Answer of Question No-08 (Pages No 377 to 378)

The amount of education demanded is thus in reality a derived demand for high-wage
employment opportunities in the modern sector. This is because access to such jobs is largely
determined by an individuals education. On the supply side, the quantity of school places at the
primary, secondary, and university levels is determined largely by political processes, often
unrelated to economic criteria. Given mounting political pressure throughout the developing
world for greater numbers of school places at higher levels, we can for convenience assume that
the public supply of these places is fixed by the level of government educational expenditures.
These are in turn influenced by the level of aggregate private demand for education. Because the
amount of education demanded largely determines the supply (within the limits of government
financial feasibility), let us look more closely at the economic (employment-oriented)
determinants of this derived demand. The amount of schooling demanded that is sufficient to
qualify an individual for modern-sector jobs appears to be related to or determined by the
combined influence of four variables: the wage or income differential, the probability of success
in finding modern-sector employment, the direct private costs of education, and the indirect or
opportunity costs of education. We would expect the quantity of higher education demanded for
the formal sector to be substantial. This is because the anticipated private benefits of more
schooling would be large compared to the alternative of little schooling, while the direct and
indirect private educational costs are relatively low. And the demand spirals upward over time.
As job opportunities for the uneducated are limited, individuals must safeguard their position by
acquiring increasingly more education.

Answer of Question No-19 (Pages No 371 to 373)

There are four main approaches to child labor policy current in development policy.

Policy No-01
The first recognizes child labor as an expression of poverty and recommends an emphasis
on eliminating poverty rather than directly addressing child labor; this position is

generally associated with the World Bank.

Policy No-02
The second approach emphasizes strategies to get more children into school, including
expanded school places, such as new village schools, and conditional cash transfer
incentives to induce parents to send their children to school, such as the
Progresa/Opportunidades program in Mexico, discussed in this chapters case study. This
strategy has wide support from many international agencies and development bodies. It is
probably a more effective approach than making basic education compulsory, because
without complementary policies, the incentives to send children to work would still
remain strong and enforcement is likely to be weak, for the same reasons that regulation
of the informal sector has proved almost impossible in many other cases. Compulsory

schooling is a good idea, but it is not an effective solution to the problem of child labor.
Policy No-03
The third approach considers child labor inevitable, at least in the short run, and stresses
palliative measures such as regulating it to prevent abuse and to provide support services
for working children. This approach is most commonly associated with UNICEF, which
has prepared a checklist of regulatory and social approaches that could meet the best

interest of the child.

Policy No-4
The fourth approach, most often associated with the ILO, favors banning child labor. If
this is not possible, however, and recognizing that child labor may not always result from

multiple equilibrium problems, this approach favors banning child labor in its most
abusive forms. The latter approach has received much attention in recent years; the ILOs
Worst Forms of Child Labor Convention was adopted in 1999
Answer of Video Question
Over the years, the Mexican authorities have worked to build a legal framework for lasting rural
and social development. The Sustainable Rural Development Act of 2001 and the Social
Development Act of 2003 were adopted to promote equal opportunities and sustained poverty
reduction. In addition, initiatives such as the 2003 National Rural Agreement, between major
organizations of farmers and producers, aim to improve productive capacity. Targeted social
protection initiatives such as the Opportunidades conditional cash transfer and the Saguaro
Popular universal health insurance programs have helped to mitigate the effects of poverty in the
wake of the global financial crisis. In addition, several national programs emphasize social
development, natural resource management and poverty reduction among indigenous peoples
and other marginalized groups. Moreover, Mexico has taken an international leadership role in
climate change adaptation and mitigation, since the impacts of climate variability affect key
sectors providing sustenance and livelihoods for the population. In particular, lower agricultural
yields and insecure water supplies threaten the basic needs of both urban residents and rural
communities. In 2012, the Government set the main national instrument of policy that tackles
climate change: the Ley General de Cambio Climtico (General Law on Climate Change). This
law determines the content of the national policy on climate change, defines the obligation of the
three levels of government and establishes the institutional mechanisms needed to face this
challenge. More recently, the new administration that took office in December 2012 has been
working on a number of economic reforms and policy changes that have created an

unprecedented political opportunity for rural development in the country, which includes: the
National Development Plan 2007-2012 and under it, the Program to Democratize Productivity,
the National Crusade Against Hunger, and fiscal and financial reforms.