Assignment 10 Human Capital
Assignment 10 Human Capital
Example: A person diagnosed with AIDS might suffer from severe pneumonia due to their
weakened immune system.
https://www.mayoclinic.org/diseases-conditions/hiv-aids/symptoms-causes/syc-20373524
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7842519/
4. Basic Education
The International Standard Classification of Education (ISCED) states that basic education
corresponds to the first nine years of formal schooling and is made up of two levels. Level 1 is
primary education (usually six years) and Level 2 refers to lower secondary
Example: Basic education ensures that children learn to read, write, and perform basic arithmetic.
Government Response: Many governments have made basic education compulsory and free to ensure all
children have access to schooling.
https://www.dfat.gov.au/sites/default/files/basic-education-practitioner-level.pdf
5. Health System
A health system is the way in which all health services are provided. From how they are financed
to the workforce, facilities and supplies available, a strong health system will ensure that
everyone is able to access high-quality healthcare without financial difficulty. Example: A
national health system might include hospitals, clinics, health insurance, and public health
initiatives.
Government Response: Governments may fund and regulate health systems, ensuring universal health
coverage, setting quality standards, and subsidizing services for low-income populations.
https://www.healthpovertyaction.org/how-poverty-is-created/health-systems/
Brain drain is a slang term that refers to a substantial emigration, or migration of individuals out
of a country. Brain drain can result from turmoil, the existence of favorable professional
opportunities in other countries, or a desire to seek a higher standard of living.
Example: Doctors and engineers moving from developing countries to developed countries for better job
opportunities.
Government Response: Governments may implement policies to retain talent, such as improving working
conditions, offering competitive salaries, and creating career development opportunities.
https://www.investopedia.com/terms/b/brain_drain.asp#:~:text=Brain%20drain%20is%20a%20slang,a
%20higher%20standard%20of%20living
8. Human Capital
Human capital consists of the knowledge, skills, and health that people invest in and accumulate
throughout their lives, enabling them to realize their potential as productive members of society.
Example: A workforce with advanced technical skills can drive economic growth and innovation.
Government Response: Governments invest in education, training programs, and health care to enhance
the human capital of their populations.
https://www.worldbank.org/en/publication/human-capital/brief/the-human-capital-project-frequently-
asked-questions#:~:text=Human%20capital%20consists%20of%20the,as%20productive%20members
%20of%20society
9. Social Benefits of Education
Education can bring significant benefits to society, not only through higher employment
opportunities and income but also via enhanced skills, improved social status and access to
networks. By fully recognizing the power of education, policy makers could better address
diverse societal challenges.
Example: Higher literacy rates leading to a more informed electorate.
Government Response: Public investment in education is justified by the social benefits, with policies
aimed at improving educational access and quality for all citizens.
https://www.oecd-ilibrary.org/education/what-are-the-social-benefits-of-education_5k4ddxnl39vk-en
10. Conditional Cash Transfer (CCT) Programs
Cash transfers-both conditional and unconditional are among the important safety net programs.
This brief focuses on conditional cash transfers (CCT) that are increasingly perceived as an
effective tool for poverty alleviation. CCT programs have the ability to enhance both the income
of the poor in the short run, and their human capabilities in the medium and long run. The brief
discusses issues related to the rationale and implementation of CCT programs and assesses their
effectiveness.
Example: Brazil’s Bolsa Familia program, which provides financial aid to families if they meet health and
education conditions.
Government Response: CCT programs are often funded and managed by governments to reduce poverty
and improve health and education outcomes.
https://www.adb.org/publications/conditional-cash-transfer-programs-effective-tool-poverty-alleviation
11. Human Immunodeficiency Virus (HIV)
HIV (human immunodeficiency virus) is a virus that attacks cells that help the body fight
infection, making a person more vulnerable to other infections and diseases. It is spread by
contact with certain bodily fluids of a person with HIV, most commonly during unprotected sex
(sex without a condom or HIV medicine to prevent or treat HIV), or through sharing injection
drug equipment.
Example: A person living with HIV might require antiretroviral therapy to manage the virus and maintain
their health.
Government Response: Governments have implemented testing, awareness campaigns, and treatment
programs to manage and prevent the spread of HIV.
https://www.hiv.gov/hiv-basics/overview/about-hiv-and-aids/what-are-hiv-and-aids
12. Social Costs of Education
These are the costs that are incurred by the society/public/government is providing education.
They are also categorized into direct and indirect social costs.
Examples of direct social costs include salaries (teaching and non-teaching staff), government grants,
scholarships, bursaries etc.
Government Response: Governments balance social costs with benefits by allocating budgets effectively
and ensuring efficient use of educational resources.
https://mysominotes.wordpress.com/2017/09/23/economics-of-education-what-are-costs-and-benefits-of-
education/#:~:text=b).-,Social%20costs.,grants%2C%20scholarships%2C%20bursaries%20etc
13. Derived Demand
Derived demand, in economics, is the demand for a good or service that results from the demand
for a different, or related, good or service. It is a demand for some physical or intangible thing
where a market exists for both related goods and services in question. Derived demand can have a
significant impact on the derived product's market price.
Example: The demand for steel is derived from the demand for cars.
Government Response: Policies might include supporting industries that drive derived demand through
subsidies or tariffs to protect local industries.
https://www.investopedia.com/terms/d/derived_demand.asp
14. Literacy
the ability to read, write, speak and listen in a way that lets us communicate effectively and make
sense of the world.
Example: A literate person can read a newspaper article and write a letter.
