Facebook CEO Mark Zuckerberg Recommends Book Co-authored by NYU Wagner Professor Jonathan Morduch
Facebook CEO Mark Zuckerberg is currently recommending Portfolios of the Poor, a groundbreaking book co-authored by NYU Wagner Professor of Public Policy and Economics Jonathan Morduch, for reading and discussion by the Facebook community.
The influential book is the result of systematic research on how the global poor – billions of people around the world who live on less than $2 a day – manage their money. Zuckerberg’s book club, A Year in Books, selects works with big ideas that impact public policy, society and business. Portfolios of the Poor is his 17th pick.
Professor Morduch, managing director of the Financial Access Initiative, wrote the book with Daryl Collins of Bankable Frontier Associates, who received her Ph.D. in Public Policy Analysis at NYU Wagner, and researchers Stuart Rutherford and Orlanda Ruthven.
Published in 2009 by Princeton University Press, Portfolios of the Poor: How the World’s Poor Live on $2 a Day is the first in-depth examination of how the world’s poorest households patch together financial lives.The book shows that they do so with surprising sophistication and complexity, refuting commonly held assumptions about the poor.
Over 250 families in Bangladesh, India, and South Africa participated in the study. Their financial diaries show that poor households are not living hand-to-mouth, but that most of them save and borrow with their future in mind, and maintain complex financial lives because they are poor, not in spite of it.
FAI Researching How Low-Income Americans Use Financial Products [Video]
The Financial Access Initiative (FAI) at New York University's Robert F. Wagner Graduate School of Public Service has launched an important new study to better understand the financial lives of low-income Americans.
FAI, in partnership with Bankable Frontier Associates and The Center for Financial Services Innovation, will track families in four geographic regions in the U.S. over 16 months and collect highly detailed data on household financial activity. The study promises a timely and independent look at how low-income Americans are managing their financial lives. The $3 million project is supported by a grant from the Citi Foundation and the Ford Foundation.
FAI's managing director discusses the launch of the U.S.-centered financial diaries project in this video. The managing director is Jonathan Morduch, professor of public policy and economics at the Robert F. Wagner Graduate School of Public Service at NYU.
The "Financial Diaries" methodology employed to conduct this research has been successfully applied in Bangladesh, India and South Africa. The results of that FAI research were detailed in a groundbreaking book Portfolios of the Poor: How the World's Poor Live on $2 a Day (Princeton University Press, 2009). Instrumental in broadening conceptions of global poverty, the book revealed that poor households lead surprisingly active and sophisticated financial lives, driven by the need to cope with irregular and unpredictable incomes but few reliable tools to absorb economic shocks.
"Improving access to reliable, flexible financial products and services is an important step to help poor and low-income households better manage their economic lives," says Professor Morduch. "The Financial Diaries research has proven to be an effective means of gathering important information to inform the design of these kinds of financial tools."
"The findings in Portfolios of the Poor provided an eye-opening look at the financial lives of the poor in other countries, and we're excited to use this lens in the U.S. context," says Brandee McHale, Chief Operating Officer at the Citi Foundation. "This research can fill an important gap in the current data on how low-income families in our own backyards are making ends meet and help reduce the barriers to financial well-being that these families currently face."
In the U.S., the Federal Deposit Insurance Corporation (FDIC) found that some 17 million adults live in households without any bank accounts. Another 43 million have accounts but are "underbanked," relying on non-bank services such as pay-day lenders and pawn shops. Yet, there is little concrete data about the needs, preferences and use of financial services by low-income families.
"Remarkably, more than 30 million low-income families across the U.S. lack access to traditional banking and financial systems," says Frank DeGiovanni, director of financial assets at the Ford Foundation. "This landmark study will help us to better understand their financial lives, greatly improving the ability the financial industry of nonprofits, and policymakers to meet their needs and increase the quality, affordability, and accessibility of financial services."
To conduct this groundbreaking research, the U.S. Financial Diaries team will spend one-and-a-half years with 300 families, distributed across 4 research sites-in the South, the Northeast, the Midwest and the West. Researchers will meet with families every two weeks to collect highly detailed data on household cash flows.
This methodology of regularly observing household finances over long periods of time allows researchers to identify often-overlooked strategies of financial management, such as the use of informal borrowing and lending with neighbors and family members. The study is designed to capture spending and savings habits that often remain hidden in large surveys. The findings will be published in a series of reports beginning in mid-2012.
