UC School of Government Director Addresses OECD on Psychological Dimensions of Poverty

The New Approaches to Economic Challenges (NAEC) initiative of the Organization for Economic Cooperation and Development (OECD) aims to continually develop a new perspective on the challenges that connect economies, in conversation with strategic partners, in order to contribute to decision makers. 

Said by the head of the NAEC himself, William Hynes, the initiative aims to “draw lessons from the global financial crisis and provide a space to debate and criticize current economic policies. “It has evolved into an effort to better understand how the economy works, how to take a systemic approach and build resilience to crises,” he explained in Forbes.  

“Recent research has highlighted that poverty is not inherent to individuals, but rather a contextual phenomenon” – Andrea Repetto, director of the UC School of Government

Along these lines, Andrea Repetto, director of the UC School of Government, presented to the ambassadors representatives of the nations that are part of the OECD on aspects that interrelate psychology with economics in the understanding of poverty. “Recent research has highlighted that poverty is not inherent to individuals, but rather a contextual phenomenon,” explained the director of the School of Government at the meeting.  

“The extensive literature in psychology and economics has also shown that financial and material deprivation affects economic preferences, attitudes, and decision-making through psychological channels, potentially perpetuating poverty.” Therefore, he pointed out that these findings can guide the design and processes of support programs for beneficiaries. 

“The extensive literature in psychology and economics has also shown that financial and material deprivation affects economic preferences, attitudes, and decision-making through psychological channels, potentially perpetuating poverty” – Andrea Repetto, director UC School of Government.

 

In the presentation he also noted that social policy that seeks to alleviate the impacts of poverty—education, health, food, shelter—must consider how those who experience it make decisions. Thus, the effectiveness of social interventions depends crucially on how individuals, families and communities interact with them. In this way, the discussion revolved around the ways in which various societies understand the phenomenon of poverty, the tools they have to combat it, and how these impact the relationship between the State and citizens.