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Ebook Economic development (11/E): Part 2

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  • Cover

  • Title Page

  • Copyright Page

  • Contents

  • Case Studies and Boxes

  • Preface

  • Acknowledgments

  • Part One: Principles and Concepts

    • 1 Introducing Economic Development: A Global Perspective

      • 1.1 How the Other Half Live

      • 1.2 Economics and Development Studies

      • 1.3 What Do We Mean by Development?

      • 1.4 The Millennium Development Goals

      • 1.5 Conclusions

      • Case Study 1: Progress in the Struggle for More Meaningful Development: Brazil

    • 2 Comparative Economic Development

      • 2.1 Defining the Developing World

      • 2.2 Basic Indicators of Development: Real Income, Health, and Education

      • 2.3 Holistic Measures of Living Levels and Capabilities

      • 2.4 Characteristics of the Developing World: Diversity within Commonality

      • 2.5 How Low-Income Countries Today Differ from Developed Countries in Their Earlier Stages

      • 2.6 Are Living Standards of Developing and Developed Nations Converging?

      • 2.7 Long-Run Causes of Comparative Development

      • 2.8 Concluding Observations

      • Case Study 2: Comparative Economic Development: Pakistan and Bangladesh

    • 3 Classic Theories of Economic Growth and Development

      • 3.1 Classic Theories of Economic Development: Four Approaches

      • 3.2 Development as Growth and the Linear-Stages Theories

      • 3.3 Structural-Change Models

      • 3.4 The International-Dependence Revolution

      • 3.5 The Neoclassical Counterrevolution: Market Fundamentalism

      • 3.6 Classic Theories of Development: Reconciling the Differences

      • Case Study 3: Schools of Thought in Context: South Korea and Argentina

      • Appendix 3.1 Components of Economic Growth

      • Appendix 3.2 The Solow Neoclassical Growth Model

      • Appendix 3.3 Endogenous Growth Theory

    • 4 Contemporary Models of Development and Underdevelopment

      • 4.1 Underdevelopment as a Coordination Failure

      • 4.2 Multiple Equilibria: A Diagrammatic Approach

      • 4.3 Starting Economic Development: The Big Push

      • 4.4 Further Problems of Multiple Equilibria

      • 4.5 Michael Kremer’s O-Ring Theory of Economic Development

      • 4.6 Economic Development as Self-Discovery

      • 4.7 The Hausmann-Rodrik-Velasco Growth Diagnostics Framework

      • 4.8 Conclusions

      • Case Study 4: Understanding a Development Miracle: China

  • Part Two: Problems and Policies: Domestic

    • 5 Poverty, Inequality, and Development

      • 5.1 Measuring Inequality and Poverty

      • 5.2 Poverty, Inequality, and Social Welfare

      • 5.3 Absolute Poverty: Extent and Magnitude

      • 5.4 Economic Characteristics of High-Poverty Groups

      • 5.5 Policy Options on Income Inequality and Poverty: Some Basic Considerations

      • 5.6 Summary and Conclusions: The Need for a Package of Policies

      • Case Study 5: Institutions, Inequality, and Incomes: Ghana and Côte d’Ivoire

      • Appendix 5.1 Appropriate Technology and Employment Generation: The Price Incentive Model

      • Appendix 5.2 The Ahluwalia-Chenery Welfare Index

    • 6 Population Growth and Economic Development: Causes, Consequences, and Controversies

      • 6.1 The Basic Issue: Population Growth and the Quality of Life

      • 6.2 Population Growth: Past, Present, and Future

      • 6.3 The Demographic Transition

      • 6.4 The Causes of High Fertility in Developing Countries: The Malthusian and Household Models

      • 6.5 The Consequences of High Fertility: Some Conflicting Perspectives

      • 6.6 Some Policy Approaches

      • Case Study 6: Population, Poverty, and Development: China and India

    • 7 Urbanization and Rural-Urban Migration: Theory and Policy

      • 7.1 The Migration and Urbanization Dilemma

      • 7.2 The Role of Cities

      • 7.3 The Urban Giantism Problem

      • 7.4 The Urban Informal Sector

      • 7.5 Migration and Development

      • 7.6 Toward an Economic Theory of Rural-Urban Migration

      • 7.7 Summary and Conclusions: A Comprehensive Migration and Employment Strategy

      • Case Study 7: Rural-Urban Migration and Urbanization in Developing Countries: India and Botswana

      • Appendix 7.1 A Mathematical Formulation of the Todaro Migration Model

    • 8 Human Capital: Education and Health in Economic Development

      • 8.1 The Central Roles of Education and Health

      • 8.2 Investing in Education and Health: The Human Capital Approach

      • 8.3 Child Labor

      • 8.4 The Gender Gap: Discrimination in Education and Health

      • 8.5 Educational Systems and Development

      • 8.6 Health Measurement and Distribution

      • 8.7 Disease Burden

      • 8.8 Health, Productivity, and Policy

      • Case Study 8: Pathways out of Poverty: Progresa/Oportunidades

    • 9 Agricultural Transformation and Rural Development

      • 9.1 The Imperative of Agricultural Progress and Rural Development

      • 9.2 Agricultural Growth: Past Progress and Current Challenges

      • 9.3 The Structure of Agrarian Systems in the Developing World

      • 9.4 The Important Role of Women

      • 9.5 The Microeconomics of Farmer Behavior and Agricultural Development

      • 9.6 Core Requirements of a Strategy of Agricultural and Rural Development

      • Case Study 9: The Need to Improve Agricultural Extension for Women Farmers: Kenya

    • 10 The Environment and Development

      • 10.1 Environment and Development: The Basic Issues

      • 10.2 Rural Development and the Environment: A Tale of Two Villages

      • 10.3 Global Warming and Climate Change: Scope, Mitigation, and Adaptation

      • 10.4 Economic Models of Environment Issues

      • 10.5 Urban Development and the Environment

      • 10.6 The Local and Global Costs of Rain Forest Destruction

      • 10.7 Policy Options in Developing and Developed Countries

      • Case Study 10: A World of Contrasts on One Island: Haiti and the Dominican Republic

    • 11 Development Policymaking and the Roles of Market, State, and Civil Society

      • 11.1 A Question of Balance

      • 11.2 Development Planning: Concepts and Rationale

      • 11.3 The Development Planning Process: Some Basic Models

      • 11.4 Government Failure and the Resurgent Preference for Markets over Planning

      • 11.5 The Market Economy

      • 11.6 The Washington Consensus on the Role of the State in Development and Its Subsequent Evolution

      • 11.7 Development Political Economy: Theories of Policy Formulation and Reform

      • 11.8 Development Roles of NGOs and the Broader Citizen Sector

      • 11.9 Trends in Governance and Reform

      • Case Study 11: The Role of Development NGOs: The BRAC Model

  • Part Three: Problems and Policies: International and Macro

    • 12 International Trade Theory and Development Strategy

      • 12.1 Economic Globalization: An Introduction

      • 12.2 International Trade: Some Key Issues

      • 12.3 The Traditional Theory of International Trade

      • 12.4 The Critique of Traditional Free-Trade Theory in the Context of Developing-Country Experience

      • 12.5 Traditional Trade Strategies for Development: Export Promotion versus Import Substitution

      • 12.6 The Industrialization Strategy Approach to Export Policy

      • 12.7 South-South Trade and Economic Integration

      • 12.8 Trade Policies of Developed Countries: The Need for Reform and Resistance to New Protectionist Pressures

      • Case Study 12: A Pioneer in Development Success through Trade: Taiwan

    • 13 Balance of Payments, Debt, Financial Crises, and Stabilization Policies

      • 13.1 International Finance and Investment: Key Issues

      • 13.2 The Balance of Payments Account

      • 13.3 The Issue of Payments Deficits

      • 13.4 Accumulation of Debt and Emergence of the Debt Crisis

      • 13.5 Attempts at Alleviation: Macroeconomic Instability, Classic IMF Stabilization Policies, and Their Critics

      • 13.6 “Odious Debt” and Its Prevention

      • 13.7 Resolution of 1980s–1990s Debt Crises and Continued Vulnerabilities

      • 13.8 The Global Financial Crisis and the Developing Countries

      • Case Study 13: Trade, Capital Flows, and Development Strategy: South Korea

    • 14 Foreign Finance, Investment, and Aid: Controversies and Opportunities

      • 14.1 The International Flow of Financial Resources

      • 14.2 Private Foreign Direct Investment and the Multinational Corporation

      • 14.3 The Role and Growth of Remittances

      • 14.4 Foreign Aid: The Development Assistance Debate

      • 14.5 Conflict and Development

      • Case Study 14: African Success Story at Risk: Botswana

    • 15 Finance and Fiscal Policy for Development

      • 15.1 The Role of the Financial System in Economic Development

      • 15.2 The Role of Central Banks and Alternative Arrangements

      • 15.3 Informal Finance and the Rise of Microfinance

      • 15.4 Reforming Financial Systems

      • 15.5 Fiscal Policy for Development

      • 15.6 State-Owned Enterprises and Privatization

      • 15.7 Public Administration: The Scarcest Resource

      • Case Study 15: Making Microfinance Work for the Poor: The Grameen Bank of Bangladesh

  • Glossary

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Nội dung

(BQ) Part 2 book “Economic development” has contents: Human capital - Education and health in economic development, agricultural transformation and rural development, the environment and development, development policymaking and the roles of market, state, and civil society,… and other contents.

