Economic Development, Global Health, and Growth Theory

Vocabulary flashcards covering health transitions, demographic perspectives, neoclassical and endogenous growth theories, project appraisal, foreign investment, and institutional economics.

Oral Rehydration Therapy (ORT)

An effective and cost-effective treatment for diarrheal dehydration made by mixing water, salts, and sugar.

Robert Fogel's Health-Productivity Model

A framework demonstrating the historical relationship between improved nutrition, body size (BMI developer), and increased economic productivity.

ABC Program

An HIV prevention program in Uganda emphasizing Abstinence, being faithful to one partner, and condoms.

Antiretroviral Drugs (ARVs)

Pharmaceutical treatments that reduce mother-to-child transmission of HIV during pregnancy, labor, or breastfeeding.

R21

A malaria vaccine developed by scientists at the University of Oxford that showed up to $80\%$ efficacy in young children in trial results published in September 2022.

DOTS (Directly Observed Treatment, Short-Course)

A TB therapy strategy involving regular drug dosages administered under clinical observation visits to ensure complete treatment courses.

Multi-Resistant TB

A drug-resistant strain of tuberculosis that develops when patients prematurely stop taking medication after starting to feel better.

Circulating Vaccine-Derived Poliovirus (cVDPV)

Polio variants that emerge and cause outbreaks in communities with low vaccination rates.

Gary Becker's Parental Constraints

The economic constraints faced by parents when deciding on family size: time and the cost of purchased goods and services.

Population Pessimists

Economists and demographers who argue that rapid population growth harms economic development.

Population Optimists

Thinkers such as Julian Simon who argue that population growth benefits an economy because human ingenuity is the ultimate resource and population pressure stimulates technological breakthroughs.

Population Revisionists (Neutralists)

A school of thought holding that the impact of population growth on development is not universally good or bad, but depends on time, place, and circumstance.

Production Function

A technological relationship summarizing the minimum combination of inputs required to produce a given level of output, expressed as $Q = f(L, K)$.

Aggregate Production Function (APF)

A macroeconomic function describing the relationship between economy-wide inputs (labor and capital) and national income or GDP.

Constant Returns to Scale (CRS)

A property where increasing all inputs by a given factor causes output to increase by that exact same factor.

Convergence Theory

A neoclassical prediction that poorer countries' per capita incomes will naturally grow faster and converge toward the income levels of richer economies.

Endogenous Growth Model

A growth theory founded by Paul Romer and Robert Lucas proposing that capital investment permanently increases technology across all firms through knowledge spillovers, ideas, and agglomeration.

Object Gap

In Paul Romer's framework, a development deficit that requires physical savings and capital investment to close.

Idea Gap

In Paul Romer's framework, a deficit in technology and knowledge that is overcome through patterns of interaction and communication with the rest of the world.

Clusters

Geographic concentrations of interconnected businesses, formalized by Michael Porter, that enhance productivity and global competitiveness through knowledge spillovers.

Net Cash Flow

The difference between cash revenue earned from selling a product and the cash outlays on investment and operational inputs.

Shadow Prices (Economic Opportunity Costs)

Adjusted input and output values estimated by governments to reflect true opportunity costs rather than distorted market prices.

Commercial Project Appraisal

A private-firm evaluation of an investment based exclusively on observed market prices and expected financial profitability.

Social Project Appraisal

An economic evaluation conducted by governments that applies welfare weights to account for project impacts on income distribution, poverty, or the environment.

Foreign Direct Investment (FDI)

A long-term investment by a non-resident entity that provides significant management control over an enterprise located in a host nation.

Portfolio Equity

An outside cross-border investment where an investor acquires a minority stake in an enterprise via direct purchase or stock exchanges without managerial control.

Inclusive Institutions

As characterized by Acemoglu and Robinson, pluralistic political and economic institutions that secure property rights, encourage innovation, and support competitive markets.

Exclusive Institutions

As characterized by Acemoglu and Robinson, institutions that centralize power among elites, exploit resources, and restrict broad economic participation.

Top-Down Institutions

Rules and legal frameworks identified by William Easterly as being formally enacted by political leaders and legislators.

Bottom-Up Institutions

Institutional practices identified by William Easterly that evolve organically from individual social norms, customs, values, and cultural traditions.

Important Diseases

HIV/AIDS, Ebola, SARS, Avian and HINI Swine Flu

20th Century

Marks a shift from death from infectious diseases to noncommunicable diseases (ie. Cardiovascular)

Sub-Saharan Africa Mortality

68% of mortality due to communicable diseases, 25% due to noncommunicable conditions

China

Had a epidemiologic transition occur fast, more diseases spreading faster

Famines and Malnutrition

Still a problem, particularly in Africa despite rising incomes helping healthcare

Public Health means

clean water, food regulation , penicillin, and antibiotics

Life Expectancy and Per Capita Income

The more income you have the better you’ll live

Health, Income, and Growth

There is a strong correlation between health and economic growth

Income and Health

Increased income leads to more spending on water, sanitation (indoor plumbing), shelter, medical care, and medicine

Mosquitos and Malaria

Bed nets were a solution, but often unused to a lack of information, weak beliefs, and procrastination

Health and Productivity

Healthier people are more economically productive (Fogel & BMI)

HIV/AIDS

• Creates less effective workers

• People miss work due to funerals

• Children do the work of the household → depriving them of education

Robert Fogel

Studied the relationship between nutrition, body-size, and productivity

Health and Investment

Improved health leads to increased savings and investment. Poor people with catastrophic illnesses… can lose everything (even middle class)

3 Critical Diseases

1. Industrialization

2. Urbanization

3. Modernization

Industrialization, Urbanization, and Modernization

Created pollution, tobacco, and alcohol. Stress and processed foods show a decline in activity. Sedentary lifestyles.

