Arguing that conventional indices of poverty (such as the head-count r
atio) do not capture all aspects of deprivation that large segments of
the population experience in developing countries, the present paper
concentrates on progress in reducing infant and child mortality, and t
he underlying factors. The role of public policy in reducing infant an
d child mortality is emphasised. While income matters, (independently)
aspects of maternal care and access to certain basic health services
also have a significant role. In particular, female literacy (as a pro
xy for mother's literacy) has a substantial negative effect. In the co
ntext of the concern for cost-effectiveness of public expenditure duri
ng structural adjustment, a case is made for reordering of priorities
in educational and health expenditure, and for specific policy interve
ntions designed to promote female literacy.