www.downloadslide.net Human Capital: Education and Health in Economic Development My work on human capital began with an effort to calculate both private and social rates of return to men, women, blacks, and other groups from investments in different levels of education —Gary Becker, Nobel laureate in economics What makes for a good health system? What makes a health system fair? And how we know whether a health system is performing as well as it could? These questions are the subject of public debate in most countries around the world —Gro Harlem Brundtland, director general, World Health Organization, 2000 [Education] can add to the value of production in the economy and also to the income of the person who has been educated But even with the same level of income, a person may benefit from education—in reading, communicating, arguing, in being able to choose in a more informed way, in being taken more seriously by others and so on —Nobel laureate Amartya Sen, Development as Freedom, 1999 The slow improvement in the health status of our people has been a matter of great concern There is no denying the fact that we have not paid adequate attention to this dimension of development thus far —Manmohan Singh, prime minister of India, 2005 8.1 The Central Roles of Education and Health Education and health are basic objectives of development; they are important ends in themselves Health is central to well-being, and education is essential for a satisfying and rewarding life; both are fundamental to the broader notion of expanded human capabilities that lie at the heart of the meaning of development (see Chapter 1) At the same time, education plays a key role in the ability of a developing country to absorb modern technology and to develop the capacity for self-sustaining growth and development Moreover, health is a prerequisite for increases in productivity, and successful education relies on adequate health as well Thus both health and education can also be seen as vital components of growth and development—as inputs to the aggregate production function Their dual role as both inputs and outputs gives health and education their central importance in economic development It is hard to overstate how truly dramatic the improvements in world health and education have been In 1950, some 280 of every 1,000 children in 359 www.downloadslide.net 360 Literacy The ability to read and write Human capital Productive investments embodied in human persons, including skills, abilities, ideals, health, and locations, often resulting from expenditures on education, on-the-job training programs, and medical care PART TWO Problems and Policies: Domestic the developing world as a whole died before their fifth birthday By 2008, that number had fallen to 118 per 1,000 in low-income countries, and 57 per 1,000 in middle-income countries (though now compared with per 1,000 in highincome countries and just in many European countries).1 Some important killers have been completely or nearly eradicated Smallpox used to kill more than million people every year; the virus no longer exists outside a few laboratory samples Major childhood illnesses such as rubella and polio have been largely controlled through the use of vaccines In addition, recent decades have witnessed a historically unprecedented extension of literacy and other basic education to a majority of people in the developing world The United Nations reports that although there were still a staggering 780 million illiterate people aged 15 or older in the world in 2004, the good news is that 82% of all people are literate today, compared to just 63% as recently as 1970.2 But almost two-thirds of the world’s illiterate people are women Despite such outstanding achievements, developing countries continue to face great challenges as they seek to continue to improve the health and education of their people The distribution of health and education within countries is as important as income distribution; life expectancy may be quite high for better-off people in developing countries but far lower for the poor Child mortality rates in developing countries remain more than ten times higher than those found in the rich countries These deaths generally result from conditions that are easily treatable, including millions who continue to die needlessly each year from dehydration caused by diarrhea If child death rates in developing countries fell to those prevailing in the developed countries, the lives of more than million children would be saved each year Many children who survive nonetheless suffer chronic problems of malnutrition, debilitating parasitic infections, and other recurrent illnesses Problems caused by lack of key micronutrients such as iodine, as well as protein, affect nearly billion people, but children are particularly vulnerable Whereas a child in Europe, North America, or Japan can expect to receive more than 12 years of schooling, the average child in sub-Saharan Africa and South Asia can expect to spend less than five years in school—before taking account of teacher absenteeism and making no adjustment for the lack of schoolbooks and other resources even when a teacher is present The “voices of the poor” in Box 8.1 convey some of the impact of deprivation in health and education on people’s lives In this chapter, we examine the roles of education and health in economic development These two human capital issues are treated together because of their close relationship Our look at the connections between health and education include similar analytical treatment, because both are forms of human capital; the dual impacts of effects of health spending on the effectiveness of the educational system and vice versa; and the fundamental fact that when we speak of investing in a person’s health and investing in a person’s education, we are after all talking about the same person We then consider the relationships between income on the one hand and health and education on the other Despite their close relationship, you will see that higher household income is no guarantee of improved health and education: Human capital must be given direct attention in its own right, even in economies that are growing rapidly Health and education may be distributed very unequally, just as income and wealth are But improved health and education help families escape some of www.downloadslide.net CHAPTER Human Capital: Education and Health in Economic Development BOX 8.1 Health and Education: Voices of the Poor If you don’t have money today, your disease will take you to your grave —An old woman from Ghana The children keep playing in the sewage —Sacadura Cabral, Brazil In the hospitals, they don’t provide good care to the indigenous people like they ought to; because of their illiteracy they treat them badly They give us other medicines that are not for the health problem you have —A young man from La Calera, Ecuador The school was OK, but now it is in shambles; there are no teachers for weeks There is no safety and no hygiene If parents not meet these payments, which are as high as 40 to 50 rupees per month, the teachers were reported to beat the student or submit a failing grade for her/him —Pakistan (“Voice of the Poor”) Teachers not go to school except when it is time to receive salaries —Nigeria (“Voice of the Poor”) Before everyone could get health care, but now everyone just prays to God that they don’t get sick because everywhere they just ask for money —Vares, Bosnia and Herzegovina —Vila Junqueira, Brazil the vicious circles of poverty in which they are trapped Finally, we take a close look at educational and health systems in developing countries, to identify the sources of the severe inequalities and inefficiencies that continue to plague them The evidence reveals that investments in human capital have to be undertaken with both equity and efficiency for them to have their potential positive effects on incomes Education and Health as Joint Investments for Development Health and education are closely related in economic development.3 On one hand, greater health capital may improve the return to investments in education, in part because health is an important factor in school attendance and in the formal learning process of a child A longer life raises the return to investments in education; better health at any point during working life may in effect lower the rate of depreciation of education capital On the other hand, greater education capital may improve the return to investments in health, because many health programs rely on basic skills often learned at school, including personal hygiene and sanitation, not to mention basic literacy and numeracy; education is also needed for the formation and training of health personnel Finally, an improvement in productive efficiency from investments in education raises the return on a lifesaving investment in health Box 8.2 summarizes the linkages between investments in health and education The past half century or so has witnessed unprecedented advances in human capital Health and education levels improved in both developed and 361 www.downloadslide.net 362 PART TWO Problems and Policies: Domestic BOX 8.2 Linkages between Investments in Health and Education • Health and education are investments made in the same individual • Greater health capital may raise the return on investment in education for several reasons: Health is an important factor in school attendance Healthier children are more successful in school and learn more efficiently Deaths of school-age children also increase the cost of education per worker Longer life spans raise the return to investments in education Healthier individuals are more able to productively use education at any point in life • Greater education capital may raise