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    7 - Educ and Health

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    Park Jongseong
    Investments in education and health are mutually reinforcing and important for developing human capital and productivity. They can help raise household incomes, allow people to make more informed choices, and break intergenerational cycles of poverty. For developing countries, priorities include improving access to schooling, especially for girls, and addressing health challenges like malnutrition, communicable diseases, and lack of access to basic services. While more spending is needed, governments must also pursue cost-effective policies and ensure resources are distributed fairly.

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    7 - Educ and Health

    Uploaded by

    Park Jongseong
    19 views30 pages
    Investments in education and health are mutually reinforcing and important for developing human capital and productivity. They can help raise household incomes, allow people to make more informed choices, and break intergenerational cycles of poverty. For developing countries, priorities include improving access to schooling, especially for girls, and addressing health challenges like malnutrition, communicable diseases, and lack of access to basic services. While more spending is needed, governments must also pursue cost-effective policies and ensure resources are distributed fairly.

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    7_Educ and Health

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    Investments in education and health are mutually reinforcing and important for developing human capital and productivity. They can help raise household incomes, allow people to make more informed choices, and break intergenerational cycles of poverty. For developing countries, priorities include improving access to schooling, especially for girls, and addressing health challenges like malnutrition, communicable diseases, and lack of access to basic services. While more spending is needed, governments must also pursue cost-effective policies and ensure resources are distributed fairly.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views30 pages

    7 - Educ and Health

    Uploaded by

    Park Jongseong
    Investments in education and health are mutually reinforcing and important for developing human capital and productivity. They can help raise household incomes, allow people to make more informed choices, and break intergenerational cycles of poverty. For developing countries, priorities include improving access to schooling, especially for girls, and addressing health challenges like malnutrition, communicable diseases, and lack of access to basic services. While more spending is needed, governments must also pursue cost-effective policies and ensure resources are distributed fairly.

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    of 30

    Schoolin’ Life

    Why Education and Health Investments Matter

    June 2023
    How are health and
    education needs related?
    HUMAN CAPITAL
    Productive investments embodied in human persons, including skills, abilities, ideals,
    health, and locations, often resulting from expenditures on education, on-the-job
    training programs, and medical care.
    health
    High incomes as guarantee?
    Symbiotic investments

    education
    Increasing HH incomes – NEVER ENOUGH
    • Consider basic economic concepts of INCOME ELASTICITY à normal
    vs inferior goods
    • Coupled with PREFERENCES and BEHAVIOR/ CHOICES à
    tendency to choose goods that symbolize or signal economic success
    • Mutually reinforcing features of health and education in helping
    households make more INFORMED CHOICES
    • Market vs Government roles à the presence of MARKET FAILURES
    reflect the need for a more concerted effort/ response from the public
    sector
    The Human Capital Approach
    • End goal is to RAISE PRODUCTIVITY by driving resources towards
    improving human capacities (hint: Amartya Sen’s “Development as
    Freedom” framework)
    • Method: Estimate the PRESENT DISCOUNTED VALUE of the
    increased income stream made possible by investments in education and
    health, then compare it with direct and indirect costs // COST-BENEFIT
    ANALYSIS
    • Basic approach: indirect ability to increase well-being by increasing
    incomes
    Case in point: Should we allow kids to work?
    • Children aged 15-below, working in various conditions
    • 9M child laborers between 5-11 years old, a third of which are involved in
    hazardous work
    • Worst forms of CL: those that endanger health or well-being, involving
    hazards, sexual exploitation, trafficking, and debt bondage.
    • Ban child labor? à Yes or No
    Case in point: Should we allow kids to work?
    • Assumptions:
    • HHs with high income would not
    send their kids to work
    • Child and adult labor are
    substitutes
    • Who is worse off? Who is better off?
    • What is the Pareto optimal outcome?
    Are Pareto optimal outcomes
    ALWAYS good conditions to develop
    public policy?
    Approaches to addressing child labor
    • Child labor is just the tip of the iceberg –
    World Bank supports the view that CL is a
    symptom of deeper structural challenges,
    specific to which is absolute poverty.
    • More carrots than sticks – Instead of
    making schooling compulsory, make it an
    obvious choice for households through
    conditional cash transfers. This has been a
    revolutionary approach for Brazil and
    Mexico, to a certain extent, in the
    Philippines too.
    Approaches to addressing child labor
    • It’s not as bad as we think it is – UNICEF believes that child labor is
    inevitable in the short-run, so let’s try some workaround measures to
    prevent further abuse of children.
    • Yes, it is bad, so ban child labor – ILO favors banning child labor,
    especially its worst forms (i.e., all forms of slavery or practices similar to
    slavery, such as the sale and trafficking of children, debt bondage and
    serfdom and forced or compulsory labor"; child prostitution and
    pornography; other illicit activities, such as drug trafficking; and work
    that “by its nature or the circumstances...is likely to harm the health,
    safety or morals of children.”)
    Why should I go to
    school and learn?
    “I’m not a teacher,
    babe, but I can teach
    you something’… Who
    needs a degree when
    you’re schoolin’ life?”
    Beyonce, “Schoolin’ Life”, 4 (2011)
    Going to school is a good choice
    • Primary school is “the number one investment priority” for developing
    countries (Psacharopoulos, 1994); higher marginal returns for girls than
    for boys.
    • Education and productivity: “In order for returns to education to be
    positive, either there must be economic opportunities that take
    advantage of the skills embodied in education, or investment in education
    must induce innovation.”
    • Education and health: “education also increases people’s understanding
    of sanitation and hygiene, improves their ability to read labels of all sorts,
    encourages their use of health care systems, and, in countless other ways,
    acts to protect and promote their health (Caldwell 1986).”
    It’s especially good for women and girls
    Expand investments on education for girls and close the gender gap
    because it is ECONOMICALLY VIABLE.
    1. The rate of return on women’s education is higher than that on men’s
    in most developing countries.
    2. Results in increased workplace productivity, and also greater labor
    force participation, later marriage, lower fertility, and greatly improved
    child health and nutrition, thus benefiting the next generation
    3. Breaks the vicious cycle of poverty
    Higher educational attainment = better
    employment outcomes (?)
    DEMAND SIDE SUPPLY SIDE
    • We go to school, take up more classes, because • Political processes and social needs determine
    of the potential PRIVATE BENEFITS of SUPPLY of SCHOOLS or basically, the
    education to the individual and household ACCESS TO SCHOOLING at various levels of
    education
    • Consider the EDUCATIONAL COSTS to
    determine the initial DEMAND for amount of • Government expenditures on education
    schooling determine PUBLIC SUPPLY OF SCHOOLS
    • Access to jobs are largely determined by an • Government-enabling policies for education
    individual’s level of education, thus amount of expand the supply to include PRIVATE
    schooling is transformed into DERIVED SCHOOLS
    DEMAND
    • Demand determines supply or vv à what do
    you think?
    Education and its externalities

