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Blog links July 18: growth mindsets, empowerment, whether to cluster errors, education lessons and more…

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Submitted by Kiche on

Thanks Prof. We cant reply to your blogs/postings, but we appreciate your postings on development research issues that now keeps some of thinking twice regarding research in developing economies. Just a comment on one of the postings regarding remittances using EDUPAY. Sometimes money is remitted for different projects as instructed by the sender. A remittance is in some or (most) cases a bundle for different projects, and what if the cost of remitting money is reduced by the traditional method instead of different transactions in addition to EDUPAY?. In what proportion of the times do guardians default to meet education funding instructions for booze or other projects? Any study to show how bad guardians are? They even borrow from kin or friends or banks to be repaid through remittances later. Remittances may have a delay problem as senders do not always have the money at hand requiring such local loans. Payers in the home country often work out different arrangements with school authorities on when and how payments are made to avoid a student being sent home for lack of tuition. If you give them money to send as a one time experiment they dont have much to loose but they are already receiving a signal that the experiment is testing whether they trust the recipients of their money- and they wont turn such money down and fail to please the donor. Looks like Edupay may solve some problems if it is not costly, but it has these unintended consequences regarding relationships and trust regarding making arrangements on transactions. A guardian may say " you dont trust me with your money now but you want me to help the student with other things". These relatives may be doing a lot more regarding human capital formation of the young, whether own children or senders relatives in general and not simply helping with payment of remitted school fees. They may be dismantling the social capital that helps with the education of children. These experiences are based on African observations and may not be relevant to the Phillipines.

Submitted by Albert on

South Africa is certainly one of the countries attempting to move onto a more aggressive growth trajectory. The engagement of an international panel of experts
has shown general agreement with Government’s ASGISA policy that such a trajectory would involve adjusting production profiles in favor of more dynamic tradables, soaking up the vast pool of unemployed—including discouraged new entrants to the labor pool, and generally opening the economy to emerging firms

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