Education and economic have close ties with each other. It does not take rigorous thinking to understand that better education is crucial for a better economy.
Only through effective and holistic education can an economy tap its full potential, play to its strengths and contend with its powerful counterparts.
But, how exactly does education help an economy develop and prosper? Why DOES education matter for proper economic development?
This article attempts to ccanswer such questions in-depth
Education and Economy: Understanding The Connection
Before we dwell further, we need to understand the purpose of education and economy in human society.
An economy is a system of sustainability. Trading and bartering lies at the heart of it and allow human beings to avail themselves of all the resources necessary to sustain themselves.
Goods and services are exchanged for capital, and this system forms the very foundation of any economic Homework Help.
Better education can help us tackle the harsh realities, unforeseen hurdles, and challenges inherent in everything from the environment to the economy. And, therein lies the connection between education and the economy.
Better education leads to the development of skilled labor, thereby developing the human resources of an economy. Development of agriculture, industries, financial and administrative systems and technology needs education as their most basic foundation.
Education is the central means of developing human capital and, thus, essentiality for any economy.
Education As An Investment For The Future
An official article on the World Bank website Dewar this idea as one of the key reasons behind the indispensability of education in the economy.
The blog/article’s content highlights how two Nobel Prize-winning economists, T.W. Schultz and Gary Becker, argued education as a significant investment and introduced the Human Capital Theory.
In short, the Human Capital Theory states that investing in education pays off in the form of higher wages. The theory and its empirical estimations are backed up by modern science.
Moreover, the logic behind the idea is easily understandable, as a well-educated person typically has a more profound contribution to an economy.
The Human Capital Theory is backed by current science. Empirical Custom Writing researches have shown that investment in the education of able learners assures higher returns in the long run.
Education Pays Off
The World Bank shows that another year of effective schooling raises earnings by 10 per cent a year. This return is substantially more than any other investment any individual could ever make.
The value of human capital- the share of human capital in total wealth – is 62 per cent. That’s nearly four times the value of any produced money and 15 times the return from investments in natural capital. In addition, across the world, governments, the private sector, families, and individuals spend upwards of $5.6 trillion a year on education, training and upskilling.
Private returns from investments in schooling have been increasing steadily. Returns have been growing by more than 20 per cent in African countries and by more than 14 in the East Asian and Pacific region. In recent times, the most significant change has been the returns to tertiary education, which are now the highest. Moreover, education employs about five per cent of the labor force.
Skilled Labor Demands Are Changing
One of the biggest reasons behinds education’s increasing cruciality in economic growth is its intricate relationship with technology. As labor markets confront, cope and adjust to automation, demands for skilled labor is on the rise. Today, the shortage in skilled labor is a major handicap, resulting from the inadequate education systems in most developing economies.
Advanced educational resources, resources, systems, and policies are necessary to produce skilled and competent minds Proposal Essay Topics
Better Education, Better Competition, Overall Success
Success in today’s labor market requires intelligent investment in education at every opportune moment.Countries must invest smartly and focus attention on the 3 A’s: Autonomy, Accountability, Assessment. The focus needs to be on responsible pedagogy, resource availability, systematic educational frameworks, and skill and personality developments.
Technology comes into the picture again as it has helped the formal education system evolve and led to the rise of numerous non-formal academic avenues, such as MOOCs, online research repositories, online & remote learning etc. Investing in educational technology should be a priority for all countries, especially in light of the recent Covid-19 disruptions. The very fabric of education is changing, and so is the global economic environment.
Technology will play a central role in almost every sector in the near future, and a capable & skilled workforce is necessary for effective tech adoption & implementation.
Expand Opportunities But With Attention Towards Equity
Countries need to focus on improving quality, achieving excellence, expanding opportunities with efficacy and equity. This means ensuring that disadvantaged youth can access & avail of academic opportunities, enroll successfully and succeed eventually.
While global dropout rates have fallen by a majority, results vary widely across developing and under-developed economies. Socio-economic handicaps, lack of proper academic infrastructure & education, and lack of information are chief problems. Moreover, due to the pandemic, things have changed further in the last two years, and authorities need to address such changes urgently.
There has to be better support and information for such students who don’t perform well to help them succeed. More information will also benefit students from disadvantaged backgrounds, who are often unable to avail or are grossly misinformed & unprepared.
Challenges: Access, Equity, Quality, and Swift Reforms
Developing economies of low-and middle-income countries have been expanding at amazingly historically rapid rates. Progress in education, increased enrollment, lower dropout rates and more extended schooling are the main reasons behind such growth and helped bring down poverty in developing countries.
- In 1990, elementary students in developing countries were expected to attend school for 8.5 years, up from around seven years in 1980.
- In Eastern European and Central Asian regions, schooling for approximately 9 to 10 years is now the rule.Primary education is almost universal in the Far East, South-East Asia, Latin America, and the Caribbean.
- The Middle East and North Africa are also making steady progress. So are those in south Asia, although they have a lot left to achieve.
Yet, developing & under-developed nations in Sub-Saharan Africa are lagging drastically. There is a massive disparity in education, and primary enrolment ratios are unfortunately declining.
Key Takeaway: Major challenges remain in making education ubiquitous in human society. Some of the most prominent ones are:
increased access to education in some countries is necessary;
improvements in equity and quality;
speeding up of educational reforms;
Development of systems that can meet the high demand & fast-changing times. Covid-19 has created the worst educational crisis in 100 years. Technology, intelligent investments & policies and a concerted effort from all stakeholders.
And that rounds up this article. Hope it was a worthwhile read for everyone.
Author-Bio: Alvin Louis is a teacher, tutor, academic writer and blogger, all rolled into one. She frequently collaborates with MyAssignmenthelp.com, where she teaches educational sciences
