For the development of every country, education is a must because schools, colleges, and universities play a great role in developing the country’s economy. Some big organizations like charity organization for children provide education in a poor country that helps them to economically develop.
5 Things that make education greatly important for economic development
Here are five things mentioned you should know about the vital role of education in economic development:
Education is the best investment
Knowledge and learning have been recognized since the beginning. In a nutshell, the Capital Theory of Human posits that investing in education has a great payoff in terms of higher wages. Mainly, learning can also continue into advanced ages. The benefits and relative costs to investments compared to older persons than younger persons differs.
Overall, schooling raises earnings by 10 percent a single year. Typically this is more than any other investment. The human capital value– the human capital share in total wealth is 62 percent.
Globally, the private sector, governments, families, and individuals – spend trillions of dollars in a single year on training and education. Countries spend 5 percent of GDP on education or mainly 20 percent of their national budget. Education employs about 5% of the labor force.
Moreover, returns schooling to private – what individuals receive in the labor market – have been increasing. Returns are increasing by more than 20 % in Africa and more than 14% in East Asia and the Pacific. Recently the big change has been that the returns to tertiary education now go highest.
Demanded skills by the labor market are changing
One of the main reasons for the change in the returns pattern is the race between education and technology. Because of that nonprofit organization for help make free-of-cost centers that train people with different skills and techniques.
In this new world, the workers’ ability to compete is handicapped by the poor performance systems of education in most developing countries. Technological change and global demand of competition, the competencies mastery and the new skills acquisition for many.
Countries can compete and succeed
In today’s labor market promotion of success, one needs to invest earlier, and then invest in the relevant skills. Above all, countries need to smartly invest, by promoting attention to Accountability, Autonomy, and Assessment. They need to pay attention to early childhood development, teachers, and culture.
To focus on results is very important
Systems of education that do children well prepare early on, continuously reform, and use the information for accountability and improvement. Information for accountability works, as do high assessment stakes; but so do low stakes of assessments. Either way, test-based accountability is cost-effective.
Expand opportunities but pay attention to equity
Countries greatly needed to improve quality, strive for excellence, and expand opportunities, based on equity and efficiency. It provides a means of ensuring that disadvantaged youth succeed.
Truly education is one of the most powerful instruments for reducing inequality and poverty; it sets the foundation for sustained growth of the economy. Let’s start investing in education with Minority Relief.
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