Question

Despite outstanding achievements in human capital, developing countries continue to face great challenges as they seek to continue to improve health and education of their people (Todaro and Smith, 2015). The economics of education includes the determinants of demand and supply of education places, and the distinction between the private and social benefits and costs of investment in education. Discuss the economic relationships between education and

1. a) the level of growth,
2. b) the character of growth,
3. c) inequality,
4. d) rural-urban migration,
5. e) rural development,
6. f) fertility,
7. g) absolute poverty,
8. h) land reform, and
9. i) international migration

Give country specific and/or regional experiences to support your answer.

Answer 1

a) There is positive relationship between education and economic growth. As the level of education increases people acquire more skills and knowledge. They become more creative and productive. They become expert in handling advance technology and and also to handle large businesses. This raises their income and standard of living leading to economic growth.Example India is called as one of the fastest growing economies because of rapid increase in education among people.

b) Education also affects character of growth.Character of growth means developing a character with good qualities like courageous, knowledgeable, clear vision. It means developing qualities which help you to earn love, respect, affection from important and respected people of the world. Education helps in producing good character citizens which are an asset yo the economy and this leads to growth and development of the country. Example Prime minister of India Mr. Narendra Modi has earned respect and fame all over the world because of his industrious character.

c) An increase in income inequality will lead to increase in attainment of education inequality. Rich and wealthy parents can afford good quality education for their children through private coaching and good universities as compared to poor parents. Rich students get good and high paid jobs due to better education prospects as compared to poor students. This increases the income inequality between rich and poor. Example United States.

d) Education results in rural urban migration.People in rural areas have less means of education and employment opportunities.They are mostly dependent on agriculture. So, to improve their economic and financial condition they move to urban areas.In urban areas job opportunities, infrastructure facilities and education opportunities are much more as compared to rural areas. As a result urban areas are densely populated, economically and technologically advanced. Example In almost all countries metro cities are densely populated and economically and technologically more advanced with better health, hygiene and infrastructural facilities as compared to rural areas.