This archive report was first published on 15 October 2019.
Anti-poverty work wins trio Nobel prize in economics ¶
On October 14, 2019, the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was awarded to three economists for their groundbreaking work on poverty reduction and economic development.
Abhijit Vinayak Banerjee, an American of Indian descent, and his co-researcher Esther Duflo, a French American scholar, were recognized for their work on understanding poverty and its effects on individuals and communities.
Michael Kremer, a renowned economist, was also awarded the prize for his research on the impact of healthcare and cheaper drugs on poverty in developing countries.
According to Banerjee and Duflo, poverty is a complex issue that cannot be measured solely by income. They argue that the poor often live in a state of 'permanent poverty,' where their consumption is close to their observed income.
The two economists conducted extensive research on poverty in various countries, including Tanzania, South Africa, and Cote d'Ivore. They found that poor families often have a large number of children, and their average age distribution varies significantly between urban and rural areas.
"Historically, poverty lines in many countries were originally set to capture this definition of poverty — the budget needed to buy a certain amount of calories, plus some other indispensable purchases," they wrote in one of their publications.
Their research also revealed that the poor tend to spend their money on food, alcohol, and festivals, rather than on medicine and education. They argued that the poor often forget when they or their dependents needed medical attention or were indisposed.
Their findings have significant implications for policymakers and governments seeking to address poverty and economic development. By understanding the behaviors and preferences of the poor, governments can develop more effective strategies to reduce poverty and improve living standards.