Government Response: Many governments have literacy campaigns and adult education programs to
improve literacy rates.
https://literacytrust.org.uk/information/what-is-literacy/
15. World Health Organization (WHO)
What we do
WHO leads global efforts to expand universal health coverage. We direct and coordinate the
world’s response to health emergencies. And we promote healthier lives – from pregnancy care
through old age. Our Triple Billion targets outline an ambitious plan for the world to achieve
good health for all using science-based policies and programs.
Example: WHO leads global responses to health emergencies, such as the COVID-19 pandemic.
Government Response: Governments collaborate with WHO on health initiatives and follow its
guidelines and recommendations for public health policies.
https://www.who.int/about#:~:text=Founded%20in%201948%2C%20WHO%20is,the%20highest
%20level%20of%20health
16. Discount Rate
The discount rate is the interest rate the Federal Reserve charges commercial banks and other
financial institutions for short-term loans. The discount rate is applied at the Fed's lending facility,
which is called the discount window.
Example: A project’s future revenues are discounted at the discount rate to determine its net present value.
Government Response: Central banks set discount rates that influence economic activity by affecting
borrowing costs and investment decisions.
https://www.investopedia.com/terms/d/discountrate.asp
17. Neglected Tropical Diseases
The neglected tropical diseases (NTDs) are infectious diseases that principally impact the world's
poorest people. They have been neglected for decades, initially as part of a general disregard for
the developing world, and more recently due to the intensity of focus on HIV/AIDS, tuberculosis
and malaria.
Example: Diseases such as dengue fever and leprosy.
Government Response: Governments often work with international organizations to implement control
and elimination programs, provide medication, and improve sanitation and access to clean water.
https://pubmed.ncbi.nlm.nih.gov/20007668/
18. Educational Certification
An educational certificate refers to the document that you receive upon the successful completion
of an academic period. Once you are done with high school, you receive a high school certificate
that shows how well you performed in that level of education. This certificate is critical in
applying for college education, and some employers could also use it for job positions that do not
need you to have a degree.
Example: A diploma, degree, or professional certification.
Government Response: Governments regulate and standardize certification processes to ensure they meet
national education standards and are recognized by employers.
https://bestaccreditedcolleges.org/articles/careers-and-education/what-is-an-educational-certificate.html
19. Coronavirus Disease (Covid-19)
Coronavirus disease (COVID-19) is an infectious disease caused by the SARS-CoV-2 virus. Most
people infected with the virus will experience mild to moderate respiratory illness and recover
without requiring special treatment. However, some will become seriously ill and require medical
attention. Older people and those with underlying medical conditions like cardiovascular disease,
diabetes, chronic respiratory disease, or cancer are more likely to develop serious illness. Anyone
can get sick with COVID-19 and become seriously ill or die at any age.
Example: Symptoms include fever, cough, and difficulty breathing, with severe cases potentially leading
to pneumonia and death.
Government Response: Governments worldwide implemented measures such as lockdowns, travel
restrictions, mass testing, vaccination campaigns, and economic stimulus packages to manage the
pandemic’s impact.
https://www.who.int/health-topics/coronavirus#tab=tab_1
B. What reasons would you give for the rather sizable school dropout rates in developing countries? What
might be done to lower these rates?
Reasons for High School Dropout Rates in Developing Countries
Many families in developing countries need their children to work because they are poor. Even
when schools are free, other costs like uniforms and books can be too expensive. Schools often lack basic
facilities, have too many students, or have untrained teachers. Cultural norms may favor boys' education
over girls', and early marriage and child labor are common. Children frequently miss school due to
diseases or lack of healthcare. School subjects may not seem useful for future jobs, leading students to
drop out. War and political unrest can destroy schools and make it unsafe for children to attend.
Strategies to Lower Dropout Rates
Providing financial support through cash transfers and scholarships can help cover school-related
expenses. Improving school facilities and ensuring teachers are well-trained and supported can enhance
the quality of education. Encouraging gender equality, providing a safe learning environment for girls,
and involving local communities to value education are crucial steps. Implementing school health
services and vaccination drives can keep children healthy and in school. Making the curriculum more
practical and offering vocational training linked to job opportunities can make education more relevant.
Setting up temporary learning spaces in conflict zones and implementing policies to protect schools and
students during conflicts are necessary measures.
C. What are the differences between formal and non-formal education? Give some examples of each.
Formal education is highly structured and systematic, following a specific curriculum approved by
educational authorities and leading to official certification or diplomas upon completion. It takes place in
formal institutions such as schools, colleges, and universities, where educators are professionally trained
and certified. Examples of formal education include primary school, where children learn basic reading,
writing, and arithmetic in a structured classroom setting; high school, where students follow a
standardized curriculum including subjects like math, science, and literature; and university, where
students can earn degrees in fields such as engineering, medicine, and the arts.
Non-formal education is more flexible and less formalized, not following a rigid curriculum, and can be
tailored to the needs of learners. It may or may not lead to official certification and can take place in
community centers, workplaces, homes, or online. Educators may not necessarily be professionally
trained, but are often knowledgeable in their field. Examples of non-formal education include adult
literacy programs, which are community-based programs aimed at teaching adults how to read and write;
vocational training, which provides skill-based training for specific trades such as carpentry, plumbing, or
computer repair; workshops and seminars, which are short-term educational sessions on various topics
like health, finance, or personal development; and online courses, which offer flexible learning options
provided by platforms like Coursera or Udemy, allowing participants to learn new skills or subjects at
their own pace.