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Poor Economics
- A Radical Rethinking of the Way to Fight Global Poverty
- Narrated by: Brian Holsopple
- Length: 11 hrs and 30 mins
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Publisher's Summary
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 that are untested generalizations at best, harmful misperceptions at worst.
Abhijit Banerjee and Esther Duflo have pioneered the use of randomized control trials in development economics. Work based on these principles, supervised by the Poverty Action Lab, is being carried out in dozens of countries. Drawing on this and their 15 years of research from Chile to India, Kenya to Indonesia, they have identified wholly new aspects of the behavior of poor people, their needs, and the way that aid or financial investment can affect their lives. Their work defies certain presumptions: that microfinance is a cure-all, that schooling equals learning, that poverty at the level of 99 cents a day is just a more extreme version of the experience any of us have when our income falls uncomfortably low.
This important book illuminates how the poor live, and offers all of us an opportunity to think of a world beyond poverty.
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- D. Martin
- 07-01-12
Excellent for non-economists
This is one of those rare books that strikes the right balance between being choked full of fascinating information, and not being over the head of a non-specialists. It has a tremendous breadth of coverage, and I would absolutely recommend it first (before anything by Sachs or Easterly, for example) for those interested in development economics. (It's not a bad read for economists either.)
For those who don't know: there's a longstanding feud between Sachs and Easterly--who sit at opposite ends of Manhattan at Columbia and NYU respectively--over, among other things, whether giving more aid to poor countries actually does any good, with Sachs arguing that it does, and Easterly basically arguing that if you don't have good "institutions"--which no one ever quite fully defines--nothing is going to help. Banerjee and and Duflo, at MIT, are trying to move the discipline beyond this old argument, and I would say largely succeed in this book. They do this by focusing on data driven results, especially experimental results, which are very rare in much of economics, but are becoming more and more the norm in development since there's a good deal of donor money and projects in poor countries can be remarkably inexpensive. So, for example, there's this really old irritating argument over whether giving away mosquito bednets, as opposed to selling them cheaply, actually leads to less usage because people don't value them. Well, someone finally actually did the experiment, and found that people who are given bednets mostly do actually use them, though they may take extras and waste them, and selling them really cheap works pretty well too. This is what development economists spend their time on.
But there are many more interesting facts to be learned from this book. For example, hunger apparently isn't a problem almost anywhere in the world, though a few specific spots in sub-Saharan Africa may be exceptions. But in most places, if you give people more money to be spent on food, they don't end up eating any more calories; they just eat nicer food. On the other hand, poor nutrition among children and pregnant women may be an issue with serious long-term costs. Community scale drinking water systems may be one of the most effective ways of preventing illness. Microfinance doesn't hurt the poor, but it doesn't seem to help all that much either. Insurance schemes for the poor may seem like a nice idea, but are very hard to implement and are often resisted by those they're intended to help.
My main quibble: This new approach to development is inherently microeconomic (as opposed to macro) in nature. You can't really do macroeconomic experiments where you transform one country's economy and not another. Which doesn't mean macro issues aren't discussed at all--there's a very long discourse on how poverty traps, essentially a macro idea, are to be understood at the micro level. But some of the big ideas in development are inherently macro in nature. One book can't do everything, but since I really do think this should be the first book non-specialists read, I would have liked the authors to summarize some of the other perspectives on the field a little more/better.
33 people found this helpful
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- Jeremy
- 02-26-13
Poor economics, but a treasure of great material
For anyone who's even briefly browsed The Economist, there is a lot we think we know about development, most of it gleaned from armchair economists' big ideas about what should be done, how the world can be changed, etc. This book takes a very different perspective and looks directly at what the evidence from the field really tells us. There is so much that we think we know but we just don't and, if you choose to read it, I recommend that you take pencil and paper, and ask yourself a few questions:
Why are the poor malnourished?
Why are the poor unhealthy?
Why do the poor have so many children?
Why don't the poor save?
Why are poor countries corrupt?
I found the book illuminating in coming to answer these questions from ACTUAL field evidence in ways that are not only unexpected but ring true. It is such a breath a fresh air when most of what we hear in this area is speculation about might happen given one or another aid policy.
Yet, and this is only one part where I should caution the reader, the book is not nearly as objective as the authors want us to believe. In some places (microcredit being the big example), the authors depend on the willingness of non-governmental institutions to share their private data and, understandably, are unwilling to explicitly write against them. Given the quality of most of the book, this becomes laughable in some places when, for example, the authors do a parenthesis on the great intelligence of a person in an out-of-the-blue impromptu or, in contrast to the rest of the book, when the authors become vague about unfavorable findings in their own statistical research. Such a conflict of interest is unavoidable for sure but I wish it had been stated more clearly at the beginning of the book.
15 people found this helpful
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- Grams
- 05-06-12
Packed with surprising results
Research-based insights that will surprise most of us. Must-read for the socially conscious. This book is packed with experimental-quality data and conclusions that gives us all the opportunity to help reduce poverty with initiatives that actually work.
5 people found this helpful
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- Andy
- 07-13-12
RCT does not stand for radio controlled toy
This book provides a close up look at a range of studies focused on the bottom billion. In it, you'll learn a bit about randomized control testing (RCT) and its strength as a research tool. Moreover, you'll get a glimpse into what various researchers have learned about the causes and effects surrounding hunger, disease prevention, economic progress, as well as how the poorest parents make family planning decisions.
