Beruflich Dokumente
Kultur Dokumente
Economic
Development
Education
as
main
element
of
economic
development
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
Edmund
Gibson,
student
number
500658340
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
1. Research
Question
To
what
extent
is
economic
development
influenced
by
education?
2. Introduction
Education
is
the
foundation
for
economic
development,
and
it
is
the
reason
why
investment
in
human
capital
is
of
serious
importance
to
any
country.
Education
of
the
human
brains
creates
social
benefits
and
can
create
a
competitive
advantage.
In
many
of
the
developing
countries
this
is
the
area
that
is
often
underdeveloped.
The
facilities
for
education
are
always
a
point
of
issue,
because
schools
are
lacking
and
general
knowledge
in
the
society
to
educate
the
students
is
either
not
available,
so
the
possibilities
for
education
are
really
limited.
Therefore
they
need
to
get
assistance
from
other
countries.
However
transferring
money
has
until
now
not
have
had
the
expected
results,
because
giving
the
poor
people
money
is
not
the
solution
for
helping
them
to
develop.
For
these
developing
countries
really
to
get
the
right
assistance,
others
should
educate
them.
In
recent
years
this
is
an
upcoming
trend
of
development
aid.
Poverty
is
a
result
of
lacking
facilities
in
education.
Labour
productivity
can
be
optimized
and
influenced
when
people
are
educated.
Also
the
improvement
of
technology
is
the
result
of
the
knowledge
forthcoming
from
more
education.
Living
standards
will
be
improved
due
to
better
health
conditions.
Hygiene
was
first
even
not
known,
but
because
of
education
our
life
expectancy
has
grown
over
the
eras.
These
are
some
of
the
facts
that
are
related
to
education.
Differences
between
economic
developed
countries
and
underdeveloped
countries
are
measurable.
The
main
element
of
these
measurements,
which
is
lacking
in
underdeveloped
countries,
is
often
education.
Economic
development
is
a
process
where
nations
develop
several
areas
as
the
economy,
politics
and
social
well-‐being
of
people.
Nation
wide
problems
try
to
be
solved
by
different
solutions.
Money
is
often
seen
as
a
resource
to
solve
the
internal
problems
of
a
country,
but
in
many
cases
it
is
a
result
of
development.
First
the
real
cause
of
underdevelopment
should
be
analyzed,
because
the
attention
spent
to
education
is
in
many
areas
still
not
enough,
and
it
seems
in
many
cases
to
be
the
real
structural
problem.
In
this
paper
I
will
discuss
all
elements
that
lead
to
economic
development,
because
solely
education
of
course
is
not
the
only
important
factor.
Still
the
relation
between
education
and
the
development
of
an
economy
is
primarily
discussed,
as
it
is
crucial
for
the
foundation
of
an
economy.
For
this
paper
I
will
mainly
apply
a
theoretical
analysis
from
literature
review
and
small
parts
are
an
empirical
analysis.
As
references
I
will
several
times
use
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
different
case
studies
to
compare
and
discuss
the
outcomes
for
answering
the
research
question
3. History
of
measuring
economic
development
Adam
Smith
is
seen
as
the
first
person
who
introduced
the
termination
of
the
modern
economy
in
his
work
‘An
Inquiry
into
the
Nature
and
Causes
of
the
Wealth
of
Nations’,
published
in
1776
in
the
eve
of
the
industrial
revolution.
His
work
for
economics
is
comparable
to
Sir
Isaac
Newton
for
physics.
His
work
touches
upon
topics
as
the
division
of
labour
productivity
and
free
markets.
The
most
contrasting
view
he
discussed,
was
the
second
variable
for
measuring
value.
In
his
work
he
did
not
clarify
it,
but
he
posed
the
question
to
be
solved
in
a
future
discussion.
The
perceived
value
of
a
product
was,
until
his
work,
weighted
to
the
functionality
it
could
have
for
someone.
In
his
contrasting
view
he
explained
the
difference
in
value
between
diamonds
and
water.
Water
in
our
case
should
be
of
a
higher
value
than
a
diamond,
because
water
is
a
primary
good.
Without
it
you
are
not
able
to
survive.
However
a
diamond
is
worth
more
economically
spoken,
because
the
search
for
it
takes
a
long
period,
and
searching
costs
is
one
of
the
variables
that
bounds
value.
