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The economics of social justice
- 1. The Economics of Social Justice Shanta Devarajan World Bank www.worldbank.org/futuredevelopment
- 2. To achieve social justice • 135 countries have constitutional provisions for free and non-discriminatory education for all • 73 U.N. member countries guarantee the right to medical care services • 41 countries have enshrined the right to water within their national constitutions, or have framed the right explicitly or implicitly within national legislation Note: These rights are aimed at protecting poor people
- 3. Education: Completion rates Mali, Access to school according to income level, 2006 Source: Calculations from household survey data 2%5%8%9% 94% 23% 31% 39% 53% 59% 67% 98% 0% 20% 40% 60% 80% 100% Access to primary Primary completion Acces to lower secondary completion of lower secondary access rates to upper secondary completion of upper secondary Poorest quintile 2nd quintile 3rd quintile 4th quintile Richest quintile
- 4. Education: Learning outcomes Source: Annual Status of Education Report (Rural), 2012
- 5. MENA Region underperforms Jordan Qatar Singapore Tunisia UAE Vietnam 350 400 450 500 550 600 7 8 8 9 9 10 10 11 11 12 12 PISAMath2012 Log GDP per capita PISA Math 2012 scores
- 6. Benin Botswana Angola Cameroun C. Verde CARChad DRC Congo Costa Rica Equatorial Guinea EritreaEthiopia Gabon Ghana GuineaLiberia Lybia Mauritania Mauritus Mozambique Namibia Niger Nigeria STP Seychelles South Africa Sudan Tanzania Uganda Tunisia 0 100 200 300 400 500 600 700 800 900 1000 30 40 50 60 70 80 90 100 Totalhealthexpenditureper capita(US$) Immunization, DPT (% ) Immunization vs. Total health expenditure (2010)
- 7. 24x7 water: A pipe dream? Source: Data collected from the water boards or utilities per capita lpd vs. hours of supply/day Goa Chandigarh Mumbai Delhi Patna Ludhiana Jodhpur Dasuya Dera Bassi Paris Jaipur Ahmedabad Bikaner Bangalore Gurdaspur Bathinda Bharatpur Udaipur Chennai 32 80 105 106 108 123 133 145 149 173 184 190 220 222 223 240 332 341 1.5 2.5 1.5 8 10 2.5 1.5 2 3 8 10 2.5 10 10 4 5 10 8 24150
- 8. Service to the poor is big business
- 10. What went wrong? • Assumed government should finance and deliver social justice (education, health, water, etc.) • But governments have constraints – Resources – Capacity • With limited resources, governments should spend on: – Public goods, externalities – Redistribution
- 11. Resources have been captured by the non-poor Distribution of Health Care Subsidies All India, 1995-6 0 5 10 15 20 25 30 35 Poorest II III IV Richest Hospitals Primary Health Centers
- 12. Public Spending on Education Indonesia 1 (poorest) 4 7 10 (richest)Deciles Subsidypercapitaof decile Primary Tertiary
- 13. Country (year) % of cash/in-kind resources leaked Resource Category Kenya (2004) 38 Non-salary budget Tanzania (1991) 41 Non-salary budget Uganda (2000) 70 Drugs and supplies Ghana (2000) 80 Non-salary budget Chad (2004) 99 Non-salary budget Source: Gauthier (2006) Leakage of resources in health Capacity constraints lead to poor quality services
- 14. All India Teacher Absence Map (Public Schools) State Teacher Absence (%) Maharashtra 14.6 Gujarat 17.0 Madhya Pradesh 17.6 Kerala 21.2 Himachal Pradesh 21.2 Tamil Nadu 21.3 Haryana 21.7 Karnataka 21.7 Orissa 23.4 Rajasthan 23.7 West Bengal 24.7 Andhra Pradesh 25.3 Uttar Pradesh 26.3 Chhatisgarh 30.6 Uttaranchal 32.8 Assam 33.8 Punjab 34.4 Bihar 37.8 Jharkhand 41.9 Delhi - All India Weighted 24.8% Source: Kremer, Muralidharan, Chaudhury, Hammer, and Rogers. 2004. “Teacher Absence in India.”
- 15. Public School Teachers are paid a (lot) more 1231 1619 6178 5299 0 2,0004,0006,000 SalaryinRs. Private Public Unadjusted Adjusted Unadjusted Adjusted Teacher Compensation • Definitions • Unadjusted Wage is the average wage of teachers in the public and private sector • The adjusted wage is what a 25 year old female with a bachelors degree and a 2-year teacher training course residing locally would earn in the public and private sector
- 16. -400-2000200400600 DeviationfromMeanSalaryinRs 0 10 20 30 Days Absent per Month Private Schools Public Schools Teacher Absenteeism and Compensation The private sector pays more absent teachers less The public sector pays more absent teachers more Salary results are presented as “deviations from mean”. So the number 200 on the vertical axis means that the person’s salary is Rs.200 more than the average salary for the sector The figure is based on a non-parametric plot of deviations from mean salary against the number of days absent.
- 17. India 2003: Doctor absence from PHC’s by state and reason 0 10 20 30 40 50 60 70 80 B ihar Jharkhand O rissa U ttaranchal U ttarPradeshA ssamR ajasthan M adhya Pradesh C hhatisgarh W estB engal A ndhra Pradesh K arnataka Tam ilN adu M aharashtraG ujaratH aryanaPunjab Official Duty Leave No reason
- 18. Staff absenteeism in MENA
- 19. What is to be done? • Information (93 countries have right to information laws)
- 20. Primary Education in Uganda (PETS) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 1990 1991 1993 1994 1995 US$ per Student Intended Grant Amount Received by School (mean) 1999 Grants for Primary Education in Uganda • In 1995, survey of 250 primary schools in 19 of 39 districts;
- 21. Primary Education in Uganda (PETS) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 1990 1991 1993 1994 1995 US$ per Student Intended Grant Amount Received by School (mean) 1999 Grants for Primary Education in Uganda • In 1995, survey of 250 primary schools in 19 of 39 districts; • Survey repeated in 1998 and 2000.
- 22. What is to be done? • Information • Cash transfers for redistribution
- 23. Indicator/Country Angola Equatorial Guinea Gabon Mozambique Nigeria Republic of Congo Tanzania Uganda Type of Resource Oil Oil Oil Natural gas Oil Oil Natural gas Oil DDT per capita per year at 10% distribution (US$) 199 978 407 39 37 183 3 10 DDT as % of average poverty depth at 10% distribution 61 235 172 37 38 88 9 21 Poverty Depth as % of Natural Resource Fiscal Revenue 6 3 2 15 14 6 38 12 Poverty Depth as % of Net ODA 954 265 112 70 401 32 18 23 Give The Money To The People