Assignment 9 Human Capital: Education and Health in

Economic Development

A. Definition of Terms: Define each and give an example or a situation. How did the government
respond/handle these? Do not forget to include your sources/references.

1. ACQUIRED IMMUNODEFICIENCY SYNDROME (AIDS)

Meaning: A disease caused by the human immunodeficiency virus (HIV). People with acquired
immunodeficiency syndrome are at an increased risk for developing certain cancers and for
infections that usually occur only in individuals with a weak immune system. Also called AIDS.
Example: People usually have frequent, unusual, or unusually severe or prolonged infections and
may develop an autoimmune disorder or cancer.
Government response: The U.S. President's Emergency Plan for AIDS Relief (PEPFAR) is the U.S.
Government’s response to the global HIV/AIDS epidemic and represents the largest commitment by
any nation to address a single disease in history. Through PEPFAR, the U.S. has supported a world
safer and more secure from infectious disease threats. It has demonstrably strengthened the global
capacity to prevent, detect, and respond to new and existing risks—which ultimately enhances
global health security and protects America’s borders.
Sources:
• NCI Dictionary of Cancer Terms. (n.d.). National Cancer Institute.
https://www.cancer.gov/publications/dictionaries/cancer-terms
• HIV and AIDS Epidemic Global Overview. (2001, February 7). HIV And AIDS Epidemic Global
Overview | HIV.gov. https://www.hiv.gov/federal-response/pepfar-global-aids/global-hiv-
aids-overview

2. BASIC EDUCATION
Meaning: According to ISCED standard, basic education comprises primary education (first stage of
basic education) and lower secondary education (second stage). It also covers a wide variety of non-
formal and informal public and private activities intended to meet the basic learning needs of people
of all ages.
Example: For example, currently in High School, Biology is taught in 2nd Year, Chemistry in 3rd Year,
and Physics in 4th Year. In K to 12, these subjects are connected and integrated from Grades 7 to
10. This same method is used in other Learning Areas like Math.
Government response: Republic Act (RA) 9155, also known as the Governance of Basic Education Act
of 2001, provides the overall framework for principal empowerment by strengthening principal and
leadership goals, and local school-based management within the context of transparency and local
accountability.
Sources:
• Basic education | UNESCO UIS. (n.d.). Basic Education | UNESCO UIS.
https://uis.unesco.org/en/glossary-term/basic-education
• https://www.ombudsman.gov.ph/UNDP4/wp-content/uploads/2013/01/Chap7.pdf
3. BRAIN DRAIN
Meaning: Brain drain is a slang term that alludes to the loss of human capital from one area to
another or from one industry to another. Brain drains usually happens when skilled individuals and
professionals leave the home countries (in most cases, developing nations) and go elsewhere to take
advantage of better opportunities.
Example: When a large number of highly educated persons from a third-world country find work in
the United States.
Government response: While there isn't an easy fix for brain drain, there are some things that
business and government leaders can do to reduce or minimize it. These include Increasing
investments into certain areas of the economy; Offering competitive wages; Paving the way for legal
and social reform; Improving the quality of resources, such as housing and health care; Providing
affordable housing solutions.
Sources:
• Brain Drain: Definition, Causes, Effects, and Examples. (2023, April 30). Investopedia.
https://www.investopedia.com/terms/b/brain_drain.asp

4. CONDITIONAL CASH TRANSFER (CTT) PROGRAMS

Meaning: Conditional Cash Transfer (CCT) programs aim to reduce poverty by making welfare
programs conditional upon the receivers' actions. That is, the government only transfers the money
to persons who meet certain criteria.
Example: Enrolling children into public schools, getting regular check-ups at the doctor's office,
receiving vaccinations, or the like.
Government response: The government intends to set the CCT program as the mainstay of the
country’s social protection system. Major development agencies, including the Asian Development
Bank (ADB), provide loans and technical assistance to support this initial expansion and to
strengthen related systems and capacities. The government has further targeted the expansion of
CCT grants to 2.3 million poor households by the end of 2011.
Sources:
• https://elibrary.worldbank.org/doi/abs/10.1596/978-0-8213-7352-
1#:~:text=Conditional%20Cash%20Transfer%20(CCT)%20programs,persons%20who%20m
eet%20certain%20criteria.
• https://www.adb.org/sites/default/files/publication/29110/cct-philippines.pdf

