Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006

Economics 172Issues in African Economic Development

Lecture 12

February 23, 2006

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Outline:

(1) What can public policy do about HIV/AIDS in Africa?

(2) New topic: Education and economic development

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Key questions in the study of HIV/AIDS

(0) Characterizing the extent of the problem (today)

(1) What impact does HIV/AIDS have on economic development in Africa?

(2) Why does HIV/AIDS continue to spread in Africa?

(3) What can / should public policy do about HIV/AIDS?

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What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

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What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

- Positive or negative effect on unsafe sex?

- Choose unsafe sex if: S + (PHIV – P)(1 – R)V > 0

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What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

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What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

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What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

(4) Regulate prostitution

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What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

(4) Regulate prostitution

(5) Subsidies for anti-retroviral medical treatment (ARVs) (Compliance? Company profits?)

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What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

(4) Regulate prostitution

(5) Subsidies for anti-retroviral medical treatment (ARVs) (Compliance? Company profits?)

(6) Development of an HIV vaccine

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Outline:

(1) What can public policy do about HIV/AIDS in Africa?

(2) New topic: Education and economic development

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Education and economic development

• Does education lead to higher income? OR does higher income lead to more educational investment?

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Education and economic development

• Does education lead to higher income? OR does higher income lead to more educational investment?

• Unclear macroeconomic evidence on education and growth (e.g., the case of Kenya)

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Education benefits beyond wages

(1) Women’s education and infant mortality: each additional year of schooling is associated with a 5-10% reduction in under-5 mortality

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Education benefits beyond wages

(1) Women’s education and infant mortality: each additional year of schooling is associated with a 5-10% reduction in under-5 mortality

(2) Education may improve adoption of new technologies, e.g., in agriculture, health

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Education benefits beyond wages

(1) Women’s education and infant mortality: each additional year of schooling is associated with a 5-10% reduction in under-5 mortality

(2) Education may improve adoption of new technologies, e.g., in agriculture, health

(3) Educated people may make better citizens in a democracy, and be more active in civil society organizations

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Whiteboard #1

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Whiteboard #2

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Whiteboard #3

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Whiteboard #4

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Whiteboard #5

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Map of Africa