Importance of Expenditure on Education for Economic Growth

Importance of Expenditure on Education for Economic Growth REVIEW OF LITERATURE THEORETICAL AND EMPIRICAL PERSPECTIVE Introduction Education is recognized as a critical input for the holistic development of the economy. Further, the elementary education plays a very leading role in acquiring larger positive externalities to the society. The provision of elementary education is one of the central responsibilities of the government. Many economic theories also suggest substantial role for the government in providing of basic education. All states in India have undertaken the responsibility of providing elementary education to their citizens. Voluminous government expenditure was increased on education across the states, but there is no significant achievement among the states in terms of educational outcomes. This chapter makes an attempt to review the available literature to understand the theoretical linkages of development and problems involved. The review of literature very helpful in understanding the research problems and explore the research gap and identify the ways that lead to solve the problem. A: Theoretical Models of Public Expenditure on Education Review of literature is divided into two parts. The first part represents the theoretical literature on financing of education, public good discussion, externalities involved with education and government intervention in the provision of education in the system. The role of education in economic development and important factors influencing on productivity and externalities involved also discussed here. The second part describes empirical studies on relationship between education and economic growth, inter-state variation in educational performance, efficiency of education system and factors influencing educational expenditure. Finance is commonly referred as providing funds for commercial activities. Public finance includes both public revenue and public expenditure, which plays an important role in influencing the other variables in an economy. Public expenditure is referred as the expenses incurred by the Government for the maintenance of the government responsibility and to stimulate the welfare of the society. Financing is an economic activity of the government to provide and manage necessary resources for satisfying the needs of the people. Education is not a pure public good, because in certain situations education might violate the principle characteristics of the public good such as non-rival and non-excludability. But education in general or elementary education in particular is considered as social good or collective good, which produces various positive externalities and social advantages to the society. Several economists have supported public expenditure on education for providing better educational opportunities in the society based on the argument that expenditure on education impacts economic development positively. During the ancient period most of the countries were following the laissez faire policy, where market forces play dominant role in adjustment of the economy. The role of the state was limited. Even under laissez-faire policy, the Government was expected to perform certain functions. According to the father of economics, Adam Smith (1937)[1] who provided a broad platform to laissez faire policy, the government has three important functions. They are Protection of society from foreign invasion. Maintenance of law and order and justice in society. The correction and maintains of public works such as educational institutions for the instructions of the people. Smith greatly emphasized the role of public finance and emphasized the need for providing public services to the poor to live and maintain their human dignity. J.S. Mill (1848) is another well known classical economist supported Adam Smiths laissez faire policy in administration of the government. He purposefully divided the functions of the government in laissez faire into Ordinary and Optional functions. The ordinary functions are defence, maintenance of law and order and other functions essential for the maintenance of the system. On the other hand the Optional functions such as education, health, family welfare and others have positive impact on economic growth the long run. In his argument he also encourage government role in advancement of public expenditure because Individuals are unable to evaluate the utility of certain goods, Lack of foresight may prevent individuals from consuming the valuable goods. Monopoly power or high prices necessitate government intervention in the provision of primary education. For the first time Adolph Wagner[2] (1835–1917) has commented on increasing state activities and through his experiment he found a positive relationship between public expenditure and economic growth among the selected countries. He postulated that when economy moves towards higher economic development path, public expenditure of the state also increases. The increasing public expenditure contributes to economic growth in various ways. In contrary, Peacock and Wiseman[3] (1967) argued that the natural course of advancement and structural change in the economy, leads to constant and systematic expansion in the public expenditure. According to them public expenditure in the system will not continuously increase. It depends on the shocks and stimulus response in the society. The Voluntary Exchange Theory was developed by Knut Wicksell (1896), Eric Lindahl ( ), Howard Bowen (1948)[4] and Musgrave (1939)[5]. It suggests that the resources in public sector should also allocate in the same manner as in such a manner to their allocation in the market with its price system. Through this theory they argued for tax collection and public spending for improving the welfare of the people. Dalton[6] postulated the public expenditure theory (1967) and according