Product Details

Publishers Weekly

Veterans in economics and microfinance scrutinize the finances of the poor in India, Bangladesh and South Africa. Following their 250 subjects for a year, the researchers compile family "financial diaries" and report on how the poor spend money and the myriad resources that function like portfolios. A confluence of circumstances the authors term a "triple whammy" (low and unreliable income, irregular cash flows and financial instruments ill-suited to the needs of this population) makes saving essential, and the poor depend on savings clubs, insurance clubs, money guarders or microfinance institutions. It is often a piecemeal approach, and any emergency can have disastrous consequences. With the advent of Muhammad Yunus's Grameen Bank in Bangladesh in 1976 and Grameen II in 2001, the growing global profile of microfinance might give the population more access to funds through reliable, flexible means-but the majority must turn to family, friends, neighbors or moneylenders. While the book's methodology and conclusions are fascinating, it is a complex and technical analysis best suited for those fluent in economics and public policy. (June)

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Sajeda Amin - Population and Development Review

The book is written in a non-technical style accessible to the lay reader. . . . [I]t makes a compelling case about the desperation of poverty, as well as the ingenuity of the people who live under conditions of poverty.

Ethics & International Affairs

[A] fascinating and humanizing insight into the economic lives of the global poor, and a valuable resource for attempting to improve those lives.

Marek Hudon - Development and Change

[T]his is a great book. It remains an excellent survey of the poors' realities, certainly a 'must-have' for all researchers interested in the financial practices of the poor and microfinance.

Werner Baer - Enterprise and Society

This book is a major contribution to the understanding of the situation of the poor in developing countries and should be a 'must reading' for both academics and policymakers concerned with ways of improving developmental policies.

Diane Coyle - The Enlightened Economist

A masterly assessment of the financial needs of people on very low incomes . . . stuffed full of interesting and surprising insights, and should be read by anyone concerned with economic development and poverty reduction. I can't praise it highly enough. This is a model of the careful collection of evidence with important practical consequences.

Nicholas Kristof - NYTimes.com

A fascinating discussion of the finances of the world's poor.

Melinda Gates, Co-chair, the Bill and Melinda Gates Foundation - The Huffington Post

I recommend this book to anyone who has interest in improving the lives of the poor.

Tyler Cowen - Marginal Revolution

A good overview of how the world's poor intersect with financial institutions at the micro level.

The Economist

The research provides evidence of the sophistication with which poor people think about their finances.

New Yorker

Ten years ago, the authors of this unusual study began collecting detailed yearlong 'financial diaries' from households in Bangladesh, India, and South Africa. . . . The diarists did things that might seem irrational—borrowing in order to save; paying interest on savings—but that made sense given their unpredictable incomes and limited options. While the authors do offer prescriptions for how to expand those options, it's their scrupulous attention to actual behavior that makes this book invaluable.

Roger MacGinty - Round Table

[T]he book is enlightening, methodologically credible and accessible; it is recommended.

Nicholas D. Kristof - New York Times "On the Ground"

A fascinating new book

Choice

This is a very interesting book, which examines the quite sophisticated financial system developed by poor households to adjust their spending relative to their income.

Anirudh Krishna - Science

The authors of Portfolios of the Poor found that a 'triple whammy' characterizes the financial lives of the poor. Incomes are not only low; they are also irregular and unpredictable. . . . The authors' account suggests much that can be done to ease the financial conditions of poor people.

Carlos Lozada - Washington Post

A refreshingly distinct path. Portfolios of the Poor . . . avoid[s] the big picture and zoom[s] in on the basics of daily poverty, exploring how poor families manage their money. . . . The diaries reveal a 'real, ongoing, and substantial demand' for better financial services, which poor families need to provide better health care and schooling for their children. . . . Rather than waiting for the world to debate and accept their ideas, these authors have taken them up on their own. In the war against global poverty, that feels like one small battle won.

What People Are Saying

Too often, conversations about the needs of the world's poor are based on assumptions and clichés. This important, carefully researched, and compelling book presents the facts about the poor and their relationship to finance.
— Tim Harford, author of "The Undercover Economist" and "The Logic of Life"

What People Are Saying

A must-read book for social entrepreneurs combating global poverty. . . . Skip the latest road-to-riches screed about serving the bottom of the pyramid and throw out your white papers from the World Bank. . . . Portfolios of the Poor is your new bible.
— Jonathan C. Lewis, I on Poverty

What People Are Saying

This is an important, boots-on-the-ground look at how microfinance functions in the developing world. The descriptions of how poor households manage their limited resources are exciting, raw, and novel, and I found myself unable to put the book down.
— Edward Miguel, University of California, Berkeley and coauthor of "Economic Gangsters"

• Table of Contents

Table of Contents