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

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Presentation transcript:

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

Economics 1722 Outline: (1)What can public policy do about HIV/AIDS in Africa? (2)New topic: Education and economic development

Economics 1723 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?

Economics 1724 What can public policy do about HIV/AIDS? (1)Testing people, inform them of their HIV status

Economics 1725 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 + (P HIV – P)(1 – R)V > 0

Economics 1726 What can public policy do about HIV/AIDS? (1)Testing people, inform them of their HIV status (2)Condom distribution

Economics 1727 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)

Economics 1728 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

Economics 1729 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?)

Economics 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

Economics Outline: (1)What can public policy do about HIV/AIDS in Africa? (2)New topic: Education and economic development

Economics Education and economic development Does education lead to higher income? OR does higher income lead to more educational investment?

Economics 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)

Economics 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

Economics 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

Economics 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

Economics Whiteboard #1

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Economics Map of Africa