to him maximum satisfaction can be yield by striking a balance between public revenue and public expenditure by the government. According to him economic welfare is achieved when Marginal Social Sacrifices (MSS) due to imposition of taxes is equal to Marginal Social Benefit (MSB) due to government spending. Prof. Pigou argued that net social benefit (NSB) is maximized in the equilibrium condition of MSS = MSB. Public Expenditure and Decentralization Since the SSA adopted decentralized model in government spending on education, theories relating to the public expenditure, decentralization and governance are reviewed. Fiscal decentralization theorem (Oates, 1972) states that sub central governments have a comparative advantage in providing public services due to heterogeneity preferences of the people residing in different jurisdiction. He strongly argued for the decentralization in the administration and performing the functions. According to him decentralization will bring good governance at the local level and satisfy more human wants through effective public expenditure. Public expenditure and Distribution Dreze and Sen (1989) propounded public support led strategies. According to them the holistic development of the system is possible only where each and every individual has a good standard of living. For better standard of living and for tracing number of activities, they strongly argued for the educational attainment. Apart from its intrinsic importance, education serves certain instrumental roles in ensuring the freedom of a person, which not only guarantees personal gains but also possesses social ramifications including empowering the disadvantaged and reducing inequality. Certain public service such as education, health, sanitation, family welfare, rural development and others are required particularly for the development of marginalized sections. In this regard, the government investment on social sector is essential for receiving the double benefit to the economy. Samuelsons Theory of Public good The first place in defining the concept of public good belongs to Paul A. Samuelson (1955)[7]. Samuelson consider as the establisher of theory of public good. He made distinguish between public good and private good. The public good as the good, which brings benefits for members of the society as a whole and the consumption of the Public good doesnt proclaim the consumption of the other person. In Indian context provision of elementary education is a right of children between the age group of six to fourteen years, therefore elementary education consider as public good. In this regard Samuelsons argument in the provision of public good (elementary education) is justifiable. Non-rivalry and non-exclusion are two important characteristics of public good; education in general a good only obligatory education can meet the characteristics of public good. The elementary education is fulfilled the characteristics of public good and the consumption of this good does not reduce the consumptio n of other good. All these reasons emphasized the government role in public expenditure in the system. Milton Freidman (1995) published his book entitled The role of government; in that book he postulated the role of government intervention in the provision of education. He positively argued that the government intervention in public good based on strong following reasons; Capital market imperfection Incomplete infrastructure Possibility to create a monopoly Existence of positive externalities Friedman, M. (1955): The Role of Government. In: Solo, R.A, Economics and the public interest. New Brunswick: Rutgers University Press, 1955, 123-144. He propounded and accepted the approach of efficiency in the allocation of public goods. It shows fundamental difference between the allocation of public and private good based on micro economic principle. Prof. A.C. Pigou established the ability to pay theory for the determination of optimum level of public expenditure. He explained that the resources should be allocated among different uses and expenditure should be incurred in different uses in such a form that the marginal utility obtained from each different use is same. The government sector would grow with increasing level of National income. According to him if a community were literally a unitary being, with the government as its brain, expenditure should be pushed in all direction as increases of the National income. Further Prof. Pigou observed that simple marginal rule of optimization implied on increasing public sector with increasing wealth, the optimum amount of public goods is likely to raise. Justification for State Intervention in Education Some of the justifications for state intervention in education sector are as follows Education is recognized as a social good, but through the Right to Education Act (RtE) Elementary education is recognized as a public good, where it is the responsibility of government and parents to provide certain level of education. People could ignorant about the advantages/benefits/values of the education, so they have no concern in educating their pupils. The imperfect market and asymmetric information in developing and developed economies make poor people to still consider education expenditure as a consumption rather than investment expenditure. Market mechanism is mainly determined by the demand for and supply of the product. But in the case of education which is a social good, the marginal cost of additional education unit is zero and its consumption is indivisible in nature. These factor causes market failure in the market for investment in Education. Scholars like (Vaizy 1962; Blaug 1965; Levin 1987; Tomilnson1986; Musgrave 1959; Tilak 1999 and others) have strongly supported the state intervention in provision of elementary education. Contribution of Education to Economic Growth: Theoretical perspective The role of education in