Human Development in Poor Countries

Question 1

Authors of this paper?

Answer 1

Anand and Ravallion (1993)

Question 2

Human Development Report views that…

Answer 2

Human development is the overriding purpose of economic development.

Question 3

Income-centered approach

Answer 3

Investment in human capital entirely in terms of the extra income the investment generates.

Question 4

Capabilities approach

Answer 4

Improvements in literacy and health should be considered ends in themselves , even if the rate of return is zero.

Question 5

World Development Report takes what view?

Answer 5

Income-centered approach. Views the reduction in poverty in terms of incomes as the fundamental objective of development.

Question 6

Human Development Report takes what view?

Answer 6

Capabilities approach. Views the provision of public services as the leading instrument for human development.

Question 7

Relationship between incomes and capabilities

Answer 7

Fairly inconclusive… some studies predict a positive effect of rising incomes on health and education, while others predict no effect.

Question 8

Basic capabilities tend to be _____ for people living in rich countries

Answer 8

Higher.

Question 9

Therefore should economic growth be the target in promoting human development in poor countries?

Answer 9

Not necessarily. If one controlled for the incidence of absolute poverty or the provision of public services, the correlation between income and human development will vanish.

Question 10

Average incomes are _____ correlated with the incidence of absolute poverty

Answer 10

Negatively. A 10% increase in GNP per capita decreases the poverty index by 6.5%.

Question 11

Average incomes are _____ correlated with public spending on social services

Answer 11

Positively. A 10% increase in GNP per capita increases public health spending by 9.1%.

Question 12

Treating ‘social spending’ as a single aggregate in regressions is unsatisfactory because…

Answer 12

The allocation of that spending across subsections will matter a great deal to the impact on social outcomes.

Question 13

Issues of simultaneity bias?

Answer 13

Higher life expectancy may be due to higher public health spending and vice versa.

Question 14

Average income matters in the promotion of human development only insofar as it…

Answer 14

Reduces poverty and finances key services. Therefore policy intervention can play a role in promoting HD independently of the promotion of economic growth.

Question 15

Sri Lanka

Answer 15

Very high quality health and education. Between 1950-1960 health spending grew A LOT but per capita income grew very little.

Question 16

An increase of 1 Sri Lankan Rupee in public health spending per capita would reduce infant mortality by…

Answer 16

1.1 deaths per thousand - 22 times more than the impact on infant mortality from the same increase in av. income.