Social Problem

¶ … Social Science Research Problem "PIPA Policy Work Wonder Worker Bees" From: Robert Lloyd, PIPA Executive Director Joshua USAID foreign aid grant, education, and development The standard of living of people and their per capital income are steadily increasing globally. Many factors contribute to the increase in the higher income, and these factors include education, globalization, and economic stability across countries. However, there is a positive correlation between higher earning and level of education.

Education is defined as a formal learning that assists individuals to acquire knowledge, and skills to improve their standard of living and make them becoming useful members of society. Education is a critical tool to improve performances of individuals. On the other hand, income is defined as amount of money that individuals can make at a regular basis. Typically, income levels depend on the level of skills and knowledge that an individual has acquired over the years.

Education is a critical tool that can assist people to acquire necessary skills and competencies in order to receive a regular income. Typically, education is very effective in fighting poverty, and education opens doors to different opportunities nationally and globally. People with a minimum level of education are able to secure good jobs and run a successful business that translate in higher standard of living. For example, people with secondary education or university education are likely to receive high incomes that can make them enjoying high standard of living.

Skill development is very vital in reducing inequality, unemployment, and poverty. Skill development is a critical tool for enhancement of economic growth. Every $1 spent on education is able to generate between $10 and $15 in economic growth. (UNSCO, 2013) Education stimulates economic growth and reduces poverty within a country. Typically, quality education accumulates people's skills, knowledge and self-reliance needed to expand employment opportunities and increase income.

"Education is a key way of tackling poverty for women, and makes it more likely for them not just to be employed, but also to hold jobs that are more secure and provide good working conditions and decent pay." (UNESCO, 2014 p 25). Many countries have realized the urgent needs to develop skills of a general population to enhance economic growth.

A country that focuses on people's prosperity in a rapid global changing economy should pay a greater attention to the development of skilled workforce through educational attainment in order to assist them preparing fully for the national and global economy. Despite the benefits of education towards economic growth, there is an argument centered on whether foreign aids for both primary and secondary educational programs can contribute to an increase in economic growth and income level.

Within the last few years, some group of people have criticized a correlation between level of education and GNP per capita. The argument is that many low income countries receive foreign aids for primary and secondary education, yet these countries lag behind economically. On the other hand, some people believe that countries with higher number of people in secondary and tertiary institutions have recorded higher GNP capita level. Thus, many scholars believe that investment in education can lead to higher income level for a country. (Bloom, Canning, & Chan, 2006).

The report generates the following hypothesis to enhance a greater understanding whether more education can generate more income levels for a country. H1: Increase in the educational levels of people contributes to higher income and GNP per capita of a country. Ho: Increase in the Educational levels of people does not contribute to higher income and GNP per capita of a country. The report tests the hypothesis by collecting data from World Bank.

To test the hypothesis, the report demonstrates that if level of education is correlated to higher income, countries with higher level of education enrollment are likely to record high GNP per capital. In the contemporary educational environment, primary school education is a basic education and perquisite to secondary education, however, people with primary school education cannot be categorized as being educated. In essence, the number of people enrolled in a primary education will affect the number of enrollment in secondary education.

Increase in the number of people in primary education enrollment will increase the number of secondary school enrollment. Thus, secondary education can make people to acquire skills and competencies to contribute meaningfully into the economy. On the other hand, tertiary education prepares individuals to integrate in a complex business world. People with tertiary education are likely to deliver a meaningful contribution to a country economic development. The report establishes relevancy of primary education enrollment to secondary education enrolment.

Moreover, the study establishes the correlation between the percentages of secondary school enrollment to GNP per capital level in a respective country. The essence of the report is to establish that how level of education contributes to GNP per capita of a country. Data Presentation The report accesses World Bank Database to collect data on enrollment ratio and net enrollment ratio of relevant age group in primary, secondary and tertiary education between 1980 and 1997.

Moreover, the report collects data of all countries income level, and the data consist of primary and secondary education enrollment for low-income countries, lower middle countries, upper middle and high-income countries. However, the report excludes India and China from the analysis because these two countries consist of one-third of all people in the planet. Including them in the data collected can distort the analysis. The data on Gross National Product of all countries reveals the average percentage annual growth between 1997 and 1998.

Based on the data collected, estimated GNP per capita income for low-income countries was $760 or less. The GNP per capita of lower-middle income country was between $761 and $3,030. Estimated GNP per capita of middle-income country was between $3,031 and $9,360. However, estimated GNP per capita for high-income country was $9,361 or more. Analysis The deleted countries from the list of countries are "Angola, Bangladesh, Bolivia, Guinea Bissau Haiti, Honduras, Bosnia & Herzegovina, Burkina Faso, Central African Republic, Cuba, Ghana, Iraq, Jamaica, Korea, Dem. Rep.

