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(Related to the Apply the Concept on page 742) In his book The White Man's Burden, William Easterly reported: A vaccination campaign in southern Africa virtually eliminated measles as a killer of children. Routine childhood immunization combined with measles vaccination in seven southern African nations starting in 1996 virtually eliminated measles in those countries by \(2000 . \mathrm{A}\) national campaign in Egypt to make parents aware of the use of oral rehydration therapy from 1982 to 1989 cut childhood deaths from diarrhea by 82 percent over that period. a. Is it likely that real GDP per capita increased significantly in southern Africa and Egypt as a result of the near elimination of measles and the large decrease in childhood deaths from diarrhea? If these events did not increase real GDP per capita, is it still possible that they increased the standard of living in southern Africa and Egypt? Briefly explain. b. Which seems more achievable for a developing country: the elimination of measles and childhood deaths from diarrhea or sustained increases in real GDP per capita? Briefly explain.

Short Answer

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Yes, it's likely that the real GDP per capita increased in southern Africa and Egypt due to these health improvements, since a healthier population is more productive. Even if these events didn't directly increase GDP per capita, they certainly improved the standard of living by reducing the loss and suffering associated with childhood diseases. The elimination of certain diseases and decrease in childhood mortality might be more achievable for a developing country than sustained increases in GDP per capita, but both aspects are interlinked and tend to influence each other.

Step by step solution

01

Part A - Impact on GDP per Capita and Standard of Living

1. GDP per capita is a measure of a country's economic output per person. It is enhanced not only by increasing production but also by a healthy and productive workforce. The elimination of diseases, such as measles, and significant decrease in childhood deaths can contribute to this by creating a healthier society that can work more efficiently and longer. This can potentially increase real GDP per capita. 2. Even if these health improvements didn't directly boost GDP per capita, they certainly raised the standard of living. Reducing the number of deaths from childhood diseases means fewer families suffer the loss of a child, which has a profound positive influence on the quality of life. In addition, healthier children means less time and money spent on medical care, leaving more resources for other activities that also improve the standard of living.
02

Part B - Comparing Health Improvement and GDP Increase

It might be more achievable for a developing country to eliminate certain diseases and lower childhood mortality rates than to have sustained increases in GDP per capita. This is because disease elimination measures like vaccination campaigns often require less financial resources compared to the infrastructural and institutional developments needed for economic growth. However, it's important to note that both aspects are interlinked and progress in health can lead to economic progress and vice versa.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Real GDP per Capita
Real Gross Domestic Product (GDP) per capita is a crucial economic indicator that measures the average economic output or income generated for each person in a country, adjusted for inflation. It's computed by dividing the real GDP of a country by its total population. An increase in real GDP per capita is generally associated with higher productivity and prosperity.

Improvements in public health, like widespread immunization and successful initiatives to combat childhood diseases, have the potential to positively influence this economic measure. Healthier populations are often more productive as individuals can work more efficiently, take fewer sick days, and contribute to the economy for a longer duration of their lives. This in turn can lead to an increase in the country's GDP. However, the direct correlation between health improvements and a significant jump in real GDP per capita might not be immediately evident, as factors like education, technology, and infrastructure also play critical roles in economic growth.
Standard of Living
The standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area. It includes not only financial wealth but also factors such as health, education, environmental quality, and personal safety.

Health improvements, especially in a young population, greatly enhance a society's standard of living independent of economic measures such as real GDP per capita. For example, the successful reduction of childhood diseases is likely to result in fewer expenses related to healthcare, a reduction in the emotional and social burden on families, and an overall increase in the well-being of the community. These qualitative improvements contribute to the general prosperity and happiness of a population, underlining the importance of health interventions for improving the standard of living.
Childhood Immunization
Childhood immunization has been a game-changer in public health, greatly reducing morbidity and mortality from preventable diseases. Vaccines protect not only the vaccinated individual but also the community by establishing herd immunity. This is particularly important for children, who are more vulnerable to complications from diseases such as measles.

Health-related expenditures can be a significant economic burden for families and countries especially in developing regions. Using immunization to prevent diseases can reduce both direct costs (like medical expenses) and indirect costs (such as lost income due to caring for sick children). These savings allow for resources to be allocated elsewhere, potentially contributing to economic development and growth.
Disease Elimination in Developing Countries
Targeting disease elimination in developing countries is often seen as a more viable immediate objective compared to achieving sustained increases in real GDP per capita. Diseases such as measles and diarrhea are preventable with relatively low-cost solutions like vaccination and oral rehydration therapy, respectively.

Disease elimination campaigns can greatly reduce child mortality rates, which is a strong indicator of a country's development progress. Furthermore, they can contribute to long-term economic development by creating a healthier workforce and reducing long-term healthcare costs. Investing in health infrastructure and disease prevention can play a vital role in a country's journey towards economic improvement and a higher standard of living.

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Most popular questions from this chapter

An article in the Economist on the Mexican economy noted, "A huge, unproductive informal sector and general lawlessness also drag the economy down." If these factors were the main barriers to more rapid economic growth in Mexico, would that be good news or bad news for the Mexican government's attempts to increase its economy's growth rate? Briefly explain.

Why does a country's economic growth rate matter?

The Roman Empire lasted from 27 B.C.E. to C.E. 476 . The empire was wealthy enough to build such monuments as the Roman Coliseum. Roman engineering skill was at a level high enough that aqueducts built during the empire to carry water long distances remained in use for hundreds of years. Yet, although the empire experienced some periods of growth in real GDP per capita, these periods did not last, and there is little evidence that growth would have been sustained even if the empire had survived. Why didn't the Roman Empire experience sustained economic growth? What would the world be like today if it had? (Note: There are no definite answers to these questions; they are intended to get you to think about the preconditions for economic growth. Looking beyond this problem, if you are interested in the macroeconomics of the Roman economy, see Peter Temin, The Roman Market Economy, Princeton: Princeton University Press, 2013, Chapters 9-11.)

(Related to Solved Problem 22.2 on page 747) Shortly before the fall of the Soviet Union, the economist Gur Ofer of Hebrew University of Jerusalem wrote, "The most outstanding characteristic of Soviet growth strategy is its consistent policy of very high rates of investment, leading to a rapid growth rate of [the] capital stock." Explain why this strategy turned out to be a very poor way to sustain economic growth in the long run.

An article in the Wall Street Journal in mid-2017 noted, "Mexico's economy kept up steady growth in the first quarter, expanding for a 15 th consecutive period despite concerns that strained trade and investment relations with the U.S. will bring about a sharp slowdown." During this period, why were some observers concerned about Mexico's economic relations with the United States? Why are these relations particularly important if the Mexican economy is to experience sustained growth?

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