Graduating from destitution

THE poor do not just lack money. They are also often short of basic know-how, the support of functioning institutions and faith in their own abilities. As a result, note Abhijit Banerjee and Esther Duflo of the Massachusetts Institute of Technology in their book, “Poor Economics”, published in 2004, it takes “that much more skill, willpower and commitment” for the poor to get ahead. No wonder escaping extreme poverty—usually defined as living on less than $1.25 a day—is so hard.

Even the most successful schemes to lift (and keep) people out of dire poverty seem to work only for some people, in some places, some of the time. For example, microcredit works best for the relatively enterprising, who are rarely the very poorest. Similarly, cash transfers linked to school attendance are useful, but require a working education system. What succeeds in one country may fail elsewhere, thanks to different conditions and cultural norms. And the poorest are often the hardest to help.

This dispiriting picture makes a new paper* by...



via The Economist: Finance and economics Business Feeds

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