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A comprehensive historical tracing of how the contemporary finance-poverty-development nexus emerged.

'The definitive account of the history of poverty finance' - Susanne Soederberg

Finance, mobile, and digital technologies - or 'fintech' - are being heralded in the world of development by the likes of the IMF and World Bank as a silver bullet in the fight against poverty. But should we believe the hype?

A Critical History of Poverty Finance demonstrates how newfangled 'digital financial inclusion' efforts suffer from the same essential flaws as earlier iterations of neoliberal 'financial inclusion.' Relying on artificially created markets that simply aren't there among the world's most disadvantaged economic actors, they also reinforce existing patterns of inequality and uneven development, many of which date back to the colonial era.

Bernards offers an astute analysis of the current fintech fad, contextualized through a detailed colonial history of development finance, that ultimately reveals the neoliberal vision of poverty alleviation for the pipe dream it is.

Welfare reform was supposed to end welfare as we know it. And it has. The welfare poor have been largely transformed into the working poor, but their poverty persists. This hard-hitting book takes a close look at where we’ve gone wrong—and where we might go next if we truly want to improve the lot of America’s underclass.
    Tracing the roots of recent reforms to the early days of the war on poverty, A Poverty of Imagination describes a social welfare system grown increasingly inept, corrupt, and susceptible to conservative redesign. Investigating the causes of the ongoing failure of welfare assistance, Stoesz focuses on the economic barriers that impede movement out of poverty into the American mainstream. He explores such issues as the heterogeneity of welfare families, generational welfare, inadequate benefits, the negative effects of time limits on welfare recipients, a fringe banking industry that exploits low-income families, the limited capacity of low-wage markets, and the unavailability of credit.
    Stoesz suggests that a form of "bootstrap capitalism" would allow individuals and families to participate more fully in American society and achieve upward economic mobility and stability. This proposal, emphasizing wage supplements, asset building, and community capitalism, sets the stage for the next act in poverty policy in the United States. With its valuable insights on the American welfare system and its positive agenda for change, this book makes a significant intervention in our ongoing struggle to come to terms with widespread poverty in the wealthiest nation on earth.

Over the past three decades, average household wealth in the United States has declined among all but the richest families, with a near 80 percent drop among the nation's poorest families. Although the national debate about inequality has focused on income, it is wealth—the private assets amassed and passed on within families—that provides the extra economic cushion needed to move beyond mere day-to-day survival. Assets for the Poor is the first full-scale investigation into the importance of family wealth and the need for policies to encourage asset-building among the poor. Assets for the Poor shows how institutional mechanisms designed to encourage acquisition of capital and property favor middle-class and high-income families. For example, the aggregate value of home mortgage tax deductions far outweighs the dollar amount of the subsidies provided by Section 8 rental vouchers and public housing. Banking definitions of creditworthiness largely exclude minorities, and welfare rules have made it nearly impossible for single mothers to accumulate savings, let alone stocks or real estate. Due to persistent residential segregation, even those minority families who do own homes are often denied equal access to better schools and public services. The research in this volume shows that the poor do make use of the assets they have. Cash gifts—although small in size—are frequent within families and often lead to such positive results as homebuying and debt reduction, while tangible assets such as tools and cars help increase employment prospects. Assets for the Poor examines policies such as Individual Development Account tax subsidies to reward financial savings among the poor, and more liberal credit rules to make borrowing easier and less costly. The contributors also offer thoughtful advice for bringing the poor into mainstream savings institutions and warn against developing asset building policies at the expense of existing safety net programs. Asset-building for low-income families is a powerful idea that offers hope to families searching for a way out of poverty. Assets for the Poor challenges current thinking regarding poverty reduction policies and proposes a major shift in the way we think about families and how they make a better life. A Volume in the Ford Foundation Series on Asset Building