Investment in Education in Developing Countries - Literature review Example

Investment in Education is the Most Important in Developing Countries Name Institution Investment in Education is the most important in developing countries Introduction For many years, education has been an important investment in developing countries. No country can attain sustainable economic growth without significant investment in human capital. Education improves people’s understanding of the world and themselves (Ozturk, 2001). It enriches the quality of their lives and results in wide social benefits to individuals, as well as the society. Education increases people’s creativity and productivity and promotes technological and entrepreneurship advances (Stevens & Weale, 2003). This paper explains why education is considered the most important investment in developing countries, even if some researches claim that an improved economy, as well as good health is more important in developing countries. According to Ozturk (2001), education plays a very essential role in securing social and economic progress and making income distribution better. Economic issues It is believed that education has a significant positive effect on the growth of an economy. According to Hanushek (2013), evidence indicates that, at personal level, several years of schooling results in higher income. However, at the macro-economic level, empirical evidence pertaining changes in education investment to economic growth has been so far ambiguous. Exactly, how education raises productivity and the way it is considered important are questions that lack definite answers though it has been claimed that improving the economy in developing countries is more important than investing in education. This is since economic growth increases people’s incomes, as well as reduces poverty in developing countries by creating opportunities and jobs for poor individuals to build more stable futures and support their families (Berger & Fisher, 2013). However, Ozturk (2001) argued that investing in education is important as it cultivates talents. It provides a large number of qualified individuals with advanced skills and knowledge in a broad range of subjects. Through going to different educational facilities, including though not limited to colleges, high schools and universities, individuals can contribute and prepare themselves for the development of the nation, which clearly needs the effort from all profession. For example, if a person wishes to become an architect, he or she needs to attend university to learn vital knowledge in designing and construction and if he also wants to become a nurse or doctor, he can attend medical school to familiarize himself with various types of medicine while acquiring some first-hand experience (Berger & Fisher, 2013). Besides talent cultivation, investing in education tremendously influences spirit cultivation (IIASA, 2008). This accounts for a huge part within a country’s development. As an area where wisdom is passed around and knowledge handed down, a school represents the homeland of scholars, such as Confucius and Socrates, who had a large impact on the advancement of spirit civilization and the origin of innovative ideas like democracy. According to the International Institute for Applied Systems Analysis, IIASA, (2008), education plays a major role in economic growth. Countries that have higher levels of economic growth possess labor forces with advanced levels of formal schooling. Apart from the macroeconomic approach towards the relation between economic growth and education, the novel growth theories claim that developing countries possess a better possibility of catching up with more progressed economies when they own a stock of labor with the essential skills to create new technologies by themselves or to use and adopt foreign technologies. In such examples, more education within the labor force raises output in two modes: education imparts labor skills, thus raising the capacity of labor to generate more output; and it raises the workers’ capability to innovate in a manner that their productivity is increased (IIASA, 2008). Investing in education has also resulted in poverty reduction in developing countries. Reduced poverty has itself fostered the ability of citizens to thrive since most of them are employed and have businesses, thus increasing their standards of living (Berger & Fisher, 2013). Similarly, investing in education is beneficial to the state income since workers earning higher incomes contribute a lot through taxes, thus contributing greatly to economic growth. Health issue Health is another issue that has been claimed to be more important than education in developing countries. It is defined as a state of complete social, mental and physical well-being and not just the absence of infirmity or disease (Bloom, n.d.). Health indicators raised by the World Health Organization as well as other UN bodies include life expectancy, burden of disease, disability-adjusted life years and morbidity data. Improvements in these standards of health reflect improvements in the quality of life. Therefore, health is considered more essential than education as it not only contributes to human development but it also allows individuals to regularly attend work, to be productive at workplace and to work for many years (Bloom, n.d.). Even though one is educated, being unhealthy will hinder an individual from being productive. Healthy people also promote good health of those within their vicinity since they do not spread infectious diseases such as HIV/AIDS, which is a major challenge in most developing countries (Bloom, n.d.). Additionally, they possess the mental and physical strength to look after others. Sturdy and strong health can frequently act as a platform for progress in various areas, given an appropriate policy environment. Good health is also important than education as it alters the rate of growth of population in ways that contribute to development by reducing