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However, the 21 st century is so far showing that certain kinds of technological change can lead to rapid improvements in income even while a nation tries to build up its base of Human Capital from low levels.

The internet and cell phones

By the year 2010 the rapid spread of mobile phones began to have very significant and unforeseen results for financial development, agricultural development, and efficiency in markets, and even in public health.

New research by Christine Zhen-Wei Qiang, Robert Jensen, and Aparajita Goyal shows among other things the following. Source______ [M.G. Source]

The internet and mobile phones boost growth. The impact is, as one would expect, is greater in poor countries than in rich ones, because of the very poor pre-existing communications infrastructure in poor countries. (This reflects of course lack of investment in Physical Capital).

The growth promotion effects are greater for the internet than for mobile phones as we shall see. But mobile phones have mattered greatly.


First consider all mobile phones. By the year 2000, poor nations had 175 million mobile phones (1/4 of the 700 million world total). By 2009 the number of mobile phones in poor nations reached three billion (3/4 of world total).

In poor nations, for every ten percentage points increase in mobile phone availability, GDP per capita rose by 0.8 percentage points (in rich nations it rose by 0.6). Source_______ [M.G. Source]

And, in poor nations having dial-up Internet access, every ten percentage point increase in adoption, was associated with an increase in GDP growth of 1.1 percentage points.

For broadband Internet, in poor nations every ten percentage points of increases in adoption, was associated with a 1.4 percentage point increase in GDP per capita.

Finally, there have begun to appear some potentially significant unforeseen feedback from spreading use of smartphones. There are now cell phone stethoscopes, cell phone microscopes (for imaging cells and parasites) remote diagnoses of disease etc. (WSJ, Sept. 21, 2013).

Promising new approaches in assessing human capital formation policies

We have seen that the idea of human capital formation first took shape in the mind of Nobel Laureate Theodore Schultz in the forties. By the turn of the century virtually all economists had recognized its importance. As the field expanded, so did new analytical and empirical tools developed to help us understand the implications.

One of the most promising of these new tools (new to economics, but not to medicine) has been randomized control trials (RCTs), first pioneered in economics by two MIT economists, Abhijit Banerjee and Esther Duflo.

Since 2003, their lab has mounted nearly 450 RCTs, focusing on human capital as well as issues in finance and other fields. With the publication of their widely and highly regarded book, Poor Economics

Abhijit Banerjee&Esther Duflo (2011), Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, New York: Public Affairs Press.

in 2011, economics, especially development economics, has been greatly enriched. The authors, and others who utilize RCTs, typically focus on problems affecting the very poor, most who live on less than $1 U.S. dollar per day.

Questions & Answers

what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
scanning tunneling microscope
how nano science is used for hydrophobicity
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
what is differents between GO and RGO?
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
The nanotechnology is as new science, to scale nanometric
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
How can I make nanorobot?
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
how can I make nanorobot?
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
what is the actual application of fullerenes nowadays?
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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