A case study on hope
This case study involves investigating how hope plays a role in pulling out of poverty. Indeed, poor people have a low perception of life, which always makes it difficult to create programs that can change people’s situations. Although hope cannot be represented empirically, the article asserts that the poor people who were given a few assets and a mild cash to buy food prospered materially more than those who were not given the assets (The Economist, 2012). However, the article does not indicate the criterion that was used to separate the causal effects of hope and those of assets on the better quality of life that was witnessed.
The article, thus, is economically shortsighted on a few basis. To begin with, it is true that poor people fear investing. However, risk averseness should not be attributed to inadequate hope since it fits into the practicalities of life that such people. Extremely poor people live on the edge of life thereby making them aim at basic needs such as food and shelter. Such income is usually so small that poor people are always afraid of gambling with the same in investment. In such a scenario, extremely poor people can easily predict the impact of using their meagre income on buying food that on investing.
This is an inverted reflection of even rich people. Rich people are majorly risk-takers because most of their basic needs are catered. Large income and a good support network makes it easy to handle and diversify risks. On the other hand, poor people lack the networks and a guarantee for their money when they invest. Inadequate hope, thus, does not reflect existential inadequacy but manifests the practicalities of life that extremely poor people undergo.
A case study on Aspiring Africa
The article reports that poverty is reducing in Africa after many decades of toil. One of the measures of indicating falling poverty rates include HIV infections, life expectancy, and consumer spending. The article is balanced on many fronts and even notes how participation of Africans has contributed towards the progress of the continent. Drivers of growth includes technology, which Africans are embracing, better governance, and increased access to credit (The Economist, 2013). Indeed, as a larger part of the population participates in entrepreneurship.
The article, however, faults on many points. To begin with, it fails to appreciate the role of unequal relationships between Africa and external partners such as Europe. European countries and Asian countries still rely on Africa as a source of industrial goods and as a market for their industrial and technological goods, which fetch better prices. On a commendable note, the Economist notes that it is upon Africa to save itself. Besides, the idea of infrastructure and technology, which are simply accelerators of growth, Africa needs proper governance in order to progress. In this sense, it will be able to set its terms in the global economic playfield. In this sense, the leaders can push for further industrialization in most of its sectors.
In addition, the article does not note that Africa does not have to follow the linear economic model that manifests in the Western world. Rather, it is supposed to think on its own terms by following a model that will exploit gaps in the international market. For instance, improved agriculture with value addition my help the continent gain a competitive edge in the market. Effective control and exploitation of mineral resources may also help the continent gain and transfer income to the general population. In essence, the Economist does not note that reducing poverty depends on wider socio-political and economic changes.
A case study on falling Global poverty
The article casts an optimistic note on the falling rates of poverty in the world. Indeed, given the economic crises of the 1930’s and the 1970’s, the world expected poverty rates to increase after 2008 (The Economist, 2012). However, the rates of poverty have fallen a big margin since the recession. Unfortunately, half of the declining rates is explained by China. Africa shows a positive growth, but by a smaller scale than in China and Latin America.
The article, however, does not note how wider changes in the economy help cut back on the rates of poverty. Places such as China have less rate of poverty not necessarily because they set to reduce poverty, but because they have better progress on the aggregate economic front. Poverty is tackled when a major part of the population is meaningfully employed thereby granting them access to larger incomes. In addition, such a population has to be adequately educated to be meaningfully employed. On the other hand, places such as Africa are bound to experience extreme poverty as skills and education are possessed by a smaller part of the population. Even Latin America has witnessed rapid industrialization that help transfer income to a majority of the population. The social programs employed in such countries help tackle inequalities in skills thereby also spurring entrepreneurship among the poorer classes.