Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty – Abhijit V. Banerjee & Esther Duflo
1. Full Citation
Banerjee, A.V. and Duflo, E. (2011) Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty. New York: PublicAffairs.
2. Introduction
Poor Economics presents an evidence-based examination of poverty, employing randomized controlled trials to understand the behaviours, constraints, and decisions of the poor. Banerjee and Duflo challenge broad generalizations, advocating for tailored, pragmatic interventions to improve health, education, and financial inclusion. The book revolutionizes development economics by focusing on micro-level realities and the complex incentives shaping the lives of the poor.
3. Author Background and Credentials
Abhijit V. Banerjee and Esther Duflo are professors at the Massachusetts Institute of Technology and co-founders of the Abdul Latif Jameel Poverty Action Lab (J-PAL). They received the Nobel Prize in Economic Sciences in 2019 for their experimental approach to alleviating global poverty.
4. Summary of Contents
Key topics include:
- Health and Nutrition
- Evaluates interventions in vaccination, sanitation, and nutrition.
- Education
- Assesses challenges in school attendance, learning outcomes, and incentives.
- Financial Inclusion and Microcredit
- Investigates the effectiveness and limitations of microfinance.
- Entrepreneurship and Behaviour
- Explores decision-making under constraints and behavioural biases.
- Policy Implications
- Advocates for evidence-based, context-specific policies over one-size-fits-all solutions.
5. Critical Evaluation
a. Coherence and Argumentation
The book provides a well-structured, empirical approach to poverty, avoiding ideological biases.
b. Originality and Intellectual Contribution
It pioneered the use of randomized trials in development economics, reshaping policy debates.
c. Evidence, Sources, and Method
Extensive use of field experiments and data analysis across multiple countries.
d. Style and Accessibility
Accessible prose balancing academic rigor with engaging storytelling.
e. Limitations and Critiques
Some argue the micro-level focus may overlook systemic and macroeconomic factors.
6. Comparative Context
Compared with:
- Jeffrey Sachs’s The End of Poverty – Sachs emphasizes large-scale aid; Banerjee and Duflo focus on micro-interventions
- William Easterly’s The White Man’s Burden – Easterly critiques top-down aid; this book offers data-driven alternatives
- Amartya Sen’s Development as Freedom – Both emphasize multifaceted aspects of poverty
7. Thematic or Disciplinary Relevance
Relevant to:
- Development economics and poverty alleviation
- Experimental economics and impact evaluation
- Public policy design
- Behavioural economics
8. Reflection or Practical Application
The book informs more effective poverty reduction strategies through nuanced understanding and evidence-based policy.
9. Conclusion
Poor Economics is a landmark in development economics, offering pragmatic, empirically grounded insights to tackle poverty effectively.
Recommended for: Economists, development practitioners, policymakers, and students of international development.
10. Other Works by the Same Authors
- Good Economics for Hard Times (2019)
- Numerous research articles and policy reports
11. Similar Books by Other Authors
- Jeffrey Sachs – The End of Poverty
- William Easterly – The White Man’s Burden
- Esther Duflo – Development Economics: Theory and Practice
- Amartya Sen – Development as Freedom
12. References (only if external works are cited)
- Banerjee, A.V. and Duflo, E. (2011) Poor Economics
- Sachs, J.D. (2005) The End of Poverty
- Sen, A. (1999) Development as Freedom