Abhijit Banerjee

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty

20:50 min
Economics, Politics, Sociology
320 pages, 2011

Every year, 9 million children die before their fifth birthday, yet the global fight against poverty remains paralyzed by grand ideological debates between aid optimists and pessimists. Banerjee's work cuts through these sweeping arguments to reveal a fundamental problem: policymakers focus on whether aid works universally rather than examining what actually helps specific communities. Through rigorous randomized experiments across multiple countries, the short demonstrates how simple, targeted interventions — from deworming children for $1.36 to providing fertilizer vouchers after harvest — can transform lives more effectively than massive development programs. This short argues that we should replace ideology with experimentation, grand theories with patient analysis, and sweeping reforms with carefully tested solutions that accumulate into substantial change.

Abhijit Banerjee

Abhijit Banerjee is a Nobel Prize-winning economist who revolutionized development economics through pioneering use of randomized controlled trials to test anti-poverty interventions. As an MIT professor and co-founder of the Abdul Latif Jameel Poverty Action Lab, he has led rigorous experimental research across dozens of countries to determine which policies actually help the poor. His work has fundamentally shifted how governments and international organizations approach poverty reduction, moving the field from ideological debates toward evidence-based policymaking.

Chapters

Grand debates about whether foreign aid works miss the point; we need rigorous experimental testing of specific interventions rather than sweeping ideological arguments about poverty solutions.
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Cover of Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty