Is poverty self-perpetuating? [1]

Why do people stay poor? Maitreesh Ghatak discusses the implications of a randomised control trial in Bangladesh, where some ultra-poor women who received a capital grant managed to escape poverty while others did not. In such interventions, the quantity of capital is key (sufficient to buy a cow, for example) but complementary assets, such as a way to store milk and transport it to market, are also needed to take advantage of the transfer and rise above the critical threshold for escaping poverty. To make a long-term difference to the problem of poverty, saving a bit at a time will not be enough – a more substantial and sustained effort is required.

Video: 
Standfirst: 
A cash transfer experiment in Bangladesh targeting the ultra-poor reveals that complementary assets are key in escaping poverty
Date Published: 
Wednesday, August 7, 2019
Tags: 
Poverty [2]
Bangladesh [3]
gender [4]
women [5]
development [6]
cash transfer [7]
Authors: 
maitreesh.ghatak [8]
Cover Image: 
Topic: 
Macroeconomics & Growth [9]
Related content: 
Summary: How to Effectively Target Development Transfers [10]
Ending global poverty: Why money is not enough [11]
The long-term effects of cash transfers: Mexico’s Progresa [12]
Mainstream development economics is failing [13]
The role of disbursement timing in conditional cash transfer programmes: Long-term effects [14]
Photo Credit: 
M. Yousuf Tushar