Economic Differences between Nations as Caused by the Presence of Education - Essay Example

Examining Economic Differences Between Nations As Caused by the Presence of Education and Higher Learning There is no denying the disparity in power between developed countries and those we call "developing countries," but from where did such a disparity in power come It may seem like a very basic, almost ridiculously simple question. We take for granted that we know the answer to this question. "Money," most of us would say, "We have more money because we have an educated population that has led to the industrialization of our country." Yet, the very fact that we are able to reply with such a quick answer, and such a correct answer just shows how much we take for granted the education that led to such an answer. Although there is an enormous difference in economic/educational knowledge between an American who has a degree in finance or education, and an American who had to struggle to complete a high school diploma, nevertheless the two would most likely still be able to agree upon a fairly straightforward idea: formal education indubitably enhances one's ability to become a valuable employee, and therefore a contributor to our comparatively wealthy nation. Money is on our minds, and education is almost universally accepted within this country as the means by which to build our fortunes. Within the next few pages, the aim of this paper is to illustrate with facts and figures more of the mechanics of the answer to the question above. The focus will be upon politics and the history of one particular developing nation, Liberia. First of all, let's look at the evidence that Americans see education as the key to opportunity. On a typical day, it is almost guaranteed that msn.com will tout at least three new articles from one, if not all of the following topics: "finding the best college" "the best college for your money," "how to save for your child's education," "finding the most lucrative major," "where to find baby's first SAT guide to ensure that he is able to get a 1600 before other kids can walk." The article dujour for April 12 is somewhat subdued, and we see only a few articles on money and/or education: "Tax-day Aftermath in 19 Cities," "Saving Family Fortunes," and last but not least, "Preparing for a High-Paying Job." We are focused on finding both the best education for ourselves AND for our children. Can any of us really deny the powerful, but mixed feelings (awe, admiration, maybe a little bit of envy or self-consciousness) we would have upon meeting someone who non-chalantly declares that he or she recently completed a master's degree for some convoluted area of study (we're not even sure what a person with such a degree will do with it) from a very sexy, name-brand college "Certainly," we think to ourselves, "this person has it made when it comes to finding a job." The Black Collegian states, "we launched this magazine with the conviction that earning a higher education was among the most important, transformative and uplifting opportunitites in a young person's life-and the most challenging. This remains as true today as in 1970." (The Black Collegian, 4) Although, as with everything, there are exceptions to the following statement, it cannot be denied that the majority of Americans will agree that it is wise to pursue a quality education, if one desires to attain a certain level of comfort, and the career necessary for achieving that lifestyle. It can be said that although atypical of every single citizen of the United States, there are also those who see education as more than a means to a financial end, who hold academia dear to their hearts not only for the monetary rewards that it holds, but also for the sake of learning itself, and who will argue strongly against anything they see as threatening to their education: "Intellectual freedom-the freedom to ask questions, to uncover facts, to speak independently without fear-is the foundation of our democracy and remains of critical importance, especially in a time of crisis," reads a resolution adopted by the scholarly group the American Studies Association in November 2002" (CQ Research, 844) Such strong proponents for education further bolster the foundation of learning within this country, and maintain the value of liberal arts (philosophy, art, music, literature) which arguably create a more civilized society, one that values education for its own sake and its contribution to society rather than any financial gains it may bring, which, of course, simply create a more stable environment within which business can thrive. Secondly, we need to look at the reality of our differences. It's all well and good to theorize about the differences between America and Iberia, but we need to take a hard look at facts and figures. "The Liberia dollar currently trades against the US dollar at a ratio of 57:1. Liberia used the US dollar as its currency from 1943 until it reversed dollarization in 1982. Its external debt ($3.5 billion) is huge in comparison to its GDP (aprox $2.5 billion); it annually imports approximately $4.839 billion in goods while it exports only about $910 million. Inflation is falling, but still significant (dropping from 15% in 2003 to 4.9% in the 3rd quarter of 2005); interest rates are high, with the average lending rate listed by the Central Bank of Liberia at 17.6% for 3rd quarter 2005 (although the average time deposit rate was only 4.4%, and CD rate only 5%, barely keeping pace with inflation.). It continues to suffer with poor economic performance due to a fragile security situation, the devastation wrought by its long war, its lack of infrastructure, and necessary human capital to help the country recover from the scourges of conflict and corruption." (Wikipedia, under "Liberia.") Clearly, if our source is to be trusted, the economic situation in Liberia is not good, to say the very least. The value of the Liberian dollar against the American dollar is staggerlingly small. The country of Liberia brings in very little money by way of exports, (it brings in very little money at all, to tell the truth, and mostly earns what it does by being exploited by other countries) its interest rates are fairly high and the crime and violence within this country have no doubt brought about much of the economic hardship that Liberians are currently suffering from. Let's take another look at Liberia, this time at its figures for education, and then compare that to what we have seen above. Under "culture," Wikipedia had the following to say: "The University of Liberia is located in Monrovia. Opened in 1862, it is one of Africa's oldest institutes of higher learning. Civil war severly damaged the university in the 1990s, but the university has begun to rebuild following the restoration of peace. "Cuttington University was established by the Episcopal Church of the USA (ECUSA) in 1889; its campus is currently located in Suacoco, Bong County (120 miles north of Monrovia). "Liberia is known for itsacademic institutions." However, let's take a look at some more of the facts related to education: "According to statistics published by UNESCO for the years 1999-2000 (the most recent available for Liberia as of 2005) 61% of primary-school age and 18% (estimated) of secondary-school age children were enrolled in school." It doesn't take a rocket scientist to see what's happening here. Obviously, an individual who is not even enrolled in secondary school (and the vast majority of Liberia's population is not) has little hope of advancing to complete a college degree. Compare these facts of education and economics to those of the United States, and a clear difference can be seen. "In most states, students are generally obliged to attend mandatory schooling starting with kindergarten, which is normally entered into at age 5, and following through 12th grade, which is normally completed at age 18 (although in some states, students are permitted to drop out upon the age of 16 with the permission of their parents/guardians)." (Wikipedia, under United States, education.)" "The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $42,000. