Merit goods for economic growth/development

Raffaella Degli Antoni

How might the provision of merit goods promote economic growth and/or development?

Merit goods are underprovided in a market:⇈ merit goods such as health services and education provide private and external benefits.Most developing countries face the challenge of providing such merit goods-- Access to quality health care and education has the potential to raise the human capital of a country's population.⇈ However, there are challenges such as identifying the needs, choosing appropriate services, financing the programmes and ensuring that all people have access to the services. ⇈ Also, services have different priorities and this needs to be highlighted - which are identified through the SDGs.

Positive externality of consumption

To support the economic development of a population -- extensive investments must be made in all types of infrastructure e.g. (clean energy, transport, telecommunications, clearn water & sanitation) - again identified through the SDGs. Increased supply of merit goods may be provided through many ways, e.g. domestic government invenstment, FDI, microfinance, social enterprise or from international cooperation through foreign aid. ⇈ It is hoped that commitment made by all countries to the SDG's ensure each country can progress in providing merit goods.

economic growth and/or development..

South Korea after the 1950s Korean War was very poor. However, recognizing the importance of education as a driver of economic growth and social development, the South Korean government made significant investments in its education system:By: 1 - obtaining universal education 2 - improving quality in education 3 - expanding higher education South Korea experienced rapid economic growth, transforming itself from one of the poorest countries in the world to one of the wealthiest in just a few decades. Education played a crucial role in this transformation by producing a skilled workforce capable of driving innovation, attracting foreign investment, and competing in global markets.

South Korea improving E.G and E.D

Real life example

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