What We Can Learn from Asset-Based Approaches to Policy

While a number of studies have used asset indicators to provide a richer characterization of who the poor are, this paper concentrates on approaches that use asset information in conjunction with insights from economic theory to gain additional insight into why the poor are poor and whether their material situation is likely change over time. The paper also argues that the same analytical devices that permit insight into these questions can be used for the design of durable and cost-effective anti-p overty policy. There is still much to be done to realize the full potential of asset-based approaches, it is hoped that this paper will help motivate the needed investigation.