Poor Economics
| Company type | Nonfiction book |
|---|---|
| Industry | Publishing |
| Founded | 2011 |
| Founder | Abhijit V. Banerjee, Esther Duflo |
| Products | Book on global poverty and development economics |
Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty (2011) is a nonfiction work authored by economists Abhijit V. Banerjee and Esther Duflo, both professors at MIT and recipients of the Nobel Prize. This book assesses approaches to alleviating global poverty through a rigorous evidence-based methodology employing randomized controlled trials and was honored with the 2011 Financial Times and Goldman Sachs Business Book of the Year Award.
Overview
Poor Economics presents a nuanced viewpoint that balances market-oriented initiatives with comprehensive development programs. It avoids sweeping generalizations, concentrating instead on how impoverished individuals make choices concerning education, healthcare, savings, and entrepreneurship. The authors rely heavily on carefully conducted randomized controlled experiments across multiple continents and prioritize hearing directly from those living in poverty. Their research frequently challenges established assumptions but uncovers practical lessons when local context is accounted for. They highlight three persistent barriers in policymaking—Ignorance, Ideology, and Inertia—that impede advancement.
The book promotes modest, data-driven interventions capable of producing substantial improvements in poverty reduction. Instead of offering universal prescriptions, it advocates for flexible policies grounded in empirical evidence, ultimately conveying an optimistic message that coordinated efforts can lead to meaningful progress.
Authors
Abhijit Banerjee serves as the Ford Foundation International Professor of Economics at MIT and co-founded the Abdul Latif Jameel Poverty Action Lab (J-PAL). His distinctions include fellowship in the American Academy of Arts and Sciences and the Econometric Society, a Guggenheim Fellowship, the first Infosys Prize in Social Sciences and Economics (2009), and recognition as one of Foreign Policy’s Top 100 Global Thinkers (2011). In 2019, he was awarded the Nobel Memorial Prize in Economic Sciences alongside Duflo and Michael Kremer.
Esther Duflo holds the Abdul Latif Jameel Professorship in Poverty Alleviation and Development Economics at MIT and is also a founding director of J-PAL. Her honors include the 2019 Nobel Memorial Prize in Economic Sciences, the John Bates Clark Medal (2010), a MacArthur Fellowship (2009), listings among Foreign Policy’s Top 100 Global Thinkers, and Fortune’s 40 under 40. Banerjee and Duflo married in 2015.
Reception
The publication earned widespread praise from economists and analysts for its methodological rigor and fresh perspective on addressing poverty. Robert Solow lauded its rejection of grand theories in favor of detailed empirical observations that illuminate actionable solutions to improve living conditions. Madeleine Bunting highlighted its innovative outlook within a field often marked by polarized viewpoints, emphasizing its sophisticated grasp of poverty’s multifaceted nature.
Nicholas Kristof acknowledged it as a seminal contribution advancing discussions on effective aid through randomized experimentation. Development economist William Easterly appreciated its empathetic attention to the poor coupled with dedication to evidence-based assessment amid an aid sector often criticized for superficiality.
While James Tooley expressed reservations about some educational findings, he supported the overall approach prioritizing data over ideology. In contrast, Sanjay G. Reddy offered a more critical stance, contending that despite its appeal to policymakers, the book’s technocratic framework oversimplifies complex political and social dynamics.
Poor Economics continues to be influential for its empirical insights into strategies for reducing poverty.
Editions
- Poor Economics: Rethinking Poverty And The Ways To End It, Random House India (May 25, 2011). – Hardcover edition for the Indian market.
- Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, PublicAffairs (April 26, 2011). – Hardcover edition for international audiences.
- Available in both electronic and paperback formats.
External links
- Poor Economics, official site