What really drives the poor

Good insights, though instead of biometric (?!) based money transfers, I'd like to see a further push on phone based transfers and other branchless banking. Recent research reported through CGAP shows branchless transfers being used increasingly by the poor, http://technology.cgap.org/2011/06/17/does-branchless-bankin... I was hoping they might discuss Microfinance's role in helping the poor reach their goals, since at kiva.org we tend to think of microloans as one of the small steps towards solving the problems they face.

Poor people are human beings, so I assume it's the same things that drive other people.

They finally hit on the real story halfway down:

"“Generally, it is clear that things that make life less boring are a priority for the poor,” they write in their new book."

Yes, the poor spend their money unwisely when they have extra. That's the real reason.

If a rich person finds themselves down on their luck, they knuckle down and work really hard to get into a situation where they can afford to buy luxuries.

It isn't about lack of opportunity. It's about wise choices.

I can't find the story now, but there was a fairly wealthy man who decided to give all that up and see if poor people could pull themselves up. He stowed his credit cards and cash and went to live on the street. He started at day-labor sites until his work ethic paid off and he got a steady job from someone. He had goals like an apartment, a car, etc, with a certain amount of cash in the bank. He gave himself 1 year. At 9 months, he had completed his goal, and a family member fell ill. He quite before the 1 year, but he had already completed his goals and was on his way to a good life.

In other words, he spent his money wisely and was able to vastly improve his lifestyle in less than a year. But most poor people say it's impossible. Are they not trying? Are they trying, but making too many bad decisions?

That story ignores so many of the issues related to growing up in poverty. If poverty is all you've ever been around, it's never as simple as just "working hard and making good decisions".