Answer to Question #151121 in Macroeconomics for Salur Jyothi

Question

Jeffrey Sachs, an economics professor from Columbia University, has lobbied
extensively over the last ten years that industrialized economies should take a
more active lead in trying to lift poor African countries out of poverty. What
does he suggest the world's largest economies do to help these poor countries?
What benefits would the largest economies accrue from his proposed actions?
What criticism has confronted his cause?

Answer 1

In his research, Jeffrey Sachs suggests that the industrialized countries in the world should employ various measures to lift the economies of the poor countries in Africa. These measures include, fighting corruption, upholding human rights, helping in ensuring law and order and investing in health, education and infrastructure.

As a result of the investments ,the industrialized countries partners with the poor countries in business as the poor countries provide them with market for their good and services as the poor countries provide them with raw materials.

Foreign aid creates poverty through economic institutions which blocks the incentives and opportunities for the poor countries to solve their issues on their own.