Societies are composed of people and like the health of body depend on healthy cells and the strength of wall comes from the strong bricks, society is as prosperous and educated as its individuals are. The economies today are living in a much challenging state than ever before because the population is growing and there is scarcity of resources. Thus it is very vital to live and find ways in which people can live better lives. One such self-sustaining tool that helps individuals stabilize financially is education. Education offers skills and knowledge and is required to perform a job thus it ensures productivity of economic development. Particularly in the countries where the rate of literacy is low, there exists a huge margin for growth and development. There are people that can get education and increase the performance of system. Yet, this is not easy. There are many challenges in offering quality education. The governments need to make policies so that education is subsidized in order to make it easy for people to get education. Also the individuals should understand the long lasting impact of education on their personal and the family lives. Education comes with the positive externalities and it is expected that the future will be only economically developing if the individuals are educated and well equipped with the innovative skills to perform jobs. The robots would be replacing man in the factories tomorrow because of their increased productivity. Thus the individuals need to beat the robots through their innovativeness in order to stay employed. They also need to understand that education is the only assurance towards having a secure future since it is the key to better jobs, productivity, performance and growth in career.
The economic concerns of individuals as well as societies are rising. The reason is that the resources are not enough while the population is increasing at an increasing rate. Thus the economic development is only possible if resources are managed in an effective manner. The policy makers are required to make efforts so that there are sustained, intensive actions that helps enhance standard of living and the economic health. The society faces a challenge to bring quantitative and qualitative changes thus the policy makers need to focus on human capital, infrastructure, competitiveness, ecological sustainability, health, safety, education, and other creativities. The economic development is not possible without intervention of policy. Thus, the policy regarding public and private goods, education, health etc. are helpful in developing a society.
Economics and Development
While many would feel that the industrial development is the only apparent form of development, the role of economics is vital in all the forms of business. In a society as well as industry, the mechanics of labor, costs, taxes and employment cannot be ignored. There are many economic issues that have deep implications in the development of a society. For example, the income inequality is a concern that is a hurdle in the way of economic development even if the overall income of all the citizens in a system increases. Likewise, increasing the health of citizens will offer a healthier and thus a more productive workforce that will assist economic development.
The economy is becoming saturated not only in America but globally in terms of resources as well as employment. There are many economic problems dealing with forces of production that is labor, land, capital and skills. For the acquisition of labor, organizations are interested to know about their skills, knowledge as well as capabilities. Thus education is vital since it distinguishes a learned man from an illiterate person. The motivation to find the economic issues and to find solutions came from the uncertain economic future as a person as well as the society. It is expected that the paper will help find ways in which education is the way out of economic problems and the ways in which it can ensure safe economic future.
The development of an economy is dependent on many factors. This paper studies what is the role of education in the economic development. The paper also analyzed how to implement educational initiatives in society. There are different challenges faced in different societies in offering education. Thus it is found what are cost and cultural challenges faced in offering education in different societies and how these challenges can be solved. The paper also finds ways in which the model for solving issue can be communicated to other partners in the economy so that it can be successfully implemented.
Education differentiates individuals in many ways. Despite cheap labor in many of the Asian countries, the economic development could not reach that of the European countries because the citizens have less access to education and health facilities. Education is a key player in deciding the journey of a nation since it helps the labor and people find efficient ways of doing a task and to do tasks in less time and more efficiency. A learned labor force understands how to find alternative work opportunities when there is downsizing or the unemployment rate increases. Thus it can be said that an educated man is less vulnerable to poverty, despite the fact that he can face financial challenges, than an uneducated man. The educational reforms are much more desired in developing countries like India than they are to the developed countries. The education as evolved as global public good. Chattopadhyay (2012) believes that education is most central today in development issues since it plays a positive role in employment, productivity, income distribution, and knowledge. The education is a direct as well as indirect contributor in the economy of a country since it contributes to socio-economic development and works as positive externality too.
The effect of education is direct as well as indirect in an economy. For the developing countries particularly, education acts as a positive catalyst of change. It improves the personal skills as well as the culture and environment of work. The investment in the education sectors facilitates households too. The consumers get to know about the mechanics of a society. Also the social knowledge level increases that helps raise the stock of knowledge capital. The low-income countries are more likely to show convergence, say Greiner and Semmler (2002). The investment in other areas of economy reap current results and productivity while the investment in education offers both short-term and long-term benefits.
The rise in economic awareness requires an individual to understand personal benefits he will get by investing in education, health insurance, and savings. An educated person understands that he increases the chances of getting hired at a better position many times when he acquires education and climbs up by getting yet another professional degree. Higher income, more jobs opportunities and higher productivity are not only the benefits for the individual but the economic system as a whole benefits which is considered as "education spill over to society" (Externalities -- The Economic Lowdown Podcast Series, 2013).
While labor wage and the unemployment is an issue in todays' economy, the education seems to be a solution that would solve many problems. The organizations are facing two types of pressures from society as well as the government. The organizations cannot have such a low number of employees that overburdens the existing labor. Thus, an organization is not allowed to save labor costs since there are a limited number of work hours that an employee can work for. Also the organization cannot pay a labor below a set labor wage since it will be a violation of law as well as labor union demands. Thus it is vital that employee himself and the organization invest in the education of people so that the following advantages can be harnessed:
a) The education, in economic as well as political system, enables people to make better decisions thus better leaders can be chosen. The educated people are not easily governed by dictators thus a democratic system establishes where the prosperity of people is the prime concern of the administration.
b) The educated society can find alternatives when there is an economic down turn. The service industry has grown tremendously thus employing people even from home. This and many other examples serve the solution for the crimes. When people are more engaged and less desperate, they less likely to indulge in crimes and thus the rate of crimes decrease in the society.
c) With the same number of employees in an organization, the employer can achieve higher productivity. The reason is that educated people take less time in learning and they also seek less leisure time since they understand the importance of task they do for them as well as the organization (Greiner and Semmler, 2002).
d) The standards of living improve in an educated society. People live to have a cleaner and more disciplined neighborhood. They do not tolerate incompetent administration and achieve a fair and just social system in economy. The educated…