Dismantle the Poverty Trap by Nurturing Community Trust

Would you rather receive $100 today or wait for a year and then receive $150? The ability to delay immediate gratification for a potentially greater payout in the future is associated with greater wealth. Several studies have shown that the poor tend to opt for immediate rewards even if they are lower, whereas the wealthy are willing to wait for greater rewards. One obvious reason for this difference is the immediate need for money. If food has to be purchased and electricity or water bills have to be paid, then the instant “reward” is a matter of necessity. Wealthier people can easily delay the reward because their basic needs for food, shelter and clothing are already met.

Unfortunately, escaping from poverty often requires the ability to delay gratification for a greater payout in the future. Classic examples are the pursuit of higher education and the acquisition of specialized professional skills which can lead to better-paying jobs in the future. Attending vocational school, trade school or college paves the way for higher future wages, but one has to forego income during the educational period and even incur additional debt by taking out educational loans. Another example is of delayed gratification is to invest capital – whether it is purchasing a farming tool that increases productivity or investing in the stock market – which in turn can yield greater pay-out. However, if the poor are unable to pursue more education or make other investments that will increase their income, they remain stuck in a vicious cycle of increasing poverty.

Understanding the precise reasons for why people living in poverty often make decisions that seem short-sighted, such as foregoing more education or taking on high-interest short-term loans, is the first step to help them escape poverty. The obvious common-sense fix is to ensure that the basic needs of all citizens – food, shelter, clothing, health and personal safety – are met, so that they no longer have to use all new funds for survival. This is obviously easier in the developed world, but it is not a trivial matter considering that the USA – supposedly the richest country in the world – has an alarmingly high poverty rate. It is estimated that more than 40 million people in the US live in poverty, fearing hunger and eviction from their homes. But just taking care of these basic needs may not be enough to help citizens escape poverty. A recent research study by Jon Jachimowicz at Columbia University and his colleagues investigated “myopic” (short-sighted) decision-making of people with lower income and identified an important new factor: community trust.

The researchers first used an online questionnaire (647 participants) to assess trust and asked participants to choose between a payoff in the near future that is smaller and a larger pay-off in the distant future. They also measured community trust by asking participants to agree or disagree with statements such as “There are advantages to living in my neighborhood” or I would like my child(ren) to be raised in the neighborhood I currently live in”. They found that lower income participants were more likely to act in a short-sighted manner if they had low levels of trust in their communities. In a second online experiment, the researchers recruited roughly 100 participants from each state in the US and assessed their community trust levels. They then obtained real-world data on payday loans – a sign of very short-sighted financial decision-making because people take out cash advances at extraordinarily high interest rates that have to be paid back when they get their paycheck – for each state. They found that the average community trust for each state was related to the use of payday loans. In states with high average community trust ratings, people were less likely to take out these payday loans, and this trend remained even when the researchers took into account unemployment rates and savings rates for each state.

Even though these findings all pointed to a clear relationship between community trust and sound financial decision-making, the results did not prove that increased community trust is an underlying cause that helps improve the soundness of financial decisions. To test this relationship in a real-world setting, the researchers conducted a study in rural Bangladesh by collaborating with an international development organization based in Bangladesh. The vast majority of participants in this study were poor even by Bangladeshi standards, earning less than $1/day per household member. The researchers adapted the community trust questionnaire and the assessment of financial decision-making for the rural population, with live interviewers asking the questions and filling out the responses for the participants. After assessing community trust and the willingness to delay financial rewards for greater payouts in the future, half of the participants received a two year intervention to increase community trust. This intervention involved volunteers from the community that acted as intermediaries between the local government and the rural population, providing input into local governance and community-level decisions (for example in the distribution of social benefits and the allocation of funds for development projects).

At the end of the two year period, participants who had received the community intervention showed significant increases in their community trust levels and they also improved their financial decision-making. They were more likely to forego immediate lower financial rewards for greater future rewards when compared to the villagers who did not receive any special intervention.