poverty. Furthermore, it leads to improved learning (DSAED, 2010). Reduced disease and improved nutrition, especially in early childhood results in improved cognitive development, which enhances the ability to learn thus healthy children acquire more from school, having less days absent because of ill health. This is a significant determinant of economic growth. Proper health leads to reduced treatment burden as initiatives that prevent some illnesses are instilled (DSAED, 2010). The initiatives reduce healthcare burdens on governments and families, freeing capital for investing in productive activities such as families investing in education and the government investing in infrastructure. On the other hand, some argued that education leads to improved healthcare. As a long-term investment, it provides individuals an incentive to remain healthy as well as get the benefits of such investment (Suhrcke & Nieves, 2011). Additionally, as a major “input” within the health production function, investing in education may as well assist individuals improve or maintain their health, mostly through means of their increased knowledge of health issues, cognitive skills and information availability. Attaining education is further correlated with higher earnings by accessing better social networks and job opportunities, which in the end is anticipated to translate into greater health expenditure and therefore better health. Education also contributes to improved health through education’s effect on incomes. People who are educated tend to earn higher incomes thus are more probable to have sufficient cash and time to visit medical practitioners (Suhrcke & Nieves, 2011). This implies that without education, there would be no cure for diseases as well as the availability of nurses and doctors. Education additionally reduces the risk of maternal and child illness and mortality as people are aware of the need to visit clinics, hospitals and dispensaries. The impact of HIV/AIDs in developing countries is further reduced by educating the public on the importance of having protected sexual intercourse. Based on some arguments, education and health are believed to work hand in hand with each other. They are believed to be the two most significant features of human capital (Zimmerman & Woolf*, 2014). Their economic value falls within the effects they possess on productivity: both health and education make people more productive. They as well have a substantial impact on the well-being of individuals. Education is proven to improve health care systems through further research methods and analysis. On the other hand, a better health enables an individual to invest a lot in education. There also possesses a huge body of empirical proof to support the assertion that there exists a positive relation between health and education. In a survey conducted by Groot and Brink (2006) on non-market outcomes of education, the two discover five health related effects of education, which include a positive relation between one’s health status and one’s education, a positive connection between schooling and one’s family members health status. Others include a positive link between the schooling gotten by one’s children and one’s own schooling, a positive schooling contribution to the efficiency of consumer choices and a relation between the fertility options of one’s children and one’s own fertility choices and schooling. Conclusion In conclusion, investing in education is the most important in developing countries as it cultivates talents. It provides a large number of qualified individuals with advanced skills and knowledge in a broad range of subjects. Additionally, it influences spirit cultivation and plays a major role in economic growth. Investing in education has also resulted in a reduction in poverty as well as improved healthcare within developing countries. It also contributes to improved health through education’s effect on incomes. With these rationales in mind, it can be concluded that education plays a bigger role in developing countries compared to improved economy and health. References Berger, N & Fisher, P (2013). A Well-Educated Workforce Is Key to State Prosperity. Economic Policy Institute. retrieved http://www.epi.org/publication/states-education-productivity-growth-foundations/ Bloom, D (n.d.). American Academy of Arts and Sciences Project on Universal Basic and Secondary Education. Education, Health,and Development. retrieved https://www.amacad.org/publications/ubase_edu_health_dev.pdf DSAED (2010). The Role of Health in Economic Development. retrieved http://www.aid.govt.nz/sites/default/files/The%20Role%20of%20Health%20in%20Economic%20Development.pdf Groot, W & Brink, H (2006). Measuring The Effects Of Education On Health And Civic Engagement: Proceedings Of The Copenhagen Symposium.What does education do to our health? retrieved http://www.oecd.org/edu/innovation-education/37425763.pdf Hanushek, E (2013). Economic Growth in Developing Countries: The Role of Human Capital. retrieved http://hanushek.stanford.edu/sites/default/files/publications/Education%20and%20Economic%20Growth.pdf IIASA (2008). Economic Growth in Developing Countries: Education Proves Key. retrieved http://www.iiasa.ac.at/web/home/resources/publications/IIASAPolicyBriefs/pb03-web.pdf Ozturk, I (2001). The Role Of Education In Economic Development: A Theoretical Perspective. Journal of Rural Development and Administration. 33(1) 39-47. Suhrcke M, de Paz Nieves C (2011). The impact of health and health behaviours on educational outcomes in high-income countries: a review of the evidence. Copenhagen, WHO Regional Offi ce for Europe. Stevens, P & Weale, M (2003). National Institute of Economic and Social Research. Education and Economic Growth. 1-25 Zimmerman, E & Woolf, S (2014). Advising the nation*improving health. Understanding the Relationship Between Education and Health. retrieved http://www.iom.edu/~/media/Files/Perspectives-Files/2014/Discussion-Papers/BPH-UnderstandingTheRelationship.pdf Read More