Public goods and economic development

E¤ective provision of public goods is a key determinant of quality of life. Conventional approaches to poverty measurement look only at private goods, but this view is too narrow. Access to safe drinking water, sanitation, transport, medical care, and schools is essential both as a direct component of well-being as well as an input into productive capability. The rich have the option to seek private alternatives, lobby for better services, or if need be, move to di¤erent areas. The poor frequently do not.

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