development has been recognized since the days of Plato. He argued that the education has high economic value; therefore a huge part of communitys wealth must be invested on education. Education helps the society by enabling them to participate actively in the development process. But, a major contribution to the discussion on relationship between education and economic growth was first made by Adam Smith (1776), followed by the subsequent contributions by the classical and neo-classical economists until Alfred Marshall. Marshall (1890) emphasized that, â€Å"The most valuable of all capital is that invested in human beings’. Further he also states that, Knowledge is our most powerful engine of production. It enables us to moderate nature and force her to satisfy our wants†. Education is one of the most important components in capacity building. It provides a base for making a person capable of acquiring skills and becoming self-sustainable. Kuznets’s study of American economy (Kuznets, 1955) shows the significant contribution of ‘residual factor’ to economic growth. A study on agriculture of 31 countries shows that four years of elementary education makes a farmer more productive than the farmer who has no education at all. I n another study of 88 countries for the period 1960-63 and 1970-73, it was found that an increase in literacy rates from 20 to 30 per cent contributed to increase in real GDP between eight to sixteen per cent. Personal earning and education have also been found correlated (UNDP, 1992). The significance of an adequately educated and technically trained manpower has been specifically recognized in economic literature since the middle of fifties when research studies in the economics of education and growth, pioneered by endogenous growth models propounded by Solow (1957), Schultz (1961) and Denison (1962). They highlighted the role of the ‘residual factor’, which mainly implied technology, learning, education and health. in contributing to economic growth (OECD, 1963). For many years, the proposition that educational expansion promotes and in some cases even determines the rate of growth of overall Gross National Product (GNP) remained unquestioned. Amazing statistics and numerous studies in the World has revealed that the growth of the nation was not due to the growth of physical capital but that of human capital that was the principal source of economic progress (Denison, 1962). In the classical school of economic doctrine, later economists considered education as an effective tool measure for population control (Malthus, 1966), achieving social justice (Ricardo, 1971) and civilized development of the society (Senior, 1939). Thus in eighteenth and beginning of the nineteenth century, education considered as a means for bringing about improvement in purchasing power of labour force, economic welfare and social peace (Mill, 1909). In the Neo-Classical school of economic thought, education was considered as a strong source of human capital formation and an effective source to increase the income stream (Fisher, 1929). Tilak (1989) argued that Education not only ensures economic growth with equity but also has positive externalities associated with it, which make the public financing of education imperative. There are some arguments for the complementarity in public and private expenditure on the grounds of equity. The benefits that accrue to the individual in terms of higher earnings are a reason why the individual should pick up a part of the cost. If we look at the state as a supplier of education and the individual as a buyer of it, then investments by both appear to be complementary; and this may be the best model on grounds of equity. Hence, the right balance between public and private expenditures is crucial to the success of any educational policy or programme (Psacharapoulos and Woodhall 1985; Majumdar 1983). Conclusion The above discussion reveals the importance of expenditure on education for the growth of the economy and also noted the growing perception that the greater relevance to the developing countries. But in the current atmosphere of growing scrutiny of the nature of state expenditures, whether education is to be treated as a public or a private good, and whether expenditure on education is to be treated as consumption or investment need to be understood correctly. If it is seen as consumption good, that is, private in nature, then the market mechanism may be regarded as the most effective means of ensuring its adequate supply. On the other hand the state expenditure on education must be reduced to increase investment in other areas of greater importance. However, education not only offers private monetary as well as non-monetary benefits to its consumers but also has externalities associated with it, which confer benefits to society at large, even to those who have not had any education. Therefore the government should take major responsibility in providing education opportunities of its citizens. [1] Smith, Adam (1937): An enquiry in to the Nature and Causes of Wealth of Nations, (Edwin Cannan eds.), The Modem Library, New York, 1937, P. 423 [2] Wagner, Adolph (1958): Three Extracts on Public Finance in R. A Musgrave and Allen Peacock eds., Classics in the Theory ofpublic Finance, Mcmillan, New York, 1958, PP. 1-16. [3] Peacock, T. Alan and Jack Wiseman (1967): The Growth of Public Expenditure in the Untied Kingdom, Allen and Urwin, London, (llnd Edition) 1967. [4] Bowen, R. Howard (1948): Toward Social Economy, New York, Rinehart (1948) [5] Musgrave, R.A (1938): The Voluntary Exchange Theory of Public Economy. The Quarterly Journal of EconomicsFebruary (1938)53(2):213-237. [6] Dalton, Hugh (1967): Principles of Public Finance, Augustus M. Kelley Publishers, New York, 1967, PP. 5-7 [7] Samuelson, A. Paul (1954): The Pure Theory of Public Expenditure. Review of Economics and Statistics, November 1954, pp. 387-389.

