Solve World Poverty, Start Here
Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty
by Abhijit V. Banerjee and Esther Duflo
Wealth & Economics
TL;DR
This book is all about getting real with poverty solutions by using randomized controlled trials (RCTs), basically treating development aid like a science experiment. It shows how small, targeted interventions based on actual data, not grand theories, can make a huge difference. Think micro-incentives for health, better school attendance through simple nudges, and understanding the psychology of scarcity to design effective programs. It's less about big government handouts and more about figuring out what actually works on the ground by testing stuff like you're debugging code.
Action Items
Next time you're trying to decide between two ways to study for a test, try one method for a week and another for a week, then compare your quiz scores. Be your own mini-RCT!
If you keep forgetting to drink water, put a huge, obnoxious water bottle right on your desk where you can't miss it. That's a nudge!
Before you try to "fix" your friend's problem, actually listen to their specific situation instead of just giving generic advice you heard on TikTok.
Before you share that wild conspiracy theory you saw online, maybe check if the source is actually legit. Don't just spread info; spread good info.
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Key Chapter
Chapter - Why Your Health Choices Are Wild (aka The Logic of Health Choices)
Ever wonder why people, even when they know better, skip vaccines or don't purify water? This chapter spills the tea: it's not always about ignorance or lack of resources. Sometimes, it's about perceived risk, immediate gratification, or just plain forgetfulness. Imagine knowing you should eat your veggies but opting for instant ramen because it's easier. The book highlights how small, seemingly irrational decisions stack up. It's about understanding that people aren't dumb; they're just human, navigating a world with limited bandwidth and often, limited trust. Effective solutions aren't about lecturing, but about making the healthy choice the easy, obvious, or even incentivized choice.
Key Methods and Approaches
The "Test It Like a TikTok Trend" Approach
(AKA: Randomized Controlled Trials - RCTs)
Description:
Stop guessing what works to help poor people. Actually test interventions like you're A/B testing an app feature.
Explanation:
Imagine you're trying to figure out if a new dance move will go viral. You don't just assume; you try it with a small group, see their reactions, and compare it to a group doing the old dance. RCTs are like that for poverty. You give one group a new intervention (e.g., free mosquito nets) and another group nothing (or the old way), then you compare the results. It's about data, not vibes. No more "we think this will work" BS.
Examples:
Giving free deworming pills to kids in some schools, but not others, to see if it boosts attendance.
Offering small incentives (like a bag of lentils) for parents to get their kids vaccinated.
Testing different teaching methods in classrooms to see which one actually improves learning outcomes.
Today's Action:
Next time you're trying to decide between two ways to study for a test, try one method for a week and another for a week, then compare your quiz scores. Be your own mini-RCT!
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