ECS3707 Assignment 5
(COMPLETE ANSWERS)
Semester 2 2025 - DUE
8 October 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
,Exam (elaborations)
ECS3707 Assignment 5 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 8 October
2025
Course
Development Economics (ECS3707)
Institution
University Of South Africa (Unisa)
Book
Development Economics
ECS3707 Assignment 5 (COMPLETE ANSWERS) Semester 2 2025 - DUE 8
October 2025; 100% TRUSTED Complete, trusted solutions and explanations.
Ensure your success with us.
Scenario: Human capital (knowledge, skills, and good health) empowers
people to achieve their potential and drives economic growth. South Africa
faces a dual challenge; high inequality in both education and healthcare
systems, and persistently slow productivity growth and income inequality. In
2019, South Africa’s DALY (Disability-Adjusted Life Year) loss was equivalent
to 41% of GDP, revealing deep inefficiencies in the health sector (Senkubuge
et al., 2021). Moreover, non-communicable diseases (NCDs) account for over
30% of disability-adjusted life years in South Africa. (Koch, 2024).
Additionally, South Africa's population is growing at a rate of around 1,5% to
2% annually, in contrast the GDP grew by 0,6% in 2024 compared with 2023
(Stats SA, 2025). In essence, the disparity between economic growth and
population growth creates significant challenges for South Africa, hindering
its ability to improve the well-being of its citizens. South Africa's healthcare
system faces numerous challenges, including inadequate access, particularly
in rural areas, and a significant burden of disease. These issues are
compounded by systemic problems like poor governance, inadequate
infrastructure, and a shortage of skilled healthcare professionals, particularly
in the public sector. The coexistence of a strong private healthcare sector
alongside a struggling public system creates further disparities in access and
quality of care (World Bank, 2023) . For instance, the Human Capital Index
(HCI) which is a framework for understanding how a nation's people can
contribute to its future economic prosperity. It is a measurement developed
by the World Bank to assess the potential of a country's human capital
(World Bank, 2018). It quantifies the expected productivity of a child born
today, considering health and education factors, by the time they reach 18.
The HCI is a valuable tool for governments and societies to understand how
investments in human capital can boost a nation's economic and social
development . The Utilization-adjusted Human Capital Index (U-HCI) scales
,down the HCI by considering how many adults are not employed. The U-HCI
for South Africa is 0,18. Thus, children born today will be 18% as productive
in adulthood as they could have been if they had access to full health and
education, and they became fully employed adults. The U-HCI for girls is
even lower at 0,17 (World Bank, 2020). Thus, children born today will be 18%
as productive in adulthood as they could have been if they had access to full
health and education, and they became fully employed adults. In essence,
South Africa's Human Capital Index underscores the urgent need for targeted
interventions to improve health and education outcomes, ultimately
unlocking the country's full human potential. Four out of 100 children die
before the age of five ; and an average of 32% of 15-year-olds will not
survive until age 60. In addition, 27% of children below the age of five are
stunted and so are at risk of cognitive and physical limitations that can last a
lifetime. These indicators are much worse than in many countries at the
similar income level. Furthermore, the learning gap in South Africa is large. A
child who starts school at four years old can expect to complete 9,3 years of
schooling by their 18th birthday (the expected years of schooling should be
13). Public spending on education is high, accounting for 6,1% of gross
domestic product (GDP) in 2017; similarly, about 8% of GDP is invested in
health, and about 5% of GDP is spent on social assistance, including various
youth employment initiatives (World Bank, 2023). Many countries spend less
but achieve much higher HCI, signalling that South Africa needs to take a
hard look at efficiency 5 and efficacy of its spending. It could achieve much
more without significantly increasing spending (Dulvy, et al., 2024). South
Africa’s, economic growth has indeed lagged population growth in recent
years, leading to challenges in improving living standards and creating
sufficient opportunities for the population. This means the economy isn't
expanding fast enough to absorb new job seekers or provide a significant
increase in per capita income (World Bank, 2023). Simultaneously, despite
significant public spending on health and education, the outcomes are not
commensurate with the investment, suggesting inefficiencies and a need for
better resource allocation. Because the economy isn't growing as quickly as
the population, per capita income (income per person) has been stagnant or
even declining. This means that on average, people are not seeing
significant increases in their wealth or access to resources. In South Africa, a
slower economic growth rate compared to population growth creates
significant challenges for social security and healthcare. This disparity puts
strain on public resources, potentially leading to increased poverty,
inequality, and reduced access to essential services like healthcare.