Next
to
that,
to
shape
a
diamond,
it
will
cost
you
a
lot
of
energy,
which
is
seen
as
added
value
and
also
calculated
as
a
variable
in
the
real
economic
value.
Thus
the
amount
of
time
you
spent
on
search
cost
for
this
product
and
the
energy
that
it
will
need
to
be
shaped
or
adjusted,
are
variables
of
the
formula
to
calculate
the
value.
Already
mentioned
that
a
diamond,
while
it
is
not
a
primary
good,
is
of
a
higher
value
than
water,
which
you
will
need
to
survive
because
of
physical
dependency.
During
the
20th
century
more
theories
of
economic
development
were
created.
Smith
was
in
this
sense
an
inspiration
for
famous
economic
scientists
like:
Jean-‐
Baptiste
Say,
Thomas
Malthus,
Ludwig
von
Mises
and
later
on
even
Karl
Marx.
The
way
development
was
measured
changed
through
time.
In
earlier
models
education
was
not
yet
set
as
one
of
the
founding
elements
for
economic
development.
The
way
of
measuring
development
was
unilateral,
where
GNI
was
taken
as
the
only
indicator
of
economic
development.
Nowadays
still
one
of
the
elements
that
repeatedly
is
coming
back
in
articles
about
this
topic
is
the
relation
between
economic
growth
and
economic
development.
Only
we
start
realizing
more
and
more
where
economic
growth
comes
from,
can
we
see
it
as
a
deriving
from
education.
However,
to
explain
what
education
does
with
economic
development,
we
should
know
more
about
the
history
of
economic
development
and
how
economic
development
is
measured.
Previously
in
the
models
of
economic
development
where
GNI
was
linked
to
economic
development,
a
raise
in
the
GNI
did
not
led
to
better
social
standards.
Although
GNI
was
growing,
poverty
was
not
decreasing.
Poverty
is
mentioned
as
one
of
the
elements
that
now
is
being
used
as
measure.
It
is
still
a
derivation
of
the
GNI
per
capita,
because
below
a
certain
limit
of
GNI
it
is
referred
to
poverty.
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
When
we
are
measuring
economic
development
by
poverty,
unemployment
and
inequality,
we
have
a
more
multidimensional
view
on
development,
but
the
multidimensional
approach
in
reality
is
differently
formulated.
The
multidimensional
approach
in
contrast
with
the
unilateral
approach
on
economic
development
is
comprised
of
three
dimensions,
which
are:
HDI
(human
development
index),
Development
as
Freedom,
and
the
Happiness
Index.
In
turn
the
dimension
index
HDI
is
comprised
of
another
three
dimension
indices:
GDP
index,
education
index
and
life
expectancy
index.
The
indicator
of
the
GDP
index
is
GNI
or
GDP
per
capita,
for
the
education
index
the
indicators
have
been
recently
changed
from
adult
literacy
rate
and
gross
enrolment
ratio
towards
mean
years
of
schooling
and
expected
years
of
schooling,
and
for
life
expectancy
index
this
is
the
life
expectancy
at
birth.
We
can
conclude
that
education
is
a
determinant
of
the
HDI
that
has
two
indicators,
which
says
something
about
the
extent
of
this
element.
These
determinants
are
part
of
the
new
approach
of
measuring
economic
development.
The
unilateral
approach
had
several
drawbacks,
one
I
have
already
mentioned:
the
inequality
between
people
is
hidden,
because
the
growth
in
GNI
does
not
say
anything
about
the
income
distribution
of
a
country.
Poverty
is
measured
by
GNI,
while
the
average
income
per
capita
might
be
high,
if
only
a
minor
part
of
the
population
has
the
major
part
of
income,
the
majority
can
live
in
poverty.
Another
one
is
that
it
does
not
capture
large
informal
economies,
and
these
economies
of
developing
countries
are
usually
large
informal
economies,
due
to
the
minimalistic
registration
of
personal
enterprises.
The
reason
for
the
lack
of
registration
is
avoiding
taxes,
but
this
is
a
negative
symptom
for
the
national
economies,
as
government
investments
fail
to
grow,
when
income
taxes
are
staying
at
a
minimum.
Nowadays
development
is
not
only
measured
by
means
of
money,
but
also
via
the
happiness,
welfare
and
freedom
people
enjoy.
Amartya
Sen
who
defined
development
as
freedom
explained
that
development
is
the
process
of
expanding
freedoms
that
people
enjoy.