5. DERIVED DEMAND
Meaning: Derived demand, in economics, is the demand for a good or service that results from the
demand for a different, or related, good or service. It is a demand for some physical or intangible
thing where a market exists for both related goods and services in question. Derived demand can
have a significant impact on the derived product's market price.
Example: One example of derived demand would be demand for a certain size and configuration of
smartphone case for a new smartphone that just came on the market. The more popular that
smartphone is, the higher derived demand there is for those smartphone cases.
Government response: (undetected)
Sources:
• Derived Demand: Definition, How It’s Calculated, and Uses. (2023, March 24). Investopedia.
https://www.investopedia.com/terms/d/derived_demand.asp
6. DISCOUNT RATE
Meaning: The discount rate is the interest rate used to determine the present value of future cash
flows in a discounted cash flow (DCF) analysis. This helps determine if the future cash flows from a
project or investment will be worth more than the capital outlay needed to fund the project or
investment in the present.
Example: An investor expects a $1,000 investment to produce a 10% return in a year. In that case,
the discount rate for valuing this investment or comparing it to others is 10%. The discount rate
allows investors and others to consider risk in an investment and set a benchmark for future
investments.
Government response: (undetected)
Sources:
• Cost of Capital vs. Discount Rate: What’s the Difference? (2022, June 22). Investopedia.
https://www.investopedia.com/ask/answers/052715/what-difference-between-cost-
capital-and-discount-rate.asp

7. EDUCATIONAL CERTIFICATION
Meaning: An educational certificate refers to the document that you receive upon the successful
completion of an academic period. Once you are done with high school, you receive a high school
certificate that shows how well you performed in that level of education.
Example: For example, a Certified Public Accountant can practice as a CPA across the accounting
profession.
Government response: To boost the employability of senior high school graduates who took the
technical-vocational-livelihood (TVL) track, Senator Win Gatchalian is proposing that the government
shoulder the cost of their certifications.
Sources:
• https://bestaccreditedcolleges.org/articles/careers-and-education/what-is-an-educational-
certificate.html. (n.d.). https://bestaccreditedcolleges.org/articles/careers-and-
education/what-is-an-educational-certificate.html
• http://legacy.senate.gov.ph/press_release/2023/0428_gatchalian1.asp

8. EDUCATIONAL GENDER GAP

Meaning: The education gender gap emerges well before college, however: girls are more likely to
graduate high school on time and perform substantially better on standardized reading tests than
boys (and about as well in math).
Example: Distance to school, cultural norms and practices, school-related gender-based violence
and early or forced marriage. Boys and girls face barriers to getting a good education in conflict-
affected areas where safety and security can be compromised, and in households that depend on
their labor or income.
Government response: National government efforts to increase women’s access to retention and
completion of education in technical and vocational education and training have been undertaken
through TESDA scholarship program which caters and responds to challenges faced by women and
girls in various poor communities. Based on TESDA’s report, these programs have produced a total
of 1,733,646 graduates from 2014-2018.
Sources:
• Reeves and Ember Smith, R. V. (2022, October 12). Boys left behind: Education gender gaps
across the US. Brookings. https://www.brookings.edu/blog/up-front/2022/10/12/boys-left-
behind-education-gender-gaps-across-the-us/
• Education Sector - Philippine Commission on Women. (n.d.). Philippine Commission on
Women. https://pcw.gov.ph/education/
9. HEALTH SYSTEM
Meaning: A health system is the way in which all health services are provided. From how they are
financed to the workforce, facilities and supplies available, a strong health system will ensure that
everyone is able to access high-quality healthcare without financial difficulty. Everyone has the right
to access healthcare.
Example: Examples include Mental health care, Dental care, Laboratory and diagnostic care,
Substance abuse treatment, Preventative care, Physical and occupational therapy, Nutritional
support, and pharmaceutical care.
Government response: Public healthcare in the Philippines is administered by PhilHealth, a
government-owned corporation. PhilHealth subsidizes a variety of treatments including inpatient
care and non-emergency surgeries. Both local citizens and legal residents are entitled to join a
PhilHealth program.
Sources:
• Health systems | Health Poverty Action. (n.d.). Health Systems | Health Poverty Action.
https://www.healthpovertyaction.org/how-poverty-is-created/health-systems/
• Healthcare in the Philippines | Philippines Health Insurance | Allianz. (n.d.).
allianzcare.com. https://www.allianzcare.com/en/support/health-and-wellness/national-
healthcare-systems/healthcare-in-philippines.html

