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Prospects Daily: Japan’s GDP contracts at annualized 3.5% (q/q) in third quarter

Global Macroeconomics Team's picture

Financial Markets…Global stock markets fluctuated between gains and losses, following three consecutive days of losses last week, as strong Chinese exports data in October offset worries over a prospect of the so-called U.S. fiscal cliff and Greek woes. The benchmark MSCI global equity index just slipped 0.04% in afternoon trading.

An analogy about cars, trust and financial capability

Siegfried Zottel's picture

Imagine you need a car to commute long distances to your workplace or the closest supermarket, to visit your parents and to bring your child to school. Therefore, you want to spend the money you have been able to put aside on a large purchase: a new and reliable car.  However, you do nFinancial education enables the unbanked to participate in financial markets.  (Credit: The Advocacy Project, Flickr Creative Commons)ot know how to drive, nor how do you have even a basic understanding of any technical aspects of a car, not to mention any knowledge about how to maintain a car.
Also, imagine that everything you have heard so far about car dealers from your family, friends and neighbors is that they have a very bad attitude, do not act in your best interest and try to sell you overpriced vehicles with hidden fees and features you do not need. Given your lack of knowledge of how to choose and use a car and your lack of trust, would you still feel confident about approaching a car dealer? Most probably not.

This analogy also applies to one’s participation in financial markets. Especially in developing economies, where most globally unbanked people live. If you do not have knowledge of features and risks associated with financial products, do not know how to choose and use these products, lack any basic understanding of inflation, interest rates and compound interest, it is unlikely that you will participate in financial markets, or that you will benefit from them if you do. A lack of trust in financial service providers will do the same.

Prospects Daily: European sovereign credit risk rises to eight-week high

Global Macroeconomics Team's picture

Important developments today:

1. European sovereign credit risk rises to eight-week high following Greek debt swap insurance payouts

2. Italy in recession

Are all medical procedures, drugs good for the patient?

Patricio V. Marquez's picture

Also available in: РусскийPatients waiting at health center in Angola (credit: UN/Evan Schneider).

When healthcare professionals take the Hippocratic Oath, they promise to prescribe patients regimens based on their “ability and judgment” and to “never do harm to anyone”.

Although extraordinary progress in medical knowledge during the last 50 years, coupled with the development of new technologies, drugs and procedures, has improved health conditions and quality of life, it has also created an ever-growing quandary regarding which drugs, medical procedures, tests and treatments work best.

And for policy makers, administrators and health economists, the unrestrained acquisition and use of new medical technologies and procedures (e.g., open heart surgery to replace clogged arteries, ultrasound technology scanners to aid in the detection of heart disease, and life-saving antiretroviral drugs for HIV/AIDS) is increasing health expenditures in an era of fiscal deficits.

In many countries, I’ve see how ensuring value for money in a limited-resources environment is not only difficult but requires careful selection and funding of procedures and drugs. It also comes with serious political, economic and ethical implications—and with new drugs and technologies appearing every day, this challenge isn’t going away. What should countries do?

Combating Systemic Corruption in Education

Sabina Panth's picture

Studies have revealed a strong correlation between quality of education and increased corruption in a country.  According to a Transparency International report, data collected to track progress in education in 42 countries showed that the practice of paying bribes is associated with a lower literacy rate among adolescents. Corruption is also linked with increased inequality in the quality of education between the rich and the poor.  When resources allocated for public education is inadequate or do not reach the schools, it is the poor who bear the brunt.  Unlike the rich, who can afford private tuition for their children, the poor have to depend on the government.

Why are there so many poor evaluations of ICT use in education?

Michael Trucano's picture

Olbers' paradox is sometimes easier to wrap your head around than the question of why there are so many poor evaluations of ICT use in education | image attribution at bottomDespite increasing attention to the impact of ICT on teaching and learning in various ways, the ICT/education field continues to be littered with examples of poor evaluation work.  A few of them arrive in my in-box every week.

There are many potential reasons advanced for the general poor quality of much of this work.  One is simple bias -- many evaluations are done and/or financed by groups greatly invested in the success of a particular initiative, and in such cases findings of positive impact are almost foregone conclusions.  Many (too many, some will argue) evaluations are restricted to gauging perceptions of impact, as opposed to actual impact. Some studies are dogged by sloppy science (poor methodologies, questionable data collection techniques), others attempt to extrapolate finds from carefully nurtured, hothouse flower pilot projects in ways that are rather dubious. (The list of potential explanations is long; we'll stop here for now.)


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