the return to investment in health in the following ways: Many health programs rely on skills learned in school (including literacy and numeracy) Schools teach basic personal hygiene and sanitation Education is needed for the formation and training of health personnel Education leads to delayed childbearing, which improves health • Improvements in productive efficiency from investment in education raise the return on a lifesaving investment in health developing countries, but by most measures they have improved more rapidly in developing countries As a result, there has been some international convergence in these measures Only in sub-Saharan Africa, where life expectancies fell due to the AIDS crisis, has some doubt been cast on the trend toward catching up in health As primary enrollments rise in developing countries, education is catching up, though some observers believe that the quality gap may be larger than ever Even though the health and education gap between developed and developing countries remains large and further improvements may prove difficult, the progress to date has been unmistakable.4 Improving Health and Education: Why Increasing Income Is Not Sufficient Health and education levels are much higher in high-income countries There are good reasons to believe that the causality runs in both directions: With higher income, people and governments can afford to spend more on education and health, and with greater health and education, higher productivity and incomes are possible Because of these relationships, development policy needs to focus on income, health, and education simultaneously This conclusion is parallel to our conclusion in Chapter that we need a multipronged strategy to address the stubborn problems of absolute poverty People will spend more on human capital when income is higher But the evidence shows clearly that even if we were able to raise incomes without a large improvement in health and education, we could not count on that income increase being used to adequately invest in children’s education and health The market will not solve this problem automatically, and in many cases, household consumption choices themselves may lead to a surprisingly small www.downloadslide.net CHAPTER Human Capital: Education and Health in Economic Development link between income and nutrition, especially for children.5 The income elasticity of the demand for calories (that is, the percentage change in calories consumed for a percentage change in family incomes) among low-income people range from near zero to about 0.5, depending on the region and the statistical strategy used by the researchers.6 This less than proportional response is due to two factors: Income is spent on other goods besides food, and part of the increased food expenditures is used to increase food variety without necessarily increasing the consumption of calories If the relationship between income and nutrition is indeed quite low, as some studies suggest, then development policies that emphasize increasing incomes of the poor without attention to the way these additional resources are expended within the family may not lead to improved health, and successful development more generally, at least not very quickly.7 As discussed further in Chapter 15 and its case study, credit for microenterprises has been one of the most popular poverty alleviation strategies in recent years In this case, credit may help the poor improve their nutrition, for example, because seasonal price fluctuations are also shown to be an important determinant of calorie consumption along with average income among the very poor, but credit will not be sufficient if nutrition remains inadequate and does not improve automatically with higher income Note that even if income elasticities for calories are higher than the traditional very low estimates imply—say, on the order of 0.3 to 0.58—calories are not the same as nutrition, and the nutrition of earners is not the same as the nutrition of their children The income elasticity of “convenience” foods is greater than unity.9 An increase in income frequently allows families in developing countries to switch consumption from nutritious foods such as beans and rice to nonnutritious “empty calories” such as candy and soda, which may be perceived as modern and symbolic of economic success Parents may then fail to place restrictions on children’s consumption of such items or to place positive restrictions on consumption of nutritious foods Howarth Bouis found that intake of vitamins A and C is not positively associated with income in the Philippines and argued that consumer education was important Moreover, morbidity (incidence of sickness) did not necessarily decrease significantly with income in that country.10 A major problem is that poor health (e.g., diarrheal diseases) can negate the health advantages of better nutrition A study of the Gambia found that diarrhea is associated with reduced nutritional status even after calorie intake is controlled for.11 There is considerable evidence that the better the education of the mother, the better the health of her children (see Figure 2.6 on page 61) Usually, formal education is needed in complementary relationship with ongoing access to current information Paul Glewwe found in an analysis of data from Morocco that a mother’s basic health knowledge had a positive effect on her children’s health Several mechanisms were possible, such as that “formal education directly teaches health knowledge to future mothers; literacy and numeracy skills acquired in school assist future mothers in diagnosing and treating child health problems; and exposure to modern society from formal schooling makes women more receptive to modern medical treatments.” But, Glewwe concludes, “mother’s health knowledge alone appears to be the crucial skill for raising child health In Morocco, such knowledge is primarily obtained outside the classroom, although it is obtained using literacy and numeracy 363 www.downloadslide.net 364 PART TWO Problems and Policies: Domestic skills learned in school Teaching of health knowledge skills in Moroccan schools could substantially raise child health and nutrition in Morocco.”12 There are still opportunities for improving health through simple activities in school that have not been utilized Health status, once attained, also affects school performance, as has been shown in studies of many developing countries Better health and nutrition leads to earlier and longer school enrollment, better school attendance, and more effective learning For example, it has been found that the probability of attending school among nutritionally stunted children in Nepal is far lower than for nonstunted students.13 Undernourished children were found to lag 20% in test score gains in northeast Brazil, one of the worst pockets of poverty in Latin America.14 Children with low height for their age, an indicator of undernutrition, have been found to lag in school grade attainment in many parts of the world, including rural China and Thailand Thus to improve the effectiveness of schooling, we must improve the health of children in developing countries Indeed, advances in statistical methods are showing that the links from health to educational attainment in developing countries are stronger than had been believed (see Box 8.3) These effects are large for both boys and especially for girls.15 BOX 8.3 FINDINGS School Impact of a Low-Cost Health Intervention A study in the Busia district in Kenya conducted by Edward Miguel of the University of California at Berkeley and Michael Kremer of Harvard University showed that inexpensive “deworming” drugs to eliminate parasitic infections in children are also very costeffective in increasing school attendance The order in which schools received the treatments was randomized, enabling identification of the causal effect of treatments by comparing outcomes with the not-yettreated schools Their baseline survey showed 92% of schoolchildren were infected with at least one parasite, and 28% had at least three infections A moderate to heavy infection was present in 31% In fact, the prevalence was probably worse because “heavily infected children were more likely to be absent from school on the day of the survey.” As a result of the deworming, absenteeism decreased by about one-quarter (7 percentage points) Younger children typically had suffered more infection, and they now attended 15 more school days per year on average; older children attended about 10 more The program cost per additional year of schooling was about $3.50, much less than the alternative methods used to increase school participation Treated children also had lower anemia, somewhat reduced reported illness, and better height-for-age scores Children can spread parasitic infections across school districts, notably when they swim in the same lake This explains the study’s finding that curing worm infections also led to substantial benefits for neighboring school districts that had not yet been dewormed—a classic externality Reduced infection can also benefit adults, who can work more days Although academic test scores did not increase significantly, this may have been due to the larger school class size that resulted from greater participation rates, thereby increasing the student-to-teacher ratio Evaluated over the course of the student’s lifetime, the deworming drugs are not only inexpensive but also yield a very high rate of return, with the implied present discounted value of wage gains of more than $30 per www.downloadslide.net CHAPTER Human Capital: Education and Health in Economic Development treated child The net benefit of the program is greater than the cost of hiring additional teachers to keep this ratio from rising—though this