By combining correlational data from the United States with an actual real-world intervention to build community trust, the researchers show how important it is to build trust when we want to help fellow humans escape the “poverty trap“. This is just an initial study with a limited group of participants and a narrow intervention that needs to be replicated in other societies and with long-term observation of the results to see how persistent the effects are. But the results should make all of us realize that just creating “jobs, jobs, jobs” is not enough. We need to invest in the infrastructures of communities and help citizens realize that they are respected members of society with a voice. Empowering individuals and ensuring their safety, dignity and human rights are necessary steps if we are serious about battling poverty.


Jachimowicz, J. M., Chafik, S., Munrat, S., Prabhu, J. C., & Weber, E. U. (2017). Community trust reduces myopic decisions of low-income individuals. Proceedings of the National Academy of Sciences, 201617395.

Note: An earlier version of this post was first published on the 3Quarksdaily blog.


Jachimowicz, J., Chafik, S., Munrat, S., Prabhu, J., & Weber, E. (2017). Community trust reduces myopic decisions of low-income individuals Proceedings of the National Academy of Sciences DOI: 10.1073/pnas.1617395114

Climate Change: Heatwaves and Poverty in Pakistan

In the summer of 2010, over 20 million people were affected by the summer floods in Pakistan. Millions lost access to shelter and clean water, and became dependent on aid in the form of food, drinking water, tents, clothes and medical supplies in order to survive this humanitarian disaster. It is estimated that at least $1.5 billion to $2 billion were provided as aid by governments, NGOs, charity organizations and private individuals from all around the world, and helped contain the devastating impact on the people of Pakistan. These floods crippled a flailing country that continues to grapple with problems of widespread corruption, illiteracy and poverty.

Drought Heat

The 2011 World Disaster Report (PDF) states:

In the summer of 2010, giant floods devastated parts of Pakistan, affecting more than 20 million people. The flooding started on 22 July in the province of Balochistan, next reaching Khyber Pakhtunkhwa and then flowing down to Punjab, the Pakistan ‘breadbasket’. The floods eventually reached Sindh, where planned evacuations by the government of Pakistan saved millions of people.

However, severe damage to habitat and infrastructure could not be avoided and, by 14 August, the World Bank estimated that crops worth US$ 1 billion had been destroyed, threatening to halve the country’s growth (Batty and Shah, 2010). The floods submerged some 7 million hectares (17 million acres) of Pakistan’s most fertile croplands – in a country where farming is key to the economy. The waters also killed more than 200,000 head of livestock and swept away large quantities of stored commodities that usually fed millions of people throughout the year.

The 2010 floods were among the worst that Pakistan has experienced in recent decades. Sadly, the country is prone to recurrent flooding which means that in any given year, Pakistani farmers hope and pray that the floods will not be as bad as those in 2010. It would be natural to assume that recurring flood disasters force Pakistani farmers to give up farming and migrate to the cities in order to make ends meet. But a recent study published in the journal Nature Climate Change by Valerie Mueller at the International Food Policy Research Institute has identified the actual driver of migration among rural Pakistanis: Heat.

Mueller and colleagues analyzed the migration and weather patterns in rural Pakistan from 1991-2012 and found that flooding had a modest to insignificant effect on migration whereas extreme heat was clearly associated with migration. The researchers found that bouts of heat wiped out a third of the income derived through farming! In Pakistan, the average monthly rural household income is 20,000 rupees (roughly $200), which is barely enough to feed a typical household consisting of 6 or 7 people. It is no wonder that when heat stress reduces crop yields and this low income drops by one third, farming becomes untenable and rural Pakistanis are forced to migrate and find alternate means to feed their family. Mueller and colleagues also identified the group that was most likely to migrate: rural farmers who did not own the land they were farming. Not owning the land makes them more mobile, but compared to the land-owners, these farmers are far more vulnerable in terms of economic stability and food security when a heat wave hits. Migration may be the last resort for their continued survival.