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households." (CIA World Factbook, under "Economy.") Clearly, given the above evidence, especially the section from the CIA World Factbook which is italicized, it is reasonable to make the case that education directly ties to a healthy economy. In his book, Blue Clay People, William Powers says, "We finally reach Buchanan (population thirty thousand), Liberia's second largest town, after Monrovia. Before the war it was a lively weekend getaway from the capital, but it is now an assortment of tumbledown cinder-block houses, mud huts, and empty outdoor markets. People wade through a layer of roadside trash, and no one seems to be working. 'They waiting for LAMCO to come back, ' Momo says, referring to the Liberian-Swedish-American Mineral Company, which had abandoned its iron ore operations during the war a half-dozen years back. "Waiting for LAMCO to come back. LAMCO would not be coming back to Buchanan, not for a long time, at least. I look out the window at their former infrastructure around the Buchanan port. It's a multimillion-dollar production platform collapsing into a heap, rusting away, beyond repair. Yet the people of Buchanan are waiting for them to return instead of taking their own initiative, meanwhile surviving on CRS food shipments." (Powers, 85) Contrast this situation with the beginning paragraph on the very first page of this essay. Clearly, there is a huge difference in attitude. Americans see financial gain as something to be worked for, something for which you need to beg, steal and borrow as much money as possible in order to educate yourself so that a financially comfortable, secure lifestyle may be achieved. Although many students display questionable judgment concerning their academic decisions (choosing degrees that are not likely to yield a considerable return on the thousands of dollars invested, for example, or foolishly choosing a pricey, name-brand, Ivy-League college based on reputation alone, not on how well it will suit that persons' needs and then falling tens of thousands of dollars in debt) the desire to improve one's situation in life through education is definitely there. Compare that to the situation in Liberia concerning LAMCO. In no way is this a value judgment, but the attitude among the local Liberians showed not the slightest hint of a proactive spirit on their part. It is understandable, though. Human beings rarely rise above what they have been taught early in life. It is the unusual individual who becomes a rising star and skyrockets out of his/her socio-economic station in life. This is true across the board, regardless of gender, race or nationality. It takes a great deal of determination and intelligence to forge a path that has not been at least pointed out to you. In his book, Liberia, Portrait of a Failed State, author John-Peter Pham points out, "Despite its historic association with the United States, its rich resource base relative to population, and generous external assistance by foreign governments, Liberia must be placed among the least developed countries in Africa. In 1962, less than 10 percent of the population was literate, the quality of its educational establishment was low, the traditional divisions between tribal Liberians and the Americo-Liberian descendents of the colonial settlers remained in force, and traditional governmental procedures had not been appreciably revised to serve development needs. "In 1962 there was nothing that could reasonably be called developmental planning. Neither effective plan nor personnel existed. Its most tenacious problems are institutional and require policies to reform traditional social and political organizations; to abolish forced recruitment of labor, to reform traditional land tenure arrangements, to reform the traditional administration of the tribal hinterlands in ways which provide incentives for tribal persons to enlarge their production for sale, and to allow them access to higher education and political expression." Perhaps the idea that education could have solved all of these problems is nave. Or is it First, we need to look at the benefits of higher learning. 1. There is NO QUESTION that achieving a college degree, or completing a course of study for a skilled trade gives an individual many, many more choices in life than the unskilled laborer. 2. More choices enables an individual to feel less helpless, less like a victim, and less like he or she needs to depend on other, more "qualified" people to provide for his or her material needs (such as the Liberians who were waiting for the people from LAMCO to return and restart the operations which previously secured employment, meager as it was, for the local people. 3. Education not only makes you more desirable for others who will be willing to give you work, it also gives you the inspiration and knowledge necessary for you to independently start your own form of financial provision. 4. Finally, education provides for people in many intangible ways. Civilizations can only be formed when there are enough times of peace for progress to be made and for cultures to develop. When ignorance is given free reign, mistrust between different groups of people develop. Oftentimes, the result is outright violence. How can anything be accomplished when people are not able to even cooperate with one another To pull it all together, it is logical to see from the above-mentioned facts, figures and excerpts that education is directly correlated to financial security. It is simply the way of the world. Although it may be argued that such a statement may bring into question a possible "which came first, the chicken or the egg," theory, I have yet to discover any society that has not made significant financial progress without the help of a solid base of educated citizens within its workforce. Bibliography CIA World Factbook, under "Economy." April 12, 2006. Churchill, Ward. "Academic Freedom." CQ Research, October, 2005, Volume 15, number 35: 844. Ikeda, Stewart. "About This Special Feature." Black Collegian, February, 2006, second semester issue: 48 Pham, John-Peter. Liberia, Portrait of a Failed State. 360 Park Avenue South, New York, NY 10010: Reed Press, 2004. Powers, William. Blue Clay People. 175 Fifth Avenue, New York, NY 10010: Bloomsbury Publishing, 2005. Wikipedia, under "Liberia," and "United States." April 12, 2006. < http://en.wikipedia.org/wiki/Main_Page> Read More