Portfolios of the Poor

Portfolios of the Poor is a rigorous empirical study that tracks the daily financial lives of low-income households in Bangladesh, South Africa, and the United States. By analyzing detailed transaction data, the authors reveal how the poor navigate a complex web of informal and formal financial institutions, including moneylenders, savings groups, and banks. The book challenges common assumptions about financial behavior, showing that the poor are often sophisticated managers of risk and liquidity, constrained not by a lack of intelligence but by the high costs and limited access to suitable financial products.

The writing style is analytical and accessible, bridging the gap between academic economics and general interest. It presents data-driven insights on topics such as the utility of microfinance, the role of credit in smoothing consumption, and the barriers to financial inclusion. The text serves as a critical resource for understanding the mechanics of poverty and the practical realities of financial survival in developing and developed contexts alike.

Description adapted from Open Library bibliographic data ↗.