It is predicted that the frequency and intensity of heat waves will increase during the next century. Research studies have determined that global warming is the major cause of heat waves, and  an important recent study by Diego Miralles and colleagues published in Nature Geoscience has identified a key mechanism which leads to the formation of “mega heat waves”. Dry soil and higher temperatures work as part of a vicious cycle, reinforcing each other. The researchers found that drying soil is a critical component.. During daytime, high temperatures dry out the soil. The dry soil traps the heat, thus creating layers of high temperatures even at night, when there is no sunlight. On the subsequent day, the new heat generated by sunlight is added on to the “trapped heat” by the dry soil, which creates an escalating feedback loop with progressively drying soil that becomes devastatingly effective at trapping heat. The result is a massive heat-wave which can wipe out crops, lead to water scarcity and also causes thousands of deaths.

The study by Mueller and colleagues provides important information on how climate change is having real-world effects on humans today. Climate change is a global problem, affecting humans all around the world, but its most severe and immediate impact will likely be borne by people in the developing world who are most vulnerable in terms of their food security.  There is an obvious need to limit carbon emissions and thus curtail the progression of climate change. This necessary long-term approach to climate change has to be complemented by more immediate measures that help people cope with the detrimental effects of climate change by, for example, exploring ways to grow crops that are more heat resilient, and ensuring the food security of those who are acutely threatened by climate change.

As Mueller and colleagues point out, the floods in Pakistan have attracted significant international relief efforts whereas increasing temperatures and heat stress are not commonly perceived as existential threats, even though they can be just as devastating. Gradual increases in temperatures and heat waves are more insidious and less likely to be perceived as threats, whereas powerful images of floods destroying homes and personal narratives of flood survivors clearly identify floods as humanitarian disasters. The impacts of heat stress and climate change, on the other hand, are not so easily conveyed. Climate change is a complex scientific issue, relying on mathematical models and intrinsic uncertainties associated with these models. As climate change progresses, weather patterns will become even more erratic, thus making it even more challenging to offer specific predictions.

Climate change research and the translation of this research into pragmatic precautionary measures also face an uphill battle because of the powerful influence of the climate change denial lobby. Climate change deniers take advantage of the scientific complexity of climate change, and attempt to paralyze humankind in terms of climate change action by exaggerating the scientific uncertainties. In fact, there is a clear scientific consensus among climate scientists that human-caused climate change is very real and is already destroying lives and ecosystems around the world.

Helping farmers adapt to climate change will require more than financial aid.  It is important to communicate the impact of climate change and offer specific advice for how farmers may have to change their traditional agricultural practices. A recent commentary in Nature by Tom Macmillan and Tim Benton highlighted the importance of engaging farmers in agricultural and climate change research. Macmillan and Benton pointed out that at least 10 million farmers have taken part in farmer field schools across Asia, Africa and Latin America since 1989 which have helped them gain knowledge and accordingly adapt their practices.

Pakistan will hopefully soon engage in a much-needed land reform in order to solve the social injustice and food insecurity that plagues the country. Five percent of large landholders in Pakistan own 64% of the total farmland, whereas 65% small farmers own only 15% of the land. About 67% of rural households own no land. Women own only 3% of the land despite sharing in 70% of agricultural activities!  The land reform will be just a first step in rectifying social injustice in Pakistan. Involving Pakistani farmers – men and women alike – in research and education about innovative agricultural practices in the face of climate change will help ensure their long-term survival.



Mueller V, Gray C, & Kosec K (2014). Heat Stress Increases Long-term Human Migration in Rural Pakistan. Nature climate change, 4, 182-185 PMID: 25132865

Miralles, D., Teuling, A., van Heerwaarden, C., & Vilà-Guerau de Arellano, J. (2014). Mega-heatwave temperatures due to combined soil desiccation and atmospheric heat accumulation Nature Geoscience, 7 (5), 345-349 DOI: 10.1038/ngeo2141


Note: An earlier version of this article was first published on the 3Quarksdaily Blog.