Money
or
growth
in
GNI
can
improve
such
freedoms,
only
freedom
depends
also
on
other
determinants
like
social
and
economic
arrangements
as
health
and
education,
but
also
political
and
civil
rights.
Now
the
improvement
of
humanity
as
social-‐being
is
reached
by
the
development
of
freedom,
which
requires
the
removal
of
major
opression.
In
the
developing
countries
tyranny,
poverty,
social
deprivation
and
neglecting
public
facilities
are
markers
of
a
civilization
that
is
still
living
in
opression.
Acting
against
it
should
create
a
better
and
more
equal
world.
Although
the
majority
of
our
world
lives
in
poverty
and
inequality,
the
acting
against
it
is
relative
small
with
regards
to
the
scale.
Our
contribution
should
be
a
lot
higher
and
new
ways
of
offering
development
aid
should
be
applied
like
structural
solutions
that
match
the
environmental
situation:
the
increase
of
total
production,
the
distribution
of
incomes,
improvements
in
education
and
health,
and
enhancing
social
and
political
freedoms
people
enjoy.
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
4. The
importance
of
education
for
economic
development
4.1. Education
and
labour
productivity
Viewing
the
economy
on
a
micro
level,
and
looking
at
our
personal
situation
with
regards
to
development,
there
is
a
direct
link
between
education
and
economic
development.
1When
you
are
higher
educated
the
possibilities
for
getting
a
decent
job
with
a
better
income
are
considerably
higher
than
when
you
are
illiterate.
The
less
educated
people,
according
to
statistics,
have
lower
scaled
and
lower
paid
jobs.
Clearly
the
provision
of
educational
opens
ways
for
increasing
income
due
to
the
fact
that
it
is
one
of
the
determinants,
which
impact
on
labour
productivity.
Besides
that
it
functions
as
an
important
ingredient
of
growth
and
contributes
towards
development
in
a
country
with
regard
to
the
adaptation
and
acquisition
of
technology
To
elaborate,
there
are
several
layers
of
education,
which
improve
the
labour
productivity,
like
primary,
secondary
and
tertiary
education.
Primary
education
together
with
health
and
nutrition
all
are
relevant
in
the
first
place
for
a
raise
in
the
productivity
of
workers
in
rural
and
urban
environments.
Secondary
education
will
improve
managerial
skills
by
acquisition
of
the
vocational
knowledge.
Tertiary
education
is
beneficial
to
the
selection
of
the
right
technology
as
it
affects
basic
science
and
therefore
is
related
to
key
institutions
as
governments,
financial
enterprises
and
the
law.
All
these
institutions
contribute
in
different
ways
to
the
growth
of
an
economy.
When
we
analyze
the
macro
economy
of
developing
markets
we
can
also
detect
the
correlation
between
education
and
labour
productivity,
described
in
the
previous
paragraph.
For
instance,
consider
Brazil,
which
is
a
developing
country,
where
GDP
appears
to
have
been
rising
in
recent
last
years,
if
we
disregard
the
inflation
–
which
remains
a
serious
problem.
In
the
past
we
would
have
regarded
this
as
economic
development.
Only
now
we
see
this
differently,
because
currently
there
are
serious
problems
with
the
productivity
of
workers.
According
to
statistics
in
Brazil
about
labour
productivity
we
see
an
opposite
movement
compared
with
the
average
labour
productivity
of
the
world’s
development.
Apart
from
a
brief
spurt
in
between
the
1960s
and
1970s
the
labour
productivity
or
output
per
worker
has
stagnated
over
the
half
past
century.
In
fact
it
has
even
slipped,
the
total-‐factor
labour
productivity
is
now
even
lower
than
it
was
in
1980
(see
figure
4.1).
2Although
Brazil’s
GDP
grew
between
1990
and
2012,
the
labour
productivity
accounted
only
for
40%
of
this
growth,
which
in
comparison
with
China
91%
and
India
67%
is
rather
low.
Also
the
investments
of
Brazil
in
infrastructure
are
only
1
Behrman,
Jere
R.
(1990),
Human
Resource
Led
Development,
Review
of
Issues
and
Development,
Ned
Delhi,
India:
2
The
Economist,
The
50
year
Snooze,
http://www.economist.com/news/americas/21600983-‐brazilian-‐workers-‐are-‐
2.2%
of
the
GDP.
