Perpetuating Poverty is an eye-opening review of the scandalous record of the World Bank and the International Monetary Fund.

What circumstances or behaviors turn poverty into a cycle that perpetuates across generations? The answer to this question carries especially important implications for the design and evaluation of policies and projects intended to reduce poverty. Yet a major challenge analysts and policymakers face in understanding poverty traps is the sheer number of mechanisms—not just financial, but also environmental, physical, and psychological—that may contribute to the persistence of poverty all over the world. The research in this volume explores the hypothesis that poverty is self-reinforcing because the equilibrium behaviors of the poor perpetuate low standards of living. Contributions explore the dynamic, complex processes by which households accumulate assets and increase their productivity and earnings potential, as well as the conditions under which some individuals, groups, and economies struggle to escape poverty. Investigating the full range of phenomena that combine to generate poverty traps—gleaned from behavioral, health, and resource economics as well as the sociology, psychology, and environmental literatures—chapters in this volume also present new evidence that highlights both the insights and the limits of a poverty trap lens. The framework introduced in this volume provides a robust platform for studying well-being dynamics in developing economies.

Much popular belief--and public policy--rests on the idea that those born into poverty have it in their power to escape. But the persistence of poverty and ever-growing economic inequality around the world have led many economists to seriously question the model of individual economic self-determination when it comes to the poor. In Poverty Traps, Samuel Bowles, Steven Durlauf, Karla Hoff, and the book's other contributors argue that there are many conditions that may trap individuals, groups, and whole economies in intractable poverty. For the first time the editors have brought together the perspectives of economics, economic history, and sociology to assess what we know--and don't know--about such traps. Among the sources of the poverty of nations, the authors assign a primary role to social and political institutions, ranging from corruption to seemingly benign social customs such as kin systems. Many of the institutions that keep nations poor have deep roots in colonial history and persist long after their initial causes are gone. Neighborhood effects--influences such as networks, role models, and aspirations--can create hard-to-escape pockets of poverty even in rich countries. Similar individuals in dissimilar socioeconomic environments develop different preferences and beliefs that can transmit poverty or affluence from generation to generation. The book presents evidence of harmful neighborhood effects and discusses policies to overcome them, with attention to the uncertainty that exists in evaluating such policies.

Most discussion of sustainable development has paid more attention to the long-term needs of the environment than to the needs of the present. But, as this book argues, the needs of people who are alive today must not take second place. And although the policies that are put forward in the name of 'sustainable development' are intended to benefit everyone, especially the poor, in reality many of them would harm rich and poor alike.Seventeen expert contributors examine every aspect of sustainable development, including the changes in humanity's well-being over the last two centuries, the prospects for specific current global policies, the predicament of poorer regions that have failed to develop sustainably, and the problems of climate change, energy policy and management of natural resources. Their analysis shows that the key to more sustainable development is not to impose global environmental regulations, but to ensure that people have a real stake in the global economy. Formal ownership of property and removal of the red tape that holds back entrepreneurial activity: these steps will give people the incentives they need to protect, conserve and innovate, and in so doing to build sustainable societies. In this way sustainable development can truly promote progress - not perpetuate poverty.

Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.

ePDF and ePUB available Open Access under CC-BY-NC-ND license. The perpetuation of poverty across generations damages lives. It weakens social cohesion and the economy and undermines environmental sustainability. This book examines why poverty is carried on from one generation to the next and what needs to be done to eradicate it. This book draws on a wide variety of sources and academic disciplines (social sciences, economics, law, community development, neuroscience and developmental psychology) along with the lived experience of people in poverty. Challenging the myths and prejudices about poverty that hinder progress, it calls for a comprehensive approach based on ensuring real equality of opportunity for all. It stresses the need to intervene early to combat child poverty and break the vicious cycles that perpetuate poverty and disadvantage.

The winners of the Nobel Prize in Economics upend the most common assumptions about how economics works in this gripping and disruptive portrait of how poor people actually live. Why do the poor borrow to save? Why do they miss out on free life-saving immunizations, but pay for unnecessary drugs? In Poor Economics, Abhijit V. Banerjee and Esther Duflo, two award-winning MIT professors, answer these questions based on years of field research from around the world. Called "marvelous, rewarding" by the Wall Street Journal, the book offers a radical rethinking of the economics of poverty and an intimate view of life on 99 cents a day. Poor Economics shows that creating a world without poverty begins with understanding the daily decisions facing the poor.