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Poor economics by Abhijit V. Banerjee

Poor economics by Abhijit V. Banerjee

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Book Summary

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty by Abhijit V. Banerjee and Esther Duflo is a groundbreaking book that challenges traditional assumptions about poverty and offers a fresh, evidence-based approach to development. Rather than viewing the poor as victims of their own choices or helpless dependents, the authors argue that poor people make rational, complex decisions within difficult constraints. Drawing on years of field experiments and randomized controlled trials (RCTs) across Africa, Asia, and Latin America, the book explores how the poor think about education, healthcare, savings, entrepreneurship, and aid. Banerjee and Duflo reveal surprising insights—like why people may not use free health services, or why microloans alone don’t lift communities out of poverty. The book’s central message is that there’s no one-size-fits-all solution; instead, fighting poverty effectively requires understanding local realities and testing small-scale interventions before scaling them. Clear, engaging, and deeply human, Poor Economics redefines how we think about economic development.

About the Author

Abhijit V. Banerjee is an Indian-American economist and professor at the Massachusetts Institute of Technology (MIT), known for his pioneering work in development economics. Born in 1961 in Mumbai, he studied at the University of Calcutta, Jawaharlal Nehru University, and earned his Ph.D. from Harvard University. Alongside Esther Duflo and Michael Kremer, he was awarded the 2019 Nobel Prize in Economic Sciences for his experimental approach to alleviating global poverty. Banerjee co-founded the Abdul Latif Jameel Poverty Action Lab (J-PAL), which has become a global hub for empirical development research. His work combines rigorous data analysis with compassionate insight, making him one of the most influential voices in modern economics. Through books like Poor Economics, he brings complex ideas to a broad audience, advocating for policies that are both data-driven and deeply humane.

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