Compared
to
the
developing-‐world
this
is
less
than
half
the
average
investment
of
5.1%.
Data
from
the
278
thousand
patents
granted
last
year
shows
that
only
254
patents
(3
%)
are
accounted
for
inventors
from
Brazil.
These
patents
contribute
to
the
world’s
output
and
people.
It
is
very
clear
that
the
spending
on
education
in
Brazil
has
not
had
the
right
direction
and
attention.
The
investment
in
the
provision
of
educational
institutions
has
grown
to
a
level
similar
to
that
of
rich-‐
world
nations.
However
the
quality
still
leaves
a
lot
to
be
desired.
Central
problems
that
currently
arise
are
caused
by
the
shifting
towards
irregular
enterprises
outside
of
the
formal
economy,
due
to
the
preferential
tax
treatment
for
small
companies
with
turnovers
less
than
$
1.6
million.
This
discourages
companies
to
grow
any
further.
Also
the
vicious
circle
here
is
that
these
companies
will
gain
advantages
through
optimizing
efficiency.
This
will
require
fewer
workers.
The
companies
however
retain
their
low
skilled
workers
as
they
are
more
easily
trusted,
and
the
risk
they
see
in
a
better-‐qualified
stranger
will
hold
them
back
from
employing
them.
Companies
are
wary
of
being
sued
for
flouting
notoriously
worker-‐friendly
labour
laws.
Consequently
the
average
skills
of
the
workforce
are
decreasing
and
the
problem
is
getting
bigger.
Another
problem
is
that
the
government
is
protecting
the
weak
firms
with
various
forms
of
protectionism.
For
example
high
tariffs
on
imported
technology
are
set,
which
makes
it
almost
impossible
to
import
productivity-‐enhancing
equipment
due
to
the
prohibitive
expense.
Better
and
cheaper
products
with
a
higher
quality
cannot
be
imported
and
lower
quality
products
continue
to
be
produced
by
local
firms
with
poor
equipment.
This
system
is
not
beneficial
to
the
labour
productivity.
Education
alone,
of
course
cannot
transform
an
economy.
However
getting
the
right
people
at
the
right
places
can
have
a
considerable
impact
on
a
system.
The
tertiary
education
is
focused
on
basic
science
and
is
desirable
for
the
development
of
key
institutions
like
the
governments
and
the
financial
systems.
Economic
politics
have
to
be
changed
in
a
nation
as
Brazil,
because
now
they
just
impede
the
development
process
instead
of
improving.
Once
the
decision
makers
gain
the
required
knowledge,
many
solutions
can
be
introduced.
Remedies
for
their
situation
are
for
instance:
reducing
the
role
of
state
by
privatization,
reforming
and
streamlining
of
tax
system,
reducing
inefficient
regulations,
remove
barriers
to
entrepreneurship,
remove
the
rigidities
in
the
labour
market
which
discourage
employment
of
the
higher
educated,
and
lastly
reforming
the
pension
system.
At
the
moment
many
of
the
beneficiaries
never
contribute
to
their
own
pensions.
Unfortunately
decisions
necessary
to
implement
the
above
remedies
will
not
be
taken
as
long
the
new
higher
educated
are
not
the
ones
in
charge.
From
a
macro
perspective
the
new
methods
for
economic
development
emphasize
research
and
development
and
learning,
next
to
education.
As
the
level
of
education
becomes
higher
the
work
force
related
productivity
of
capital
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
will
also
rise.
This
will
have
an
effect
on
the
extent
in
how
far
innovations
will
develop,
because
the
higher
educated
are
more
likely
to
innovate.
This
will
benefit
the
overall
productivity.
3In
similar
models
there
is
a
relation
between
the
increase
in
education
and
the
productivity
of
the
individual’s
environment.
The
productivity
of
the
people
with
whom
the
individual
interacts
will
be
commensurate
to
the
rise
of
the
individual’s
level
of
education.
So
this
means
that
cooperating
with
individuals
who
are
increasing
their
level
of
educational
will
to
a
certain
extent
reflect
on
your
own
level
of
education.
Therefore
in
Brazil
they
should
allow
and
accept
more
of
the
higher
educated
in
the
workforce
in
order
to
generate
a
positive
viral
effect
on
the
lower
skilled
workers
that
currently
are
employed.
