Take, for example, Pak Solhin, who lives in a small
village in West Java, Indonesia. He once explained to us exactly how a poverty
trap worked. His parents used to have a bit of land, but they also had 13
children and had to build so many houses for each of them and their families
that there was no land left for cultivation. Pak Solhin had been working as a
casual agricultural worker, which paid up to 10,000 rupiah per day (about $2)
for work in the fields. A recent hike in fertilizer and fuel prices, however,
had forced farmers to economize. The local farmers decided not to cut wages,
Pak Solhin told us, but to stop hiring workers instead. As a result, in the two
months before we met him in 2008, he had not found a single day of agricultural
labor. He was too weak for the most physical work, too inexperienced for more
skilled labor, and, at 40, too old to be an apprentice. No one would hire him.