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Missouri Mandatory Reporting Laws Brandon Ruble Southwest Baptist University Missouri Mandatory Reporting Laws In a study performed by the National Center on Elder Abuse, Bureau of Justice in June 2013, a staggering 5,961,658 cases of elderly abuse occurred in 2010 (â€Å"Elderly Abuse†, n.d. para 1). That is approximately 9.5% of America’s population. As the elderly become unable to protect themselves or their interests, they are increasingly reliant on the healthcare professional to advocate on their behalf. Missouri has implemented legislation that provides the healthcare professional with resources to report elderly abuse, neglect and exploitation. This report gives the healthcare provider tools including definitions associated with elder abuse, clinical signs of abuse, and actions necessary when abuse is suspected. According to Missouri legislation (â€Å"Protective Services for Adults†, n.d.) abuse is defined as â€Å"the infliction of physical, sexual, or emotional injury or harm including financial exploitation by any person, firm or corporation (para. 4). Furthermore, neglect is â€Å"the failure to provide services to an eligible adult by any person, firm or corporation with a legal or contractual duty to do so, when such failure presents either an imminent danger to the health, safety, or welfare of the client†¦Ã¢â‚¬  (para. 4). Along with strict definitions of â€Å"abuse† and â€Å"neglect†, Missouri’s legislation also mandates that â€Å"†¦any person having reasonable cause to believe that there is a likelihood that, without protection, serious physical harm may occur to an eligible adult shall report information to the department† (â€Å"Protective Services for Adults†, n.d., para 6). It is therefore the duty of the registered nurse, as being th... ...e elder population. It is therefore necessary for the healthcare provider to become educated and thoroughly aware of the potential for elder adult abuse and neglect. Prevention of elder adult abuse is key, failing that, becoming the client’s advocate in situations where abuse and or neglect are suspected becomes the most important task. It is not only the ethical responsibility of the healthcare provider to report suspected cases of abuse and neglect it is mandatory in Missouri. References Elderly Abuse Statistics. (2013, June 18). In National Center on Elder Abuse, Bureau of Justice. Protective Services for Adults. (2010). In Missouri Department of Health & Senior Services. http://health.mo.gov/living/lpha/phnursing/protectiveservices.php Touhy, T. A., & Jett, K. (2010). Toward healthy aging: Human needs & nursing response (8th ed.). St. Louis, MO: Elsevier

Why Did Henry Break with Rome?

Why Did Henry Break With Rome? Henry the VIII broke from Rome because of four main reasons: money, power, religion and succession. Some of the main reasons are linked together, one example is succession which is linked to power. By having a son he thought it would maintain his power at the throne when he was no longer ruler. I think that power was the most important reason. I think this because if he broke away from the Church of Rome, he could take control of the church.This meant that he could unlock the riches that the church held. By doing this he could pay for the wars he fought and the power he had over his people. He also would have more money to leave in the treasury, not only for himself but future generations. The money would lead to power; his greatest desire. To carry this power on he wanted it to be entrusted in a son. All the reasons link together to show his need for power as king. One of the reasons why Henry broke from the Roman Church was because he needed money.Whe n Henry was made king he was short of money because he had fought lots of expensive wars. Henry then noticed that the church had a lot of money. If he took over the church all of its treasury would be his. Source 1 states that â€Å"monasteries were very rich and owned about a quarter of the land in the country†, so he could then close down the monasteries, take their money and sell of the land. Henry needed the money for power so that he could then build a stronger army and fight more wars.This would then show that he was a powerful king. Money is not the most important reason but it is an important reason. Another reason he broke from the Roman Church is because he wanted power and control over his people. Henry wanted to make sure that he was in total control of England so he needed to get rid of anyone that might threaten his position including the pope. In 1534 the pope announced that Henrys marriage to Anne Boleyn was invalid. So Henry reacted by saying that the pope no longer had authority in England.

