CHAPTER 24PRODUCTION AND GROWTH541world’s advanced countries, such as the United States, and uses these resources tomake loans to less developed countries so that they can invest in roads, sewer sys-tems, schools, and other types of capital. It also offers the countries advice abouthow the funds might best be used. The World Bank, together with its sister orga-nization, the International Monetary Fund, was set up after World War II. One les-son from the war was that economic distress often leads to political turmoil,international tensions, and military conflict. Thus, every country has an interest inpromoting economic prosperity around the world. The World Bank and the Inter-national Monetary Fund are aimed at achieving that common goal.EDUCATIONEducation—investment in human capital—is at least as important as investmentin physical capital for a country’s long-run economic success. In the United States,each year of schooling raises a person’s wage on average by about 10 percent. In
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Developed country, International Monetary Fund, Republic of China