Question

What is best way to promote education in a developing country? Discuss different justifications for intervening in the market for education and compare and contrast supply-side vs. demand-side approaches to promoting it. Be sure to highlight at least two specific policies and provide evidence of their effectiveness (or lack of effectiveness).   

Answer 1

Education is extremely important for the economy of a country. Any developing or developed economy requires that the education standards are improved. Education allows for easier access to people in jobs that pay relatively higher.

It is one of the key tools of tackling with poverty. Countries like India and China are prime examples of those countries which have been able to develop themselves backed with the educational facilities that have developed over the years.

The benefits of education being so big are important for countries to realize to promote the education so as to be able to develop themselves and increase the quality of human resources and thus have an impact on the overall gross domestic product and earning of the economy respectively.

On the other hand, the effectiveness of education must be reflected to the people in the economy in the form of advertisements and general awareness campaigns which would reflect upon the society. Further, if people are given scholarships and the cost of education is sponsored by the government and those with relatively higher incomes, the overall effectiveness of education can increase.

The supply side and demand side are dependent on each other for sustenance but usually the demand for education in developing countries is relatively low because people are not generally aware of the benefits of education or do not have the resources required.

Once, awareness is increased through the use of advertisements and people have resources through subsidies and scholarships the demand side shifts hence creating an equilibrium of demand and supply in the long run.

Some evidence of this can be found in the Indian context wherein post these schemes being launched by the government, education has rapidly grown in cities and towns alike and has been able to shape the Information and Technology Industry of the country which has allowed for funds to flow and revenues to increase respectively.

Please feel free to ask your doubts in the comments section