Poor Economics - Summary. Poor Economics by Abhijit V. Banerjee And Esther Duflo

Poor Economics:
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Poor Economics - Summary
Poor Economics by Abhijit V. Banerjee And Esther Duflo examines the ultimate reason for poverty. It further seeks to establish to what extent we believe in free markets and whether democracy is healthy for the poor countries or communities. And finally, it examines the role of foreign aid in the context of poverty. To economists like Jeffrey Sachs, “poverty is a trap.” In their contextual examination, poor nations are poor because of their disadvantage in terms of physical location and geographical factors. Poor climates and endemic problems make it difficult for these nations to produce – and as such are and will remain poor.
This book explores the particular problems that tag along with poverty as well as trying to find working and sustainable solutions to these problems. “Poor Economics” is not only far-reaching in putting into context the economics of poverty but also very empirical in the suggestions it puts on the table. Banerjee and Duflo provide a keenly examined evidence to illustrate why the poor unlike the rich remains poor irrespective of equal capacity and desires to be rich. The duo analyzes the most unbelievable components of poverty. One of the facets the paper looks at is why the poor borrow money so as to save as well as why they do not receive free life-saving immunization services but buy medicines that they hardly require. Besides, Banerjee and Duflo in the paper, Poor Economics looks at the reasons the poor opens up several businesses but none of the businesses flourishes. The paper unfolds sur...