10. HUMAN CAPITAL

Meaning: Human capital consists of the knowledge, skills, and health that people invest in and
accumulate throughout their lives, enabling them to realize their potential as productive members
of society.
Example: Examples of human capital include communication skills, education, technical skills,
creativity, experience, problem-solving skills, mental health, and personal resilience.
Government response: The country is on the right track in accelerating human capital development
by prioritizing reforms and investments in improving nutrition and health, education, and income-
earning ability.
Sources:
• The Human Capital Project: Frequently Asked Questions. (n.d.). World Bank.
https://www.worldbank.org/en/publication/human-capital/brief/the-human-capital-
project-frequently-asked-questions
• https://pdp.neda.gov.ph/wp-content/uploads/2021/12/Chapter-10.pdf

11. HUMAN IMMUNODEFICIENCY VIRUS (HIV)

Meaning: The human immunodeficiency viruses (HIV) are two species of Lentivirus (a subgroup of
retrovirus) that infect humans.
Example: To become infected with HIV, infected blood, semen or vaginal secretions must enter your
body. This can happen in several ways: By having sex. You may become infected if you have vaginal,
anal or oral sex with an infected partner whose blood, semen or vaginal secretions enter your body.
Government response: The government passed the updated Philippine HIV and AIDS Policy Act
(Republic Act 11166) in 2019, committing to a multi-sectoral approach to ensure access to prevention
and testing programs as well as investment in treatment, care, and support services for persons
living with HIV.
Sources:
• HIV - Wikipedia. (2017, December 8). HIV - Wikipedia.
https://en.wikipedia.org/wiki/HIV#:~:text=The%20human%20immunodeficiency%20viruse
s%20(HIV,infections%20and%20cancers%20to%20thrive.
 • N. Quilantang, M. I., C. Bermudez, A. N., & Operario, D. (2020, May 25). Reimagining the
Future of HIV Service Implementation in the Philippines Based on Lessons from COVID-19.
PubMed Central (PMC). https://doi.org/10.1007/s10461-020-02934-x

12. LITERACY
Meaning: The ability, confidence and willingness to engage with language to acquire, construct and
communicate meaning in all aspects of daily living.
Example: English literacy examples can also include such things as awareness of the sounds of
language, awareness of print and the relationship between letters and sounds.
Government response: Issues on low functional literacy for school-aged children became a priority
in WV’s new country strategy. This was also in alignment with the Philippine government’s plan of
action.
Sources:
• What is literacy? (n.d.). What Is Literacy? https://education.alberta.ca/literacy-and-
numeracy/literacy/everyone/what-is-literacy/
• Education | Improving functional literacy in the Philippines. (2018, July 16). World Vision
Philippines. https://www.worldvision.org.ph/stories/improving-functional-literacy-in-the-
philippines/

