Question

900 million people world-wide have been lifted out of extreme poverty since 1990. In Africa, however, there are more people living in extreme poverty in 2018 than there were in 1990. Drawing on key IPE concepts critically evaluate policy prescriptions that could/should be enacted to counter this grave situation.

Answer 1

Poverty becomes a great issue for economic development. In most of the cases it happens because of capital resource, like financing. Developing countries are facing such issue, although they have abandon natural resources.

International political economy (IPE) concept is that politics and economy should be merged together, so that the required development could be possible.

Prescriptions are as below:

1) Government of poor countries should be offered incentives for promoting international funds.

2) Expansionary policy should be taken in those countries by international monetary agency.

3) Fixed exchange rate policy might be the key for initial projects.