Lecture Flashcards
what does the UN Human development index comprise of?
Life expectancy
Educational Attainment
And command over Resources
Human development report 2013
Rise of the South
1) transformation of a large number of developing countries into dynamic major economies with growing political influence
2) All countries showed accelerated growth and achievement in education, health and income dimension seen in the HDI
3) 3 leading developing countries Brazil, India, China by 2020 will out produce UK, US, Canada, Germany, France and Italy
4) Needs enhanced equity, environmental pressures and managed demographic change
5) Rising economic strength in South must be matched by full commitment to human development
6) investment benefits connect poor to market
7) New social policy to stop limits on Human Development
Poverty in Developing world (Ravallion & Chen 2008)
previous world bank poverty line at $1 a day, 2008 updated to $1.25 mean of the national poverty line for the poorest 15 countries in terms of consumption per capita (2008)
Chen and Ravallion continued. Headcount indices of poverty
1981- $1 (41.9%) $2.50 (74.8%)
1990- $1 (29.9%) $2.50 (70.5%)
1999- $1 (22.8%) $2.50 (65.9)
2005- $1 (16.1%) $2.50 (57.6%)
(Large jump between 1999 and 2005)- MDG
eradicate extreme hunger and poverty
primary education for all
gender empowerment
The Spirit Level (Wilkinson and Pickett 2009)
X axis- income equality low to high
Y axis- Index of health and social problems
strong positive correlation
- Japan highest low problems and low inequality
-followed by Scandinavian countries
US highest inequality and health problems - UK slightly infront
- most countries on line of best fit
Spirit Level Part 2
X - national income per capita low to high
Y - health and social problems
weak negative correlation
Norway Highest income lowest problems
- Japan Belgium and germany UK same income but social problems in that rank
- US high income but high social problems
- “Economic growth, so long the engine of process has in the rich countries largely finished its work”
Income maintenance in developing countries
Coverage- Only 20% of the world has adequate social security coverage and more than half have any coverage at all (ILO)
Case study Tunisia
10 years raised coverage for employment pensions and maternity from 60% to 84% nearly all public/private sector workers bar agricultural workers (Bailey 2004)
CCT - Conditional Cash Transfers
In addition to satisfying means tested , families must undertake some pre-specific action (Bastgali 2008)
i.e children attend school
pregnant
examples of CCT
Bolsa family (Brazil)
Oportunidades (Mexico)
Pantawid (Philippines )
“the cash transfer is aimed at providing short term assistance to families often in extreme poverty.. the constitutionalities aim to promote longer term human capital benefits especial amongst younger generation (Rawlings 2004)
Supporters and Critics of Conditional Cash transfers behaviour
Behavioural
- modifying poor peoples behaviour to improve human development
- i.e choosing schooling for their children (long term) over child labour (short term) Bastagli
- stop myopia, open their eyes to the health screenings etc
Do CCT induce more change in human development than Income transfers would have?
For:- De Janvry (2006) "CCT presume stimulating development though income transfer is insufficient to human capital development , need to attach a price
Studies shown income transfers do effect development
Brazil (Filho 2001) Brazils unconditional old age pension programme caused increase in girls education and a decrease in boys child labour
Duflo (2003) Increase in south Africa old age pension programme caused an increase in girls health
unintended behaviours?
Maluccio and Flores (2005) Nicaragua
- children needed promotion to gain payment
- found school where automatically promoting children defeats point
Critics and Support of CCT
Administration
Cost effectiveness of the programmes depends on the amount reaching the poor and the development in human capital that can be attributed to it (Caldes 2006)
Alverez (2006) looked at mexico, the conditionalities did not at first appear burdensome, however indigenous people and extremely poor remote communities had high drop out rates
Columbia cost effect of reaching hard to reach people not cost effective
Critics and support of CCT
Political
helps legitimise political transfers
more favourable to taxpayer and policy makers
De janvry (2006)
Taylor-Gooby’s (2005) study using British Social Attitudes
survey data shows that ‘people believe the welfare state should not be simply a funnel to
direct resources downwards, but should also be a system of reciprocity, which provides
good opportunities and support for those who participate, but does not waste resources
on those who fail to do so’. The link then, between welfare payments and some form
of valued social participation or reciprocity appears to act as a source of legitimacy for
welfare spending.”
Outcomes of CCT BASTAGLI (2008)
Pantawid Pamilya
Substantial share of total income for people in poverty
Disincentive effect on labour supply appear to be small
Strong evidence that health and education utilisation improved
BUT
Evidence on health and education outcomes is more mixed
…and the data are limited
de janvry and sadoulet
2006). oportunidades also appears to have had positive spillover effects—school enrollment increased even among children above the cut-off point of the proxy means who were ineligible for transfers.
gender gap
health and education disparities (world bank)
Conditional cash transfers the Philippines 2013 (world bank)
keep children in school, keep children healthy and invest in the future
based on the premise that
poverty is not about income alone but is multi-dimensional, and factors such as access to basic
social services and social environments matter.
- 3 million covered
higher rates of school enrolment
3-11 years up 10% compared to poor not beneficiary household (world bank 2013)
programme met its objectives of keeping children healthy
improved nutrition of younger children 6-36 months stunting reduced by 10%. areas without the programme were 24% stunted
Vitamin A and deworming pills, as well as increased healthcare-seeking behaviors among
beneficiaries when their children become ill
-recipient families were spending more on health and education less on alcohol and adult spending
better awareness and social services
good start
need to make sure mothers get access to all health services
better education for older children
make sure people receive full beneficiary