13. NEGLECTED TROPICAL DISEASES

Meaning: Neglected tropical diseases (NTDs) are a diverse group of 20 conditions that are mainly
prevalent in tropical areas, where they affect more than 1 billion people who live in impoverished
communities. They are caused by a variety of pathogens including viruses, bacteria, parasites, fungi
and toxins.
Example: Dengue, lymphatic filariasis, trachoma, and leishmaniasis
Government response: The Department of Health (DOH) spearheads the 5th Neglected Tropical
Diseases (NTD) Forum in Cebu City with the theme: “Evidence Based Technologies to Accelerate the
Gains of NTD Elimination, A New Hope”. The forum affirms that through the newly established
Philippine Health Agenda, shared vision, process of national and local interface and public-private
partnership, addressing a health and development issue such as NTD will be attainable.
Sources:
• Neglected tropical diseases. (n.d.). Neglected Tropical Diseases. https://www.who.int/news-
room/questions-and-answers/item/neglected-tropical-
diseases#:~:text=Neglected%20tropical%20diseases%20(NTDs)%20are,%2C%20parasites
%2C%20fungi%20and%20toxins.
• https://doh.gov.ph/node/9347

14. CORONAVIRUS DISEASE (COVID – 19)

Meaning: Coronavirus disease (COVID-19) is an infectious disease caused by the SARS-CoV-2 virus.
Most people infected with the virus will experience mild to moderate respiratory illness and recover
without requiring special treatment. However, some will become seriously ill and require medical
attention.
Example: Young people have experienced significant disruption to their education and social
networks during the COVID-19 pandemic. During lockdown, high levels of compliance to
government public health guidelines to reduce transmission of COVID-19 were reported by young
people. If an effective vaccine is developed, a schools-based vaccination programme could be an
efficient method to interrupt transmission to more at-risk populations and prevent further
disruptions to young people's education.
 Government response: Governments around the world are designing and implementing rapid
responses to the COVID-19 (coronavirus) pandemic. In this effort, they are faced with three
extraordinary challenges: (1) a public health emergency to contain the virus including identifying and
treating infected populations; (2) widespread food and livelihood insecurity due to mandated
stoppage of economic activity and the resulting disruption of food supplies; and (3) adoption of
emergency powers to address the crises and maintain public safety.
Sources:
• Coronavirus. (2023, March 30). Coronavirus. https://www.who.int/health-
topics/coronavirus#tab=tab_1
• Governance & Institutions COVID-19 Response Resources. (n.d.). World Bank.
https://www.worldbank.org/en/topic/governance/brief/governance-institutions-covid-19-
response-resources

15. PRIVATE BENEFITS OF EDUCATION

Meaning: Education contributes to greater productivity and economic growth. Moreover, education
has spillover effects: human capital is at the heart of innovation, and a more educated workforce
fosters innovative ideas leading to more and better jobs.
Example: Poverty Reduction, connecting Across Borders, sense of Accomplishment, more
Productivity, better Communication, critical Thinking Skills, and identification of Skills.
Government response: In a news release on Friday, Gatchalian said he has filed Senate Resolution
12 that directs the appropriate committees to conduct an inquiry on strengthening the
complementary roles of public and private institutions in the Philippine educational system.
Sources:
• Review education policies - Education GPS - OECD. (n.d.). Review Education Policies -
Education GPS - OECD.
https://gpseducation.oecd.org/revieweducationpolicies/#!node=41761&filter=all
• https://www.pna.gov.ph/articles/1189481

