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Africa in the World Economy

Essay Instructions:

Read all required papers/books/slides before writing. Write the essay all based on materials from slides and required reading papers，but can't utilize directly. Read the requirement and syllabus for final essay carefully, and follow the instructions to write.

Africa in the World Economy: Final Take Home Exam

This is an essay exam. Answer these 5 questions in 10 pages or less, single spaced with normal margins (not including pictures or references).

For your benefit, I want to be as precise as possible about what kinds of answers receive high grades. The purpose of this test is to test your learning of and reactions to material in the class. This treats students equally regardless of previous training. Answers will receive the best grade when you utilize the material presented in class to effectively explain your answers to each question. It will not be good for your grade to discuss material not discussed in class or articles not on the reading list, since this will just take time away from showing ability to use the course materials.  So think in terms of mapping the policy debates, concepts, theories, and evidence from the class (from your notes on lectures and class discussions, the Power Point slides, and the articles on the reading list) into your answers. This exam covers only the second half of the class and you should emphasize materials from that second half, but brief references to relevant material from the first half of the class are fine

Explain the theories and different types of evidence you are using and highlight the strengths and limitations of each kind of evidence. You should avoid direct quotes from the articles and slides and put things into your own words. A failure to cite specific articles, pieces of evidence, and theories from the class materials that are directly applicable to the question will result in a lower grade. Discuss which evidence is causal or discuss if causality is not feasible to resolve. In all your answers, you can choose any or all of the options of giving verbal intuition, math formulas, or charts.

Discuss whether you believe the statements below are true or false. Discuss each component of each question (as listed below as a,b,c etc.). There is not necessarily a right answer to these questions; there is some disagreement whether the right answer is true or false.  You should state the answer that you believe in most, based on the class materials. Give specifics of the argument on each side and say which answer you believe and why. Since this class stresses the importance of skeptically debating both sides of every question, what matters is that you effectively argue your position.

This is an individual exam to be completed by your own efforts, collaboration on answering the exam questions is not permitted.

Email your exam by 5pm New York time on May 17. Attach your exam as a PDF or Word file with the file name “ExamXXXX” where XXXX is your last name.

  1. True or False. “Rich countries should encourage migration from Africa to rich countries, because it is very effective for reducing global poverty.”  Discuss the effect of migration on dimensions like culture, human capital, unskilled wages, remittances, and other income gains or losses for:
    1. the sending country
    2. the recipient country
    3. the migrants themselves.
    4. True or False? Randomized controlled trials (RCTs) have finally given us the evidence we need to solve most of Africa’s development problems. Discuss:
      1. causality and internal validity
      2. external validity
      3. Which development questions can be answered with RCTs and which cannot
      4. True or False. Misallocation of land and labor helps explain Africa’s poverty. Discuss:
        1. Why misallocation affects per capita income
        2. Evidence for misallocation
        3. The effect of government policies on misallocation
        4. d.      The effect of institutions like property rights on misallocation
        5. True or False. Authoritarian leaders like Meles Zenawi in Ethiopia and Paul Kagame in Rwanda had high growth during their time in office, just like China’s autocrats have also had. So dictatorship is better than democracy for development. Discuss:
          1. How to interpret the evidence on autocratic vs democratic leaders’ performance on growth
          2. How best to define and measure democracy
          3. Evidence relating democracy as an institution to development and growth
          4. True or False. “Washington Consensus” or “neoliberal” market-oriented economic reforms enabled Africa to escape stagnation and to enjoy healthy per capita economic growth. Discuss:
            1. What economic reforms are most relevant to growth potential
            2. What are trends in those reforms
            3. Whether evidence on economic policies and growth can resolve causality
            4. What are the stylized facts shown by different studies on policy reforms and growth outcomes
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Africa and the World Economy: Final Take-Home Exam
The argument that rich countries should encourage immigration from Africa is valid because the approach is very effective in reducing global poverty. Transfer of human capital is among the primary advantages of the practice. For example, the shortage of doctors in the western world finds a solution in the immigration of medical personnel from Africa to more affluent nations. Whereas the move solves the medical personnel deficits in the wealthier nations, the countries of origin of these professionals benefit economically from the remittances made by this category of individuals. Despite the mutual benefits earned from the practice, there is adequate evidence revealing the existence of concerns about the imbalance in favor of the wealthier nations. According to William, the immigration of professionals from Africa to more prosperous nations leaves the continent with a shortage of professionals, hence exposing the population to related risks (25). The sending countries also get an opportunity to showcase and expand their cultural practices through immigration to more affluent nations, thus further proving the facts of the above argument.
Culture is among the most crucial aspects of national pride. Having individuals from the African continent in more prosperous nations offers them an opportunity to showcase their cultures, influencing their approach and perception about the continent. Williams posits that the contributions of the Africans to the development of the western nations enhance their recognition and respect in these parts of the world (29). However, the above issue raises the question of the well-being of an individual immigrant and the country. The economies of the sending and receiving countries develop from the inputs in terms of production for the former and remittances for the latter (Douglas 6). The large unskilled populations in African and their shortage in the west also offer the immigrants, the sending and receiving countries significant benefits.
Under normal circumstances, unskilled laborers' wages and job opportunities are much higher in the richer countries than in African nations. Encouraging immigration from Africa to more prosperous nations is, therefore, among the measures that ensure the sending and receiving nations and the immigrants benefit from the opportunity. These opportunities are further increased through the provisions of the Washington Consensus, which encourages the more prosperous nations to support sub-Saharan countries through market-oriented reforms and promotion of economic performance (Belinda et al. 6). Allowing Africans to more prosperous nations to work and earn more is among the most practical financial performance support measures. It is, therefore, justifiable to claim that wealthier countries should encourage migration from Africa to the region because it reduces global poverty.
Indeed, randomized controlled trials (RCTs) have finally given us the evidence we need to solve most of Africa’s development problems. Randomized control trials compare the development levels of countries that have adopted specific poverty alleviation methods to those that have not. The re...
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