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Economics Blog
Showing articles with label Poverty and Income Distribution.
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tyler_cowen
Author
12-14-2015
07:02 AM
Originally posted on August 15, 2009. Perhaps Turkmenistan takes the prize: In 2003, "President for Life" Saparmurat Niyazov decided that poor, landlocked Turkmenistan's medical costs were too high and that its healthcare system urgently needed reform. The country had already suffered from a shortage of doctors, and the only qualified ones were in cities, Niyazov said on a public radio address. So, in a frankly insane healthcare reform effort, he restricted the public's access to care by replacing up to 15,000 doctors and nurses with unqualified military conscripts. The next year, he ordered hospitals and clinics outside of the capital, Ashgabat, to close -- even though the vast proportion of Turkmenistan's population lives in rural areas. The BBC quoted him as saying, "Why do we need such hospitals? If people are ill, they can come to Ashgabat." He also implemented fees and created an "unofficial" ban on the diagnosis of certain communicable diseases, like hepatitis. As a result, an epidemic of the bubonic plague reportedly broke out (Turkmenistan's highly secretive government does not allow in organizations like the WHO) and existing rashes of AIDS, hepatitis, and tuberculosis worsened. At the time of Niyazov's death from a cardiac infarction in 2006, Turkmenistan had one of the lowest life expectancies in Asia -- less than 60 years. The full story is here and it lists some other very bad health care reforms.
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tyler_cowen
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12-14-2015
06:50 AM
Originally posted on September 20, 2009. The ever-excellent Mark Steckbeck offers up a quotation from Yahoo: The 78 percent number (i.e., 78% of NFL players go bankrupt within two years of retirement) is buoyed by the fact that the average NFL career lasts just three years. So, figure a player gets drafted in 2009, signs for the minimum and lasts three years in the league: He will have earned about $1.2 million in salary. Factor in taxes, cost of living and the misguided belief that there will be more years and bigger paydays down the road, and it becomes a lot easier to see how so many players struggle with money after their careers end.
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alex_tabarrok
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12-11-2015
02:10 PM
Originally posted on September 23, 2009. In South Africa the problem of teacher absence is so bad that frustrated students rioted when teachers repeatedly failed to show up for class. But the problem is not limited to South Africa, teachers are absent throughout the developing world. Spot checks by the World Bank, for example, indicate that on a typical day 11% of teachers are absent in Peru, 16% are absent in Bangladesh, 27% in Uganda and 25% in India. Even when teachers are present they are often not teaching. In India, where a quarter of the teachers are absent on any particular day, only about half of those present are actually teaching. (These are national averages, in some states the problem is worse.) The problem is not low salaries. Salaries for public school teachers in India are above the norm for that country. Indeed, if anything, absenteeism increases with salary (and it is higher in public schools than in private schools, despite lower wages in the latter). The problem is political power, teacher unions, and poor incentives. Teachers are literate and they vote so they are a powerful political force especially where teacher unions are strong. As if this were not enough, in India, the teachers have historically had a guarantee of representation in the state Legislative Councils so political power has often flowed to teachers far in excess of their numbers. As a result, it's virtually impossible to fire a teacher for absenteeism. The situation in South Africa is not that different than in India. The NYTimes article on South Africa has this to say: “We have the highest level of teacher unionization in the world, but their focus is on rights, not responsibilities,” Mamphela Ramphele, former vice chancellor of the University of Cape Town, said in a recent speech. Some reforms are planned in South Africa, including greater monitoring of teacher attendance but this offhand remark suggests the difficulties: “We must ask ourselves to what extent teachers in many historically disadvantaged schools unwittingly perpetuate the wishes of Hendrik Verwoerd,” [President Zuma] recently told a gathering of principals, implicitly challenging the powerful South African Democratic Teachers’ Union, which is part of the governing alliance(!). (Emphasis added, AT.)
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