    NEGATIVE EXTERNALITIES POSITIVE EXTERNALITIES


    • Crowding out effect? Credentialed individuals • Better employment opportunities given broader
    would increasingly find it difficult to look for competition among educated individuals
    jobs especially given equally competitive • Individuals and households make informed
    professionals
    choices on various aspects of living – i.e.,
    • Tyranny of merit? There’s a tendency to use literacy and functioning
    credentials to establish hierarchies on jobs
    • A more productive economy
    • Job polarization – who would now take on the
    skilled/ non-skilled jobs?
    Are we better off
    with free tertiary
    education?
    Examine the policy given our discussions. Is it a
    Pareto optimal decision? Yes or no, what could
    have been Pareto improvements for this policy?
    Some K-to-12 challenges
    • Inadequate preparation; lack of absorptive capacities of CHED;
    underdeveloped internal systems & slow administrative processes;
    inadequate monitoring; poor collaborative & inter-agency coordination
    (Brillantes, Jr., 2018)
    • 1.2M graduates in 2018, exceeding expectations; Jobstreet notes in a
    survey that only 24% of employers are willing to hire senior high school
    graduates (Mateo, 2018)
    • Amid touted benefits of K-to-12 to countries utilizing it, “Only time and
    effort to monitor the program will tell if the potential benefits of the
    reform will materialize.” (Patrinos & Al-Samarrai, 2016).
    What makes us healthy?
    How are we going to stay
    healthy?
    HOUSEHOLD INCOME – PRIVATE HEALTH COSTS/ DAILY HEALTH NEEDS

    ACCESS TO FOOD AND NUTRITION

    ACCESS TO HEALTHCARE NEEDS

    Making us healthy
    CLEAN ENVIRONMENT

    PROPER HEALTH INFORMATION

    GOVERNMENT INFRASTRUCTURE AND SUPPORT – PUBLIC / COLLECTIVE HEALTH COSTS


    Spending for health
    • Happyland, Tondo – communities with one of the highest malnutrition
    rates in the country (McDonnell, 2017; Rodriguez, 2015)
    • The pandemic reminded us that public health remains one of the best
    investments for the Philippines. 55% of health spending is out-of-pocket,
    making people less dependent on healthcare and more inclined to pursue
    resilient but risky health behaviors. Read: WHO, 2019
    • Case study: Bangsamoro health – 1 in 2 children under 5 years old is
    stunted; many women give birth at home / traditionally; 26 health
    workers for 27,000 people; poor water and sanitation (UNICEF
    Philippines, 2019)
    Health challenges in developing countries
    • Absolute poverty • Dengue
    • Malnutrition • Leprosy (Hansen disease)
    • AIDS • Dracunculiasis (guinea worm
    • Malaria disease)
    • Tuberculosis • Chagas disease
    • Acute lower respiratory illnesses • Leishmaniasis
    • Hepatitis B • Lymphatic filariasis (elephantiasis)
    • Ascariasis • Other parasites
    • Cholera • Other diarrheal diseases
    Better health systems policy
    • Health systems - all the activities whose primary purpose is to promote,
    restore, or maintain health.
    • Performance indicators for health systems (WHO) - (1) the overall level
    of health of the population, (2) health inequalities within the population,
    (3) health system responsiveness (a combination of patient satisfaction
    and system performance), (4) the distribution of responsiveness within
    the population (how well people of varying economic status find that they
    are served by the health system), and (5) the distribution, or fairness, of
    the health system’s financial burden within the population
    • A question of fairness and social justice
    Why do education and health
    investments matter especially
    in developing countries?
    Government’s budgetary response
    • 4.5 T budget for 2021
    • Top 10 agencies with the highest allocations: Education (Department of
    Education, SUCs, Commission on Higher Education, and Technical
    Education and Skills Development Authority); Department of Public
    Works and Highways; Department of Interior and Local Government;
    Health (Department of Health, Philippine Health Insurance
    Corporation, and vaccine procurement); Department of National
    Defense; Department of Social Welfare and Development; Department
    of Transportation; Department of Agriculture; The Judiciary; and the
    Department of Labor and Employment. (CNN, 2020; Mercado, 2020;
    Tadalan, 2020)
    So, why are we still under-investing?
    • Public investments on education and health are generally
    DEMANDING – meaning, this requires a lot of resources.
    • It’s not just about INCOME and SPENDING – consider the quality and
    targets for investments.
    • What then should we do?
    maraming
    salamat!

    see you next session!

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