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Education, democracy and development

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Education, democracy and
development
Education and development
Various issues
Human capital
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Human capital data
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Education
Age
For historical period it is impossible to have
education data especially for Asian and
African countries
One can use age heaping as a proxy for
human capital
Education and economic
growth in historical period
Various issues
Age heaping as human capital
indicator
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People of lower educational status (especially
less “numeracy”) tend to report their age at
round numbers
Duncan Jones (1990) use of age heaping for
the Roman Empire
Bachi (1951) age heaping and education
Mokyr applied age heaping indicators for the
first half of the nineteenth century for the
emigrants from Ireland to USA
4 .5
Relation between education
and age heaping
eg
4
ma
ir
3 .5
tr
gt
iq
3
lk
mx
2 .5
br
20
40
60
illit erac y
80
100
br –Brazil 1950, eg –Egypt 1947, gt – Guatemala 1950, ir – Iran 1966, iq – Iraq 1957,
lk – Sri Lanka (Ceylon) 1963, ma – Morocco 1960, mx – Mexiko 1970, tr – Turkey 1965.
Human capital
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From 1500 onwards literacy rates increased
in the main regions of the Europe and Asia
In Western Europe the rise of literacy rates is
partly due to diffusion of printing press
Literacy rose not lonely among elites but also
common people
Literacy during 1500-1800 (1)
Country
Austria
Belgium
France
Germany
Italy
Netherlands
Sweeden
Portugal
Spain
Literacy in 1500
6
10
7
6
12
10
10
1
1
Literacy in 1800
21
49
37
35
22
68
85
3
2
Literacy during 1500-1800 (2)
Country
Eastern Europe
Russia
USA
UK
China
India
Japan
Other Asia
Africa
Literacy in 1500
1
1
0
10
5-10
2
5-10
3
0
Literacy in 1800
4
4
50
51.5
16-22
3
25-30
3
2
Divergence Between Asia and Western
Europe
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Before 1800 Western Europe did not have
any particular advantage compared to Asia
After 1500 European literacy rates increased
considerably
By the end of 16th century
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1-2 percent of all European women were literate
10 percent of men were literate
Education and development
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During Industrial revolution literacy in most
developed countries ranged from 30 percent
(France) to 45 percent (Great Britain and
Holland)
Education and development had a strong
positive relation during 19th century
On average countries with higher literacy
rates has higher rates of growth in the 18th
and 19th centuries
Tripe engines of growth
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Western Europe forged ahead in the 18th
century because it was the first region to
develop �triple engines of growth’,
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human capital (people’s knowledge and skills),
technology and organisational change
UK Education revolution in 17th century
Sweden: Dominant protestant branch rules
for marriage and increase in education
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Mid of 19th century Sweden had the highest
literacy rates in the world
Relation between formal education and
industrialization
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Short run view: During industrial revolution
literacy rates in Britain were stagnating
Long run view: by 1800 most developed
countries in Europe had literacy rates
substantially higher than the most developed
countries in Asia
Western Europe was not only the most literate
region of the world, but also had the largest
knowledge-base of techniques and the quality of
human capital that mattered for industrialisation
Europe vs Asia
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In Europe, Britain was the first to achieve
sustained economic growth, because it was the
first country in which the three engines were fully
operational.
In Asia, by the end of the Tokugawa period, the
Japanese had better human capital, were willing
to import technology and knowledge from
outside countries, and organisational change
was occurring in a significant scale.
In contrast, in spite of a growth spurt during the
early Qing period, by the 18th century China was
lagging in all the triple engines of growth.
Suggested paper
Triple Engines of Growth: Why did sustained
growth emerge in Europe and not in Asia? By
Alvaro Pereira
Current educational trends and
its relation to development
Various issues
Education and GDP
Social indicators for the early 1990s (GDP per capita, PPP)
<1000$
10002000$
20005000$
500010,000$
>10,000$
107
73
33
30
6
Life expectancy
49
57
68
69
76
Physicians per
1000
33
88
161
181
231
Energy
consumption
per capita
46
189
977
2029
4857
Adult literacy
52
60
85
83
96
Infant
deaths/1000
live births
Relation between Illiteracy and infant
mortality
Education and Infant Mortality
120
Infant mortality (deaths per 1,000 births)
100
Sub-Saharan Africa
South Asia
Middle East
& North Africa
80
60
40
Latin America
& Caribbean
East Asia
OECD
50
70
90
110
Secondary education (females per 100 males)
20
0
Relation between education and child
mortality
Under 5 mortality per 1,000
250
200
0 Yrs.
4-6 Yrs.
7+ Yrs.
150
100
50
0
Africa
Latin America &
Caribbean
Asia
Years of education of mother
(Average of household survey results)
Democracy and Development
Various issues
Suggested reading
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Empirical linkages between democracy and
economic growth: John F: Helliwell
Political economy of growth: Democracy and
Human capital Baum and Lake
Democracy, political stability and economic
growth: Yi Feng
Edward Muller: Many papers
Jose Cheibub
Joerg Baten
Relation between democracy and
economic growth
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Democracy is more than just a brake or
booster to the economy
Many important questions: Is it better that
economic development and reform take
precedence over the spread of democracy
(China) or that democracy should precede
economic reforms (like some Central and
Eastern Europe countries)
Are these two interrelated or independent?
Seymour Lipset’s study
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Examined relation between regime type and
economic development in 48 countries
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28 European countries
20 Latin American countries
With in the first group he found that per capita
income was more than twice in 13 stable
democracies
In the second group all democratic or unstable
dictatorship countries have 40 percent higher
income than stable dictatorships
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All the countries in the second group have lowest economic
growth compared to the first group
John Helliwell
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125 countries from 1976-1985
Economic development is measured by
average per capita real income
The measure of democracy is obtained by
transforming measures of political rights and
civil liberties by Gastil
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0 with no civil and political rights
1 with both rights
42 percent of variance among countries in
freedom index is explained by variations in
per capita income
Main results
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Countries at higher income levels are more
likely to have democratic forms of
government
Effect of democracy on growth is likely to be
negative than positive
Effect of income on democracy is found to be
robust and positive
Other studies
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The effect of democracy on economic growth
is subtle, indirect and contingent on levels of
development
Democracy has definitely positive effect on
growth though life expectancy in poor
countries and though secondary enrolment
rates in non-poor countries
Example using data set on
democracy and development
Thank you
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