Poverty reduction and sustainable development

3.2 Improving health, education and 　

social services 　 小荷作文网 www.zww.cn

Improved infrastructure provision, both public and private, would 　

help reduce social inequality, and accelerate economic growth. Take education 　

as an example. Education has been regarded as an effective way to promote 　

sustainable development. Educated and skilled people are usually able to 　

deliver more output or output that is more valuable in the marketplace, and 　

their employers tend to recognize that fact with higher wages. Meanwhile, 　

education is critical to a country’s level and rate of economic development, 　

primarily because these factors are important to a country’s ability when it 　

produces and adopts technological innovations. What has to be emphasized is 　

that although education has so many advantages, it must be accompanies by the 　

right development strategy. Only in this way, can it bring its potential 　

function into a full play. Take the Philippines and Vietnam as examples. The 　

adult literacy in both the Philippines and Vietnam is higher than in most other 　

Southeast Asian countries. However, the two countries were growing relatively 　

slowly till to the recently. It is not that the two countries do not pay 　

attention to education, but largely because of development strategies which 　

prevented them from making full use of their stock of human capita. In Vietnam 　

central planning stood in the way, and in the Philippines economic isolation 　

from the global market was to blame. In recent years, delightfully, both 　

countries have realized a return on their investment in human capital. Vietnam 　

adopts a more market based approach to development and radically improving its 　

growth rate, and the Philippines exports many of its educated workers and 　

imports their foreign exchange earnings. 　

　 　

Improving the infrastructure of health, 　

education and social services is the most important task in this program. This 　

is because the currently provision of high quality, reliable, and reasonably 　

priced infrastructure services in the developing countries is not enough and 　

urgent to be improved, which represents a major obstacle to continued growth of 　

the economy and services to the poor, and to the diffusion of the benefits of 　

liberalization. Considering this, we think in order to improve the 　

infrastructure of health, education and social services, an effective 　

delineation of responsibilities between the regulator and the policy maker, and 　

the creation of independent regulators within a broader restructuring of the 　

sectors are necessary. In many sectors, privatization and greater reliance on 　

competition could improve service delivery in many areas. Above all, 　

infrastructure improvement ought to depend on the removal of the implicit and 　

explicit subsidies and a move to remunerative user charges. 　

　

　　 　

3.3 Regulating and supervising financial system 　

Good and sound financial system is definitely an effective way to 　

reduce poverty and make development sustainable. Thus the financial system need 　

to be well regulated and supervised. On one hand, infrastructures of basic 　

education and health services need better and more public spending to reduce 　

poverty and speed growth. Governments usually need more money to improve these 　

service sectors, such as building schools and hospitals, and providing some 　

fanatical stimulus to attract both private sector and public sector 　

participation in infrastructure. All these actions have possibilities to 　

increase the current low returns on capital invested in these areas and raise 　

taxable revenues. The improvements in the budgets from reduced explicit and 　

implicit subsidies and higher taxes from the formerly public enterprises would 　

permit much needed increases in spending on infrastructure and basic human 　

development at the Center and state level. On the other hand, regulating and 　

supervising financial system help make sure the government expenditure well 　

used for poverty reduction, prevent the social inequality and narrow down the 　

gap between rich and poor. 　

India set up a good example on this aspect. It pays much attention 　

to the financial system and finally its poverty have been sharply reduced. 　

Specifically, firstly, India think there is a need to deal more rapidly with 　

weak banks and prevent their non-performing assets from increasing. Secondly, 　

lending to the private sector needs to improve, which will depend on a reduced 　

fiscal deficit 《to reduce crowding out》 and better incentives to lend and 　

collect, including privatization of banks. The payments system lags 　

improvements elsewhere in the financial sector and would benefit from some 　

quick improvements. Finally, more transparency, such as making the massive Unit 　

Trust of India's activities more transparent, reducing settlement times in the capital 　

market, and improving accounting, auditing and corporate governance, as laid 　

out in the draft Companies Bill, 1998, would help reduce vulnerability and 　

improve the allocation of scarce capital. 　

　

　 3.4 Making effective policies 　

　　 　

Effective policies is the safeguard which make sure poverty reduction 　

and sustainable development in the developing countries progressive. For 　

example, public policies and investments can influence 　

poverty-agriculture-environment dynamics at various points of the framework. 　

For example, public agricultural research investments and food price policies 　

affect shift factors, while technical assistance influences response patterns. 　

The most effective action for reducing poverty and environmental degradation 　

will depend on the dynamics of the local change process and the relative 　

importance of key factors influencing poverty–environment interactions. 　

We think different country and area have different characters, and 　

need different policies to change the situation. For instance, we ca make a 　

policy to give the poor people the right to be as a member of the modern 　

society without any exclusion. We can also make policies on attract foreign 　

investment. As is mentioned above, poor people and poor countries have not much 　

additional savings to make an investment. It not said that they are doomed to 　

be poor, because foreign investment can improve this situation. Foreign 　

investment can help them break out of the vicious circle of poverty, 　

particularly if such investment is accompanied by transfers of advanced 　

technology from developed countries. The opportunity to benefit from foreign 　

investment and technology is sometimes referred to as the “advantage of 　

backwardness”， which should 《at least theoretically》 enable poor people and 　

countries to develop faster than did today’s rich countries. And if we regard 　

poverty eradication as the outcome of a sustainable development process, and 　

focus on the preservation and enhancement of natural resources, as well as on 　

their equitable distribution. In that case, we can make policies focus on human 　

rights, inequality and the unsustainable consumption patterns of the wealthy. 　

Rome wasn't built in a day. It has been a long time that poverty 　

hinder the process of sustainable development. In order to get more people out poverty and 　

limit the damage caused by poor people, what is the most important thing we 　

need to do is being patient, getting united and working together.