excerpt of “The Economic Lives of the Poor”, Banerjee and Duflo depict the results
of surveys used in thirteen different countries, in which we can find Guatemala,
Pakistan, South Africa, and Tanzania for instance. By conducting such research
in different countries, the authors were allowed to obtain a more global image
of what the lives of poor people look like in several countries, which are
known to be poor countries. The data used in this document comes from several
surveys, conducted by the World Bank, by the Rand Corporation, and directly by
their collaborators in India.
document, Banerjee and Duflo also chose to divide these poor people into two
different categories (shown in Table 1): those who earn $1.08 per day, and
those who earn $2.16 per day. Moreover, with this data, they established what
they called “the $1 and $2 poverty lines”. Hence, by using these poverty lines,
the research shows that the highest proportion of poor people is living in
India, whereas the lower proportion is indeed located in Panama.
What I liked in this document is that the factors
presented are more “practical” than “theoretical” to me, compared to other
documents that we can read in the domain of economics and especially about
poverty. Hence, the factors explained here are about how the poor earn and
spend their money, how they live, how they become entrepreneurs, and in which
economic environment they live, for instance. In my opinion, explaining these
factors and describing that they really look like in different countries gives
more substance and shows what is the reality when we talk about poor countries
and how people live everyday.