Do better health and education enhance economic development?

The major objective of this study is to show the importance of interdependencies between health, education and poverty in the context of South Mediterranean Countries (SMC) compared to the economies of the European Union (EU). Empirical assessments of interdependencies are pursued after reviewing the previous theories and applications. The results attained have revealed the existence of important links between different sources of wealth which are health, knowledge, monetary assets and social capital. Furthermore, the importance of non monetary assets appeared to be at least as important as the traditional economic and financial wealth. Given the extent and magnitude of education, health and socio-economic deficits in the SMC, the identification of the interdependencies generates new avenues for more integrated economic and social policies.