does depend on the political will to so Despite its large benefits, families in impoverished Busia are very sensitive to the price of deworming treatments, suggesting that subsidies will be needed for some time As one might hope from such clear findings, this study has had a substantial impact on health priorities of developing-country governments 365 and international agencies, and deworming programs are expanding in many countries This study’s clear findings from carefully designed methods provided one of the important impetuses to the recent emphasis on and progress in deworming in schools Source: Edward Miguel and Michael Kremer, “Worms: Identifying impact on education and health in the presence of treatment externalities,” Econometrica 72 (2004): 159–217 On deworming activities see the links at http://www.dewormtheworld.org/ Finally, there are other important spillover benefits to investment in one’s health or education An educated person provides benefits to people around him or her, such as reading for them or coming up with innovations that benefit the community.16 As a result, there are significant market failures in education Moreover, a healthy person is not only less contagious but can also benefit the community in many ways that a sick person cannot Because of such spillover effects, the market cannot be counted on to deliver the socially efficient levels of health and education Thus, as the World Health Organization (WHO) concluded, “Ultimate responsibility for the performance of a country’s health system lies with government.”17 Developing-country officials are drawing lessons from the many studies showing the interrelationships among health, education, and incomes and are devising integrated strategies The case study of Mexico at the end of this chapter provides an important example 8.2 Investing in Education and Health: The Human Capital Approach The analysis of investments in health and education is unified in the human capital approach Human capital is the term economists often use for education, health, and other human capacities that can raise productivity when increased An analogy is made to conventional investments in physical capital: After an initial investment is made, a stream of higher future income can be generated from both expansion of education and improvements in health As a result, a rate of return can be deduced and compared with returns to other investments This is done by estimating the present discounted value of the increased income stream made possible by these investments and then comparing it with their direct and indirect costs Of course, health and education also contribute directly to well-being For example, education increases empowerment and autonomy in major matters in life, such as capacity for civic engagement, making decisions concerning one’s own health care, and freedom to choose one’s own spouse over arranged marriage.18 But the basic human capital approach focuses on their indirect ability to increase well-being by www.downloadslide.net 366 PART TWO Problems and Policies: Domestic Annual income (thousands of bolivars) FIGURE 8.1 300 250 Age-Earnings Profiles by Level of Education: Venezuela University Secondary Primary No education 200 150 100 50 10 25 40 55 Age Source: International Bank for Reconstruction and Development / The World Bank: The Profitability of Investment in Education: Concepts & Methods by George Psacharopoulos, 1995 Reprinted with permission Discount rate In presentvalue calculations, the annual rate at which future values are decreased to make them comparable to values in the present increasing incomes In this section, we will generally illustrate points with educational investments, but the same principles apply to health investments The impact of human capital investments in developing countries can be quite substantial Figure 8.1 shows the age-earnings profiles by levels of education in Venezuela The chart shows how incomes vary over the life cycle for people with various levels of education Note that those with higher levels of education start full-time work at a later age, but as the graph shows, their incomes quickly outpace those who started working earlier But such future income gains from education must be compared with the total costs incurred to understand the value of human capital as an investment Education costs include any direct tuition or other expenditures specifically related to education, such as books and required school uniforms, and indirect costs, primarily income forgone because the student could not work while in school Formally, the income gains can be written as follows, where E is income with extra education, N is income without extra education, t is year, i is the discount rate, and the summation is over expected years of working life: a Et - Nt (1 + i)t (8.1) An analogous formula applies to health (such as improved nutritional status), with the direct and indirect cost of resources devoted to health compared with the extra income gained in the future as a result of higher health status Figure 8.2 provides a typical schematic representation of the trade-offs involved in the decision to continue in school.19 It is assumed that the individual works from the time he or she finishes school until he or she is unable to work, www.downloadslide.net CHAPTER Human Capital: Education and Health in Economic Development FIGURE 8.2 Financial Trade-Offs in the Decision to Continue in School Earnings Secondary graduates Benefits Primary graduates Indirect costs 13 17 66 Age Direct costs Direct costs retires, or dies This is taken to be 66 years Two earnings profiles are presented—for workers with primary school but no secondary education and for those with a full secondary (but no higher) education Primary graduates are assumed to begin work at age 13, secondary graduates at age 17 For an individual in a developing country deciding whether to go on from primary to secondary education, four years of income are forgone This is the indirect cost, as labeled in the diagram The child may work part time, a possibility ignored here for simplicity, but if so, only part of the indirect-cost area applies There is also a direct cost, such as fees, school uniforms, books, and other expenditures that would not have been made if the individual had left school at the end of the primary grades Over the rest of the person’s life, he or she makes more money each year than would have been earned with only a primary education This differential is labeled “Benefits” in the diagram Before comparing costs with benefits, note that a dollar today is worth more to an individual than a dollar in the future, so those future income gains must be discounted accordingly, as is done in Equation 8.1 The rate of return will be higher whenever the discount rate is lower, the direct or indirect costs are lower, or the benefits are higher This analysis was performed from the individual’s point of view in the three right-hand columns of Table 8.1 Notice that in sub-Saharan Africa and Asia, the private rate of return to primary education is about 40%! Despite this extraordinary return, many families not make this investment because they have no ability to borrow even the meager amount of money that a working 367 www.downloadslide.net 368 PART TWO Problems and Policies: Domestic TABLE 8.1 Sample Rates of Return to Investment in Education by Level of Education, Country, Type, and Region Social Rate of Return (%) Country Type and Region Developing Sub-Saharan Africa Asia Latin America Developed Private Rate of Return (%) Primary Secondary Higher Primary Secondary Higher 24 20 18 14 18 13 13 10 11 12 12 41 39 26 22 27 19 17 12 28 20 20 12 Source: “Returns to Investment in Education: A Global Update” by George Psacharopoulos World Development, Vol 22, Sept 1994 Reprinted with permission Note: How these rates of return were calculated is explained in detail note 20 at the end of this chapter child can bring into the family—the topic of the next section Note that the higher rates of return for developing countries reflect that the income differential between those with more and less schooling is greater on average than for the developed countries The first three columns of Table 8.1 indicate the social rate of return This is found by including the amount of public subsidy for the individual’s education as part of the direct costs, because this is part of the investment from the social point of view (and also by considering pretax rather than after-tax incomes).20 It should be noted that these social returns are probably understated because they not take into account the externality that educated people confer on others (e.g., being able to read for other family members), not to mention other individual and social benefits such as increased autonomy and civic participation, as reflected in this chapter’s opening quote from Amartya Sen 8.3 Child Labor Child labor is a widespread problem in developing countries When children under age 15 work, their labor time disrupts their schooling and in a majority of cases prevents them from attending school altogether Compounding this, the health of child workers is significantly worse, even accounting for their poverty status, than that of children who not work; physical stunting among child laborers is very common In addition, many laboring children are subject to especially cruel and exploitative working conditions The International Labor Office (ILO), a UN body that has played a leading role on the child labor issue,21 reported in its 2010 quadrennial report on child labor that as of 2008, there was a total of 306 million children between ages and 17 doing some kind of work, but about one-third of this is considered permissible work based on national laws and existing ILO