16. PRIVATE COST OF EDUCATION

Meaning: Private costs are those incurred by the individual, family or organization in the course of
purchasing education or additional education. These costs can be direct or indirect.
Example: Examples of direct private costs include expenditures on fees, tuition, books, uniforms,
transport, room, and board etc.
Government response: A program stipulated in Republic Act No. 8454, or the “Expanded
Government Assistance to Students and Teachers in Private Education (GASTPE)” as a system of
government financial assistance that provides grants for deserving elementary graduates to pursue
secondary education in a private high school of their choice. ESC also decongests public secondary
schools by “contracting” the excess capacities of private high schools through this subsidy for
students who, otherwise, would have gone to public schools.
Sources:
• posts by Tim Nasib, V. A. (2017, September 23). ECONOMICS OF EDUCATION: What are costs
and benefits of Education? Somi.
https://mysominotes.wordpress.com/2017/09/23/economics-of-education-what-are-costs-
and-benefits-of-education/
• https://www.deped.gov.ph/wp-content/uploads/2021/05/2021-DepEd-Budget-Mag-
Budget_052121-PAGES.pdf
17. SOCIAL BENEFITS OF EDUCATION
Meaning: Education can bring significant benefits to society, not only through higher employment
opportunities and income but also via enhanced skills, improved social status and access to
networks. By fully recognizing the power of education, policy makers could better address diverse
societal challenges.
Example: Those who get an education have higher incomes, have more opportunities in their lives,
and tend to be healthier. Societies benefit as well. Societies with high rates of education completion
have lower crime, better overall health, and civic involvement. Lack of access to education is
considered the root of poverty.
Government response: Governments are prioritizing online solutions to minimize learning losses.
Sources:
• https://www.oecd.org/education/skills-beyond-school/EDIF%202013--
N%C2%B010%20(eng)--v9%20FINAL%20bis.pdf

18. SOCIAL COST OF EDUCATION

Meaning: The Social cost of education is summing total of the private and the institutional cost of
education.
Example: The private cost consists of net tuition costs, non-tuition costs. The institutional costs
consist of both the current or operating cost and the capital costs of education borne by the schools,
or society.
Government response: Governments offset the costs associated with education through the
additional tax revenues and social contributions from higher-paid workers.
Sources:
• https://egyankosh.ac.in/bitstream/123456789/8307/1/Unit-4.pdf
• Review education policies - Education GPS - OECD. (n.d.). Review Education Policies -
Education GPS - OECD.
https://gpseducation.oecd.org/revieweducationpolicies/#!node=41761&filter=all

19. WORLD HEALTH

Meaning: The World Health Organization defines it as a “state of complete physical, psychological
and social well - being and not merely the absence of disease or infirmity”.
Example: Some of the major diseases currently affecting countries around the globe include HIV,
malaria, COVID-19, and tuberculosis. Besides the spread of diseases, there are other global health
challenges. Resistance to medicines such as antibiotics is on the rise. That makes it harder to treat
certain diseases.
Government response: The Governance Global Practice supports client countries build capable,
efficient, open, inclusive, and accountable institutions, which are critical for sustainable growth after
COVID-19. Sustainable growth and inclusive development are at the heart of the World Bank’s twin
goals of ending extreme poverty and boosting shared prosperity.
Source:
• https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5816293/#:~:text=The%20World%20Healt
h%20Organization%20defines,absence%20of%20disease%20or%20infirmity%E2%80%9D.
• Governance & Institutions COVID-19 Response Resources. (n.d.). World Bank.
https://www.worldbank.org/en/topic/governance/brief/governance-institutions-covid-19-
response-resources
B. What reasons would you give for the rather sizable school dropout rates in developing countries?
What might be done to lower these rates?

- The explanations I can offer are as follows: They are sent to work early on to support their family, rather
of being sent to school. As a result, their opportunities are limited at that point because they weren't
given the chance to develop their talents. Some people get married young in the belief that their new
spouse's family will have to support them. Some people struggle to pay for school expenditures, and
others find that their own teachers discourage them because they are slow learners. This can be reduced
by the government by providing scholarships, cash to cover their costs for things like food,
transportation, notebooks, and other school supplies, as well as free medical examinations and ways to
encourage them more so they will want to attend school rather than stay home.

C. What are the differences between formal and non-formal education? Give some examples of each.

- Formal education is simply anything that is or resembles a classroom, where you are taught a subject by
a person who has the necessary credentials. This kind of learning takes place in a single setting (the
classroom), at a single moment in time (during class), and with the same people present (your teacher
and classmates). Experience-based learning, or learning outside of the classroom, is what is meant by
"informal education." The majority of the time, your parents or classmates will teach you how to tie your
shoes instead of a classroom setting. The same goes for libraries, museums, and after-school activities.