EDUCATION AND ITS ECONOMIC IMPACT

Education and Its Economic Impact Dana R. Cumbo Research and Writing English 215 Professor McClure Strayer University February 18, 2013

EDUCATION AND ITS ECONOMIC IMPACT

The Educational System in the United States is supposed to provide our children with a solid foundation to build on for the future. Well educated citizens improve the labor force of the country and contribute positively to a stronger, more stable economy. The United States spends more on public education than other major developed nation but it is not reflected in high school graduation rates or test scores in Math, Reading and Science. OEDC, a Paris-based organization which produces an annual review of industrialized nations, reported that the United States ended up in the middle of the pack on Math, Reading and Science scores and was below the international average in high school graduation rates.

K-12 EDUCATION Comparison of Education Systems in Developed Countries United States has almost 99,000 elementary schools and approximately 50 million children attend elementary and secondary school. Education spending in the United States is 5.7% of the GDP compared to 1.9% of the GDP in China. The three main subjects of study used for comparison are Reading, Math and Science. China out-performed the United States in all three subjects. Reading score in the US is 500 compared to 556 in China; Math score in the US is 487 compared to 600 in China and the US scored 502 in Science compared to 575 in China. In China, approximately 96% of primary school age children attend more than 800,000 schools. Children begin pre-school at the age of two or three and primary school at the age of seven and attend six days per week. The school year is separated into two semesters for a total of approximately 9.5 months with an extended thirteen week vacation in July and August. The law requires that all children have a minimum of nine years of formal education. The literacy rate in China is almost 96% for boys and almost 88% for girls. China only spends 1.9% of the GDP for

EDUCATION AND ITS ECONOMIC IMPACT

education. Prior to 1949 when the Communist party took over, 80% of the population was illiterate. However, the literacy rate today is approximately 99%. Education in Lesser Developed Nations Over the last twenty years the worlds strongest economies have emphasized education, training and skills as vital components to their financial success. The future belongs to societies that organize themselves for learning. What we know and can do holds the key to economic progress just as command of natural resources once did The prize will go to those countries that are organized as natural learning systems, and where all institutions are organized to learn and to act on what they learn. (Marshall and Tucker, 1992: xiii) Twelve percent of the worlds total population lives in the 50 Least Developed Countries. Only six percent of the population of these LDCs is enrolled in school as compared to 23% in developing countries and 57% in OECD countries. One in three children in LDCs do not attend school at all and only one in two actually complete primary school. One of every two adults is illiterate and one quarter of all illiterate adults in the world live in LDCs. Approximately 75 million children do not have the opportunity to attend primary school, the majority of which are girls. School attendance among children that live in rural areas is only one in five. According to UNESCO (United Nations Educational, Scientific and Cultural Organization) the budgets of most developing countries is inadequate to support their primary education systems. Many LDCs have primary schools that lack textbooks and other materials as well as poorly trained teachers. Children are not learning critical thinking skills, problem solving or using new technology.

EDUCATION AND ITS ECONOMIC IMPACT

Unfortunately many poor families rely on the income earned by their children and can not afford to allow them to attend school instead of working. Sub-Sahara Africa This region consists of 42 countries south of the sahara and six island nations. Communications and travel are difficult across much of the continent. In 1999 their Gross national product per capita averaged $500. More than 290 million people live in this region in extreme poverty, on less than $1 per day. The educational system in this region still shows signs of influence from France, England and other countries even though they became independent around 1960. In the 1980s the economic crisis severely affected the education system and schools are in short supply and disrepair. Most schools do not have adequate supplies or qualified teachers. The average African adult has less than three years of formal education. There is an estimated 30,000 Africans that hold doctorate degree but they do not live on the continent. Years of research and experience show that well-educated people are a vital component in positive social development and economic competitiveness. The educational system in order to be successful, must meet the demands of the labor market which requires skilled workers of all levels.