conventions But 215 million are classified as “child laborers” because they “are either under the minimum age for work or above that age [through age 17] and engaged in work that poses a threat to their health, safety or morals, or are subject to conditions of forced labor.” This number is down about 3% from www.downloadslide.net NAME INDEX Dahlman, Carl, 198, 629, 679 Dalal, Aparna, 770 Daly, Herman, 507 Daniels, Lisa, 634 Dasgupta, Ajit K., 557 Dasgupta, Partha, 260, 306, 308, 309, 558 Davis, Benjamin, 407 Davison, Jean, 457 De Aghion, Beatriz A., 770 De Haan, Jakob, 539, 559 De Janvry, Alain, 423, 460, 461, 462, 464 De Long, Bradford, 105 De Silanes, Florencia, 107 De Vries, Garritsen M., 642 De Young, Karen, 459 Deaton, Angus, 88, 410 Deere, Carmen Diana, 454, 457, 462 Deininger, Klaus, 461, 464 Demirguc-Kunt, A., 256 Demitriades, Panicos, 769 Den Boer, Andrea M., 412 Deng, Xiaoping, 190 Deolalikar, Anil, 410 Deshler, David, 550, 561 Detragiache, Enrica, 341, 354 Devarajan, Shantayanan, 414, 557 Diamond, Jared, 102, 107, 502, 505 Diaz-Alejandro, Carlos, 769, 771 Dietz, James L., 682 Dinar, Ariel, 480 Dinsmoor, James, 33 Doh, Jonathan P., 560 Dollar, David, 260, 632 Domar, Evesey, 111, 137 Dooley, Michael, 723 Dorfman, Robert, 528, 558 Dornbush, Rudiger, 634, 635, 681, 769 Dorner, Peter, 464 Dosi, Giovanni, 636 Dos Santos, Theotonio, 123, 138 Downing, James, 33 Drake, Deborah, 770 Drazen, Allan, 464 Dreze, Jean, 305, 306, 308, 719, 721 Due, Jean M., 457 Duflo, Esther, 384, 456, 457, 545, 725 Dupuy, Alex, 505 Dutt, Amitava K., 633 Dwyer, Daisy, 261 Easterly, William, 36, 88, 94, 95, 96, 98, 102, 107,149, 256, 295, 309, 724 Ebadi, Shirin, 560 Eber, Fabio, 33 789 Eberstadt, Nicholas, 309 Eckstein, Z., 464 Edge, Wayne, 721 Edwards, Edgar O., 412 Edwards, Sabastian, 635 Ehrenberg, Ronald, 410 Ehrenreich, Barbara, 632 Ehrlich, Anne H., 309 Ehrlich, Paul R., 309 Eilperin, Juliet, 509 Eisenman, Joshua, 683 Elmendorf, Edward, 414 Elson, Diane, 261 Emran, Shahe, 157, 196, 410, 555, 771 Engelbert, Pierre, 256 Engerman, Stanley, 84, 85, 87, 88, 105, 106, 107, 460 Enos, John L., 725 Epifani, Paolo, 723 Erber, Fabio Stefano, 33 Erikson, Siri, 480 Erzan, Refik, 661 Esfahani, Hadi S., 354 Estrin, Saul, 772 Evans, A., 727 Evans, Peter, 677, 679 Evenson, Robert, 455, 457 Fafchamps, M., 462 Fan, C Simon, 104 Fan, Xibo, 412 Fang, Cai, 137 Farnworth, Cathy, 460 Fatema, Kaniz, 555 Fearon, James, 72 Feasel, Edward, 149 Fei, John C H., 115 Feldman, Robert, 723 Feng, Y., 194 Fernandez, Raquel, 559 Feyrer, James, 107 Fielding, David, 86, 505 Fields, Gary, 33, 137, 221, 222, 223, 226, 258, 259, 260, 261, 354 Findlay, Ronald, 350, 354 Finkle, Jason, 309 Firmin-Sellers, Kathryn, 256 Fischer, Stanley, 153 Fishlow, Albert, 136, 260 Fleisher, Belton, 320 Fogel, Robert, 400 Foland, Francis M., 460 Folbre, Nancy, 310 Foster, Andrew, 770 Foster, James, 36, 216, 258, 259, 410, 413 www.downloadslide.net 790 NAME INDEX Frankel, Jeffrey, 108 Freebairn, Donald K., 463 Freidman, Jed, 670, 683 Freire, Paulo, 34 Fry, Maxwell, 723, 769, 771 Fujita, Masahisa, 199, 352 Funkhauser, Edward, 353 Furtado, Celso, 460 Grossman, Gene M., 154 Grubel, Herbert, 635 Grunberg, Isabelle, 509 Guinnane, Timothy W., 767 Guio, Anne C., 305, 306 Gupta, Sanjeev, 726 Gurley, John G., 138 Gustavsson, Rasha, 353 Galenson, David, 106 Gallup, John, 102, 103, 414 Galor, Oded, 175, 196, 199, 259 Gandhi, Indira, 300, 305 Gandhi, Mahatma, 12 Gandhi, P Jegadish, 36 Gang, Ira, 349, 350, 355 Gangopadhyay, Shubhashis, 349, 350, 355 Garcia, Marito, 99, 377, 412 Gaud, William S., 724 Gautam, Madhur, 457 Gershenkron, Alexander, 98 Gertler, Paul, 463, 694, 723 Ghani, Ejaz, 558 Ghatak, Maitresh, 463, 767 Ghatak, Subrata, 459 Ghosh, Pradip K., Gibbons, Robert, 196 Gittinger, G Price, 557, 558 Gladwin, Christiana, 455, 457 Glaeser, Edward, 107, 108, 253, 256, 326, 353 Glennerster, Rachel, 414, 725 Glewwe, Paul, 363, 410, 413 Goldsmith, Arthur, 721 Gollin, Douglas, 137 Goodfriend, Marvin, 104 Goodman, Michael, 460 Goodman, Peter S., 194 Gooptu, Sudarshan, 661 Goulet, Dennis, 15, 16, 35, 36 Grabowski, Richard, 558 Graham, Carol, 35 Gray, John, 13 Green, Steven L., 769 Greenaway, David, 633, 635 Greener, Jefferis R K., 721 Greenwald, Bruce, 771 Greer, Joel, 258 Greider, William, 723 Griffin, Keith, 138, 463, 725 Griffiths, Charles, 508 Grilli, V., 769 Grindle, Merilee S., 138, 559 Gronewold, Nathaniel, 505, 558 Haber, Stephen, 103 Haddad, Lawrence, 407, 409, 458, 462 Haddad, Wadi, 412 Haggard, Stephan, 679 Haggarty, Luke, 772 Hall, Gillette, 102, 261 Hallagan, William S., 463 Hammer, Andrew M., 354 Hammermesh, Daniel, 410 Hammond, Daniel, 256 Handa, Sudhanshu, 407 Handy, Christopher, 35 Hanna, Rema, 545 Hanousek, Jan, 772 Hanushek, Eric A., 413 Harney, Alexander, 194 Harris, John R., 350, 354 Harrison, Anne E., 723 Harrod, Sir Roy, 111, 137 Hartlyn, Jonathan, 505 Hartwick, John M., 509 Harvey, Charles, 721 Harvey, David, 568, 574, 632 Hatton, Timothy J., 726 Hausmann, Ricardo, 29, 33, 139, 181, 182, 199, 200, 505, 614, 636 Hayami, Yujiro, 460, 461, 463 Heal, Geoffrey, 634 Healey, Derek T., 558 Hecksher, Eli, 576 Hewison, Bruce, 480 Heidebrink, G., 507 Heilbroner, Robert, 35 Helfgoth, R., 557 Helmich, Henny, 561 Helpman, Elhanan, 153, 154, 633 Herbst, Jeffrey, 256, 721 Herman, Barry, 658, 682 Hernlund, Ylva, 412 Hibbs, Denglas, 105 Hicks, Norman, 260 Hoddie, Matthew, 726 Hoddinott, John, 407, 461, 462, 726 Hoff, Karla, 105, 196, 198, 200, 461, 557 Homer-Dixon, Thomas, 103 www.downloadslide.net NAME INDEX Horowitz, Andrew, 163 Hossain, Mahabub, 765, 766, 767 Hotez, Peter, 399 Howard, Philip, 505 Hu, Dinghuan, 320 Hu, Zuliu, 190, 194 Huang, C., 726 Huang, Zuhui, 320 Hudson, Valerie M., 412 Hufbauer, Gary, 661 Hulme, David, 555 Human, Johann, 635 Husain, Ishrat, 95, 98, 99 Hussain, Neelam, 99 Hussein, Khaled, 769 Hwang, Jason, 614, 636 Ibanez, Ana Maria, 461 Imbs, Jean, 588, 633 Indyk, Martin S., 683 Ingham, Barbara, 35 Innocenti, Nicol D., 721 Isard, Walter, 318, 323 Ishrat, Husain, 256 Islam, Narzul, 137 Iyer, Lakshmi, 89, 461 Jackson, Cecile, 508 Jacobsson, Steffan, 629 Jacoby, Hanan G., 461, 463, 770 Jain, Sanjay, 138, 770 Jakubson, George, 226 Jallade, Jean-Pierre, 413 Jaramillo, Laura, 505 Jaramillo-Vallejo, Jaime, 769 Jayachandran, Seema, 662, 682 Jeejeebhoy, Shireen J., 309 Jefferis, K., 721 Jensen, Robert, 306 Jimenez, Emmanuel, 412 John Paul II, 123 Johnson, Harry, 127 Johnson, Nancy L., 460 Johnson, Simon, 39, 86, 105, 106, 107, 251, 255, 682, 719, 721 Jolis, Alan, 767 Jolly, Richard, 647 Jones, Leroy, 772 Jovanovic, Boyan, 769 Juncker, Jean-Claude, 671 Kambou, Gerard, 414 Kanbur, S M Ravi, 260, 261, 410, 461 Kang, David, 679 791 Kangasniemi, Mari, 103 Karlan, Dean, 725, 744 Katz, Elizabeth, 461 Kaul, Inge, 509, 560 Kavoussi, Rostam M., 636 Keesing, Donald B., 629, 634 Kellard, Neil, 574, 632 Kelley, Allen, 309 Kennedy, Eileen T., 457 Kennedy, Richard M., 772 Keyfitz, Nathan, 528, 558 Khalily, Baqui, 555, 770 Khama, Seretse, 718, 721 Khan, Haider Ali, 629 Khan, Mahmood, 461 Khan, Mohsin, 190, 194 Khan, Zahed, 767, 770 Khandker, Shahidur, 555, 767, 770 Khatkhata, D R., 771 Kikeri, Sunita, 772 Killick, Tony, 558, 724, 772 Kim, L., 679 Kim, Yongbeom, 149 Kinder, Molly, 415 King, Robert G., 769 King, Timothy, 309 Kinsey, Bill, 726 Kirkpatrick, Colin, 634, 635 Klasen, Stephan, 412 Klitgaard, Robert, 558, 772 Kocenda, Evzen, 772 Korten, David, 723 Kraay, Aart, 260, 632 Kramar, Ralph, 560 Kremer, Michael, 176, 180, 199, 200, 271, 306, 365, 397, 414, 456, 457, 662, 682, 725 Krishnamurti, J., 726 Krueger, Anne, 127, 559, 635, 647 Krugman, Paul, 35, 165, 190, 194, 197, 198, 199, 325, 352, 633, 635, 723 Kumar, Manmohan, 723 Kuznets, Simon, 121, 137, 224, 308, 417, 459 Kwak, James, 682 Kwak, Sungil, 460, Kwon, Jene, 558, 635 La Porta, Rafael, 107, 256 La Ferrara, Eliana, 255 Laffont, Jean-Jacques, 139 Laidler, Nathalie, 555 Lal, Deepak, 127, 559, 636 Lall, Sanjaya, 615, 616, 636, 677, 679, 683 Lamboray, Jean-Louis, 414 Landes, David, 102, 107 www.downloadslide.net 792 NAME INDEX Langer, Arnim 253, 256 Lau, Lawrence J., 194 Laurens, Bernard J., 770 Lavy, Victor, 410 Layard, Richard, 19, 20 Lee, Haeduck, 102, 261 Lee, Thea, 137, 632 Lele, S A., 507 Lessard, Donald R., 639, 681 Levine, Ross, 96, 102, 107, 149, 256, 769, 771 Levine, Ruth, 397, 414, 415 Levy, Santiago, 404, 405, 407 Lewellen, Ted C., 138 Lewis, Jeffrey D., 557 Lewis, John P., 647 Lewis, Maureen A., 414 Lewis, Stephen R., 721 Lewis, W Arthur, 22, 36, 115, 330, 636 Leys, Colin, 138 Li, Guo, 462, 463 Li, Hongbin, 412 Li, Quan, 725 Lin, Justin, 105, 194 Linden, Leigh, 384, 725 Lipton, David, 761 Little, Ian M D., 127, 138, 558, 635 Logan, Rayford, 505 Long, Cheryl, 321 Lopez, Ramon E., 508 Lopez, de Silanes, 256 Lopez–Calva, Luis, 107 Lorenz, Max Otto, 258 Losch, August, 323 Lovell, Catherine H., 555 Lu, D., 194 Lucas, Robert B., 154 Lucas, Robert E B., 336, 349, 350, 353 Luedde-Neurath, Richard, 676, 677 Lula da Silva, Luiz, 32, 33, 679 Lundahl, Mats, 505 Lustig, Nora, 107, 243, 261, 422, 460 Lutz, Matthias, 632 Maathai, Wangari, 457 MacLean, Lauren Morris, 256 Maddison, David, 480 Madsen, Jakob, 574, 632 Maizels, Alfred, 632 Mäler, Karl-Göran, 508 Malik, Arun, 509 Malthus, Reverend Thomas, 281 Mankiw, N Gregory, 149, 769 Manning, Chris, 463 Manor, James, 728 Mansuri, Ghazala, 717, 728, 770 Marchione, Thomas, 726 Marcus, Noland, 697 Marek, Tonia, 410 Maret-Rakotondrazaka, Fenohasina, 410 Marglin, Stephen, 558 Mari, Bhat P N., 306 Marshall, Alfred, 318, 422 Marshall, Monty G., 725 Martinez, Samuel, 506 Masciandro, D., 769 Maskin, Eric, 200 Mason, Andrew, 259 Massey, Douglas, 103 Mathews, John A., 629, 679 Matibag, Euginio, 506 Matin, Imran, 555 Mauldin, W Parker, 308 Max, Emmanuel, 414 Mazumdar, Deepak, 349, 350 McCarthy, F Desmond, 103, 414 McCormick, Dorothy, 321, 352 McDermott, John, 104 