Abstract
This paper analyzes the equity of opportunity in basic education and infrastructure services in seven developing countries, Bangladesh, Bhutan, Indonesia, Pakistan, the Philippines, Sri Lanka, and Viet Nam. The analysis applies a method developed by the World Bank called the Human Opportunity Index, which measures the total contribution of individual socioeconomic and demographic circumstances to inequality of opportunity in accessing basic services. The new and major contribution of the paper, however, is the development of a methodology that quantifies the relative contribution of each circumstance variable to the inequality of opportunity. This contribution is crucial in identifying which underlying inequalities matter most—which can have important policy implications, for instance, in terms of developing better-targeted interventions. Results of the empirical analysis indicate that more needs to be done to improve the distribution of economic benefits. Opportunities to access basic education and infrastructure services in the seven countries vary widely in terms of availability and distribution. The study also finds that inequality of opportunity is driven mainly by per capita household expenditure. This suggests that household poverty plays a crucial role in determining equitable access to basic services.
Highlights
Inequality remains a persistent challenge in many economies today
Inequality is usually measured in terms of income or consumption, but the concept is being extended to cover many other standard of living dimensions such as inequality of outcomes in health, education, and basic infrastructure, among
The contribution of household expenditure to inequality of opportunity for secondary education ranges from 61% in Pakistan at the minimum to 96% in Sri Lanka at the maximum
Summary
Inequality remains a persistent challenge in many economies today. In Asia and the Pacific, inequality has risen over the last decade despite growth rates that have lowered poverty incidence (ADB 2007a). Many school-age children in developing countries are unable to attend school due to family circumstances Many of those children have no access to clean water, electricity, and sanitary toilets. The new and major contribution of this paper, is the development of a methodology that quantifies the relative contribution of each circumstance variable to the inequality of opportunity This contribution is crucial in identifying underlying inequalities that matter most, which can have important policy implications for instance in terms of developing better-targeted interventions. The study finds that inequality of opportunity is driven mainly by per capita household expenditure This suggests that household poverty plays a crucial role in determining equitable access to basic services.
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