Former OMB Director Rivlin to Speak at NYU Wagner
Former UK Prime Minister on the Promise of Globalization
Former British Prime Minister Gordon Brown participated in an engaging public discussion cosponsored by NYU Wagner on Dec. 14, 2010, describing what he sees as hopeful economic possibilities presented by globalization. Brown spoke before an audience composed largely of students, and was interviewed on the stage at Vanderbilt Hall by Robert M. Shrum, the renowned U.S. political consultant and Senior Fellow at the Robert F. Wagner Graduate School of Public Service.
Introduced by NYU President John Sexton as the University's inaugural Distinguished Global Leader in Residence and "one of the great citizens of the world," Brown in turn hailed what he called NYU's "path-breaking" initiative as the first global network university.
During the discussion with Shrum and a question-and-answer session with the audience, the former prime minister focused on the prospects for growth in European, U.S., and African exports and employment that China's rapidly expanding economy may generate in the years ahead. In light of the 2008 financial meltdown, Brown also spoke of a pressing need for consistent rules and standards for responsible behavior by markets and governments worldwide. He also discussed his role in recognizing the necessity for his government and that of the U.S. to recapitalize tottering European banks as the meltdown was happening.
"We had capitalism without capital - the banks did not have enough capital," Brown said. Through his efforts and those of other world leaders, "we avoided what could have been a Great Depression." He stepped down as prime minister in May, 2010, after his Labour Party lost control of Parliament.
A current Member of Parliament, Brown was in New York to publicize his new book, "Beyond The Crash." Asked by an audience member about the WikiLeaks release of U.S. diplomatic cables, Brown said while American policy was predominantly shown to be honest, "there are certain parts that you'd question, certain parts nobody will like." He said he had suffered personal "embarrassments" from the release but then noted, "You've just got to accept that."
Afterward, the former prime minister signed copies of his new book, chatted with students about their programs of study, and posed for photographs. An article on the event published in the next day's New York Times described the reaction of one NYU Wagner student, who has lived in London. Patrizia Mancini commented: "I have to say that he seems like a different person. He's way more relaxed. As a politician, he would seem fake when he smiled, but now he seems so natural."
Forum Explores Financial Squeeze Facing Nonprofit Human-Services Sector
More than 100 leaders of nonprofit organizations, along with state and city social services officials, gathered at NYU Wagner on Feb. 24 for the release of an exhaustive report calling for urgent reforms to shore up the nonprofit human-services sector in New York, responsible for delivering essential government services to 2.5 million people each year. The report, "New York Nonprofits in the Aftermath of FEGS: A Call to Action," identifies chronic problems and offers systematic solutions to what it characterizes as a crisis-level financial squeeze facing the large sector.
"The FEGS (Federation Employment & Guidance Services) bankruptcy took place against the backdrop of a chronically underfunded sector, and it gives us an opportunity to have a real discussion about the state of New York's nonprofit human services organizations," said Gordon J. Campbell, Professor of Practice at NYU Wagner, who chaired the 32-member Non-Profit Closure Commission. The commission's deliberations led to the report.
"The commission developed this report to bring desperately needed atttention to the issues our sector is facing, and to offer solutions to bring this sector back from the brink," Professor Campbell said.
The well-attended event was sponsored by the Association for a Better New York (ABNY), the Human Services Council of New York, and NYU Wagner. Associate Dean Ellen Lovitz welcomed the audience to the school's Rudin Family Forum for Civic Dialogue on the second floor of the school's home in the historic Puck Building, followed by introductory remarks from ABNY Chairman and Rudin Management Company President Bill Rudin
Allison Sesso, Executive Director of the Human Resources Council, provided an overview of the report, and Professor Campbell moderated a panel discussion with: Steven Banks, Commissioner, New York City Human Resources Administration; Paul Francis, NYS Deputy Secertary for Health and Human Services; Christine Quinn, President and CEO of Win and former New York City Council Speaker; David Rivel, CEO of The Jewish Board, and Pat Swann, Senior Program Officer at the New York Community Trust.
Forum: Paying Off the Debt: The Future of New York City Hospitals (Thurs, April 3 at NYU)
�Paying Off the Debt: The Future of New York City Hospitals� is the subject of this year�s Kovner Berman Event, sponsored annually at the NYU Wagner Graduate School of Public Service.