McElroy, Marjorie, 307 McGuire, William, 320 McIntosh, Craig, 407 McKay, Andrew, 260 McKinnon, Ronald I., 771 McLeod, Darryl, 243, 261 McMillan, Della, 455 McNamara, Robert, 315, 646 McNicoll, Geoffrey, 309 Mead, Donald C., 353 Megginson, William L., 199, 761, 772 Mehra, Rekha, 454, 457 Mekonnen, Hailu, 458 Mellinger, Andrew D., 102 Mellor, John, 459 Meng, Lingshen, 412 Menon, Rekha, 410, Messer, Ellen, 726 Michener, Victoria, 551, 561 Miguel, Edward, 364, 365, 725, 726, 727, 728 Milanovic, Branko, 83 Mill, John Stuart, 576 Miller, G Tyler, 509 Milner, Chris, 635 Mincer, Jacob, 410 Minot, Nicholas, 634 Miracle, Marvin P., 462 Miranda, Jorge, 635 Mirrlees, James, 558 Mobarak, Ahmed, 539, 559 Mody, Ashok, 190, 194 www.downloadslide.net NAME INDEX Momsen, Janet, 261 Montiel, Peter, 769 Mookherjee, Dilip, 771 Moran, Theodore H., 723 Morduch, Jonathan, 740, 766, 767, 770 Morris, Cynthia T., 108 Morrison, Andrew R., 354 Morrison, Christian, 353 Moses, Leon, 323 Murdoch, James C., 727 Murphy, Kevin, 165, 197 Murthi, Mamta, 305, 306 Mushkin, Selma, 409 Mwabu, Germano, 455 Myint, Hla, 585 Myrdal, Gunnar, 35, 58, 101, 429, 430, 461, 464 Nadvi, Khalid, 319, 321, 352, 635 Naqvi, S N H., 35, 154 Nashashibi, Karim, 636 Naude, W., 726 Nellis, John, 772 Netter, Jeffry M., 199, 761, 772 Neumayer, Eric, 414, 725 Newbery, David N., 771 Newman, Andrew, 199, 259 North, Douglass, 84, 104, 105, 139, 156, 559, 727 Norton, George W., 725 Nugent, Jeffrey, 105 Nurkse, Ragnar, 137 O’Brien, Karen, 480 O’Connell, Stephen A., 635 O’Sullivan, Arthur, 352 Oates, Wallace E., 509 Oberai, A S., 349, 350 Ocampo, José Antonio, 633, 658, 682 Odell, John, 634 Ohlin, Bertil, 576 Olewiler, N., 509 Ollson, Ola, 105 Olsen, Mancur, 559 Omran, Mohammed, 772 Onis, Ziya, 138 Ortiz, Guillermo, 769 Ortiz, Jaime, 725 Osbahr, Henry, 480 Osmani, S R., 767 Oster, Emily, 413 Ostrom, Elinor, 485, 509, 512, 557, 560 Ostrom, Vincent, 560 Otsuka, Keijiro, 460, 461 Over, Mead, 414 Owusu-Yeboah, Mark, 256 Ozler, Berk, 407 Pack, Howard, 198, 629, 636, 676, 679, 680 Paglin, Morton, 258 Paney, A., 307 Papps, Ivy, 558 Pardey, Phillip G., 725 Parente, Stephen, 137 Park, Hong-Jae, 678, 679 Park, Yung Chal, 769 Parker, Susan W., 407 Paternostro, Stefano, 198 Patrick, Hugh, 730, 768 Patrinos, Harry A., 102, 261 Paxson, Christina, 462 Payer, Cheryl, 653, 682 Pearce, David W., 507, 557 Pearce, Robert D., 723 Pender, John, 462 Perotti, Roberto, 260 Perrin, Nicolas, 480, 509 Persson, Torsten, 109, 259, 413 Petri, Peter, 680 Peutz, Detlev, 410 Picard, Louis A., 721 Pillai, V K., 307 Pingali, Prabhu, 459, 463 Piore, Michael, 352 Pishke, Jorn-Steffen, 88 Pitt, Mark, 767 Plateau, Jean Philipe, 509 Pleskovic, Boris, 260 Pollitt, Fonesto, 410 Ponzetto, Giacomo, 107 Pool, John C., 653, 681 Porter, Michael, 136, 318, 352, 584, 633, 680, 721 Portes, Alejandro, 138 Powell, Robert, 728 Prabirjit, Sarkar, 632 Prasad, Pradhan, 349, 350 Prebisch, Raul, 632 Pritchett, Lant H., 78, 101, 307, 309 Psacharopoulos, George, 241, 261, 366, 368, 410, 412 Pugh, Cedric, 354 Pursell, Gary, 676, 680 Pyatt, Graham F., 557 Qian, Yingyi, 192, 194 Qizilbash, Mozaffar, 35 Quelch, John, 555 Querubin, Pablo, 106, 461 793 www.downloadslide.net 794 NAME INDEX Rajapatirana, Sarath, 636 Rakowski, Cathy A., 353 Ram, Rati, 410, 632 Ranis, Gustav, 115 Rao, J Mohan, 724 Rao, Vijayendra, 717, 728 Ravallion, Martin, 102, 189, 194, 260, Rawls, John, 221 Rawski, Thomas, 195 Ray, Debraj, 196, 198, 260 Raymond, Susan, 560 Rees, Albert, 410 Reinhart, Carmen M., 632, 666, 682 Remedio, Elizabeth M., 508 Renaud, Bertrand, 352 Reynolds, Erika, 720, 721 Reynoso, Alejandro, 769 Rhee, Yung-Whee, 676, 677, 680 Rhyne, Elisabeth H., 770 Ricardo, David, 576 Rich, Bruce, 647 Rioja, Felix, 769 Robano, Virginia, 555 Robinson, James A., 85, 86, 103, 105, 106, 107, 108, 251, 411, 559, 719, 721 Robinson, Joan, 730, 768 Robinson, Jonathan, 456 Robinson, Marguerite, 770 Robinson, Sherman, 137, 261, 557, 629, 636 Roc, Nancy, 506 Rodriguez-Clare, Andres, 197, Rodrik, Dani, 29, 90, 103, 105, 106, 108, 136, 139, 181, 182, 197, 200, 256, 260, 531, 559, 614, 616, 632, 634, 635, 636, 682, 723 Rogoff, Kenneth, 666, 682 Roland, Gerald, 194, 195, Romer, David, 108, 149, 769 Romer, Paul, 72, 103, 152, 154, 162, 170, 195, 560 Rose-Ackerman, Susan, 558 Rosenstein-Rodan, Paul, 164, 165, 197 Rosenstrater, Lynn, 480 Rosenzweig, Mark, 462 Ross, David, 260 Ross-Larson, Bruce, 629, 676, 679, 680 Rothbaum, Jonathan, 509 Rostow, Walt W., 111, 133, 134, 135 Roubini, Nouriel, 769 Rousset, Dilma, 33 Rozelle, Scott, 462, 463 Ruan, Jianqing, 321 Rutherford Stuart, 740 Ruthven, Orlanda, 740 Ruttan, Vernon, 460, 463 Ryan, Stephen, 545 Sab, Randa, 409 Sabel, Charles, 352 Sabot, Richard H., 260 Sacerdote, Bruce, 107 Sachs, Carolyn, 461 Sachs, Jeffrey D., 101, 102, 103, 105, 414, 632, 723, 761 Sack, Alexander, 661 Sadoulet, Elizabeth, 460, 461, 462 Sahn, David, 458 Saith, Ashwani, 260 Saito, Katrin, 458 Sala-i-Martin, Xavier, 153, 154, 193, 769, Salamon, Lester M., 561 Salehi-Isfahani, Djavad, 354 Saltz, Ira S., 724 Samad, Hussain A., 767 Samuelson, Paul A., 633 Sananikone, Ousa, 629 Sanders, Richard D., 350 Sandler, Todd, 727 Sangraula, Prem, 260 Santos, Maria Emma, 259 Sardana, M G., 349 Satyanath, Shanker, 727 Savvides, Andreas, 634, 682 Schady, Norbert, 670, 683 Schelling, Thomas C., 375 Schiavo-Campo, S., 557 Schiff, Maurice, 410 Schmitz, Hubert, 321, 352, 634, 635 Schott, Jeffrey, 661 Schultz, T Paul, 407, 414 Scitovsky, Tibor, 635 Scott, Maurice, 635 Sczepanik, E F., 460 Segal, Sheldon, 308 Seers, Dudley, 15, 35 Segalotto, Jean-Francois, 770 Sen, Amartya K., 16-20, 35, 98, 138, 190, 258, 261, 303, 304, 306, 307, 368, 375, 410, 412, 558, 559, 719, 721 Sengupta, Piyali, 407 Sercovich, Francisco Colman, 33 Sergente, Ernest, 727 Shaban, Radwan Ali, 443, 463 Shapiro, Carl, 196, 557 Sharma, Anand, 683 Shaw, Edward S., 771 Shell-Duncan, Bettina, 412 Shepard, Donald S., 414 Shilpi, Forhad, 157, 196 Shinn, David, 683 Shirley, Mary, 772 Shleifer, Andrei, 107, 165, 197, 256 www.downloadslide.net NAME INDEX Siddiqi, Faraz, 33 Siermann, Clemens, 539, 559 Singer, Hans W., 138, 632 Singh, Ajit, 138, 558, 633, 771 Singh, Inderjit, 767 Singh, Manmohan, 633 Singh, Nirvikar, 463 Siphambe, H., 721 Skoufias, Emmanuel, 406, 407 Slemrod, Joel, 756, 771 Smarzynska, Beata, 694 Smillie, Ian, 554, 555, 556, 561 Smith, Adam, 7, 157, 565, 585, 731 Smith, Bruce, 354 Smith, Jason M., 726 Smith, Robert, 410 Smith, Stephen C., 36, 149, 195, 409, 460, 509, 555, 634, 723, 761, 770 Sock, Donald, 550, 561 Soedjatmoko, 13, 35, 36 Soemardjan, Selo, 35 Sokoloff, Kenneth, 85, 87, 88, 105, 106, 107, 460 Solow, Robert, 128, 147, 149, 154 Sommer, Martin, 770 Spence, Michael, 531 Speth, James, 261 Spiegel, Shari, 658, 682 Spolare, Enrico, 102 Spurling, Daphne, 458 Squire, Lyn, 410 Stamos, Steve, 681 Stampini, Marco, 407 Stark, Oded, 104, 349, 350, 353 Staudt, Kathleen, 456, 458 Stecklov, Guy, 407 Stedman, Stephen J., 721 Stein, Howard, 682 Stern, Joseph, 678, 680 Stern, Marc A., 509 Stern, Lord Nicholas, 153, 509, 510, 527, 559, 771 Stewart, Frances, 253, 256, 558, 636, 647, 681, 682, 712, 715, 726, 727 Stiglitz, Joseph, 20, 187, 196, 198, 200, 461, 462, 463, 557, 558, 636, 680, 771 Strauss, John, 400, 401, 415 Strauss-Kahn, Dominique, 671 Streeten, Paul P., 35, 138, 261, 354, 634, 682 Strout, Alan M., 724 Subramanian, Arvind, 105 Subramanian, Shankar, 410 Suh, Sang-Mok, 678, 679 Summers, Lawrence, 99, 108 Sunil, T S., 307 Svedberg, Peter, 412 Svejnar, Jan, 723, 772 Syrquin, Moshe, 137, 629 Tabellini, Guido, 199, 259, 769 Tansel, Aysit, 256, 414 Tanzi, Vito, 751, 771 Taylor, Lance, 138, 507, 557, 647, 682 Teal, Francis, 354 Teegen, Hildy, 36, 560, 724 Teitelbaum, Michael, 309 Temple, Jonathan, 138, 154 Teubal, M., 679 Thaicaronen, Yunyong, 106 Theisen, Ole Mangus, 727 Thomas, David S G., 480 Thomas, Duncan, 377, 400, 401, 412, 415 Thomas, John W., 138 Thomas, Plumper, 725 Thomas, Vinod, 108, 412 Thorbecke, Erik, 258, 557, 628, 630, 677, 680 Thurow, Lester, 195 Tiebout, Charles M., 560 Tietenberg, Tom, 509 Timmer, C P., 459 Tingsong, Jiang, 137, 193, 195 Tinker, Irene, 261 Todaro, Michael P., 350, 351, 354, 412, 557, 558 Todd, Petra, 407 Torres, Sebastian, 86, 505 Toye, John, 138 Trebbi, Francesco, 105 Tsikata, Fui, 256 Turnham, David, 354 Twyman, Chasca, 480 Udry, Christopher, 198, 308, 444, 446, 461, 463 Ugelo, Judith, 506 Uphoff, Norman, 550, 561 Urdal, Henrik, 727 Valdes, Alberto, 410 Valdivia, Martin, 725, 744 Valev, Neven, 769 Van Arkadie, Brian, 463 Vandemoortale, Jan, 36 Vanga, Adja, 256 Varian, Hal, 196, 557 Velasco, Andres, 29, 139, 182, 200 Venables, Anthony J., 199, 352, 637 Verner, Dorte, 138, 256 Verwimp, Phillip, 726 Vieth, Warren, 634 Villanueva, Delano, 770 Vining, Aidan R., 560 795 www.downloadslide.net 796 NAME INDEX Vishny, Robert, 165, 197 Vishwanath, Tara, 341, 354 Vodopevic, Milan, 761 Vogel, Ezra, 195 Von Amsberg, Joachim, 510 Von Braum, Joachim, 410, 458, 597, 634, Von Hayek, Friedrich, 559 Von Pishke, J D., 769 Wacziarg, Romain, 588, 633 Wade, Robert, 626, 627, 634, 636, Wahed, Abu N M., 767 Walter, Barbara F., 728 Walter, Ingo, 506 Wan, Henry, 628, 630, 677, 680 Wang, Fang-Yi, 190, 194 Wang, M., 726 Wang, Shenlin, 137 Wang, Yan, 412 Wang, Yun-Shi, 195 Warford, Jeremy J., 507 Warner, Andrew, 723 Warner, James, 462 Waterston, Albert, 558 Watkins, Kevin, 597, 634 Webb, Patrick, 410 Weber, Alfred, 323 Wei, Shang-Jin, 307 Weibull, Jorgen, 163 Weijland, Hermine, 321 Weil, David N., 149 Weimar, David L., 560 Weitz, Raanan, 462 Weitzman, Martin L., 195 Wen, Ming, 725 Westphal, Larry E., 198, 629, 636, 676, 679, 680 White, Gordon, 199, 680 White, Howard, 256 White, Laurence, 769 White, Sarah, 550, 561 Wickham, Peter, 632 Wik, Mette, 459 Willem te Velde, Dirk, 682 Williams, Heidi, 414 Williamson, Jeffrey G., 352, 727 Williamson, John, 558, 639, 681 