By Tatyana Soubbotina
How will we evaluate the degrees of improvement attained by way of assorted international locations? And what does it take to make improvement sustainable?
This publication deals no uncomplicated solutions to those complicated questions. as an alternative, the authors motivate readers to hunt their very own ideas by means of studying and synthesizing info on various severe improvement concerns together with inhabitants development, fiscal progress, fairness, poverty, schooling, well-being, industrialization, urbanization, privatization, exchange, weather switch, and more.
The e-book, which attracts on info released by way of the realm financial institution, is addressed to academics, scholars, and all these attracted to exploring problems with international development.
This identify is a ebook of the area financial institution Institute -- selling wisdom and studying for a greater global.
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Additional resources for Beyond Economic Growth
Would you agree with the logic of this appeal? qxd 6/10/04 1:46 PM Page 43 7 Education Capital is a stock of wealth used to produce goods and services. Most often, by capital people mean physical capital: buildings, machines, technical equipment, stocks of raw materials and goods. But “human capital”—people’s abilities, knowledge, and skills—is at least as important for production, and at least as valuable to people who have it. The importance of the “human factor” in modern production is reflected in the distribution of income among people who own physical capital and people who “own” knowledge and skills.
This multidimensional nature of poverty is revealed by interviews with the poor themselves and confirmed by special sociological studies. The broader definition of poverty as a multidimensional phenomenon leads to a clearer understanding of its causes and to a more comprehensive policy aimed at poverty reduction. For example, in addition to the issues of economic growth and income distribution, it brings to the fore equitable access to health and education services and development of social security systems.
Qxd 6/10/04 1:46 PM Page 36 BEYOND ECONOMIC GROWTH Can poor countries break the vicious circle of poverty? physical capital and human capital. For example, Sub-Saharan Africa consistently has the lowest saving rate and the smallest pool of savings. By contrast, high-income countries in 1996–2000 saved a smaller share of their GDP than some developing countries, but their pool of savings was about three times as large as all the savings of developing countries combined (see Fig. 2). But without new investment, an economy’s productivity cannot be increased and incomes cannot be raised.