The
impact
on
the
nature
and
growth
is
another
way
in
which
human
development
influences
macro
performance
and
strengthen
the
trade
position
of
a
country.
In
addition
it
is
argued
that
even
the
unskilled
workers
in
a
modern
factory
normally
need
the
same
educational
skills
like
literacy,
numeracy
and
discipline
to
levelers
offered
by
primary
and
lower
secondary
school.
4.2. Education
and
income
4According
to
Rostow’s
Model
‘The
Stages
of
Economic
Development’
every
country
will
pass
through
5
stages
of
economic
development.
It
starts
in
the
first
stage
the
‘Traditional
Society’.
The
first
manner
of
development
has
to
do
with
trade
in
the
agriculture
sector
where
subsistence
is
realized
through
barter.
Income
is
not
a
subject
in
this
stage,
as
a
barter
deal
for
primary
goods
is
sufficient.
A
barter
deal
is
an
exchange
of
products
where
no
money
is
involved
or
an
extra-‐added
transactional
value..
Following
the
process
of
developing
and
processing
to
the
second
stage,
the
‘Transitional
Stage’,
we
encounter
the
first
signs
of
generating
income.
Through
the
process
of
specialization
surpluses
and
scarcities
are
created
which
lead
to
trade
at
this
stage.
Due
to
specialization
not
all
goods
or
services
will
be
available
at
every
location.
The
need
for
transport
arises.
In
the
same
stage
the
infrastructure
also
is
improving,
which
leads
to
a
higher
productivity
rate.
Many
of
the
first
civilized
cities
are
in
the
vicinity
of
water.
The
main
reason
is
the
availability
of
a
rather
direct
connection
to
transport
and
of
course
water
is
one
of
the
basic
needs.
When
we
are
analyzing
the
process
of
specialization
we
find
the
origin
of
education
in
the
need
to
share
of
knowledge.
From
an
empirical
perspective,
going
far
back
to
basics,
once
we
have
found
out
that
we
could
specialize
with
the
resources
that
were
at
hand,
we
acquired
more
knowledge
about
the
production
of
agriculture
and
the
possibilities.
This
knowledge
translated
in
education
is
shared
during
the
process
of
specialization.
3
Perotti,
R.,
(1993),
“Political
Equilibrium
Income
Distribution,
and
Growth”
Review
of
Economic
Studies,
p.
60
4
Submited
by
Bized
on
1/1/2001,
Rostow’s
Model,
http://www.bized.co.uk/virtual/dc/copper/theory/th9.htm,
Europe
was
emphasizing
reason
and
individualism.
The
movement
aimed
to
change
society
and
challenge
ideas,
following
a
scientific
method.
Promotion
of
scientific
thought,
skepticism
and
the
interchange
of
intellect
were
distinctive
for
this
era.
Logically
the
Industrial
Revolution
followed
up
this
era
of
scientific
reasoning
and
the
exchange
of
knowledge,
which
was
in
fact
the
changing
process
of
education.
The
attention
devoted
to
education
led
to
a
process
of
economic
development.
First
in
the
Take
Off
stage
the
investment
in
human
capital
stimulates
the
investments
in
the
production
process
by
applying
the
technology,
which
is
acquired
during
the
prior
period
of
enlightenment.
Second
political
change
will
take
place
after
regional
growth
is
realized.
For
this
realization
process
requirements
like
well-‐functioning
markets,
developed
infrastructure,
efficient
government
and
educated
population,
need
to
be
met.
An
efficient
government
will
develop
only
from
the
moment
that
corruption
is
reduced
through
the
employment
of
skilled
and
reliable
workers.
The
fourth
stage
is
the
‘Drive
to
Maturity’
stage
that
encompasses
diversification,
innovation,
less
reliance
on
imports
and
more
investments.
Diversification
is
a
result
of
competition
stimulated
by
learning.
Knowing
about
the
competition
creates
new
opportunities
by
differing
from
them.
From
the
same
perspective
innovation
is
also
inherent
in
education,
because
through
research
and
development
new
ideas
will
occur.
The
role
of
education
in
development
is
seen
from
almost
all
perspectives.
The
last
stage
of
Rostow’s
Model,
the
‘High
Mass
Consumption’
is
about
the
consumer
orientation,
durable
goods
and
the
service
industry.
All
these
elements
generate
income,
however
in
the
second
stage
generating
income
already
began.
The
relation
in
the
transitional
stage
between
specialization
and
5
“Enlightenment”.
