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What would reducing poverty do for child labor?
Families will not need to rely on the income brought in by thier childern working.
lowering the indirect vost of eductaion thorugh tuition subsidies, free school uniforms, giving children free lunch at school would help reduce what?
Child Labor. This is an incentive.
What would be another incentive that would reduce child labor, through education?
Families could get paid for the children to attend schoool, thus allowing children to earn a salary while in school.
What are some abusive forms of child labor.
mining and prostution. This could reduce the damage physically and emotionslly for the rest of their lives.
What is one reason why high level of education inequality in develping countries?
there are public subsidies for higher educations, but not for secondary edu. so the wealthiest people can afford expensive secondary edu. Since they can't afford secondary education they have to settle for tertiary edu since the GOV heavily subsidizes its cost.
Why do taller people tend to have a higher income?
the differences in average heights between countries are almost entirely due to childhood nutrition. In more developed countries they tend to have better nutrition which in turn increases cognitive development and reaches full genitc growth potential.
Identify a country that has expericed a deline in life expectancy since 1990.
Botswana, Lesotho, Swaziland, South Africa, Cote d'Ivoire, Zimbabwe.
What are some low quality institutions?
Weak property rights, limited transparcency, low sovial mobility.
What are Excessive Taxation?
while taxes may be justified as a means of fixing market failures, they must be blaanced against the investment disincentive they create.
Corruption and lack of trust dow what to the market?
Curruption limits market efficincy as not everyone plays by the same rules. lack of trust increases coordinatino failures.
What is a network effect?
when consumeing a good increases as the total number of people consuming that good increases.
What is a complementarities?
When industries like an automake and a auto parts compony are made in conjunction with each other. Farmes and Grocery stores.
What is considered information externality?
A industry that has been proven to be successful, new firms endter in and take profits away from the original innovator.
"the big push", Name three
Urbanization effects, Infrasructure effects, Information externalities.
What is a Urbanization effects?
- Industrialization requires a shift from rural to high density urban communities.
- incentivize industrialization and urbanization, help develop urban infrastructure.
What is a infrastructure effect?
- A solid network of roads, rail, ports, utilites. This increases the profitabliity of all firms.
- Infrastructure is a public good.
what is a information externalities?
being the first firm in a new inductry is an uncertain venture.
once an industry is proven to be viable, more firms will enter, lowering the profits of the original innovator.
What is the big push?
a concerted, economywide, and probably public policy-led effort to initiate of accelerate econommic develpment across a broad spectrum of new industries and skills.
What are some down falls of a Big Push Strategy?
can stifle innovation.
New firms that enter the market where a large firm has already etablished economies of scale and cost advantage, will find it hard to enter the market.
depending on the governments actions, will investment occur in the right sectors or will corrupt action by the government engender mistrist and lead to more coordination failures?
What is external Economics of scale?
when the costs of a from lowers as expantion of the firm rises. the ability to increase with less cost in the future.
what are some low levels of private incestment and entrepreneurship?
low return to economic activity, high cost of finance, limited access to international finance, weak domestic financial market, low appropriablilty.
Describe some economic impact of climate change the poor in developing countries will face?
- Africa, increased desertification will lead to lower agricultural productivity.
- Higher incidence of disease as tropical pathogens spead their range.
- People living in low-luing regions of Asia will first face flooding as glaciers melt.
Net National Income (NNI) Formula.
What is Dm, Dn, R, A
- Depreciation of physical capital
- Depreciation of evvironmental capital
- Resources needed to restore environmental cap
- resources needed to avert destruction of enviro
What is Malthus idea on population?
pupulation growth geometrically, while resources grow arithmetically... bound to run out.
What are some problems with malthus population growth calculations?
His calculation ignore technological progress and changes in behavior.
What evidence that the very poor cause enviromental destruction as a result of their own poverty?
Both high fertility and environmental destruction are direct outgrowths of poverty.
If environmental damage is a problem of pverty, then should we expect this damage to fall as pverty falls?
NO. if poverty falls, consumptions rises and there is a greater strain on resources.
What is Kuznets environmental curve theroy?
Theory that as income rises, environmental damage first increases, then falls.
what does the kuznets curve account for?
does not hold for transboundary pollution and irreversible environmental destruction.
Ways to solve the tragedy of the commons?
Privatization (who do you sell the resources to?)
Enforce coordination through social norms and formal rules.
What would be an issue if Tragedy of the commons was pricatizied?
are the people who would be willing to pay the most for the resource the most efficient users of that resource?
Solutions to the public goods problem
Assurance Contracts(good is provided only if the threshold level of contriutions is made)
Holding for ransom (Public good is provided in installments to acheive a certain level of funding)
Vickery Auction(bid to pay for a public good)
Government provision (Government provides the public good and pays for it through taxation)
enforcing social norms(Solve the free-rider problem by "shaming" people into paying for the public goods they use.
what type of policy options do LDC have to for enviromental issues?
Proper resource pricing (prevents overuse of resources)
Community involvement (need to get people involved at the grassroots level)
Clear property rights and resource ownership (avoid the tragedy of the commons)
Improve the economic alternatives of the poor rasie the economic statust of women (both will reduce poverty, increasing the efficiency of resource usage)
Emissions abatement programs (market based solutions may be most effective)
what policies can develpoped countries do to help LDC's?
- Liberalize trade policy (open markets to develping country exports to increase income in these countries, end agricultural subsidies)
- Debt relief (moral hazard)
- Debt for nature swaps (Sovereignty)
- Direct develpoment assistance
Health deprivation and (Blank) go together?
what 5 countries have a declining morality rate for kids under 5?
Sub-Saharan Africa, South Asia, Arab states, Latin America, East asia.
what is the leading global death and poverty cause?
What is an alternative to measuring health?
Does calorie consumption fall as income rises?
Yes. a country becoming more urbanized, which lowers activity levels (manule labor to desk job) and better transportation(not walking to work).
what policies did Uganda use to significantly lower AIDS infection rate in the 90's?
- Strong financial support form international agencies.
- strong rol played by civil society and mass media.
- change of social norm with condom use.
- reduction of smuggling.
how can creating a cure for malria be a market failure?
devolping countries are not able to afford the cure, so manfuactures have less of an incentive to R&D in making for a cure.