Broad Findings We conclude that health and education play pivotal roles in economic development, as both inputs into production enabling higher incomes and outputs directly affecting human well-being. Many health and education problems plague developing countries, ranging from child labor to heavy disease burdens. Education and health will not always automati- cally improve with higher incomes. And market failures mean that too few investments in education and health will be made from the social point of view. Moreover, the wrong kinds of government policies have sometimes led to distortions in the educational system that have reinforced inequality; and inequities in health systems are common. Thus, government plays an essential role in health and education, and in most developing countries, considerable improvements in policy are needed.