Question

18. Why would increases in education likely have a greater return in terms of increased output in developing countries than in developed countries, and what should developed countries be aware of?

Answer 1

Education is one of the most important factors for the development of the country. Without education, no country can achieve sustainable economic development. Education increases people's knowledge and skills and thus raises their productivity. In developing countries people are generally interested to work with their college education or some prefers to work after matriculation due to insufficiency of fund to study further. At this stage they are neither skilled or more experienced to work with growing or established companies. In that case if they are provided with higher education and training then they will definitely increase their productivity and revenue for the company. This, in turn, increases output and helps in the economic development of the country. In developing countries the progress is good but it needs to match with developed countries and for this, country has to invest more on its human capital. It needs to increase education so that there will be more highly educated and skilled people to increase the output of the country. There is the requirement of advanced training for the youths of the country to take it to the next level.

Developed countries should be aware of the growth and advancement of the developing countries because when a developing country invests on its education system then its growth rate will increase. People will be more skilled and experienced which will help the country to maintain its competitive position. Higher education and training are the most required weapon for the growth and development of the developing countries which developed countries should be aware of .