One of the biggest debates in economic history deals with the Great Divergence. How can we explain that at a certain moment in time (the eighteenth and nineteenth centuries) a certain part of the world (the West) escaped from general poverty and became much richer than it had ever been before and than the rest of the world? Many prominent scholars discussed this question and came up with many different answers. This book provides a systematic analysis of the most important of those answers by means of an analysis of possible explanations in terms of natural resources, labour, capital, the division of labour and market exchange, accumulation and innovation, and as potential underlying determining factors institutions and culture. The author juxtaposes the views of economists / social scientists and of global historians and systematically compares Great Britain and China to illustrate his position. He qualifies the importance of natural resources, accumulation and the extension of markets, points at the importance of factor prices and changes in consumption and emphasizes the role of innovation, institutions - in particular an active developmental state - and culture.

WINNER OF THE 2017 PETER KATZENSTEIN BOOK PRIZE "BEST OF BOOKS IN 2017" BY FOREIGN AFFAIRS WINNER OF THE 2018 VIVIAN ZELIZER PRIZE BEST BOOK AWARD IN ECONOMIC SOCIOLOGY "How China Escaped the Poverty Trap truly offers game-changing ideas for the analysis and implementation of socio-economic development and should have a major impact across many social sciences." ― Zelizer Best Book in Economic Sociology Prize Committee Acclaimed as "game changing" and "field shifting," How China Escaped the Poverty Trap advances a new paradigm in the political economy of development and sheds new light on China's rise. How can poor and weak societies escape poverty traps? Political economists have traditionally offered three answers: "stimulate growth first," "build good institutions first," or "some fortunate nations inherited good institutions that led to growth." Yuen Yuen Ang rejects all three schools of thought and their underlying assumptions: linear causation, a mechanistic worldview, and historical determinism. Instead, she launches a new paradigm grounded in complex adaptive systems, which embraces the reality of interdependence and humanity's capacity to innovate. Combining this original lens with more than 400 interviews with Chinese bureaucrats and entrepreneurs, Ang systematically reenacts the complex process that turned China from a communist backwater into a global juggernaut in just 35 years. Contrary to popular misconceptions, she shows that what drove China's great transformation was not centralized authoritarian control, but "directed improvisation"—top-down directions from Beijing paired with bottom-up improvisation among local officials. Her analysis reveals two broad lessons on development. First, transformative change requires an adaptive governing system that empowers ground-level actors to create new solutions for evolving problems. Second, the first step out of the poverty trap is to "use what you have"—harnessing existing resources to kick-start new markets, even if that means defying first-world norms. Bold and meticulously researched, How China Escaped the Poverty Trap opens up a whole new avenue of thinking for scholars, practitioners, and anyone seeking to build adaptive systems.

Why does poverty persist? A critical, but so far ignored, part of the answer lies in the fact that poverty is regularly created. Large numbers of people are escaping poverty, but large numbers are concurrently falling into chronic poverty. This book presents the first large-scale examination of the reasons why people fall into poverty and how they escape it in diverse contexts. Drawing upon personal interviews with 35,000 households in different parts of India, Kenya, Uganda, Peru, and the United States, it takes you on an illustrative journey, filled with facts, analyses, and the life stories of people who fell into abject poverty and others who managed to escape their seemingly predetermined fates. Letting a farmhand's son or daughter remain a farmhand, even though she or he is potentially the next Einstein, is a tragedy that poor people witness time after time. Remedying this situation is crucial for making poverty history. This book addresses how equal opportunity can be promoted and how slum-born millionaires can arise in reality. Speaking to Barack Obama's message for more effective health care, One Illness Away feeds directly into current public debates. Learning from thousands of individual experiences, this book presents a clear agenda for action and provides more effective ways of keeping people out of micro poverty traps.

A Nobel Prize–winning economist tells the remarkable story of how the world has grown healthier, wealthier, but also more unequal over the past two and half centuries The world is a better place than it used to be. People are healthier, wealthier, and live longer. Yet the escapes from destitution by so many has left gaping inequalities between people and nations. In The Great Escape, Nobel Prize–winning economist Angus Deaton—one of the foremost experts on economic development and on poverty—tells the remarkable story of how, beginning 250 years ago, some parts of the world experienced sustained progress, opening up gaps and setting the stage for today's disproportionately unequal world. Deaton takes an in-depth look at the historical and ongoing patterns behind the health and wealth of nations, and addresses what needs to be done to help those left behind. Deaton describes vast innovations and wrenching setbacks: the successes of antibiotics, pest control, vaccinations, and clean water on the one hand, and disastrous famines and the HIV/AIDS epidemic on the other. He examines the United States, a nation that has prospered but is today experiencing slower growth and increasing inequality. He also considers how economic growth in India and China has improved the lives of more than a billion people. Deaton argues that international aid has been ineffective and even harmful. He suggests alternative efforts—including reforming incentives to drug companies and lifting trade restrictions—that will allow the developing world to bring about its own Great Escape. Demonstrating how changes in health and living standards have transformed our lives, The Great Escape is a powerful guide to addressing the well-being of all nations.