Kuwait, Libya, Myanmar, Omar, Pakistan, Puerto Rico, Rwanda, Sierra Leone, Turkmenistan, Ukraine, West Bank and Gaza and Yugoslavia, FR." (World Bank, 1998). Major reason for deleting these countries from the analysis is that they do not have data of either GNP or data on primary or secondary education. The relationships between primary education enrolment and GNP per capital of low income, middle and high-income country reveals that education at primary level does not have a tangible effect on the income level of country.

As being revealed Fig 1, a small difference in percentage enrollment in primary school level has a great difference in the income of various countries. Fig 1: GNP vs. Primary Enrollment For example, Madagascar recorded enrolment of 92 at the primary level in 1997 with income of $260. However, Denmark recorded 103 for the primary school enrolment, yet the country recorded $33, 040 in the same year. The data revealed that there was a small difference of primary school enrolment between Madagascar and Denmark yet Denmark recorded very high GNP per capital than Madagascar.

Another significant comparison is between Nepal and Norway as being revealed in Table 1. Nepal recorded 113 enrolment at primary education; however, the GNP of the country is $210. On the other hand, Norway recorded 100 at primary level, yet, the GNP of the country is $34,310. Based on the data collected on the primary education enrollment and GNP per capita of all countries, it is revealed from the graphical illustration that the primary education does not have a positive correlation on the GNP per capita of a country.

Thus, the report argues that the impact of primary education is to prepare people for secondary education since the graph reveals that there is no direct relationship between primary school enrollment and GNP per capital. Increase in the primary school enrollment does not have impact on the GNP per capital of a country. Considering the relationships between GNP per capital and secondary education, it is revealed that there is indeed a correlation between secondary education and GNP per capita of a country.

The Figure 2 establishes that there are indeed relationships between percentage of secondary education enrollment and the GNP per capital level of a country. Based on the data in Table 1, the enrollment of Secondary education for Ethiopia is 12 and GNP per capital was $100. However, Austria recorded 103 for the secondary school enrolment, and its GNP per capital was $26,830. Fig 2: GNP vs. Secondary Education Table 1: Country Per Capital GNP $(1998) Primary School Enrollment (1997) Secondary School Enrollment Ethiopia 43 12 Congo, Dem. Rep. 72 26 Burundi 51 7 Eritrea 53 20 Niger 29 7 Malawi 17 Mozambique 60 7 Nepal 42 Tanzania 67 6 Chad 58 10 49 13 Cambodia 24 Madagascar 92 16 Yemen, Rep.

70 34 Sudan 51 21 Nigeria 98 33 Uganda 74 12 Lao PDR 29 Togo 27 Zambia 89 27 Gambia, The 77 25 Kenya 85 24 Vietnam 57 Nicaragua 55 Tajikistan 95 78 Benin 78 18 Kyrgyz Republic 79 Moldova 97 81 Mongolia 88 56 Mauritania 79 16 Armenia 87 90 Azerbaijan 77 Senegal 71 16 Guinea 54 14 Lesotho 31 Cameroon 85 27 Zimbabwe 50 Indonesia 56 Congo, Rep. 53 Cote d'Ivoire 71 25 Albania 38 Sri Lanka 75 Papua New Guinea 80 14 Uzbekistan 78 94 Georgia 88 77 Syrian Arab Republic 1 020 43 Philippines 1 050 78 Jordan 1 150 71 57 Bulgaria 1 220 99 77 Morocco 1 240 86 39 Egypt, Arab Rep. 1 290 78 Macedonia, FYR 1 290 99 63 Kazakhstan 1 340 98 87 Romania 1 360 78 Ecuador 1 520 50 Algeria 1 550 63 Guatemala 1 640 88 26 Iran, Islamic Rep.

1 650 98 77 Paraguay 1 760 47 Dominican Republic 1 770 94 54 El Salvador 1 850 97 37 Namibia 1 940 62 Tunisia 2 060 64 Thailand 2 160 89 59 Belarus 2 180 98 93 Latvia 2 420 96 84 Peru 2 440 73 Colombia 2 470 67 Lithuania 2 540 98 86 Costa Rica 2 770 48 Panama 2 990 69 Botswana 3 070 65 Turkey 3 160 58 South Africa 3 310 95 Estonia 3 360 94 Venezuela, RB 3 530 91 40 Lebanon 3 560 81 Malaysia 3 670 64 Slovak Republic 3 700 94 Mauritius 3 730 65 Mexico 3 840 64 Poland 3 910 96 98 Gabon 4 170 56 Hungary 4 510 98 Trinidad and Tobago 4 520 99 74 Croatia 4 620 87 82 Brazil 4 630 62 Chile 4 990 75 Czech Republic 5 150 99 Uruguay 6 070 85 Saudi Arabia 6 910 76 61 Argentina 8 030 73 Korea, Rep.

