Poverty in African and Asian Nations
Poverty is one of the problems that African and Asian nations face in the twenty-first century. Poverty has hampered these Third World countries' economic, social, and political growth. The states have languished in distress for a prolonged period of time not because there are no steps required to combat the scourge, but because the governments of these Third World countries have failed to enact policies. Through a critical assessment of the texts and the films studies, the books provide the most likely and practical plans to fight the menace in underdeveloped nations.
Some of the approaches include establishing a good political and economic institutions as well as creating an environment that supports innovations. One major characteristic of the underdeveloped countries is weak political system marred by corruption, nepotism as well as tribalism. These features have significantly transformed the economic growth of most Third World countries especially in Africa where the vice is prevalent. Also, the author explains that adopting suitable environment which supports innovation among the young generation will encourage the economic growth tremendously. If the political regimes of the Third World countries can institute a great political institution that will support innovation, it can significantly reduce poverty in their countries.
China and India's Remarkable Growth
Q2. Discuss why China and India have been able to enjoy such remarkable growth. Why has the example of China been so difficult to replicate in other regions of the Third World?
Over the last few decades, economists have witnessed an ever-growing economy in both China and India. China and India have demonstrated a typical pattern of growth that is different from that of the slowly developing West economy. Some of the factors that have promoted both countries' growing economy are the rapidly aggregated direct public investments as the private ventures are continuously declining. Consequently, the economic expansion of these two nations has been spurred by the increasing public investment which supports the development of infrastructures and creating jobs to the citizens (Handelman, 156).
State investment in both countries has witnessed high economic growth. Additionally, China has constructed an authoritarian growth device that will see its success in improving the economic growth for the next decades. However, the strategy adopted by China has been difficult to duplicate in the Third World countries because most rely on private investments and foreign direct investments with no rapid development of state investments. Increased private investment in slowly developing economies has significantly hampered the economic growth level of most of the Third World countries, especially in Africa.
The Role of Institutions in Third World Development
Q3. A common theme in the course texts is the role of institutions in laying the foundation for growth and development in the Third World. Justify this emphasis on institutionalization by citing and discussing some concrete examples of countries in the Third World, whose socio-economic and political development depended heavily upon institutional development.
The economic growth of any country depends on two essential aspects that are the political, and socio-economic development. Both the aspects rely on the building of a strong institutional development program that will support innovation, creativity, and energy to boost the economic growth. The slowly growing economies of the Third World countries has been the result of poor or weak institutional establishment (Acemoglu and Robinson, 138) Political instability associated with mismanagement of resources and lack of government support has been a significant disease that has hampered the rapid growth of the economy of these countries.
Additionally, following of theoretical approaches by the Third World countries such as borrowing funds from developed countries has considerably affected the economic growth of Asian and African countries to realize the same economic growth of China and India. The socio-economic development also has a significant effect on the elaboration of the Third World nations. Corruption is one of the antisocial vices that have undermined the economic growth of various societies in most of the Third World countries. The vice has witnessed the stealing of funds by the few individuals in the government and taken overseas thus affecting the level of public investment in these countries.
Works Cited
Acemoglu, Daron, and Robinson, James, A. “The Origins of Power, Prosperity, and Poverty: “Why Nations Fail”. New York Crown Business, 2012.
Handelman, Howard. “The Challenges of the Developing World (8th Ed.) Lanham: Rowland and Littlefield, 2017.
