Romanticising the poor harms the poor

Abstract

A libertarian movement that emphasises free markets to reduce poverty has grown strong in recent years. It views the poor as ‘resilient and creative entrepreneurs and value-conscious consumers’. This romanticised view of the poor is far from the truth and harms the poor in two ways. First, it results in too little emphasis on legal, regulatory and social mechanisms to protect the poor who are vulnerable consumers. Second, it results in overemphasis on microcredit and under-emphasis on fostering modern enterprises that would provide employment opportunities for the poor. More importantly, the libertarian proposition grossly under-emphasises the critical role and responsibility of the state for poverty reduction. Copyright © 2008 John Wiley & Sons, Ltd.