The Psychology of Poverty: The Economicsof Happiness

There is a greater readiness to incorporate the contributions of psychology for a new intellectual epitome which can bring forth an alternative development paradigm because both researchers and practitioners now recognize the central importance of psychological issues in economic development. However, we now recognize that material wealth does not necessarily bring equal development. These experiences have led to the realization that national development involves changes in attitudes, values, gender roles, and social relations. A fundamentally important psychological concept central to national development is that of motivation and psychological wellbeing, defined as directed action. In the context of developing societies, a logical next step toward faster national development would seem to be to design programs that get people to think in individualistic terms, in order to increase their personal motivation. Over the years the volume of research relating to poverty has grown. But unfortunately, Indian psychological research in this area has had very little impact on the policies and programmes for the poor's happiness. Further, the gap between research and application remains formidable in the absence of any clear conceptual framework and theoretical perspective. This paper tries to highlight the psychological reasons behind poverty which are the main obstacles for national growth and economic development of happiness.