New Evidence from Bangladesh

(Photo: The Woodrow Wilson School at Princeton University)

Researchers at Princeton, Columbia, Cambridge and BRAC — working in communities mobilized by The Hunger Project — have demonstrated the value of building strong communities.

As announced here by Princeton University’s Woodrow Wilson School: “Published in the Proceedings of the National Academy of Sciences, the study finds that low-income individuals who trust their communities make better long-term financial decisions. This is likely because citizens rely on friends and neighbors for financial support rather than quick fixes like payday loans, which further indebt them.”

“In terms of policy, the findings show the importance of building strong communities, especially for low-income individuals. The researchers suggest moving away from a focus on low-income individuals, instead focusing on low-income communities through targeted policies.”