8 600 94 Slovenia 9 780 98 92 Portugal 10 670 Greece 11 740 93 95 Spain 14 100 New Zealand 14 600 Israel 16 180 98 88 United Arab Emirates 17 870 89 80 Ireland 18 710 Canada 19 170 Italy 20 090 95 Australia 20 640 United Kingdom 21 410 Hong Kong 23 660 94 73 France 24 210 Finland 24 280 99 Netherlands 24 780 Belgium 25 380 Sweden 25 580 Germany 26 570 Austria 26 830 United States 29 240 97 Singapore 30 170 94 74 Japan 32 350 Denmark 33 040 Norway 34 310 Switzerland 39 980 97 Based on the data collected, the increase in the level of enrollment in the secondary education leads to an increase in the GNP per capital of countries. For example, Japan recorded 103 in the enrollment in the secondary education; however, the country recorded $32,350 GNP per capital.

Comparative analysis of the secondary education enrollment and GNP per capital level of low income, lower middle and high-income country reveals that low-income countries recorded low percentages of secondary school enrollment compared to lower middle-income level. Moreover, high income countries recorded higher secondary school enrollment than middle income level country. Typically, the average secondary school enrollment for low-income country was 33. However, average secondary school enrollment for middle-income country was 63. The average secondary school enrollment increased to 76 for middle-income country. The average secondary school enrollment was 109 for high income country.

Consequently, the study supports the hypothesis that states that more education level increase the country level of income. Countries with low level of secondary school education record lower GNP per capital compared to country with higher secondary enrollment, which record higher GNP per capital. Based on the analysis, secondary education is one of the most important factors for a country level of GNP per capital.

Based on the information presented in the Fig 1 that provides the correlation between primary school enrolment and GNP of countries, there is evidence that the percentage or number of people enrolled in the primary school are not relevant to the GNP per capital of a country. However, primary school education is still a useful foundation for a secondary school and tertiary education. Without a primary school education, it will be challenging an individual to pursue secondary school or tertiary education.

However, individuals who only attain primary school education will not be able to contribute to the economic development of a country because these individuals are not equipped with basic literacy level to make them contribute to an economic development of a country. Their literacy level is just to read and write, which makes them an average citizen. Nevertheless, their level of education does not give them basic skills to contribute meaningfully to the economic front of a country.

This group of people is categorized as unskilled labor because they are neither competent nor qualified based on their level of primary education. Based on this argument, their level of education is neither consistence nor correlated to the income level of a country. Figure 3 The illustration in Fig 3 supports the argument that level of primary education does not contribute to the income level of a country.

It is revealed that high-income country (102) and lower middle country (101) have almost the same level of primary school education enrolment, yet this group of countries record large a difference in the GNP per capital. Thus, the report reveals that there is a negative correlation between primary education enrolment and income level. The data also reveals that the attainment of primary education does not necessary make an individual to enroll in secondary or tertiary education.

Typically, there were average 85% of people enrolled in primary education in the low-income country, however, 33% of enrollment for secondary education. The data recorded implies that some people drop out of the educational system upon completing the primary school education. By consequence, countries with high level of drop out end up recording extremely low level of number of secondary school graduate, which consequently make them not having direct impact to the GNP per capita of country. Thus, there is no correlation between primary school education and income level of a country.

In essence, primary school only opens opportunities for secondary and tertiary education. Figure 4 Overview of Fig 4 reveals that there is a correlation between number of secondary enrollment and income level. Typically, increase in the number of secondary school enrollment leads to higher income in a country. As being revealed in Fig 4, the average number of secondary school enrollment is 33 for low-income country, however, average GNP per capita is $357.

However, average number of secondary school enrollment increase to 63 for lower-middle country leading to an increase of $1,648 per capita in the lower-middle income country. In the middle-income country, the number of secondary school enrollment increased to 78 leading to an increase in average GNP per capital ($4,402). Similar event happens in high-income country because the average number of secondary school enrollment increased to 109 leading to an increase in GNP per capital ($22,898). The graph reveals that increase in the secondary school enrolment leads to an increase in the GNP per capital.

Several reasons are attributed to the positive correlation between secondary school enrollment and GNP per capital. First, secondary level education can provide employment opportunity for people in both formal and informal sectors. Moreover, secondary level education can assist individuals to accumulate addition competitive skills that can be useful in a labor market. In essence, secondary level education is a foundation for a labor market. An individual with secondary education will be able to secure a lucrative employment in a labor market.

More importantly, the secondary education can assist an individual to gain a useful employment in both white collar and blue-collar sector. Based on this argument, people with secondary school education are likely to contribute directly to the level of economy. Thus, without tertiary education, individuals with secondary school education can contribute to an.