HIV/AIDS

Recognized in 1981

HIV/AIDS metrics

2009: 33 Million people living with HIV/AIDS, 1 out of every 200 in the world
2022: 38 million people with HIV/AIDS.

2/3 of the world’s infections are in

Sub-Saharan Africa

Uganda

Created the ABC Program

ABC Program

Abstinence, faithful to one partner, condoms

HIV/AIDs Leaders

South Africa, Nigeria, India

Women and HIV

More than ½ of women and girls have HIV in Lower Developing Countries

Women in Africa

8 times more likely to be infected with HIV; by partners who practice high-risk behaviour.

Women and Breastfeeding

Women can pass HIV/AIDs through pregnancy, labor, and breastfeeding children

Antiretroviral Drugs (ARVs)

Reduced mother to child transmissions

16.6 million

AIDs orphans who had one or both parents die of AIDs

Until the cure

strong prevention, care, and treatments such as Antivirals, discount prices, generics, and more funding.

Malaria

Killed 1,320 children every day (2022)

“Half the world’s populaiton is at risk of malaria is over 106 countries”

WHO

Malaria and treatment

Nets, spraying homes with insecticides

DDT

Used on the interior walls of homes, minimal impact on environment. Has not be found harmful to humans but not used in Africa significantly

Malaria Childhood deaths

Halved from 2005-2015 because of better implementation of bed-nets, diagnosing, and treatment

R21, September 28th, 2022

A new vaccine for malaria was developed by scientists at Oxford with up to 80% effective at preventing Malaria in young children

Tuberculosis

20 years ago, TB was considered conquered, it has recently emerged as a virulent killer

2 Billion People

are infected with TB Bacterium. 25% also have HIV, making them more likely to develop TB

Tuberculosis and India

Especially prevalent, 2-4x higher in low income and non-scholling areas

Tuberculosis and India

Spreading due: overcrowding, airborne bacterium, along with poor sanitation

Therapy for Tuberculosis

Directly Observed Treatment (DOTs)

Directly Observed Treatment

Regular TB drug dosage with clinical observation visits.

Drug-Resistant TB (Multi-Resistant)

People begin to feel better and stop taking their medicine, but it creates a stronger disease. Issue in RUSSIA AND INDIA

Smallpox

Affected 10-15 million people globally in 1966 and resulted in 1.5-2 million deaths has been completely eradicated. Last recorded, Somalia, 1977.

Polio

1988: 125 countries were endemic for polio; 350,000 cases annually

Endemic

Likely to catch it (a disease), susceptible

Countries with Vaccine-Derived Polio Outbreaks - 2026

Vaccine-Derived Poliovirus (cVDPV) caused by low community vaccination rates. 6 cases last year in the U.S., Britain, and Jerusalem.

Diarrheal Disease

one of the leading causes of death among children, 20% of all child deaths.

Diarrheal Disease Death

Worldwide, dehydration from diarrhea kills by 1.4 to 2.5 million babies each year (ORT)

How can we change death from disease?

• Strong leadership: political influence giving directions

• Program championship: ie. a star soccer player getting treatment

• Affordability delivery system

An Essay on the Theory of Population, 1798

Robert Thomas Malthus

Robert Thomas Malthus

Created Positive and Preventative checks

Four Horseman of the Apocalypse

War, Famine, Pestilence/Disease, Death

“Population is a threat to development“ 1973

Robert McNamara

1800 World Population

1 Billion

2020 World Population

7.7 Billion

Post World War 2

Population Explosion

7.7 Billion Today

World Population. 16% in high income nations and 84% in lw and middle income nations

China

Represents 20% of the world’s population

Population growth in high income countries

is a result of immigration

Replacement Level

2.1 children need to be born for each set of parents to maintain the current population (Germany, Italy, JAPAN, and Russia are below the replacement level)

2050

The World Population will peak out at 9 billion

Why Birth Rates Decline

1. Contraception and Abortion

2. Only if its in their interest to do so

3. The imposition of costs on the parents

Gary Becker

Discovered the constraints faced by parents are time and the cost of purchased goods and services

Population Growth and Economic Development

No exact correlation between the two, it’s all over the board!

Population Pessimists

people who believe population growth harms economic development

Population Optimists

people who believe population growth benefits the nations and its economy.

Julian Simon

Population pressure induces technological breakthroughs, large populations contain more entrepreneurs and other creators

Human Ingenuity

The ultimate resource that can overcome any depletion of other resources

New Third School: Population Revisionists

Neutralists.. population growth depends on time, place, and circumstance

Population Policy Contreversay

Family planning vs. broad based socioeconomic development

Population Policies

1. Birth Control, 1979 one child policy campaign

2. Educating Girls