Medical Practice During Civil War - Free Essay Example

Sample details Pages: 5 Words: 1638 Downloads: 5 Date added: 2019/05/15 Category History Essay Level High school Tags: Civil War Essay War Essay Did you like this example? The Civil war was one of the bloodiest battles in history, but the majority of the deaths came from infection and disease, not from perishing in battle. With the lack of medical knowledge of the time, disease was a soldiers worst enemy, no matter what side of the war they were on. Due to this lack of knowledge, 63% of all deaths (224,586 deaths) to Union soldiers and an estimated 64% of Confederate deaths were due to disease. Don’t waste time! Our writers will create an original "Medical Practice During Civil War" essay for you Create order The Southern states data is estimated, but they sustained heavy losses compared to the north, especially to their young male population. The Souths army consisted of many younger men (youngest being 16 years old) and through combat, infection, and disease nearly all of the youth in the southern states was wiped out. These unfathomable losses to the Confederate and Union armies caused heartbreak and advancement in medical knowledge. Union and Confederate physicians learned how to tend to their patients regardless of the atmosphere and worked hard and passionately. Even with the tenacity of the physicians, they still lost the battle against diseases time and time again. Throughout this battle, the medical professionals learned skills that they would be able to put into use later in their practice. Collective medical knowledge in the form of cures, proper hygiene, and health-based infrastructure was also gained from the war that advanced America into the next period of medicine. This paper will cover the types of infections and diseases prevalent during the Civil War and how they were treated during the war, along with how the war changed the treatment and prevention of infection and disease. Some of the main infections and diseases that tore through the ranks of Union and Confederate soldiers include; pneumonia, yellow fever, influenza, bronchitis, gangrene, bacteremia, typhoid, diarrhea/dysentery, smallpox, and malaria. Many of these diseases were preventable if the correct prevention steps were taken. For example, typhoid could have been prevented if the water sources were protected properly from defecation and waste. Malaria could also have been prevented through the use of quinine. Many of these deaths occurred due to the fact that American practitioners at the time did not know how to treat or prevent these diseases. The only infection that had a useful vaccine was smallpox, with a few other diseases like malaria not having well-established cures. Many of these deaths due to disease could also have been prevented with proper training of sanitation procedures. Some of the sanitation issues include latrines too close to water sources, slaughter pens near mess areas, and soldiers sleeping with all their clothes on to stay warm. While these sanitation concerns did aid in the spread of disease, a large portion of the infected individuals came from injuries they had received in combat. It was estimated that there was a total of 221,000 soldiers wounded in the war. Most of the wounded went to army hospitals where they would be exposed to more disease that lay prevalent in the hospitals. Disease was so common in Civil War hospitals that medical personnel would put out chemicals like alcohol, bromine, carbolic acid, mercuric chloride, and sodium hypochlorite to freshen the air. This helped to not only deodorize the air but to clean it of diseases. In the book called Reminiscence of the Hospitals of Columbia, S.C. During the Four Years of the Civil War by Campbell Bryce, many stories are told of poor hospital conditions. One story speaks about a sixteen-year-old boy who was on the road for four days to the Columbia hospital due to there not being room at a Richmond hospital for him. He had a blister that had not been removed in Richmond by accident and due to the motion of the long ride, it had multiplied into six blisters that were said to be filled with life (infection). The nurses at the hospital took off his soiled clothes, put him in a warm bath and dressed his blisters, even though they knew he will most likely not make it. After suffering for a week, he died from his ailments. Bryces book is covered with heartbreaking stories of disease and infection like this, which helps to paint a picture of just how unsanitary these hospital conditions were. In order to prevent death from infection and disease in many of these hospitals, surgeons generally opted to remove the infected area from the patient as soon as possible. Generally, this was done through amputation. Three-quarters of all operations were amputations, totaling approximately 60,000 amputations. These amputations were generally preventative because if the infected area was not removed the patient would most likely die from the infection. This was shown in an excerpt from the United State Service Magazine. The journal article was written by a hospital surgeon