I usually don’t wake up to hate mail in my inbox. What prompted this deluge is a recent paper that evaluates the impact of a training program for informal health care providers (providers without any formal medical training) in the state of West Bengal, India (paper summary). Training improved the ability of informal providers to correctly manage the kind of conditions they may see in their clinics, but it did not decrease their overuse of unnecessary medicines or antibiotics.
Intellectual property (IP) protection is a heavily debated issue particularly in the developing world, as many formerly poor countries have experienced rapid economic growth and now represent potentially profitable markets for innovating firms. Partly because of this growing importance, members of the World Trade Organization were required to adopt the Trade Related Intellectual Property Standards (TRIPS) intended to establish uniform IP standards including a product patent system in all fields of technology. Many developing countries such as India, China, and Brazil have recently begun creating these systems (and these policies are currently being considered in many African countries). As a result, little is known about the effects of these policies in the developing world.
During the dry season, N. S. Reddy, a farmer in Kadapa district of Andhra Pradesh, cultivates groundnut on two acres using water from his own borewell, which he runs for the six hours every day that his village gets electricity. His neighbor, J. R. Prasad, owning a borewell of similar capacity, fully cultivates his single acre of land, but also sells water to A. R. Murthy to grow sunflower. At the end of the season, Mr. Murthy gives Mr. Prasad 3000 Rupees as payment on his contract for irrigating this half acre. In a different village, a similar scenario plays out, but here the borewell owner, K. Chandra, sells M. S. Krishna five irrigations, one-at-a-time throughout the season, at 1000 Rupees apiece.
The World Bank’s conference on “The State of Economics, the State of the World” was an opportunity to take stock of the emergence of new paradigms for understanding economic development. Following Ken Arrow’s talk on the history of the neoclassical model and Shanta Devarajan’s comments on this model’s centrality in the Bank’s work, I had the opportunity to discuss two paradigms of how individuals make decisions that have recently emerged in economics, drawing on psychology, sociology, and anthropology.
Philanthropists Bill and Melinda Gates cited “time poverty” as a top priority in their 2016 Annual Letter, referring to the unpaid work that disproportionately falls on women and shining a spotlight on one of the most vexing challenges economists and statisticians face: how to accurately measure women’s work.
New choruses demanding a data revolution to gauge progress toward the Sustainable Development Goals better than their predecessors, the Millennium Development Goals, are welcome—and indeed some challenges on the data front are new. Others, however, are very, very old. Accurate measurement of women’s work and contribution to productivity remains one of the latter.
Policymakers operate with a truncated view of the economy—with little idea of how growth impacts, or is affected by, women’s work. For the most part they fail to incorporate this work into their labour market policies.
This article was originally published on SciDev.Net. Read the original article.
Most of us would agree that when it comes to healthcare providers, some training is better than none. Yet even this seemingly innocuous statement is highly contentious in India, where training primary care providers who lack formal medical qualifications is anathema to the professional medical classes.
But the professionals are wrong. Training informal providers (IPs) could vastly improve the quality of care for millions of rural Indians and there is no evidence that it would make matters worse.
It is time to implement such training and critically evaluate its impact, to guide Indian states in deciding whether to treat these providers as an obstacle or an opportunity.
Factor Allocation and Growth
A central challenge for developing countries is to promote growth by reducing the misallocation of factors of production—labor, capital and land. While there may not be such a thing as a perfectly efficient factor allocation, evidence shows that there are huge gains in growth from reducing factor misallocation. Growth requires more efficient firms to produce more output and use more factors of production. Our past work has shown that land allocation is barely better than random at best, and probably worse than random in India. Put differently, low productivity firms have better access to land and buildings than high productivity firms. Indeed, land and buildings misallocation appears to be at the root of much of the misallocation of output and it accounts for a large share of the observed differences in output per worker in the manufacturing sector.