QUESTIONS 1.1 Contextualise the development economic challenge South
Africa is facing. Summarise the dual challenges facing South Africa; poor
healthcare/education outcomes and slow economic growth; and explain how
they are interconnected. 15
1.1 Contextualising the Development Economic Challenge in South Africa
, South Africa faces a profound developmental economic challenge characterized by the
interplay between human capital deficiencies—particularly in education and healthcare—and
persistently low economic growth. These challenges are deeply rooted in historical inequalities
and systemic inefficiencies that continue to limit the country’s capacity to achieve inclusive and
sustainable development.
1.1.1 Dual Challenges Facing South Africa
(a) Poor healthcare and education outcomes
South Africa’s health and education systems reflect deep structural inequalities. The
healthcare sector is divided between a well-resourced private sector serving a minority and an
under-resourced public sector serving the majority. Despite high public expenditure (about 8%
of GDP on health), outcomes remain poor. In 2019, the country’s Disability-Adjusted Life
Year (DALY) loss equalled 41% of GDP, showing inefficiency and preventable health burdens
(Senkubuge et al., 2021). Moreover, non-communicable diseases (NCDs) account for over
30% of total DALYs, highlighting the growing burden of chronic illnesses (Koch, 2024).
Health indicators are worrying: 4 out of 100 children die before age five, 27% of children
under five are stunted, and only 68% of 15-year-olds are expected to live to age 60. These
figures point to widespread malnutrition, poor maternal health, and inadequate early childhood
interventions.
In education, South Africa spends about 6.1% of GDP, among the highest in the world, yet
learning outcomes remain poor. A child entering school at age 4 can expect to complete only 9.3
years of effective schooling by age 18 instead of the expected 13 years. This demonstrates low
quality and efficiency of education, resulting in limited skill development.
The Human Capital Index (HCI) reflects these weaknesses. According to the World Bank
(2020), South Africa’s Utilization-adjusted Human Capital Index (U-HCI) is only 0.18,
meaning children born today will be only 18% as productive as they could have been with full
access to health, education, and employment. The U-HCI for girls is even lower at 0.17, showing
gender disparities in opportunities.
(b) Slow economic growth
South Africa’s economic growth has been persistently sluggish, averaging below population
growth rates. The GDP grew by only 0.6% in 2024, while the population grew by 1.5–2%
(Stats SA, 2025). This imbalance results in stagnant or declining per capita income, reduced
job creation, and persistent inequality. The economy’s inability to expand fast enough to absorb
new entrants into the labour market leads to high unemployment, especially among youth.
(COMPLETE ANSWERS)
Semester 2 2025 - DUE
8 October 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
,Exam (elaborations)
ECS3707 Assignment 5 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 8 October
2025
Course
Development Economics (ECS3707)
Institution
University Of South Africa (Unisa)
Book
Development Economics
ECS3707 Assignment 5 (COMPLETE ANSWERS) Semester 2 2025 - DUE 8
October 2025; 100% TRUSTED Complete, trusted solutions and explanations.
Ensure your success with us.
Scenario: Human capital (knowledge, skills, and good health) empowers
people to achieve their potential and drives economic growth. South Africa
faces a dual challenge; high inequality in both education and healthcare
systems, and persistently slow productivity growth and income inequality. In
2019, South Africa’s DALY (Disability-Adjusted Life Year) loss was equivalent
to 41% of GDP, revealing deep inefficiencies in the health sector (Senkubuge
et al., 2021). Moreover, non-communicable diseases (NCDs) account for over
30% of disability-adjusted life years in South Africa. (Koch, 2024).
Additionally, South Africa's population is growing at a rate of around 1,5% to
2% annually, in contrast the GDP grew by 0,6% in 2024 compared with 2023
(Stats SA, 2025). In essence, the disparity between economic growth and
population growth creates significant challenges for South Africa, hindering
its ability to improve the well-being of its citizens. South Africa's healthcare
system faces numerous challenges, including inadequate access, particularly
in rural areas, and a significant burden of disease. These issues are
compounded by systemic problems like poor governance, inadequate
infrastructure, and a shortage of skilled healthcare professionals, particularly
in the public sector. The coexistence of a strong private healthcare sector
alongside a struggling public system creates further disparities in access and
quality of care (World Bank, 2023) . For instance, the Human Capital Index
(HCI) which is a framework for understanding how a nation's people can
contribute to its future economic prosperity. It is a measurement developed
by the World Bank to assess the potential of a country's human capital
(World Bank, 2018). It quantifies the expected productivity of a child born
today, considering health and education factors, by the time they reach 18.
