Public Policy and Economic Development: Insights from Professor Michael D. Kaluya
- Eshan Patel
- Sep 22, 2024
- 3 min read
Public policy plays a key role in shaping a country's economic growth, but its impact can be very different in developing nations compared to more established economies. In a conversation with Professor Michael D. Kaluya, an expert in economics and public policy, we explored how policy affects economic development in emerging markets like Uganda. He shared his thoughts on the challenges these countries face and the important policies needed to drive sustainable growth.
The Gap Between Policy Design and Implementation in Emerging Markets:
In developing countries, there’s often a big gap between how policies are designed and how they are actually put into action. Professor Kaluya noted that while policies in countries like Uganda may look good on paper, they often fall short in reality. This is largely because of corruption and self-interest among leaders.
“Policymakers in developing countries tend to focus on the needs of a select group, rather than the majority of the population,” Kaluya explained. This issue is common in many emerging markets, where public funds might be misused for personal or political gain instead of benefiting the wider society.
In the U.S. and other developed nations, accountability is stronger due to democratic systems that enforce checks and balances. “In the U.S., accountability is enforced by democratic processes, which allows for more equitable distribution of resources,” said Kaluya. But in many developing countries, those in power often control resources, making it harder for accountability to be enforced. This leads to corruption, which weakens trust in the government and slows economic progress.
When public money is misused, critical areas like education, healthcare, and infrastructure—essential for long-term growth—don’t receive the attention and funding they need.
Key Public Policies for Sustainable Economic Growth:
Despite these challenges, Professor Kaluya believes that developing countries can still achieve sustainable growth if the right policies are put in place. He identified three main areas that should be the focus: education, healthcare, and infrastructure.
Educational Policy: Empowering the Next Generation "An educated mind is a creative mind," said Kaluya, stressing the importance of education as a key driver of economic growth. In developing nations, policies that improve access to quality education help create a skilled workforce that can fuel economic transformation.
Education not only produces capable workers but also encourages critical thinking, enabling people to engage more in their communities. “A well-educated population is more likely to hold its leaders accountable,” Kaluya added, pointing out that education strengthens governance and policy implementation over the long term.
For countries like Uganda, investing in education can help bridge the gap between policy design and execution. A knowledgeable and empowered population can build a more resilient economy that adapts to global changes.
Healthcare Policy: Building a Healthy Workforce Healthcare is another critical element of sustainable growth. A healthy population is more productive, as individuals can work longer and are less likely to be hindered by illness. “A healthy mind enforces growth,” said Kaluya. "If you are healthy, you can spend more time working and less time worrying about your health."
Policies that improve access to medical care, preventive health services, and public health programs can greatly boost productivity in developing countries. Additionally, better healthcare reduces the economic costs of treating preventable diseases, allowing those funds to be used in other areas of the economy.
For countries like Uganda, healthcare policies are not just about curing illnesses but about creating an environment where people can thrive. By prioritizing health, public policy can create a more vibrant and productive workforce, driving overall economic growth.
Infrastructure Development: Supporting Economic Activity Lastly, Professor Kaluya emphasized the importance of infrastructure in sustaining economic growth. Without adequate infrastructure, economic activities are limited, which hampers growth and innovation.
“Countries must invest in infrastructure to support economic activities—both public and private,” said Kaluya. This includes building and maintaining roads, public transportation, and digital infrastructure like high-speed internet. Efficient transportation makes it easier for workers to commute, and good internet access helps businesses operate more effectively and connect with global markets.
For developing nations, the goal should be not only to build infrastructure but also to make sure it is maintained and accessible to everyone. Poor infrastructure can limit economic opportunities, especially in rural and underserved areas, where people may struggle to access education, healthcare, and jobs.
