Poor Economics
Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty (2011) is a non-fiction book by Abhijit V. Banerjee and Esther Duflo, both professors of Economics at Massachusetts Institute of Technology (MIT) and Nobel Memorial Prize in Economic Sciences laureates. The book reports on the effectiveness of solutions to global poverty using an evidence-based randomized control trial approach. It won the 2011 Financial Times and Goldman Sachs Business Book of the Year Award. Overview. "Poor Economics" lays out a middle ground between purely market-based solutions to global poverty, versus "grand development plans." It  rejects broad generalizations and formulaic thinking. Instead, the authors help to understand how the poor really think and make decisions on such matters as education, healthcare, savings, entrepreneurship, and a variety of other issues. They advocate the use of observation, using rigorous randomized controlled testing on five continents, and most importantly by actually listening to what the poor have to say. Often the answers are startling and counter-intuitive, but make the utmost sense when circumstances are understood. In addition, the universal traps of Ignorance, Ideology, and Inertia often stymie policies and institutions, but may be avoided. From this empirical  approach, the authors believe that the best strategies for eradicating poverty can emerge. However, they resist laying out a broad set of conclusions. Instead they draw some simple yet powerful lessons, and believe that small changes can have big effects. The authors conclude on the optimistic note that we are all part of the solution. Authors. Abhijit V. Banerjee is the Ford Foundation International Professor of Economics at MIT and a founder of the Abdul Latif Jameel Poverty Action Lab (J-PAL). He is a fellow of the American Academy of Arts and Sciences and the Econometric Society and has  been a Guggenheim Fellow. He has also received the inaugural Infosys Prize 2009 in Social Sciences and Economics. He has been featured in Foreign Policy's Top 100 Global Thinkers in 2011. In 2019, he shared the Nobel Memorial Prize in Economic Sciences with Esther Duflo and Michael Kremer. Esther Duflo is the Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics at MIT and a founder and director of the Abdul Latif Jameel Poverty Action Lab (J-PAL). Duflo has received numerous academic honors and prizes, including the Nobel Memorial Prize in Economic Sciences (2019), the John Bates  Clark Medal (2010), and a MacArthur Fellowship (2009). She has also been featured in Foreign Policy's Top 100 Global Thinkers and Fortune 40 under 40. The two authors married each other in 2015. Reception. The book has been well received. Robert Solow commented: Madeleine Bunting reviewed the book for "The Guardian", writing: Nicholas Kristof reviewed the book for "The New York Times", writing: Development economist William Easterly reviewed the book for the "Wall Street Journal", writing: James Tooley reviewed the parts of the book about education for "Econ Journal Watch". Although he was critical of the authors' conclusions in  those chapters, he generally praised their overall approach: "Poor Economics" won the 2011 Financial Times and Goldman Sachs Business Book of the Year Award.