Povertyreductionandsustainabledevelopment

　　3.2 Improving health, education and	　	social services 	　	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.