EDUCATION AND ITS ECONOMIC IMPACT

(Sub-Sahara Africa is the countries in the darker color)

The educational systems in this region will not improve until some of the civil wars have been resolved and something is done to curtail the HIV/AIDS pandemic that has taken the lives of so many. It is predicted that by 2015 Africa will have two-thirds of the worlds out-of-school children unless something is done to turn things around. Bangladesh Education is the backbone of sustainable development. Education stimulates and empowers people to participate in their own development. (Dr. A.M.R. Chowdhury) Dr. Chowdhury believes that a solid primary educational system in his country of Bangladesh is vital to the continued development toward sustainability. Currently they have a literacy rate of about 39%. In the 1990s Bangladesh saw a dramatic improvement in education. All members of the 1990 World Conference on Education for All were encouraged to improve the overall education of their nations. The country spends about 2.3% of its GNP on education and has approximately 80% enrollment rate. 15% of the nations children never attend school at

EDUCATION AND ITS ECONOMIC IMPACT

all and 25% who attend do not complete primary school. Many children in Bangladesh live in rural areas and do not have access to schools. Some families as in sub-sahara Africa, just can not afford to allow their children to attend, instead they must help the family by working. The country has four separate educational systems: government run schools, private, Madrassas (Islamic schools) and schools run by non-government organizations. Most school facilities are not clean or safe, lacking basic necessities such as: textbooks, blackboards or bathrooms.

Economic Impact of Education Impact of a College Education For many years community colleges prepared Americans to enter the workforce. However, todays community colleges offer so much more in the form of contract training, small business development and local economic development planning. The United States is home to more than 4,000 institutes of higher learning. The rewards of a college education are both tangible and intangible. Studies have found that college graduates not only earn more money than non-graduates they also contribute to increasing the wages of others in their neighborhoods. College educated people tend to be less likely to become unemployed or live in poverty. College teaches many life skills such as: critical thinking, financial management, problem solving, and decision making as well as confidence and job skills. Development of Technology Technological advances can be utilized in education and teaching to make learning more interesting for students. Many teachers have access to computers in the classroom but they may not be used by the students to broaden their horizons as much as they possibly could. Computers

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make learning almost limitless and can connect people all over the world. Calculators now contain computer chips which allow the performance of complex operations in a fraction of the time it would take to perform on paper. Many scholars have made significant contributions to education such as Dr. Henry Louis Gates Jr. and Dr. James Comer who collaborated to write No Child Left Behind: Preparing todays youth for tomorrows world. These two highly respected educators believe that public education system in the United States has been moving in the right direction over the last decade. The United States has set some high expectations for all students as well as accountability standards for teachers. Many teachers believe that reduced class sizes can be beneficial to the learning process. More individualized attention can be given to students in classes that are smaller. Teachers can better recognize and address the needs of their students. Studies have shown that education promotes positive development that leads students to avoid negative behaviors such as: Drug and alcohol abuse, teen pregnancy and criminal activities.

Solutions for Improvement of the U.S. Educational System Government Initiatives No Child Left Behind is a Federal Law in the United States that was proposed in 2001 during the Bush administration. This law funds several different programs whose goal is to improve the performance of U.S. schools. The main intent of this legislation is to ensure that all children meet academic achievement standards set at the state level. Race To The Top is a government initiative which provides federal grants of more than $4 billion to K-12 public schools to prepare them for the future. There are five criteria that have been set up in order for a state to qualify for the educational grant money.

EDUCATION AND ITS ECONOMIC IMPACT

1. Designing and implementing rigorous standards and high-quality assessments 2. Attracting and keeping great teachers and leaders in Americas classrooms 3. Supporting data systems that inform decisions and improve instruction 4. Using innovative and effective approaches to turn-around struggling schools 5. Demonstrating and sustaining education reform The United Nations has eight Millennium Development Goals that they are hoping to achieve by 2015. One of the goals is Universal Education. Girls and boys all around the world will have at least a primary school education. Great strides have been made in many developing countries but the target is unlikely to be met by 2015. Taking Steps toward Achieving Economic Prosperity Economic prosperity can be defined as being financially successful and enjoying a certain standard of living. A stage in the economic cycle where the unemployment level is low and total income is relatively high, leading to increased purchasing power. The health of a nations economy is measured by the gross domestic product which is the market value of all goods and services produced during a specific period of time. Resources drive the quality and quantity of goods and services. Economic activity originates from human wants, needs and desires, this is what prompts us to purchase things and boost the economy. The quality of these items depends on the technology that is available. A more technologically advanced country can produce superior goods and services because they have the capabilities to do so. Technology not only allows higher quality but also higher quantities if desired also. Some lesser developed nations do not have the automation to mass produce goods, so they are made by other means with less output using inferior materials as well. Technology is driven by well educated individuals who have the knowledge to develop better ways of doing

