Book contents
- Prioritizing Development
- Prioritizing Development
- Copyright page
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Foreword
- Introduction
- Chapter 1 Benefits and Costs of Air Pollution Targets for the Post-2015 Development Agenda
- Chapter 2 Targets for Biodiversity and Deforestation
- Chapter 3 Benefits and Costs of the Climate Change Targets for the Post-2015 Development Agenda
- Chapter 4 Beyond Civil War
- Chapter 5 Data Revolution
- Chapter 6 Benefits and Costs of the Education Targets for the Post-2015 Development Agenda
- Chapter 7 Benefits and Costs of the Energy Targets for the Post-2015 Development Agenda
- Chapter 8 Benefits and Costs of the IFF Targets for the Post-2015 Development Agenda
- Chapter 9 Benefits and Costs of the Trade Targets for the Post-2015 Development Agenda
- Chapter 10 Benefits and Costs of the Health Targets for the Post-2015 Development Agenda
- Chapter 11 Benefits and Costs of the Noncommunicable Disease Targets for the Post-2015 Development Agenda
- Chapter 12 Benefits and Costs of the Women’s Health Targets for the Post-2015 Development Agenda
- Chapter 13 Benefits and Costs of TB Control for the Post-2015 Development Agenda
- Chapter 14 Benefits and Costs of the Infant Mortality Targets for the Post-2015 Development Agenda
- Chapter 15 Benefits and Costs of the HIV/AIDS Targets for the Post-2015 Development Agenda
- Chapter 16 Benefits and Costs of the Malaria Targets for the Post-2015 Consensus Project
- Chapter 17 Benefits and Costs of Digital Technology
- Chapter 18 Returns to Investment in Reducing Postharvest Food Losses and Increasing Agricultural Productivity Growth
- Chapter 19 Benefits and Costs of the Gender Equality Targets for the Post-2015 Development Agenda
- Chapter 20 Benefits and Costs of the Food and Nutrition Targets for the Post-2015 Development Agenda
- Chapter 21 Benefits and Costs of the Population and Demography Targets for the Post-2015 Development Agenda
- Chapter 22 Benefits and Costs of Two Science and Technology Targets for the Post-2015 Development Agenda
- Chapter 23 Global Benefits and Costs of Achieving Universal Coverage of Basic Water and Sanitation Services as part of the 2030 Agenda for Sustainable Development
- Chapter 24 Benefits and Costs of the Poverty Targets for the Post-2015 Development Agenda
- Chapter 25 Good Governance and the Sustainable Development Goals
- Conclusion
- Index
22.1 - alternative perspective
Published online by Cambridge University Press: 30 May 2018
- Prioritizing Development
- Prioritizing Development
- Copyright page
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Foreword
- Introduction
- Chapter 1 Benefits and Costs of Air Pollution Targets for the Post-2015 Development Agenda
- Chapter 2 Targets for Biodiversity and Deforestation
- Chapter 3 Benefits and Costs of the Climate Change Targets for the Post-2015 Development Agenda
- Chapter 4 Beyond Civil War
- Chapter 5 Data Revolution
- Chapter 6 Benefits and Costs of the Education Targets for the Post-2015 Development Agenda
- Chapter 7 Benefits and Costs of the Energy Targets for the Post-2015 Development Agenda
- Chapter 8 Benefits and Costs of the IFF Targets for the Post-2015 Development Agenda
- Chapter 9 Benefits and Costs of the Trade Targets for the Post-2015 Development Agenda
- Chapter 10 Benefits and Costs of the Health Targets for the Post-2015 Development Agenda
- Chapter 11 Benefits and Costs of the Noncommunicable Disease Targets for the Post-2015 Development Agenda
- Chapter 12 Benefits and Costs of the Women’s Health Targets for the Post-2015 Development Agenda
- Chapter 13 Benefits and Costs of TB Control for the Post-2015 Development Agenda
- Chapter 14 Benefits and Costs of the Infant Mortality Targets for the Post-2015 Development Agenda
- Chapter 15 Benefits and Costs of the HIV/AIDS Targets for the Post-2015 Development Agenda
- Chapter 16 Benefits and Costs of the Malaria Targets for the Post-2015 Consensus Project
- Chapter 17 Benefits and Costs of Digital Technology
- Chapter 18 Returns to Investment in Reducing Postharvest Food Losses and Increasing Agricultural Productivity Growth
- Chapter 19 Benefits and Costs of the Gender Equality Targets for the Post-2015 Development Agenda
- Chapter 20 Benefits and Costs of the Food and Nutrition Targets for the Post-2015 Development Agenda
- Chapter 21 Benefits and Costs of the Population and Demography Targets for the Post-2015 Development Agenda
- Chapter 22 Benefits and Costs of Two Science and Technology Targets for the Post-2015 Development Agenda
- Chapter 23 Global Benefits and Costs of Achieving Universal Coverage of Basic Water and Sanitation Services as part of the 2030 Agenda for Sustainable Development
- Chapter 24 Benefits and Costs of the Poverty Targets for the Post-2015 Development Agenda
- Chapter 25 Good Governance and the Sustainable Development Goals
- Conclusion
- Index
Summary
Summary
Saggi finds that the Maskus chapter provides a clear and convincing analysis of his chosen policy initiatives and there is little he disagrees with. Productivity is perhaps the most important determinant of a country's living standards in the long run. It can either continue producing the same with fewer resources or invest in R&D that delivers new or better products. In principle, developing countries could use the fruits of foreign R&D, but in practice conducting domestic R&D can facilitate exchange of technology by lowering transaction costs as new knowledge and technological change accumulates.
To the extent that intellectual property rights in developing countries have been strengthened by ratification of the TRIPS agreement, incentives for R&D should have been strengthened worldwide. Numbers of patent applications have indeed grown rapidly, particularly in Asia and most especially in China, which now takes the global lead in patent numbers. This nicely mirrors the observed increase in R&D expenditures, but of course tells us nothing about the quality of the output or its economic value. Maskus's proposals, taken together, could help to boost the quality of R&D output.
Because inventors can extract only a fraction of the value of their innovation and because R&D generates so many unforeseen externalities, it seems clear that market forces will tend to fund too little R&D. This makes a case for encouraging more, but policies are likely to produce more benefits if they increase research rather than development, which is likely to produce fewer spillovers.
The author's views on the large welfare gains possible by allowing free movement of labor are correct. The case is the same as for capital: to allow all factors of production to be employed most efficiently by allowing them to move freely throughout the world. Loosening the constraint on international labor mobility allows the world economy to narrow the gap between the marginal products of labor in different locations and thereby increase world output. To set against this is the fact that source countries may lose out from the “brain drain.” This cannot be ignored because, although human capital externalities are difficult to quantify, this does not mean they are unimportant.
In addition to Maskus's two proposals, Saggi suggests FDI as another potentially fruitful area for government policy.
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- Prioritizing DevelopmentA Cost Benefit Analysis of the United Nations' Sustainable Development Goals, pp. 419Publisher: Cambridge University PressPrint publication year: 2018