate the lives of the 865m people who, at the last count, live on less than $0.99 a day.”
—The Economist
“[Poor Economics] provides an inspirational audio recommended for any economics or nonfiction audio library.”
—Midwest Book Review
“Narrator Brian Holsopple’s nicely paced, steady reading conveys world poverty in a unique manner and is highly recommended for all university libraries.”
—Library Journal [starred review]
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Most helpful customer reviews
9 of 9 people found the following review helpful.
Amazing introduction to how poor people actually live - Don't really agree with use of RCTs
By J_Nasielski
As a development professional (i.e. someone who is paid to help poor people in poor countries) I'm very happy to see how the experiences and theories of the authors meld with my own experiences of how poor people in developing countries conduct their lives and organize their livelihoods. As such, I'd say the book serves as an excellent introduction to the economic lives of the poor (although their is another book entitled exactly that, also excellent) and what type of development interventions are likely to work.
The authors advocate for a more measurable approach to development: conduct development projects like scientific experiments to see what work's and what doesn't. In the jargon, this is known as using Randomized Control Trials (RCTs). The authors are very reasonable and don't see RCT's as a cure to all ills, but a step on the path to making development projects a bit more effective. The book functions as an introduction to the use of RCTs in development projects
There are many objections to the effectiveness of RCTs. But the major one is this: In most scientific experiments, an experiment can be replicated by someone else doing the exact same thing and end up with the exact same result. This is called, in the jargon, external validity, and is necessary for science to be,well, science. Unfortunately, there is no guarantee of external validity in international development. There are simply too many unknown unknowns and uncontrollable variables that a successful development project in one place and time has no guarantee of working in another. So, if this makes any sense, RCTs are not very effective in improving aid effectiveness.
In my own experience, there are three practical problems with implementing RCTs: 1) You need to have very smart, well trained people involved from the beginning to ensure the construction of the experiment is valid. This is not always possible. 2) These things are very very expensive to do. 3) Development organizations that do the implementing of projects don't want their projects evaluated since they see it as a way to cut funding.
Insofar as RCTs can be used as an organizational learning tool, there are cheaper methods of M&E (monitoring and evaluation, the jargon again) that can accomplish just that.
All in all, a very good read. The book is obviously meant for a wide audience and is easy reading. As someone who knew alot about what was introduced, I still found it worthwhile to read.
3 of 3 people found the following review helpful.
Good book for the genuinely curious
By Amazon Customer
This book is great for those who seriously want to learn about how economics works for the very poor, who Banerjee and Duflo categorize as those who live on 99 cents a day or less. If you're interested in political cheap shots, feel-good straw man arguments, or emotional windbaggery, look elsewhere.
Economics is a subject that is easily derailed by partisan jargon and pseudo-intellectualism, so I am always wary of each new econ book I pick up. Poor Economics is written by serious economists who have no time for such nonsense, and this is reflected in the high quality of the book. The authors seriously engage two different perspective throughout the book - one that argues that aid to the global poor often makes matters worse, and the other that argues that the poor cannot rise without heavy external (often government) help. The strengths and weaknesses of each are pointed out dispassionately for a variety of cases and circumstances. With each explanation of why one approach succeeded or failed, you gain a better understanding of how economics for the very poor works. The authors make pervasive use of empirical studies and provide meaningful analysis for each one.
Good (economics) books teach you not what to think, but how to think. With this definition, Poor Economics easily qualifies as quite a good book.
2 of 2 people found the following review helpful.
Insightful, broad ranging and scientific
By Gadget Wallah
One of the few books on alleviating poverty rooted in experimentation. It is an approach that is more likely to be correct for two reasons - 1. there is less ideology, aside from the need to measure and 2. You are forced to re-evaluate bad theories. This is such a welcome approach compared to the deeply ideological approaches of a Jeffrey Sachs or Easterly or Mohammed Yunus. Most books in this genre have grandiose single concept theories with minimal experimental support. They also frequently need to upend common sense to make a point. This book takes the reader where the data leads - sometimes reaffirming common sense, sometimes overturning it. Ideas emerge out of an openness to experimental outcomes.
See all 215 customer reviews...
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