Poor Economics: Rethinking Poverty & the Ways to End it

by Abhijit V. Banerjee

In the survey we conducted in Udaipur, in rural India, about two-thirds of the poor had a loan. Of these, 23 percent were from a relative, 18 percent from a moneylender, 37 percent from a shopkeeper, and only 6.4 percent from a formal source.