Poor Economic

Poor Economics lays out a middle ground between purely market-based solutions to global poverty,
versus "grand development plans." It rejects broad generalizations and formulaic thinking. Instead,
the authors help to understand how the poor really think and make decisions on such matters as
education, healthcare, savings, entrepreneurship, and a variety of other issues. They advocate the
use of observation, using rigorous randomized controlled testing on five continents, and most
importantly by actually listening to what the poor have to say. Often the answers are startling and
counter-intuitive, but make the utmost sense when circumstances are understood. In addition, the
universal traps of Ignorance, Ideology, and Inertia often stymie policies and institutions, but may be
avoided.
From this empirical approach, the authors believe that the best strategies for eradicating poverty can
emerge. However, they resist laying out a broad set of conclusions. Instead they draw some simple
yet powerful lessons, and believe that small changes can have big effects. The authors conclude on
the optimistic note that we are all part of the solution.