Obviously in the world development report that poverty is economically inviting mistaken decision making

ByGates Foundation

The fact that Japan's poverty has fallen into the worst situation in the pastMinistry of Health, Labor and Welfare Ministry's 2013 surveyIt is clarified by the fact that the mechanism that poor people can not escape povertyWorld Development Report(World Development Report) is investigating.

Free exchange: Poor behavior | The Economist
http://www.economist.com/news/finance-and-economics/21635477-behavioural-economics-meets-development-policy-poor-behaviour


World Development Report 2015: Mind, Society, and Behavior
http://www.worldbank.org/en/publication/wdr2015

Traditional economics has assumed that people's ideas of the poor people should "get out of poverty". However, according to the World Develpoment Report, people in the poor are "more economicalDecision makingIt is found that there is a high possibility of doing it in a bad direction. This is not because they are irrational and stupid but one of the causes is lack of information to make good decisions.

People in the poor always face some obstacles as they try to improve the situation, but they can not take risks because they can not afford to fail. For example, if a farmer ceases purchasing chemical fertilizer and puts the child in secondary school, it will not do so if future farmers can earn profits, why the poor people remain poor, There are also reasons.
ByJan Truter

Although the trends of these poor people are seen both in developed and developing countries, it is possible to improve development plans by incorporating behavioral economics. Conventionally, emphasis has been placed on resource distribution and facility enhancement, such as road construction, hospitals and establishment of schools, and development of irrigation canals. However, the approach of behavioral economics is different.

BogotaIn the program which was being held at the school, a benefit was paid monthly to the mother who took the children to school, but the re-registration rate at the transition to the new grade was low. Therefore, if you change the timing of part of the benefit before the start of the new school year, the re-registration rate rises sharply. As "going to school" itself is beneficial, it does not mean that other incentives will be issued, and there is no change in the total amount that can be used at home, but "the payment itself (let's make payment)" itself In essence, this is a successful example of a behavioral economic approach.

ByKent Clark

In the program held in Jamaica in the 1990s, there was a mother teaching children with chronic malnutrition teaching how to play infants and techniques to encourage young children. Twenty years later, the average annual income of children of families who grew up receiving this program was higher than that of children of the same age who did not receive the program. Thinking "How the poor actually think and behave" is because the poor "Acceptance to Finance (Financial inclusion)It will be a big opportunity to promote the purchase of financial products that people desire.