Chronic poverty in the developing world can seem like an insoluble problem. But a long-term study from Bangladesh co-authored by an MIT economist presents a very different picture: When rural poor people get a one-time capital boost, it helps them accumulate assets, find better occupations, and climb out of poverty. In particular, the study strongly suggests that poverty is not principally the product of people’s capabilities or attitudes. Rather, the very poor are usually mired in a poverty trap, in which an initial lack of resources prevents them from improving…
