Poor Economics - Abhijit V. Banerjee, Esther Duflo

Poor Economics by Abhijit V. Banerjee and Esther Duflo is an evidence-based exploration of why poverty persists and what truly helps people escape it. Drawing on years of randomized field experiments across Asia, Africa, and Latin America, the authors show that the poor make decisions based not on ignorance or irrationality but on the severe constraints and uncertainties they face. The book examines key areas such as education, health care, microcredit, saving behavior, and small businesses, revealing how even small barriers like upfront costs, lack of information, or unreliable institutions can have enormous consequences. Rather than proposing one grand solution, Banerjee and Duflo argue for carefully designed, context-specific policies grounded in real data. Their approach highlights the complexity of poverty while offering practical, humane strategies that actually work. Poor Economics ultimately provides a nuanced and deeply empathetic understanding of the daily realities of the poor and the small but powerful interventions that can make lasting change.