20 May 2009

Portfolios of the Poor: Financial diaries of the bottom billion

Be the first to share

Portfolios of the Poor
Portfolios of the Poor: How the World’s Poor Live on $2 a Day
by Daryl Collins, Jonathan Morduch, Stuart Rutherford, Orlanda Ruthven
Princeton University Press
Hardcover, May 2009

Abstract

About forty percent of the world’s people live on incomes of two dollars a day or less. If you’ve never had to survive on an income so small, it is hard to imagine. How would you put food on the table, afford a home, and educate your children? How would you handle emergencies and old age? Every day, more than a billion people around the world must answer these questions. Portfolios of the Poor is the first book to explain systematically how the poor find solutions.

The authors report on the yearlong “financial diaries” of villagers and slum dwellers in Bangladesh, India, and South Africa–records that track penny by penny how specific households manage their money. The stories of these families are often surprising and inspiring. Most poor households do not live hand to mouth, spending what they earn in a desperate bid to keep afloat. Instead, they employ financial tools, many linked to informal networks and family ties. They push money into savings for reserves, squeeze money out of creditors whenever possible, run sophisticated savings clubs, and use microfinancing wherever available. Their experiences reveal new methods to fight poverty and ways to envision the next generation of banks for the “bottom billion.”

Book review The Economist:

“The unbanked do not have access to such luxuries as standing orders, which richer people use to overcome the temptation to spend whatever they earn. And they are forced to pay for things that are free for most—which enables women like Jyothi to earn a crust by offering a safe store for small savings. But with some ingenuity, they use unorthodox financial instruments to create a more stable life than their erratic incomes would otherwise allow.”

Book review Next Billion blog

“Often times in the development community the bottom billion is thought of in terms of aggregate statistics without much attention given to the individuals and their day to day lives. The goal of the authors was to find a happy medium between aggregate data/statistics and individual anthropological research. What they developed as a result were Financial Diaries, which give a basic overview of every financial transaction made and service used over the studied timeframe.

Through the use of Financial Diaries, the researchers meticulously tracked every detail of their subjects’ financial lives by interviewing them bi-weekly for one year using metrics of the portfolio management world, including cash flow and income statement analysis. While gathering evidence, they discovered that it took approximately six interviews with each respondent to develop the trust required to obtain accurate data and account for margins of error. This is in interesting implication for research that is often times based on one interview. Their analysis approached households as start-up organizations and adjusted their research using these metrics.”

Be the first to share
22 May 2015
Conference Call: Design Anthropological Futures
Design Anthropological Futures conference Organised by the Research Network for Design Anthropology August 13-14, 2015 Royal Danish Academy of Fine Arts - School of Design in Copenhagen, Denmark The Design Anthropological Futures conference explores future-making from a design …
17 May 2015
[Book] Anthropologist explores the many faces of Anonymous
Hacker, Hoaxer, Whistleblower, Spy: The Many Faces of Anonymous by Gabriella Coleman Verso Publishers November 2014 Hardback, 464 pages Abstract Half a dozen years ago, anthropologist Gabriella Coleman set out to study the rise of this global phenomenon just as some …
13 May 2015
The thirteen Ps of big data
Big data are often described as being characterised by the ‘3 Vs’: volume, variety, and velocity, sometimes augmented with value, veracity/validity, virality, and viscosity. These characterisations principally come from the worlds of data science and data …
10 May 2015
Developing patient-centred care: an ethnographic study of patient perceptions and influence on quality improvement
Developing patient-centred care: an ethnographic study of patient perceptions and influence on quality improvement By Alicia Renedo and Cicely Marston BMC Health Services Research (2015) 15:122 DOI 10.1186/s12913-015-0770-y Background - Understanding quality improvement from a patient perspective is …
10 May 2015
Ethnographic study on use of metrics in newsrooms
The Traffic Factories: Metrics at Chartbeat, Gawker Media, and The New York Times A report by Caitlin Petre Tow Center for Digital Journalism Graduate School of Journalism at Columbia University Audience metrics have become ubiquitous in news organizations, but …
9 May 2015
Modernizing the US immigration system with user-centered design
Vivian Graubard describes on WhiteHouse.gov how the U.S. Digital Service is working on modernizing the USA’s still largely paper based immigration service, pairing a better technical base with user-centered design. We traveled to USCIS (United States …
5 May 2015
Why people don’t trust energy-saving gadgets
People’s reluctance to share data about their energy use is likely to stand in the way of “smart” technology designed to promote energy efficiency, experts say. A study, published online in Nature Climate Change, finds that …
5 May 2015
Intel anthropologist creates data processing tool for Quantified Self community
When data can be both individual, and potentially aggregated across many people, who does and does not have a say in what “the data” ultimately means? A thought provoking piece by Dawn Nafus, an anthropologist …

We are an international experience design consultancy helping companies and organisations to innovate their products, services and processes by putting people and their experiences first.

5 May 2015
Experientia designer Dohun YuLuck Jang 유록 in Design 4 Disaster

Design 4 Disaster features an engaging illustrated safety manual for ship passengers, a personal project by Experientia designer Dohun YuLuck Jang 유록. After the Korean ferry accident last year, Yuluck (who is Korean) wanted to find a way to make safety manuals more interesting to read. He spent one year designing an interactive safety guide […]

16 March 2015
Better Health and Wellbeing: Giving the elderly in Singapore sparkling golden years

Invitation: sharing session, Singapore, 30 March 2015   What are the hopes and fears of the elderly in Singapore? How can designers offer solutions that support the elderly in managing their health and wellness? What can healthcare professionals do to help them keep active? What role can technology play in the elderly’s daily lives? Design consultants […]

1 January 2015
Happy Playful New Year
21 December 2014
Experientia’s Twitter feed live

Experientia has now its own Twitter feed. Four months of Putting People First posts and other links have already been uploaded. If you followed Experientia on Twitter through the feed of its CEO, Mark Vanderbeeken, make sure to now also follow the company (but don’t unfollow Mark, who will keep on tweeting away). And while […]

19 December 2014
Putting People First blog redesigned

Experientia’s Putting People First blog has been redesigned. It is now entirely responsive, allows for easier browsing, searching, and filtering, and features larger images on the posts. The entire history of posts remains accessible as before. We are still tweaking things and welcome any feedback.

27 November 2014
Why the world needs anthropologists – an update

Why the world needs anthropologists – Coming out of the ivory tower Location: Padua, Italy, Centro Culturale Altinate/San Gaetano Date and time: Friday, 5 December 2014, 13:00 – 18:00 Padua, Italy, 5 December 2014 – The second edition of the international symposium of applied anthropologists attempts to erase the boundary between ‘pure’ and ‘applied’ anthropology, […]

See all articles