Williamson, Oliver, 139 Winters, L Alan, 103 Wodon, Quentin, 461 Wohar, Mark, 574, 632 Woessman, Ludger, 138 Wolf, Holger, 103, 414 Wolf, Martin, 35, 642 Wolfensohn, James D., 646 Wolpin, Kenneth, 407 Woo, Wing Thye, 191, 195 Woodall, Pam, 108 Wu, Yi, 103, 414 Xu, Chenggang, 195 Yaghamian, Behzad, 635 Yamey, Basil, 725 Yang, Dennis Tao, 307 Yang, Jin, 137 Yared, Pierre, 107 Yellen, Janet K., 354 Yezer, Anthony, 352 Yimam, Arega, 256 Yiping, Huang, 137, 193, 195 Yokota, Kazuhiko, 137 Yoo, Chul Gyne, 678, 679 Young, Alwyn, 190, 195 Young, Linda Wilcox, 462 Yunus, Muhammad, 565, 632, 763, 766, 767 Yusuf, Shahid, 33 Zavier, Francis, 305 Zedong, Mao, 303 Zee, Howell H., 751, 771 Zeira, Joseph, 175, 196, 199, 259 Zervos, Sara, 769 Zhang, Xiaobo, 137, 307, 320, 321 Zhou, Ning, 195 Zhu, Xiaodong R., 194 Zhu, Yunwei, 320 Zimmerman, Frederick J., 462 www.downloadslide.net Subject Index Absolute poverty, 2, 6, 61–63 Extent and magnitude, 229–241 And growth, 232–235 Measurement, 211–219 Minorities and indigenous, 240–241 Policies for poverty alleviation, 241–249 Rural, 236–237 Women and poverty, 237–240 See also Child labor, Foster-Greer-Thorbecke index, Headcount ratio, Human poverty index, Poverty gap Acquired immune deficiency syndrome (AIDS), 393–396 Age structure (of population), 276–278 Agglomeration economies, 314, 318–322 Agrarian systems, 423–437 Agriculture, 416–452 Agricultural policies, 447–452 Commercial, transition to, 444–447 Extension, 449, 452, 453–457 Green Revolution, 419–421 Growth and productivity of, 419–422 Market failure in, 422–423 And risk aversion, 438–444 Sharecropping, 442–444 Subsistence, 432–433, 438–442 Ahluwalia-Chenery welfare index, 219, 265–268 Aid See Development assistance AK model See Harrod-Domar growth model Appropriate technology, 262–264 Argentina, 133–136 Asymmetric information, 171 Autarky, 618 Autocracy, 535, 537–539 Azerbaijan, 19 Balance of payments, 639–641, 642–644, 648–649 Bangladesh, 19, 48–49, 94–99, 763–767 Banking systems, 730–734 Benefit-cost analysis See Project appraisal Bhutan, 19, 35 Big push model, 163–172 Birthrate, crude, 63–64, 275 Botswana, 349–350, 718–721 BRAC, 552–556 Brady plan, 657, 660 Brain drain, 386 Brazil, 28–33, 185 BRICs, 28 Capabilities to function, 16–19 Capital accumulation, 140–141 Central banking, 734–737 Child labor, 368–373 Chile, 760–761 China, 43, 52–53, 55, 78, 79, 120, 189–195, 303–305, 320 Choice of technique, 262–264 Cities, role of, 318–323, 344–346 Civil society, 98, 539–546 Civil war See Conflict and development Climate See Geography Climate change, 476–480 And adaptation, 479–480 And mitigation, 478–479 Clusters See industrial districts Coefficient of variation, 210 Colombia, 19 Colonialism, 69–70, 85–89, 503–504 Commodity terms of trade See Terms of trade Common property resources, 483–486, 540–541 Comparative advantage, 575–580 Complementarities, 156–157, 158, 161, 174, 176, 179, 180 Conditional cash transfers, 371, 404–406 Conditionality, 641, 645, 655 Conflict and development, 708–717 Congestion, 492–493 Congo, Democratic Republic, 37, 45, 46, 47, 68, 79, 87 Contract enforcement, 84, 90, 91, 528, 529, 536 Convergence, international income, 78–83 Coordination failure, 156–159, 375 Corruption, 546–547 Cost-benefit analysis See Project appraisal Costa Rica, 38, 50 Côte d’Ivoire 250–255 797 www.downloadslide.net 798 SUBJECT INDEX Death rate, 275, 276 Debt crisis, 650–661, 662–664 Debt-for-equity swap, 659 Debt-for-nature swap, 499 Debt relief, 499, 656–658 Decentralization, 547–548 Deficits, balance of payments, 644–645, 647–649 Deforestation, 475–476 Democracy, 90, 534–539 Demographic transition, 278–281 Dependence, international, 70–71, 122–126, 134–135 Dependency burden, 276 Depreciation (of currency), 609 Devaluation, 609, 651, 655, 659 Developing countries definitions, 5, 7, 38–41 Developing world See Developing countries Development, defined, 23 Development assistance, 697–708 Development banking, 738 Development economics, defined, 7–14 Development participation, 549–551, 716–717 Development planning, 512–526 Deworming, 364–365 Direct foreign investment See Multinational corporations Disability-adjusted life year, 388 Disease burden, 390–399 Distribution of income, 10 Dominican Republic, 185 Dualistic development thesis, 124–125 Economic growth See Growth, economic; and growth models, Economic institutions See institutions Economic planning See Development planning Education and development, 95, 377–386, 545 Benefit-cost analysis, 366–367, 379–481, 410–411 Distribution, 381–385 Education and health, linkages, 361–362 See also Human capital Educational gender gap, 373–374 Effective rate of protection See Protection, effective rate of Elasticity of substitution, 264 El Salvador, 185 Emerging markets, terminology, 41 Employee ownership, in privatization, 758–761 Endogenous growth, 151–154, 162 Environment and development, 31–32, 465–501 Economic models, 481–488 Environmental accounting, 467–468 Environmental degradation, 472–476 Environmental Kuznets curve, 469–470, 489–490 Environmental policy, 478–480, 496–501, 504–505 Global warming and climate change, 471, 476–480 Natural-resources-based livelihoods, 471–472 And population, 468 And poverty, 469 And rural development, 470, 493–496 And urban development, 470–471, 488–493 Ethnicity and development, 218, 240–241 Exchange rates, 607–611 Export earning instability, 572–573 Export promotion, 593–599 Exports, manufactures, 573–575, 597–599 Exports, primary, 571–575 Externality, 481, 486, 490–493 Factor endowment trade theory See Neoclassical trade model Factor price distortions, 263–264 False paradigm model, 124 Family planning programs, 290, 299, 300 Female genital mutilation/cutting, 374–375 Fertility, 275–281 Microeconomic theory of, 285–290 Finance See Financial system Financial crisis, 664–674 Financial repression, 746–747 Financial system, 730–734 Informal, 739–740 Liberalization, 746–747 Microfinance institutions, 740, 741–745, 763–767 Role of, 730–731, 746–747 See also Development banking, Stock markets First city bias, 325 Fiscal policy, 751–756 Food-for-work program See Workfare Foreign aid See Development assistance Foreign direct investment See Multinational corporations Foreign exchange, 607–611 Foster-Greer-Thorbecke poverty index, 214–215 Fractionalization, 64–65 Free trade, 576–581 Functional distribution of income, 210–211 Functionings, 16–18 General agreement on tariffs and trade (GATT), 566 Geography, role of, 67–68, 72–73, 83, 503 Ghana, 250–255, 446 Gini coefficient (of income inequality), 208–210, 224–225, 228–229 Gini coefficient of educational inequality, 382–383 Gini coefficient of land inequality, 426–428 Global public goods, 486–487 Global warming, see climate change Globalization, 563–567 See also International trade, Multinational corporations www.downloadslide.net SUBJECT INDEX Government, role of, 481, 486, 490–493, 747–749 See also Public goods, Market failure, Development planning, Government failure, 524–526 See also Neoclassical counterrevolution Grameen Bank, 763–767 Growth, economic, 76, 78–87, 110–114, 115–120, 128–129, 140–154 Components of, 140–145 And the environment, 469–470 And inequality See Inequality and growth And poverty See Absolute poverty and growth Growth diagnostics, 182–185 Growth models, 112–114, 128–129, 146–154 Guatemala, 52 Haiti, 502–505 Happiness, and development, 19–20 Harris-Todaro model, 340–341 Harrod-Domar growth model, 112–115, 151, 282, 517–519, 702–704 Headcount index, 212 Headcount ratio measure of poverty See Headcount index Health and development, 386–403 Education and health, linkages, 361–362 And productivity, 399–403 See also Human capital Heckscher-Ohlin trade theory See Neoclassical trade model Hidden momentum of population growth, 277–278 Human capital, 59–61, 359–361, 365–368 Education and health as investments, 361–362 Human development index, new, 54–56 Human development index, traditional, 47–54 Human immunodeficiency virus (HIV) See Acquired immune deficiency syndrome Human poverty index, 215, 258–259 Import substitution, 599–607 Income distribution See Distribution of income Income inequality See Inequality, income India, 19, 37, 46, 47, 68, 305–306, 347–349 Indigenous peoples, 218, 240–241 Indonesia, 19 Industrial districts, 318–322 Industrialization, 65–67 See also Big push model, Industrial policy Industrial policy, 613–617, 626–627, 675–678 See also International trade, and industrialization Inequality, 204–210, 219–230 Country data, 31 Educational, 373–374, 382–383 And growth, 220–221 Income, 204–210 799 Measurement, 204–210 Land holdings, 426–429 Infant industry protection, 600–602 Informal finance See Finance, informal Informal sector, 327–334 Input-output models, 519 Institutions, 77, 84–85, 503–504 Integrated rural development See Rural development Interindustry models See Input-output models Interlocking factor markets, 442–444 International Bank for Reconstruction and Development See World Bank International commodity agreements, 596 International dependence See Dependence, international International Food Policy Research Institute (IFPRI), 232, 419, 454 International Monetary Fund (IMF), 641–643, 737, 751 International trade, 567–623 Free trade, 576–581 And industrialization, 613–617 Infant industry, 599–602 Neoclassical trade model, 576–582 North-South models of, 617–619 Policies, 613–623 Theory for, 575–593 Trade optimism, 612–613 Trade pessimism, 611–612 Vent-for-surplus theory of, 585–586 Intergovernmental Panel on Climate Change (IPCC), 476, 477 Inverted-U hypothesis See Kuznets’ inverted-U hypothesis Kenya, 50, 218, 316, 453–457 Kerela, 305–306 Korea, South See South Korea Kuznets’ inverted-U hypothesis, 224–228 Labor force growth, 141–142 Land reform, 31, Latifundio-minifundio pattern, 426–428 Least developed countries, 39 Lewis (two-sector) model, Linkages, 173–174 Lorenz curves, educational, 382–383 Lorenz curves, income, 206–210, 221–224 Lorenz curves, land, 426–427 Macroeconomic stabilization, 641, 642, 654–659 Malaria, 396–397 Malnutrition, 360, 390–392 Malthusian population trap, 281–285 Manufactured exports, 573–575, 597–599 Market economy, 528–530 www.downloadslide.net 800 SUBJECT INDEX Market failure, 68–69, 422–423, 514–515, 588–589 Market friendly approach, 127–128 Market fundamentalism, 126–128 Marshall Plan, 111, 114 Meltzer Commission See International Financial Institutions Advisory Commission Mexico, 404–406, 659–661 Microeconomic theory of fertility, 285–290 Microfinance, 740, 741–745, 763–767 Migration, domestic, 316–318, 334–344, 386 Migration, international, 73–75 Military, 97–98 Millennium Development Goals, 23–25, 36 Minifundio See Latifundio-minifundio pattern Missing women problem, 375–377 Modern sector enlargement growth, 221–223 Modern sector enrichment growth, 221–223 Multidimensional Poverty Index (MPI), 215–219 Multifiber Arrangement (MFA), 598 Multinational corporations, 685–694 Multiple equilibria, 159–163, 174–175 Multisector models, 519–520 Namibia, 37 Neglected tropical diseases, 397–399 Net present value, 366–367, 520–523 Neoclassical counterrevolution, 126–128, 526–528 Neoclassical growth model, 128–129, 147–149, 294–295 Neoclassical price incentive model See price incentive model Neoclassical trade model, 576–582 Neocolonial dependence model, 122–124 New growth theory See Endogenous growth Nominal rate of protection, 604 Nongovernmental organizations (NGOs), 539–546, 552–556, 706 Norms, role of, 163, 173 North-South models of international trade, 583–584 Nutrition See Malnutrition Odious debt, 661–662 Official development assistance See Development assistance Opportunidades program See Progresa O-ring theory of economic development, 176–180 Overvaluation (of exchange rates), 602–609 Pakistan, 94–99 Parasitic worms, 364–365, 390–391, 397–399 Participation See Development participation Path dependency, 536–537 Patterns of development analysis, 120–122, 133, 135, 588, 730 Pecuniary externalities, 164, 170, 172 Personal income distribution See Size distribution of income Philippines, 317 Planning See Development planning Poland, 760–761 Policy formulation, 533–536 Political economy, 377–379, 533–539 Pollution tax, 478, 490–491 Population and development, 63, 64, 73, 278–281, 290–298 Age structure, 276, 281–282 Population policy, 298–302, 303–306 Population distribution, 273–275 Population growth, 270–273, 275–276 Population momentum See Hidden momentum of population growth Population pyramids, 277–278 Portfolio investment (international), 694–695 Positive assortative matching, 177 Poverty See Absolute poverty Poverty gap, 212–213 See also Absolute poverty Prebisch-Singer hypothesis, 573–574 Price incentive model, 262–264 Prisoner’s dilemma, 159, 163 Privatization, 472, 758–761 Production possibility curve, 141–145 PROGRESA program, 404–407 Project appraisal, 520–523 Property rights, 68, 84, 85, 482–483 Protection, effective rate of, 604–605 Protection, nominal, 600–606 Public administration, 761–762 Public choice theory, 127–128 Public goods and bads, 486–489, 540–541 Punctuality, as equilibrium, 163 Purchasing power parity, 44–45, 101 Quotas, 604–605 Rainforests, 493–496, 499–500 Redistribution of income and wealth, 244–246 Remittances, 695–697 Rents, 481–482 Research and development, 76–77 Resource endowment, 67–68 Romer endogenous growth model, 152–154 Rostow’s stages of growth model See Stages of growth Rotating savings and credit associations (ROSCAs), 739–740 Rural development, 417, 447–452 Rural-urban migration, 316–318, 334–344, 386 Rwanda, 50 www.downloadslide.net SUBJECT INDEX Scientific capacity See Technological progress Self-discovery, economic development as, 180–181 Sharecropping, 430, 431, 442–444 Skills, 176–179 Size distribution of income, 204–206 Social accounting matrix (SAM), 520–521 Social fractionalization, 64–65 Social inclusion, 32 Solow growth model See Neoclassical growth model South Korea, 133–136, 675–679 Stabilization See Macroeconomic stabilization Stages of (economic) growth, 111, 133–135 State-owned enterprises (SOEs), 756–761 Stock markets, 749–751 Structural adjustment programs, 645, 646 Structural change theory, 115, 120 Structural patterns See Patterns of development Subsistence farming See Agriculture Sustainable development See Environment and development Taiwan, 624–629 Tanzania, 19, 121 Tariffs, 566, 570, 587, 589, 594, 596, 598, 599, 600–602, 603–607 Faced by the poor, 622 Taxation, 245–246, 751–756 Technological externalities, 151–154, 319, 320 Technological progress, 77, 142–145 Terms of trade, 573–574 Todaro migration model, 337–344 Trade See International trade Traditional sector enrichment growth, 221–223 Transfer pricing, 690–691 Turkey, 19 Two gap models, 702–704 Uganda, 395–396 Unitary household model, 436–437 801 United Nations, 39, 62, 69, 269, 301, 311, 316, 472, 498, 575, 587, 798 United Nations, Millennium Declaration, 23–24 United Nations Conference on Trade and Development (UNCTAD), 596 United Nations Development Program, 23, 24, 39, 47, 54, 215, 216, 249, 330, 479, 502, 504, 598, 622 United Nations’ Food and Agriculture Organization (FAO), 456 United Nations-Habitat, 330, 353 United Nations Population Division, 272, 314 Urban bias, 315, 325, 330, 342, 344 Urban giantism, 323–327 Urban informal sector, 321, 327–334, 347, 348, 349 Urbanization, 312–318 Urban scale, 322–323 Values, in development, 12–13 Venezuela, 366 Vent-for-surplus theory of international trade, 584–586 Voices of the poor, 361 Voluntary failure, 544–545 Voting patterns, 534–535, 559 Washington consensus, 530–532 Where-to-meet dilemma, 159 Women and development, 22, 286–290, 292, 300, 333–334, 433–437 Gender equity, 373–377 Missing women, 375–377 Women and agriculture, 433–437 Women and health, 300 Workfare, 246–247 World Bank, 423, 456, 645–647 World Trade Organization (WTO), 565, 566, 569, 592, 598, 616–617, 620 Zimbabwe, 19 www.downloadslide.net The Developed and Developing World Income GNI per capita, World Bank Atlas method, 2007 Greenland (Den) Low-income countries ($935 or less) Faeroe Islands (Den) Lower-middle-income countries ($936–$3,705) Iceland Upper-middle-income countries ($3,706–$11,455) Norway The Netherlands High-income countries ($11,456 or more) C a n a d a no data United Kingdom Isle of Man (UK) Denmark Ireland German Belgium Channel Islands (UK) Aus France Switzerland Italy Luxembourg Liechtenstein Andorra U n i t e d S t a t e s Monaco British Virgin Islands (UK) Mexico Cayman Islands (UK) Belize The Bahamas Dominican Republic Puerto Cuba Rico (US) Jamaica Antigua and Barbuda Cape Verde Guadeloupe (Fr) Dominica Martinique (Fr) St Lucia Suriname B r a z i l Uruguay Chile Argentina Source: Data from Atlas of Global Development, 2nd ed., pp 10–11 © Collins Bartholomew Ltd., 2010 Mali Guinea Sierra Leone Niger Liberia Burkina Faso Benin Côte Ghana d'Ivoire Togo Brazil $5,910 Nigeria Camero Equatorial G São Tomé and Príncipe French Polynesia (Fr) Paraguay Mauritania Guinea-Bissau Ecuador Bolivia Algeria Former Spanish Sahara The Gambia Barbados Peru Tunisia Morocco Senegal St Vincent and the Grenadines Trinidad and Tobago Grenada R.B de French Guiana Venezuela Guyana (Fr) Colombia Netherlands Antilles (Neth) Latin America & Caribbean $5,540 St Kitts and Nevis Haiti Guatemala Honduras Aruba (Neth) El Salvador Nicaragua Panama Costa Rica Kiribati Middle East & North Africa $2,794 US Virgin Islands (US) Spain Portugal Gibraltar (UK) Bermuda (UK) Gabo www.downloadslide.net Russian Federation $7,560 Europe & Central Asia $6,051 Sweden Finland y R u s s i a n F e d e r a t i o n Estonia Latvia Lithuania ark Czech Republic Slovak Republic Slovenia Croatia Ukraine Kazakhstan Serbia Austria Hungary Moldova Bosnia and Herzegovina Mongolia nd Romania FYR Macedonia aly Montenegro Bulgaria Uzbekistan Georgia Kyrgyz Republic Albania Armenia Azerbaijan Greece Turkmenistan Turkey Tajikistan Cyprus San Syrian Marino Islamic Republic isia Lebanon Arab Rep of Iran Afghanistan C h i Malta Iraq Israel Kuwait Jordan Pakistan West Bank and Gaza Nepal Bhutan Bahrain Libya Saudi Arabia Arab Rep of Egypt United Arab Bangladesh Qatar India Emirates Myanmar Oman many Poland Belarus er Eritrea Chad Sudan India $950 Rep of Yemen Djibouti meroon Ethiopia Central African Republic al Guinea Congo abon Rep of Korea n a Lao P.D.R N Mariana Islands (US) Vietnam Cambodia Sri Lanka Philippines Maldives Kenya Guam (US) Brunei Darussalam East Asia & Pacific $2,180 Marshall Islands Palau Malaysia Uganda Japan China $2,360 Thailand Somalia Rwanda Dem Rep of Congo Burundi Dem People's Rep of Korea Federated States of Micronesia Singapore Nauru Indonesia Seychelles Tanzania Angola Zambia Malawi South Asia $880 Comoros Mayotte (Fr) Papua New Guinea American Samoa (US) Timor-Leste Vanuatu Zimbabwe Mozambique Madagascar Namibia Botswana Réunion (Fr) Mauritius A u s t r a l i a New Caledonia (Fr) Swaziland Lesotho South Africa Tuvalu Solomon Islands Sub-Saharan Africa $952 New Zealand Fiji Samoa Tonga ... Higher 24 20 18 14 18 13 13 10 11 12 12 41 39 26 22 27 19 17 12 28 20 20 12 Source: “Returns to Investment in Education: A Global Update” by George Psacharopoulos World Development, Vol 22 , Sept... Children Who Are Underweight, by Household Wealth, around 20 08 70 Percentage 60 50 40 30 20 10 Poorest 20 % Poorer 20 % Middle 20 % Richer 20 % Richest 20 % Southern Asia Developing regions Sub-Saharan Africa... and over (%) Mean = 2. 95 years; education Gini = 0.69 (a) Schooling in India 100 Cumulative proportion of schooling (%) FIGURE 8.7 100 89 .2 80 78.3 60 40 24 .9 20 0 .2 9.4 100 20 40 60 80 Cumulative

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