Answer to Question #269107 in Economics for Deema

Question

2: With hundreds of millions of people still living in extreme poverty, what are the causes and what policies have been most effective for improving the lives of the poorest of the poor?

Answer 1

Prosperity is not achieved through poverty eradication, but through investment and innovation that create new markets.

The country's economic development is strongly linked to innovation.

The best opportunities for innovation are provided by a market with a large number of non-consumers.

There are pushing innovations and pulling innovations.

Prosperity is not an event, but a process that must be constantly maintained.

Effective public institutions cannot be promoted in poor countries by pushing them in; their development requires a pull strategy.

Innovation turns complex and expensive products into simple and affordable ones.