Chapter 34 — Exercises

A1. Extreme poverty has fallen from 36% (1990) to 9% (2024). Compute the number of people lifted out of poverty if the world population was 5.3B in 1990 and 8.1B in 2024. A2. Compare the geography, institutions, and colonial legacy hypotheses. Which is most persuasive? Why? A3. "Just send more aid." Apply the Sachs-Easterly debate. When does aid work? When doesn't it? A4. Describe the RCT methodology. Why is randomization important? A5. Deworming is one of the most cost-effective development interventions. Why? (Hint: the cost is pennies per child; the benefit is years of additional schooling and higher lifetime earnings.) A6. Bangladesh and Haiti both have limited natural resources and colonial histories. Why has Bangladesh grown while Haiti hasn't? A7. Rwanda has achieved rapid growth under authoritarian governance. Is this a challenge to the Acemoglu-Robinson thesis? A8. Look up the World Bank's poverty data (worldbank.org). Find the extreme poverty rate for three countries of your choice.

Selected answers in appendices/answers-to-selected.md.