Moving Out of Poverty, Volume 2

The global moving out of poverty study is unique in several respects. It is one of the few large-scale comparative research efforts to focus on mobility out of poverty rather than on poverty alone. The study draws together the experiences of poor women and men who have managed to move out of poverty over time and the processes and local institutions that have helped or hindered their efforts. It is also the first time that a World Bank report draws on people's own understanding of freedom, democracy, equality, empowerment, and aspirations-and how these affect poor people in different growth, social, and political contexts. By giving primacy to people's own experiences and how they define poverty, the study provides several new insights to develop more effective strategies to reduce poverty. The study finds that poor people take lots of initiative, in many cases even more than those who are better off. There are millions and millions of tiny poor entrepreneurs. The investment climate of these tiny entrepreneurs has not been a centerpiece of poverty strategies. Too often, poor people do not face a level playing field. Despite the micro credit revolution, poor people remain outside of most financial services; and large lenders remain reluctant to lend to micro enterprises and micro entrepreneurs. New institutional models and financial instruments are needed to serve poor people's financial needs and give them the capital they need to expand their businesses and connect to markets.