Cover of Portfolios of the Poor by Daryl Collins

Portfolios of the Poor

How the World's Poor Live on $2 a Day

Daryl Collins, Jonathan Morduch, Stuart Rutherford, Orlanda Ruthven · 2009

Year-long financial diaries of poor households show that living on two dollars a day demands constant, sophisticated money management.

The authors kept year-long financial diaries with poor households in Bangladesh, India and South Africa, recording every transaction. What emerges contradicts the standard picture: living on two dollars a day does not mean earning two dollars a day, it means income that is wildly irregular, and it forces intense financial activity, borrowing, lending, saving in clubs. Foundational for how microfinance and financial inclusion were rethought.

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