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Problems in Economic Development 's - Assignment Example

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1.a) There is no hunger related poverty trap in developing countries because; in developing countries, most people are poor, they do not have enough to eat, and, therefore, are less productive. This makes them earn less income, which can buy less food, and thus, there is not a…
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Problems in Economic Development 's

Download file to see previous pages... b) The underlying tension in the developing world is the lack of antiretroviral drugs that can be used by HIV patients to reduce the multiplication of the virus in the body of those who are affected. This is different from the developed world in that the developed countries have enough of these drugs and can keep the level of HIV/AIDs as low as possible.
3. Health may create a poverty trap between generations because when one gets better health care, his or her level of productivity increases; hence, high level of income. On the other hand, the person from the other generation that gets little or no health care is less productive, and, therefore, earns very little. This change has one generation moving from low health care to high health care; hence, creation of the poverty trap between generations.
4. a) Conditional cash transfer refers to a condition whereby parents were being given cash transfer with a condition of sending their children to school and failure to do so, they would be forced to do it.
b) The amount transferred varied based on the level of education and gender. Those who were in secondary schools were to be paid high amounts and those who took girls to school were also subject to high payments. This was to encourage further learning by the children in schools and also encourage girl child education and make girls go to school.
c) No. Conditional cash transfers were found not to be more effective than unconditional cash transfers. This was because Malawi tried to use it, but it did not do better, and this suggested that parents should not be forced to send their children to school, but need to be helped ...Download file to see next pagesRead More
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