Oxford
Dictionaries.
Oxford
University
Press,
n.d.
Web.
19
September
2013
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
surpluses
is
the
same
as
personal
development
and
getting
employed.
In
the
end
it
will
generate
income.
Although
I
have
already
mentioned
that
education
is
not
the
only
solution
for
evolution,
it
does
take
a
major
part
in
the
development
of
an
economy.
Economic
growth
is
often
taken
as
a
requirement
for
economic
development,
and
to
an
important
extent
we
can
attain
economic
growth
through
investments
in
education.
At
least,
we
do
believe
this
is
true.
6
However
there
is
a
study
of
this
theory,
which
illustrates
disparities
in
the
way
that
a
higher
level
of
investments
in
education
can
affect
the
economic
growth
path.
Barro
and
Lee
(1994)
explain
in
their
study
that
the
increase
in
students
who
attended
secondary
school
between
1965
and
1985
caused
a
positive
effect
on
the
economic
growth,
but
other
research
disputes
this
result.
For
instance
the
studies
done
by
Benhabib
and
Spiegel
(1994)
and
Pritchett
(1996)
also
measure
the
relation
between
economic
growths
as
a
result
of
a
higher
level
of
investments
on
education.
In
their
case
however
they
use
an
aggregated
production
function
with
various
measurements
of
human
capital,
including
the
number
of
years
education,
literacy
rates,
and
secondary
enrolment
rates.
Whatever
the
choice
of
measurements
for
education,
the
effect
of
the
associated
coefficients
on
economic
growth
were
not
significant.
Empirical
tests
show
us
that
education
is
an
important
factor
for
promoting
economic
development;
countries
with
a
high
level
of
education
in
1960
have
certainly
shown
significant
economic
development
40
years
later.
On
the
other
hand
however,
whatever
the
different
models
for
measuring
human
capital
variables
may
tend
to
predict,
there
is
a
yet
no
definite
proof
that
countries
which
invest
more
in
education
universally
experience
a
higher
growth
rate.
The
jury
is
still
out!
Still,
these
contradictions,
disparities
or
call
it
uncertainty
about
this
relation
might
exist,
they
do
not
take
in
account
for
this
measurement
factors
as
policy
making,
migration
of
knowledge,
investment
in
physical
capital,
openness
to
trade
and
investment,
and
the
overall
institutional
environment,
and
external
shocks.
The
investment
in
education
on
its
own
does
not
one
on
one
directly
supports
economic
growth,
but
it
is
a
combination
of
several
factors.
In
Brazil
the
current
situation
is
a
reality
and
evidence
for
above-‐mentioned
outcomes.
They
have
economic
growth,
however
they
still
are
underdeveloped,
and
the
high
educated
are
unemployed
(see
figure
4.2).
These
kinds
of
reasons
can
be
the
cause
in
the
insignificance
of
the
results
from
Benhabib
and
Spiegel
(1994)
and
Pritchett
(1996).
So
there
are
more
views
and
statements
about
this
relation.
When
we
would
educate
the
labor
force
instead
of
the
whole
society
we
are
able
to
prove
the
relation,
because
according
to
a
study,
with
one
percent
increase
in
6
Economic
Returns
to
Investment
in
Education
http://siteresources.worldbank.org/INTMENA/Resources/EDU_02-‐
the
labor
force
with
at
least
secondary
education,
we
can
find
results
of
an
increase
in
the
share
of
income
of
the
bottom
40
and
60%
by
between
6
to
15%
respectively
(Bourguignon
and
Morrison,
1990).
4.3. Education
and
health
One
clarification,
for
both
studies
discussed
in
the
last
paragraphs,
could
be
that
education
may
reduce
fertility
when
women
are
the
ones
who
are
receiving
education.
A
study
of
fourteen
African
countries
for
the
mid-‐eighties
showed
a
negative
correlation
between
women
who
entered
schools
and
the
fertility
in
all
participating
countries.
With
primary
education
there
was
clearly
a
negative
impact
in
about
half
the
countries
and
no
significant
effects
in
the
other
half,
while
secondary
education
reduced
fertility
(Birdsall
1995,
Behraman
and
Wolfe
1987).
The
three
success
countries,
where
the
reduction
of
fertility
were
high,
Kenya,
Botswana,
and
Zimbabwe,
had
the
highest
levels
of
female
schooling
as
well
as
the
lowest
child
mortality
rates
(Ainsworth,
1995).
