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Human Capital widespread provision – helps expand capabilities, improve skills and equalise opportunity sets across households – represent investments in human cap- ital which is central to the process of economic growth – healthy, literate populations are more able to take advantage of growth opportunities that arise key role to play in the creation of “virtuous cycles” of development – in- vestments in basic health and education – skill and product upgrading – higher growth – generates additional resources for investments in human capital – positive feedback loops of this type are seen to underlie the cre- ation of “growth miracles” – e.g., East Asia Despite its centrality to welfare and growth – most low income countries characterised by low levels of provision of health and education – cov- erage far from universal + attainment as proxied, for example, by infant mortality and literacy rates – far below what is achievable in the devel- oped nations poor health and education indicators – typically associated with widespread
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Unformatted text preview: poverty and stagnant growth many countries caught in a “vicious cycle” of development – limited invest-ments in basic health and education – limits capability of the population to learn new skills or engage in new, advanced production processes – low or negative rates of growth – if coupled with high population growth may lead to a net dwindling in the resources available for future investments in human capital – negative feedback loops, e.g., sub-Saharan Africa Implication: returns to investments in basic health and education in terms of welfare improvement and poverty reduction will be much higher in developing as opposed to developed countries – some countries have recorded massive improvements in health and so-cial indicators even at low levels of income Basic health is taken to refer to public health and essential clinical services Development Economics, LSE Summer School 2007 137...
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This note was uploaded on 12/29/2011 for the course ECO 307 taught by Professor Dublin during the Spring '10 term at SUNY Stony Brook.

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