World of Economy Question Answer 2022

World of economy 3 1
WORLD OF ECONOMY 3
Students Name
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Professor’s name
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World of economy 3 2
World of Economy 3
Development and Globalization
Question 1
The main strategy of the IMF has been a top-down policy that focuses on improving how a state
functions, how it relates to society, and how it manages the overall economy.
Question2
The main characteristic of good governance is that governments undergo reforms in terms of
public sector management through judicial predictability, the rule of law, as well as lower levels
of corruption.
Additionally, it encompasses government accountability to the civil society by allowing the
participation of social groups in the decision making process (Balaam and Dillman, 2015).
Also good governance entails the creation of conditions that facilitate markets to function better
in the economy through the promotion of stronger private property rights, better competition
practices and improved financial oversight.
Question 3
A structuralist would criticize the strategies that center mainly on upholding good corporate
governance for the fact that they fail to uncover the structures that underlie all the economies,
and their interrelations with each other.

World of economy 3 3
Question 4
It is challenging for many nations to get out of the middle income trap because most nations are
unable to develop the features of good governance such as public-private networks and effective
state agencies. As such, their political dysfunctions hinder the formation of stable cooperative
coalitions. Additionally, most countries have social groups that are fragmented due to high
inequality and informal economies (Balaam and Dillman, 2015).
Question 5
I agree with those who argue that poverty is as a result of structural factors and the best solution
to curb it is redistribution of national income. Mainly, this is because this view aims at improving
the poor people’s access to financial services such as savings accounts and credit while at the
same time providing opportunities for grassroots entrepreneurship. In turn, this has a higher
chance of uplifting the economic position of the poor than handing them handouts which does
nothing to improve their economic empowerment.
Question 6
I believe that strategies should focus on enhancing growth first, and afterwards welfare would
follow. Mainly, this is because, developing a strategy that provides the people with
entrepreneurship skills and provides access to capital at the grassroots level would provide a long
term solution to their poverty as they can now generate an income for a longer period of time as
compared to the alternative.
Does the Rise of middle class lock in good government in the developing world by Nancy
Birdsall

World of economy 3 4
Question 1
The rise of the middle class should make countries optimistic owing to the fact that it is
associated with continued growth and a reduction in inequality. Specifically, the middle class
champions for good government and helps to uphold it by sponsoring public goods through the
willful payment of taxes. Thus, nations are likely to enjoy economic and political stability
associated with good government.
Question 2
An income-secure middle class refers to individuals who have a low possibility of becoming
poor as a result of an unexpected household shock such as floods, sickness or unexpected
unemployment.
Question 3
The distinction is important to the author because it appears to reflect a difference in the
aspirations and values of the population. As such, the strugglers are less secure materially and,
are therefore more sensitive to political decisions that tend to increase their cost over the short
term. The secure middle class on the other hand have a planning horizon that is longer and are in
a better place to center on public goods.
Question 4
The optimism must be challenged because most people in the developing world live in nations
where less than 20 percent of the population is middle class (Birdsall, 2013). Thus, the middle
class is still too small to be a factor in the demand for good government, thereby dimming the
development prospects.