A
consequence
with
reducing
the
fertility
rate
is
that
economic
growth
will
rise,
due
to
the
fact
that
the
GDP
is
divided
over
a
smaller
population.
More
education
about
parenthood
will
lead
to
fewer
children,
as
the
attention
spent
per
child
is
growing
when
the
educational
level
rises.
In
the
developing
markets
like
Taiwan,
Hong
Kong,
Mexico
and
Poland
declining
birth
rates
characterizes
these
places.
In
addition
education
on
the
fields
of
health
contributes
to
a
longer
life
expectancy,
which
on
its
turn
leads
to
more
working
hours
per
capita.
Moreover
the
education
of
women,
because
here
are
more
problems
than
just
only
fertility.
7According
to
the
factsheet
of
the
United
Nations
women
are
more
disadvantaged
than
men
when
it
comes
to
lacking
education.
In
the
most
OECD
countries,
women
report
higher
incidents
of
disability
than
men.
Women
with
disabilities
are
recognized
with
regards
to
disadvantage
to
be
on
a
multiply
scale,
due
to
their
gender
and
their
disability.
In
India
they
are
vulnerable
to
abuse.
In
2004
a
survey
found
that
virtually
all
of
the
woman
and
girls
were
beaten
at
home,
25
percent
of
women
with
intellectual
disabilities
had
been
raped
and
6
percent
of
them
had
been
sterilized.
The
principal
item
here
is
related
to
the
relation
between
education
and
the
strength
of
its
position.
Education
on
health
can
help
teenagers
to
make
the
right
decisions.
A
study
that
estimated
the
effects
of
a
program
that
experienced
with
providing
vocational
training
and
information
about
risky
health
behaviors
to
adolescent
girls,
Bandiera
et
al.
(2012),
led
to
both
an
increase
in
HIV-‐related
knowledge
and
condom-‐use.
Also
are
more
positive
results
available
of
studies
where
teenage
boys
are
informed
about
school-‐return,
less
heavy
drinking
and
fewer
smokers.
The
opposite
evidence
of
this
relation
is
in
the
United
States
where
the
percentage
of
smokers
in
the
group
of
dropouts
is
extensively
larger
than
in
the
groups
of
people
who
are
educated.
7
United
Nations
Enable,
Factsheet
on
Persons
With
Disabilities
http://www.un.org/disabilities/default.asp?id=18
Referring
back
to
the
stage
three
of
Rostow’s
model,
the
period
where
a
society
starts
with
industrialization,
this
is
also
a
period
where
education
on
health
is
becoming
to
play
a
bigger
role.
Reminding
you
the
second
phase
of
our
Industrial
Revolution,
where
the
health
of
workers
due
to
proper
education
have
positively
changed
through
the
ages,
which
accordingly
led
to
a
better
labour
productivity
and
so
on
contributed
to
economic
growth
and
development
4.4.
Education
and
the
external
environment:
trade,
policy
and
inequality
Education
has
a
real
impact
on
economic
development,
and
in
all
areas
there
is
a
link
to
education.
There
are
direct
and
indirect
links
to
income,
health
and
safety,
but
it
is
not
the
only
factor
that
determines
economic
development.
The
higher
the
level
of
education
gets,
the
more
it
contributes
to
the
economic
development
of
a
society,
but
is
not
the
only
component
for
a
developing
market
or
country.
Determinants
as
openness
to
trade,
policy
and
inequality
also
make
a
significant
difference.
For
instance
gender
or
racial
inequality
can
lead
to
hinder
when
applying
for
a
job.
Women
will
get
pregnant
and
this
is
a
disadvantage
for
an
employer,
because
it
can
cause
unnecessary
costs.
If
you
have
African
roots
bias
are
made,
which
might
hinder
your
position
in
business
situations.
The
poor
people
experience
also
inequality,
because
growing
up
in
a
family
that
lives
below
the
poverty
line
will
minimalize
the
opportunities
and
provisions
to
proper
education.
Besides,
in
the
developing
countries
children
are
often
only
taken
for
participating
in
the
workforce.
These
are
regular
situations,
while
in
western
world,
child
labour
is
even
forbidden.
So
education
might
help
to
a
certain
extent,
but
these
factors
weigh
also
heavy
in
economic
development
Openness
to
trade
can
also
limit
economic
development,
when
wrong
decisions
are
made.
