Investments in poor generate growth

WASHINGTON – The World Bank on Tuesday called on developing countries to pursue “trickle-up” economic growth by investing more on education and health services for their poorest populations.

In its 2006 World Development Report, the global lender also urged rich countries to make it easier for temporary workers to move across borders to boost the welfare and productivity of the disaffected and underprivileged. World Bank chief economist Francois Bourguignon said spending money on society’s poorest sectors could help extend countries’ broader economic capacity and growth potential.”More growth will bring more opportunities to the population, but better distribution of those opportunities …will generate faster growth,” he told a press conference.The report, which assessed the impact of social and political inequalities on developing countries, found major economic consequences from uneven access to schools, health care and infrastructure like water pipelines.In addition to deepening poverty, the World Bank said spotty social services access created “inequality traps” that stifle worker mobility and limit market participation.The bank recommended the developed world relax policies to give temporary workers access to markets where they could earn more than they do at home.-Nampa-ReutersWorld Bank chief economist Francois Bourguignon said spending money on society’s poorest sectors could help extend countries’ broader economic capacity and growth potential.”More growth will bring more opportunities to the population, but better distribution of those opportunities …will generate faster growth,” he told a press conference.The report, which assessed the impact of social and political inequalities on developing countries, found major economic consequences from uneven access to schools, health care and infrastructure like water pipelines.In addition to deepening poverty, the World Bank said spotty social services access created “inequality traps” that stifle worker mobility and limit market participation.The bank recommended the developed world relax policies to give temporary workers access to markets where they could earn more than they do at home.-Nampa-Reuters