Why the United States has developed an economy divided between rich and poor and how racism helped bring this about. The United States is becoming a nation of rich and poor, with few families in the middle. In this book, MIT economist Peter Temin offers an illuminating way to look at the vanishing middle class. Temin argues that American history and politics, particularly slavery and its aftermath, play an important part in the widening gap between rich and poor. Temin employs a well-known, simple model of a dual economy to examine the dynamics of the rich/poor divide in America, and outlines ways to work toward greater equality so that America will no longer have one economy for the rich and one for the poor. Many poorer Americans live in conditions resembling those of a developing country—substandard education, dilapidated housing, and few stable employment opportunities. And although almost half of black Americans are poor, most poor people are not black. Conservative white politicians still appeal to the racism of poor white voters to get support for policies that harm low-income people as a whole, casting recipients of social programs as the Other—black, Latino, not like "us." Politicians also use mass incarceration as a tool to keep black and Latino Americans from participating fully in society. Money goes to a vast entrenched prison system rather than to education. In the dual justice system, the rich pay fines and the poor go to jail.

Basing their discussions on the concept of "intergenerational transmission of poverty"--the "process by which poor parents pass on poverty and disadvantage to their children," in the words of editor Moran (until recently a senior economist with the International Development Bank's Sustainable Development Department)--five essays reflect on political, philosophical, social, and other dimensions of investing in early childhood in Latin America. The essays include Amartya Sen's discussion of early childhood investment within the context of the overall development process, as well explorations of the relationship between health, nutrition, and cognitive and social dimensions of poverty; the impact of early childhood investment on economic growth and equity; and the role of the state in marshalling resources for early childhood investment. Distributed by Johns Hopkins U. Press. Annotation : 2004 Book News, Inc., Portland, OR (booknews.com).

Readable, thought-provoking, and beneficial for those who want to comprehend the plight of the rural poor, Hunger and Hope examines the world of those living near, on, and over the edge of poverty in developing countries. Their aspirations, struggles, and daily challenges are revealed with compassion and genuine understanding of the risks they face to sustain themselves and their families. The text is rich with lucid and methodical observations of the economic processes that shape agricultural development in impoverished countries. The author builds in an imaginative way on his extensive experience assisting farmers and assessing the impacts of agricultural interventions. Real-world illustrations of the policies and practices that not only create opportunities and food security but also create hardships show that, while progress has been made in reducing poverty and hunger, there is a need to do more.

Escaping Poverty and Unemployment in Africa: A Flagship Strategy calls out unemployment as a major cause of poverty, and sees both of them as twins representing two sides of the same bad coin. After several years of failures in addressing the twin crises with stand-alone policies and programs in Nigeria and other African countries, the book proposes an innovative strategy aimed at addressing mass unemployment and mass poverty simultaneously. Inspired by the author's field experience as one of the key actors in the successful implementation of the UNDP-ILO-sponsored Jobs for Africa (JFA) program in over ten African countries (between 1998 and 2001), the book presents an alternative framework from the failed extant approaches for tackling the stubborn crises of unemployment and poverty in the continent. The proposed Flagship Strategy is a cocktail of three key policy elements, namely, (1) putting in place a maximum employment-driven macroeconomic economic stability, (2) mobilizing and empowering "ready-to engage" transformational entrepreneurs for leading investment projects/programs to ensure success and sustainability, and (3) undertaking massive investment for poverty-reducing employment (IPRE) projects in all the key sectors of the economy. Given Nigeria's exceptionalism in Africa's poverty profile, the application of the Flagship Strategy has been illustrated for over eight key sectors of this nation's economy. This presents a model for possible replication across other African countries. The empirical validation in the application of the three elements of the Flagship Strategy, along with the successful experience of emerging industrializing countries (of South Korea, Singapore, and China, etc.) in achieving massive reductions in poverty and unemployment using the elements of the strategy, commends its application to African and other developing countries facing the twin challenges. The book is intended to serve generally as an informative read for all who are interested in escaping poverty and unemployment either by themselves or for the people they care about. It has also, in particular, offered fresh strategic insights to scholars and students of development, working on African poverty and unemployment challenges. It can furthermore easily serve as a policy blueprint/ manual for policymakers and/or politicians with genuine interests in finding quick and sustainable solutions to Africa's daunting and existential poverty and unemployment challenges.

This volume uses recent research from the World Bank to document and analyze the bidirectional relationship between poverty and migration in developing countries. The case studies chapters compiled in this book (from Tanzania, Nepal, Albania and Nicaragua), as well as the last, policy-oriented chapter illustrate the diversity of migration experience and tackle the complicated nexus between migration and poverty reduction. Two main messages emerge: Although evidence indicates that migration reduces poverty, it also shows that migration opportunities of the poor differ from that of the rest. In general, the evidence suggests that the poor either migrate less or migrate to low return destinations. As a consequence, many developing countries are not maximizing the poverty-reducing potential of migration. The main reason behind this outcome is difficulties in access to remunerative migration opportunities and the high costs associated with migrating. It is shown, for example, that reducing migration costs makes migration more pro-poor. The volume shows that developing countries governments are not without means to improve this situation. Several of the country examples offer a few policy recommendations towards this end.

The strengths and abilities children develop from infancy through adolescence are crucial for their physical, emotional, and cognitive growth, which in turn help them to achieve success in school and to become responsible, economically self-sufficient, and healthy adults. Capable, responsible, and healthy adults are clearly the foundation of a well-functioning and prosperous society, yet America's future is not as secure as it could be because millions of American children live in families with incomes below the poverty line. A wealth of evidence suggests that a lack of adequate economic resources for families with children compromises these children's ability to grow and achieve adult success, hurting them and the broader society. A Roadmap to Reducing Child Poverty reviews the research on linkages between child poverty and child well-being, and analyzes the poverty-reducing effects of major assistance programs directed at children and families. This report also provides policy and program recommendations for reducing the number of children living in poverty in the United States by half within 10 years.