Systems
where
protectionism
is
applied
have
goals
to
make
the
domestic
products
stronger,
however
there
are
more
examples
of
the
negative
impact
on
development
than
positive.
In
Brazil
where
economic
growth
is
at
hand,
development
is
lacking,
due
to
rules
of
protectionism.
Heavy
taxes
are
applied
on
imports,
which
shackles
the
import
of
new
technologies,
so
the
labour
productivity
stays
inefficient.
Instead
of
lowering
the
taxes,
and
stimulating
development
according
to
a
higher
competition,
they
make
these
wrong
decisions
Another
example
of
other
factors
that
can
seriously
damage
and
hinder
the
development
of
a
country
we
see
in
Nigeria.
In
many
countries
property
rights
are
regularities,
however
in
Nigeria
people
have
no
property
rights.
All
properties
belong
to
the
government,
and
getting
value
from
the
property
makes
no
sense,
as
you
are
not
able
to
get
a
part
of
this
value
for
yourself.
To
stimulate
economic
development
in
a
country
like
Nigeria
is
therefore
almost
impossible.
According
to
a
study
Nigeria
has
an
IPRI
of
3.9
and
is
ranked
as
122
of
131
rankings,
Hernando
de
Soto
Fellow
(2012).
The
IPRI
is
an
index
for
International
Property
Rights
that
comprise
the
indicators:
LP(Legal
and
Political
Environment),
PPR
(Physical
Property
Rights)
and
IPR
(Intellectual
Property
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
Rights).
This
index
indicates
the
ranking
of
131
countries
that
account
for
98
percent
of
world
Gross
Domestic
Product
and
93
percent
of
world
population.
Moreover,
when
investments
would
be
done
in
education
for
a
country
as
Nigeria,
the
quality
of
this
education
is
from
a
significant
lower
level
than
in
countries
where
the
IPR
index
is
a
lot
higher,
because
the
education
will
not
be
complete
in
the
sense
of
transparency,
propaganda,
censure
and
similar
areas
like
these.
In
addition
the
political
stability
in
Nigeria
will
also
not
concur
to
an
economic
healthy
situation
for
development.
5. Conclusion
So
in
conclusion
education
will
determine
a
main
part
of
the
foundation
for
economic
development.
In
all
stages
of
Rostow’s
model
for
economic
development,
education
is
to
a
certain
extent
a
significant
determinant
of
the
composition
for
economic
growth.
Although
studies
have
shown
some
disparities
in
the
relation
between
education
and
economic
growth,
empirical
analysis
shows
that
there
is
undeniably
a
correlation.
To
measure
economic
development,
there
are
three
indicators
that
form
the
Human
Development
Index:
GDP
index,
education
index
and
life
expectancy
index.
The
variables
for
measuring
of
the
GDP
and
life
expectancy
are
clearly
stated
and
remain
unchanged
through
the
ages,
whereas
the
means
for
measurement
of
the
education
index
has
been
changed.
This
change
leads
to
a
heavier
weighting
for
the
education
index
in
the
overall
observation
of
the
HDI.
However
we
explained
that
education
alone
is
not
the
only
cause
for
economic
development.
The
Human
Development
Index,
Development
of
Freedom
and
Happiness
Index
together
offer
a
measurement
the
amount
of
economic
development
of
a
country.
Although
this
is
the
modern
way
of
measuring,
it
will
continue
to
evolve.
In
a
world
where
the
complexity
of
systems
continues
to
increase,
the
development
of
the
formulas
we
need
to
monitor
the
systems
will
accordingly
also
change.
The
trigger
for
this
change
can
only
be
provided
by
education.
6. References
http://www.economist.com/news/americas/21600983-‐brazilian-‐workers-‐are-‐
gloriously-‐unproductive-‐economy-‐grow-‐they-‐must-‐snap-‐out
http://mpra.ub.uni-‐muenchen.de/9023/1/MPRA_paper_9023.pdf
http://siteresources.worldbank.org/INTMENA/Resources/EDU_02-‐Chap02-‐
Education.pdf
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of
Applied
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of
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143-‐73
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N.
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F.
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C.
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7. Graphs
and
Figures
Figure
4.1
University
of
Applied
Sciences
of
Amsterdam,
International
Business
and
Management
Studies
Part
Time.
Figure
4.2