who references doing procedures on patients and the reactions from each patient. The patients referenced in the journal article work to paint a vivid picture of the struggles of these amputees during their operations. One of the stories written was about a soldier with a thigh injury caused by a cannonball. The doctor stated that the patient was almost a hopeless case whether the limb was amputated or treated. The d octor decided the best chance was to remove the limb after the patient broke into tears and proclaimed: Oh, doctor, for Gods sake save my life, for I am not fit to die! But sadly, after his operation, he passed away. The stigma around many of the Civil War army surgeons of the time is that they had very little training, were clumsy and were not very knowledgeable in medicine and hygiene. Because of this, war zones were a medical disaster. While some of this may be true, most of the Civil War physicians were sincere and very hard working. They knew how to tend to injuries like fractures, amputations, and general wound care. The issue did not come from their lack of surgical knowledge as much as their lack of hygiene knowledge. These battlefield injuries were done hastily, and physicians almost never worried about strict hygiene, which led to infection and the eventual death of many of their patients. Most of the individuals in the medical community at the time gained their knowledge through apprenticeships. Because of this, there was a massive need for university-educated medical doctors to help in the diagnosing and treatment of diseases. Because of this ill-preparedness and lack of knowledge, th ere was a surge in medical advancements during and after the war in order to keep up with the demand for medicine and patient care. One of the ways these advancements came about was the use of surgeon general sponsored investigations. An example of this is when surgeon general, William Hammond, sponsored a study of the treatment, pathology, transmission, and causes of hospital gangrene. From this study, it was found that bromine was effective in treating gangrene. The procedure used was, to soak the dressings that are used on the patients wounds in bromine. To find these cures, doctors started to use more modern tools like the microscopes. This helped in finding these cures because the doctors were able to look at the disease at a cellular level and make assumptions from their finding that would never have been found from solely studying the patients. The deaths of the soldiers acted as a catalyst for medical research which helped to propel American medicine forward after the war. Another aspect that emerged from the Civil war was ambulance systems. The medical director of the army of the Potomac, Jonathan Letterman, Surgeon General William Hammond, and General George B McClellan worked together to create the ambulance corps. These early ambulance systems would pave the runway for todays modern ambulance services. An example of one of these early ambulances can be seen below in figure 1. These ambulances were horse-drawn and consisted of two trained attendants much like the ambulance systems of today. Surgeon General William Hammond also created the Army Medical Museum after the war. He had a large collection of pathological specimens gathered from surgeons working in the war. This museum eventually became the Armed Forces Institute of Pathology in the twentieth century and became one of the top establishments for researching and consulting in the field of pathology. Prosthetic technology also took a leap forward due to the high number of amputations during the Civil War. Prosthetic limbs were designed to be lightweight, easy to use, durable and comfortable for the amputee. Many returning union soldiers received limbs from the government, but the Confederate veterans did not receive compensation for a prosthetic until the 1880s. Many inventors also created products to help amputees return to normal life. Some of these products include hand-powered tricycles for lower extremity amputees and a combination knife and fork utensil for upper extremity amputees. The death toll from both side due to infections and diseases was 660,000 soldiers at the end of the war. This massive loss to human life was in part due to the severe lapse in knowledge by the medical community at the beginning of the war. Although, the medical professionals who were a part of the Civil War gained valuable knowledge and experience in treating diseases and severe injuries like amputations. This helped to push medical technologies and methods forward and paved the way for many aspects of our medical system today. After the war, these physicians went on to change the world of medicine. They created new types of prosthetics that worked better and were more comfortable for the users. The physicians achieved in curing many of the diseases that plagued their work during the war. Lastly, they worked to create a better, healthier world using knowledge gained from the war. While the path to this knowledge was dark and tragic, it helped to bring about one of the biggest changes in American medical treatment.