Education: A major factor of economic development

1. Education and Economic
Development
Johanna M. Manzo
Reporter

2. Introduction
It is argued by many
development economist that more
than the financial and other
productive resources, the human capital
of a country is the real determinant of
growth and development.
.

3. The real wealth of the nation is
its population as active agents
that apply their skills in
production, manages enterprises,
develop technology and utilize
raw materials for development

4. Educational Expansion
•Elementary & Secondary
Education
• Tertiary Education(1950’s)
•Vocational- Technical Education
(1970’s)

5. Expansion in education that
will not match the manpower
needs in the future leads to the
accumulation of a large number
of the educated unemployed.

6. The Economics of Education
The educational cost is not an
expense. This is an investment.
The objective of education is the
development of the human capital
whose productivity is raised by
education.

7. Problems of Efficiency in Education
• Outdated content
• Ineffective methodology
• Antiquated facilities
• Low book/ learner ratio
• Under stocked school libraries
• Lowly motivated teachers
• Parent-caused absences
• Malnutrition
• The drug menace
• The language of education

8. The Supply of Education
The availability of education in the
country is not restrained by the
number of slots, unlike in other
countries where the slots at higher
education level is determined by the
schools.

9. Labor Squeeze & Education
Labor squeeze is the displacement
of the less educated with the better
educated. When there is over supply
of educated manpower, those who
have no education have little chance
of employment.

10.  And the longer one has not worked
after completion of studies, the less
chance he or she may have to be
employed.

11. The Hidden Allocator of Employment
 In a job scarce society, the first
factor of allocation is connection.
The walk-in applicant may possess
the credential and the skill for the job
but to land that job, that applicant
must be extremely good if he is not
sponsored by someone known to the
employer.

12.  In addition, those who are willing to
receive lower compensation than
what they may be entitled often gets
the jobs.
Exit of workers from domestic labor
market to off-shore employment is a
job allocator that opens local
opportunities to those who have not
been employed despite their
education.

13. Education and Inequality
The financially better off have
better access to instruction. On
the other hand, the poor can
afford only substandard
schooling.

14. Sources of Planning Concepts for Education
• The national economic development plan
• The chief executive of the country (the
social and economic development leader of
the nation)
• The constitution
• Innovations
• Legislations by the Congress

15. • Orientation of the educational leader
• Journal publications
• The economic sectors
• Technological information
• Politicians, social thought leaders
and the parents