End Poverty! Review: Poor Economics and MITx The Challenges of Global Poverty

End poverty — an inspiring goal and, according to MIT economists Esther Duflo and Abhijit Banerjee, possible.

Their excellent book Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty (2012) aims data and research at the ills of poverty (inadequate nutrition, education, health care) and examines the social policies aimed at addressing them. It considers microlending, credit, insurance and savings strategies for the poor.

The professors offer a free, online class via MITx: The Challenges of Global Poverty which follows the organization of the book. Their website pooreconomics.com also serves as an excellent resource and includes a map of world poverty.

In the conclusion to the spring quarter 2013 class, Professor Banerjee made the point that policy against poverty (organization beyond occasional handouts) is very modern. As such, "there is reason to be optimistic," that more informed research and development efforts aimed at eliminating poverty can make profound change.

Development strategies to help the poor have not historically been based on data and research scientifically conducted to pinpoint what works. This information can make a huge difference and highlight the best places to expend resources.

Some key takeaways:

•  Lack of cheap food (i.e. grain) is not the problem. "In terms of food availability, today we live in a world that is capable of feeding every person that lives on the planet." Nutrition, not hunger, is today's priority. 
• The poor make decisions on how to spend money (whether on food, small luxuries, preventative medicine, insurance, investment, savings) like everyone else — with a strong bias toward the present.
• People, especially women, don't want to run small businesses. They don't want the risk and low reward of being self-employed. They would prefer stable, well-paid government jobs.
• It makes sense for society to subsidize or enforce behaviors that have benefits for others i.e. vaccinations. Government and institutions play a huge role in individual well-being.
• Wealthy peoples' real advantage comes from the many things that we take as given (clean water, toilets, banks etc.). Whereas, for the poor, these become daily struggles and decisions. For the poor, every year feels like being in the middle of a colossal financial crisis. 
• Making people richer and more educated can start a virtuous circle where good institutions will emerge. A little bit of hope and some reassurance and comfort can be a powerful incentive. It's hard to make the forward-thinking decisions that will ensure a brighter future without hope of one.
• The data shows that these four things will reduce poverty: immunizations, bednets, deworming and information. This TED video featuring Esther Duflo explains:

 Deworm the World | dewormtheworld.org 

TAMTAM Together Against Malaria | tamtamafrica.org

Abdul Latif Jameel Poverty Action Lab | povertyactionlab.org

The class: MITx 14.73 Understanding the Challenges of Global Poverty 
This was the first online class I have taken. My husband and I enrolled for personal interest and for something intellectually stimulating to do together (aka things liberals without kids do).

We've both read Peter Singer's The Life You Can Save: Acting Now to End World Poverty and made independent decisions to give to Partners in Health, a nonprofit that provides health care in the poorest countries. I am a former Peace Corps volunteer.

The class included videos from both professors, with transcriptions, quizzes and longer quizzes as homework.

Class critiques (from the viewpoint of lifelong learners): 

• The book, Poor Economics, is engaging, interesting and well-written. We finished it within the first week of class.
• The class, from Feb. 12-May 20 with a few weeks off (including MIT's spring break), was too long. At first, we enjoyed the videos and quizzes. Later, we rushed through the homework.
• I would have liked to see more moderation of the formal online class discussion group and more informal contributions to the class on Twitter and Facebook. I wanted more discussion of the topics and fewer concerns about grading and class logistics.
• The economics portion of the class (charts, graphs, formulas, those pivotal s-shaped curves) was the most challenging (and least interesting). However, data and analysis is the strength of Duflo and Banerjee's contribution. Understood! We got to peek under the hood and appreciate the work.

While taking the class, I: 

• thought about the movement toward effective altruism with the idea that giving can bring about change and solve problems (not only improve an individual's life anecdotally), but did not make changes in my own giving (I find the work of Partners in Health inspiring and ethical and they work in Lesotho where I was a Peace Corps volunteer.);
• drove by huge billboards in my community re: Hunger in America and felt skeptical and angry perceiving this as misdirection
• enjoyed noting when my professor Esther Duflo was selected as a 2013 Dan David Prize laureate;
• considered, but rejected, the idea of participating in Live Below the Line and eating for under $1.50 a day for five days as a way to understand and spread awareness of extreme poverty (I am grateful I can afford to eat healthy food of great variety. In college and in the Peace Corps, this wasn't always the case.);
• grew excited about the big idea of ending poverty and hearing people and organizations talking about it as a real possibility; and
• read the novel Cutting for Stone by Abraham Verghese about health care in Ethiopia and America, which addressed similar issues. I noted these quotes:
  

  "How we treat the least of our brethren, how we treat the peasant suffering with volvulus, that's the measure of this country. Not our fighter planes or tanks, or how big the Emperor's place happens to be."
  
  "What we are fighting isn't godlessness— this is the most godly country on earth. We aren't even fighting disease. It's poverty. Money for food, medicines...that helps. When we cannot cure or save a life, our patients can at least feel care for. It should be a basic human right."
  
  "The poorest in America are the sickest. Poor people can't afford preventative care or insurance. The poor don't see doctors. They show up at our doorstep when things are advanced."