Tag Archives | poor economics

A page each from Harish Hande and Naveen Krishna

Recently, Harish Hande wrote a cogent and passionate article on Forbes India.┬áThe main point in his article is that businesses need to look at social sustainability in a long-term and holistic manner. From his article… Amidst rising income inequality, corporations need to realise that social responsibility is essentially an insurance against social instability. Occupy Wall […]

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Understanding moral hazards, moral imperatives and informal insurance

I recently re-read Chapter 6 of Poor Economics (Barefoot Hedge-Fund Managers) because I was looking for a savings intervention RCT. I haven’t found that RCT yet but a related story — about how the poor help each other and how they don’t — provides insights into what kind of interventions might work for the poor. […]

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Understanding the medieval battle for Uttar Pradesh

Last week we learnt, from a perusal of an Association for Democratic Reforms (ADR) report, that out of the 617 candidate names released in the first list, 31% and 15% had criminal cases and serious criminal cases registered against them. If you thought this was sobering, the news gets better with ADR’s addendum report on […]

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Top Takeaways from Banerjee and Duflo’s Poor Economics

If you’ve been following this blog for sometime, you know that I consider Abhijit Banerjee and Esther Duflo’s Poor Economics as a bible of sorts — to understand poverty, understand the psyche and motivations of the extremely poor, and the power of Randomized Control Trials (RCTs) to fairly assess efficacy of anti-poverty programs. Several posts […]

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Borrowing from MFI to save for daughter’s dowry?

SKS Microfinance Ltd, India’s largest and only listed microlender, said its losses widened in the second quarter from the preceding three months as repayment rates in Andhra Pradesh, its biggest market, plunged after a local law restricted lending and recovery. The Hyderabad-based lender posted a loss of Rs. 384.54 crore in the three months ended […]

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Stanford Graduate School of Business Launches Institute to Alleviate Poverty

The Stanford Graduate School of Business (GSB) has established the Stanford Institute for Innovation in Developing Economies (SIIDE) with a $150 million gift from Dorothy and Robert King, Stanford MBA Alumni ’60. The Kings made a $100 million gift to fund the Institute and have committed an additional $50 million in matching funds to inspire […]

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Voting in developing countries dominated by ethnicity? Banerjee and Duflo answer with.. (yes) a RCT

In the diverse melting pot that is the great Indian democracy, we all know the strong role ethnicity plays in deciding elections. In their book Poor Economics, Abhijit Banerjee and Esther Duflo write about yet another RCT (Randomized Control Trial) they devised to determine whether it’s possible to change the voter’s natural mindset — to […]

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Psychology of Savings – How the Poor Save to Buy Fertilizer

In chapter 8 (Saving Brick by Brick) of Poor Economics, Banerjee and Duflo delve into the subject of savings – the psychology behind why a majority of the poor find it incredibly hard to save and how they are caught in a catch-22 situation. Savings is less attractive for the poor, because for them the […]

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Does Microcredit work for the urban poor? Banerjee and Duflo Answer

In chapter 7 of Abhijit Banerjee and Esther Duflo’s Poor Economics, they delve into the economics of lending to the poor and, among other things, proceed to answer the question “Does Microfinance work for the poor?” The answer depends on the definition of “work”. Banerjee and Duflo (B & D) found that no independent research […]

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Operation Magic Carpet and what it can teach us about reengineering education

In Abhijit Banerjee and Esther Duflo’s book Poor Economics, they describe a remarkable social experiment which demonstrates that making sure every child learns the basics well in school is not only possible, it is in fact fairly easy (even in the most adverse conditions), as long as one focuses on doing exactly that, and nothing […]

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