4 people found this helpful
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- Maya F.
- 10-09-14
Good because new ideas
Would you recommend this audiobook to a friend? If so, why?
I really liked this book because it cleans up with some former classics in development. I think certain aspects are left out (critical analysis about the downside of RCTs because of its predefined outcome indicators and hence ignoring the complexity of certain cause-effect-relationships)
What was the most interesting aspect of this story? The least interesting?
Certain perception we have within our "western" believe systems about "the poor" are verified.
What three words best describe Brian Holsopple’s voice?
quite neutral, ok.
Was this a book you wanted to listen to all in one sitting?
no
Any additional comments?
worth reading if in global economics, health, international relations etc
2 people found this helpful
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- Stephanie
- 07-25-19
A must read!
It will vastly expand your understanding of the world poor and the policies that help them (or not).
1 person found this helpful
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- Sarah
- 06-18-16
excellent
interesting stories to accompany an important and well told interpretation of extreme poverty. great audio (or regular) book!
1 person found this helpful
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- Jeremy
- 02-21-16
Intelligent, often counter-intuitive and leaves more questions than answers
Challenging book, certainly no easy answers to take away. A bit dry in parts - requires your concentration - but the research findings are quite astonishing at times.
If you're looking for a simple ideology on poverty and aid, look somewhere else. If you're willing to dig in and navigate your way through the nuances then this might be for you.
1 person found this helpful
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- Elfin
- 02-06-16
Highly recommend
Thoughtful, insightful, unassuming, and truly respectful of the poor. The methodical approach makes confronting poverty seem a realistic endeavor, and provides concrete examples of possibilities. Highly recommended!
1 person found this helpful
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- Amazon Customer
- 06-28-22
Subtle and Balanced
The experimental approach to understanding poverty highlights subtleties I didn't appreciate previously. Very enriching experience. The authors don't get carried away to jump to a conclusion quickly, so you might have to be patient with that.
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- P
- 01-15-13
No reference material
This is not a review of the audible book which is interesting from the beginning so I gave it 5 stars for the benefit of the doubt.
However, beware that the reference material did not end up in My Library as claimed by audible - this is critical to the book so please make sure you contact them!
3 people found this helpful
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- shlubby
- 08-15-19
skip to the final chapter
Often I struggled to think what I was really taking away from the book or learning, until the conclusion, which I think were good. I just wish the rest if the book was more concise and clearer I think.
1 person found this helpful
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- Hidde
- 04-13-13
Lots of new insights into poverty
Interesting read with lots of research which gave me a view inside the lives of poor people. Not all chapters are interesting, but I really gained insights about how the poor deal with medical costs and how micro credit works in practice and helps some of them, but definitely not all. I would recommend this book to anyone who's interested in practical economy, medical staff and anyone who's interested in how poor people deal with their lives.
1 person found this helpful
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- Steve
- 04-07-13
fascinating read
This book presents some amazing stories and statistics in an easy to understand format. Each chapter is a different topic and keeps you interested, makes it easy to dip in and out of. Some fascinating theories that I've not heard or read elsewhere. A must read!
1 person found this helpful
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- Tyler
- 04-18-21
interesting but dry
some interesting points but pretty dry in delivery and content... last couple of chapters were a struggle
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- Amazon Customer
- 08-19-20
Great read!
I really enjoyed the book. It provides a multifaceted review of the global poverty problem and reviews implications of empirical evidence of various interventions. A must read for anyone interested in development issues.
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- Debabrat
- 02-02-20
simple and effective economics
The authors lucidly explain how we can make difference in the lives of poor by observing them, listening to them and working with them closely without the run of mill solutions which hardly work. Small and incremental changes can result in big gains in future if we invest in right people with right resources at the right time.
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- Alex Bryant
- 10-18-19
Long and detailed. Must have a keen interest first
I'm not sure I fully understood this book before reading so I'm probably not the best person to review. Just make sure you understand the contents before starting.
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- S. Mahroof
- 10-10-19
Excellent & enlightening work
The authors give a balanced inside into the life of poor people around the world. It is balance and seems to be fact driven; away from usual biases.
This book was recommended to me by a stranger who was caring it in an eatery. After I enquired about it and refused to let him gift it to me, he insisted I must promise him to read it.
He was right for insisting.
The audiobook is very well read, and pleasant and easy to listen too.
I'd recommend this book to anyone interested in getting a more nuanced view of the topic.
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- Zack M
- 12-04-17
Enlightening reading
I found the ideas presented in the book to be enlightening. It's not all doom for developing countries
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- Liam Jacob
- 04-14-22
enlightened look at the problems of the poor
An in depth look at problems caused by poverty. With real world analysis and antainable solutions.
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- Panji
- 02-06-18
Great insight into economics of poverty
This provides great insight into development economics. It leans more on the Easterly school of economics (rather than Sachs) and helped me better understand how wealth and empowerment can come from the people themselves through small economic and political nudges. It also provides great first hand sources from their personal experiences in numerous countries on how the poor interact with great/bad policies that were designed to help them.
The book primarily looks at education, microfinance, health, political institutions, and arguments of giving aid based on supply and demand.
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- Jeremiah David
- 08-19-17
It's data based approach changed the way I thought
The book requires concentration but it is so data based you can be confident in its conclusions.