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things. Technology allows the world to be your marketplace especially with the use of computers and the internet. Merchants are not limited to selling their goods and services locally anymore. Labor is the physical performance of people that are available to produce goods and services. Studies have shown that education is a key element to improving the quality of the labor force. Workers who are uneducated are not as productive as workers with specialized training. Literacy increases the possibilities of upgrading the skills of workers and increasing economic growth potential. Nations that fail to utilize modern technology will continue to have low productivity rates and higher levels of poverty. Even countries that are not very technologically advanced can learn to use their resources more efficiently with some human ingenuity. People who are educated and more cultured have a tendency to instill their values on others and encourage them to improve their personal situation. It is possible to train individuals who are uneducated but it is highly unlikely that these individuals can be trained to operate technologically advanced machinery or perform to the same standards as those with a formal education. Education teaches us to think and process information more analytically. Analytical skills allow individuals to visualize, communicate and solve problems as well as develop more efficient and economical ways of accomplishing tasks. Conclusion The United States spends more per capita than many nations who have repeatedly scored higher on all three measured tests. These test scores prove that spending more money on the United States education system is not the solution. Some of the noted differences are the length of the school year, the strictness of teachers. Students in China are encouraged to practice critical thinking by answering questions in a form other than multiple choices. Parents and teachers encourage students to work hard to ensure a more positive outcome.

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References Ardt, K., Hastings, C., Hopkins, K., Knebel, R., Loh, J., Woods, R., Bangladesh Bureau of Education Information and Statistics, (2005) Report on Primary Education in Bangladesh: Challenges and Successes, Retrieved from http://ih.stanford.edu/rosenfield/resources/Primary%20Education%20in%20Bangladesh.p df Ashton, D. N., Green, F., (1996). Education, Training and the Global Economy. Great Britain: Edward Elgar Publishing Ltd. Retrieved from http://books.google.com/books?hl=en&lr=&id=afU4tQovsTsC&oi=fnd&pg=PR7&dq=e ducation+and+the+economy&ots=RqvUjyDNdt&sig=inQUgjjqoLpWpGy0_55itDoy8g8 #v=onepage&q&f=false BMZ Federal Ministry for Economic Cooperation and Development, Education in Developing Countries, Retrieved from http://www.bmz.de/en/what_we_do/issues/Education/hintergrund/bildungsituation/index. html Brochure: Education for All in Least Developed Countries, UNESCO Institute for Statistics, Quebec, Canada (2006). Retrieved from http://unesdoc.unesco.org/images/0014/001472/147259m.pdf Comer, J. P., Forward by Gates, H. L., (2004). Leave No Child Behind, Yale University Press, Connecticut, United States Cunningham, L., University of Georgia, (2005). Technology and Education Sharp, A. M., Register, C. A., Grimes, P. W., (2010 Custom Edition). Economics of Social Issues. United States: McGraw-Hill

EDUCATION AND ITS ECONOMIC IMPACT Sub-Saharan Africa Overview, Stalled Progress in Primary Education, Beyond Primary Education, Unprecedented Expansion of Tertiary Education, Private Education, Retrieved from http://education.stateuniversity.com/pages/2466/Sub-Saharan-Africa.html The White House, Race to the Top, http://www.whitehouse.gov/the-press-office/fact-sheet-racetop United Nations Summit, September 2010, Millennium Development Goals Facts Sheet, Retrieved from http://www.un.org/millenniumgoals/pdf/MDG_FS_2_EN.pdf Retrieved from http://countrystudies.us/china/66.htm

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