The HCI is a valuable tool for governments and societies to understand how
investments in human capital can boost a nation's economic and social
development . The Utilization-adjusted Human Capital Index (U-HCI) scales
,down the HCI by considering how many adults are not employed. The U-HCI
for South Africa is 0,18. Thus, children born today will be 18% as productive
in adulthood as they could have been if they had access to full health and
education, and they became fully employed adults. The U-HCI for girls is
even lower at 0,17 (World Bank, 2020). Thus, children born today will be 18%
as productive in adulthood as they could have been if they had access to full
health and education, and they became fully employed adults. In essence,
South Africa's Human Capital Index underscores the urgent need for targeted
interventions to improve health and education outcomes, ultimately
unlocking the country's full human potential. Four out of 100 children die
before the age of five ; and an average of 32% of 15-year-olds will not
survive until age 60. In addition, 27% of children below the age of five are
stunted and so are at risk of cognitive and physical limitations that can last a
lifetime. These indicators are much worse than in many countries at the
similar income level. Furthermore, the learning gap in South Africa is large. A
child who starts school at four years old can expect to complete 9,3 years of
schooling by their 18th birthday (the expected years of schooling should be
13). Public spending on education is high, accounting for 6,1% of gross
domestic product (GDP) in 2017; similarly, about 8% of GDP is invested in
health, and about 5% of GDP is spent on social assistance, including various
youth employment initiatives (World Bank, 2023). Many countries spend less
but achieve much higher HCI, signalling that South Africa needs to take a
hard look at efficiency 5 and efficacy of its spending. It could achieve much
more without significantly increasing spending (Dulvy, et al., 2024). South
Africa’s, economic growth has indeed lagged population growth in recent
years, leading to challenges in improving living standards and creating
sufficient opportunities for the population. This means the economy isn't
expanding fast enough to absorb new job seekers or provide a significant
increase in per capita income (World Bank, 2023). Simultaneously, despite
significant public spending on health and education, the outcomes are not
commensurate with the investment, suggesting inefficiencies and a need for
better resource allocation. Because the economy isn't growing as quickly as
the population, per capita income (income per person) has been stagnant or
even declining. This means that on average, people are not seeing
significant increases in their wealth or access to resources. In South Africa, a
slower economic growth rate compared to population growth creates
significant challenges for social security and healthcare. This disparity puts
strain on public resources, potentially leading to increased poverty,
inequality, and reduced access to essential services like healthcare.
QUESTIONS 1.1 Contextualise the development economic challenge South
Africa is facing. Summarise the dual challenges facing South Africa; poor
healthcare/education outcomes and slow economic growth; and explain how
they are interconnected. 15
1.1 Contextualising the Development Economic Challenge in South Africa
, South Africa faces a profound developmental economic challenge characterized by the
interplay between human capital deficiencies—particularly in education and healthcare—and
persistently low economic growth. These challenges are deeply rooted in historical inequalities
and systemic inefficiencies that continue to limit the country’s capacity to achieve inclusive and
sustainable development.
1.1.1 Dual Challenges Facing South Africa
(a) Poor healthcare and education outcomes
South Africa’s health and education systems reflect deep structural inequalities. The
healthcare sector is divided between a well-resourced private sector serving a minority and an
under-resourced public sector serving the majority. Despite high public expenditure (about 8%
of GDP on health), outcomes remain poor. In 2019, the country’s Disability-Adjusted Life
Year (DALY) loss equalled 41% of GDP, showing inefficiency and preventable health burdens
(Senkubuge et al., 2021). Moreover, non-communicable diseases (NCDs) account for over
30% of total DALYs, highlighting the growing burden of chronic illnesses (Koch, 2024).
Health indicators are worrying: 4 out of 100 children die before age five, 27% of children
under five are stunted, and only 68% of 15-year-olds are expected to live to age 60. These
figures point to widespread malnutrition, poor maternal health, and inadequate early childhood
interventions.
In education, South Africa spends about 6.1% of GDP, among the highest in the world, yet
learning outcomes remain poor. A child entering school at age 4 can expect to complete only 9.3
years of effective schooling by age 18 instead of the expected 13 years. This demonstrates low
quality and efficiency of education, resulting in limited skill development.
The Human Capital Index (HCI) reflects these weaknesses. According to the World Bank
(2020), South Africa’s Utilization-adjusted Human Capital Index (U-HCI) is only 0.18,
meaning children born today will be only 18% as productive as they could have been with full
access to health, education, and employment. The U-HCI for girls is even lower at 0.17, showing
gender disparities in opportunities.
(b) Slow economic growth
South Africa’s economic growth has been persistently sluggish, averaging below population
growth rates. The GDP grew by only 0.6% in 2024, while the population grew by 1.5–2%
(Stats SA, 2025). This imbalance results in stagnant or declining per capita income, reduced
job creation, and persistent inequality. The economy’s inability to expand fast enough to absorb
new entrants into the labour market leads to high unemployment, especially among youth.
