| PRIMARY EDUCATION IN DEVELOPING ECONOMIES: | | | | significant changes in economic development, |
| INTRODUCTION: | | | | therefore the same case may apply to developing |
| Developing countries are faced with the problem of | | | | countries, it does not necessarily mean that investing |
| low economic development, high levels of poverty, | | | | in primary education will result into economic |
| very low GDP levels, low income per capita and | | | | development. |
| economic backwardness, these can be attributed to | | | | Other inherent problems: |
| the high illiteracy levels, poverty which causes them | | | | Investing in primary education is one issue while |
| to be poor and this is as a result of the poverty | | | | provision of quality and ensuring attendance is |
| vicious cycle, low adoption of science and technology | | | | another issue, therefore it is important to note that a |
| in these countries. | | | | large amount of funds may be invested in education |
| The current situation in these countries can be | | | | but this will have no significance to economic |
| changed through radical changes in the education | | | | development, it is therefore important to formulate |
| system whereby economies should invest in | | | | policies that ensure attendance and the quality of |
| education to reduce the illiteracy levels; this will in turn | | | | education in primary schools. |
| increase the levels of human capital in the country. | | | | Cost of education: |
| The education fact sheet 2006 states that the | | | | Investing in education in developing countries is very |
| number of children who are enrolled in primary | | | | expensive, investing means investing in infrastructure, |
| education all over the world amount to 682 million, | | | | employing more teachers so as the quality of |
| however 77 million children all over the world are not | | | | education is increased, the new teachers will add to |
| enrolled in primary education. | | | | the annual budget of government spending, |
| Investing in primary education is a very costly | | | | therefore investing in education will lead to more |
| government undertaking, it requires high levels of | | | | problems on funds and government budgets which |
| investment whose rate of return to the economy is | | | | would have been used to develop more productive |
| very low, however in the long run investment in | | | | projects. |
| education will bear high economic growth, this is as a | | | | Free market: |
| result of returns on investment in human capital. | | | | Investing in education will mean interfering with the |
| A Country such as Japan is one of the largest | | | | free market economy in developing countries, |
| economies in the world, it developed from a less | | | | according to classical economist the market should |
| developed country to a developed economy, and its | | | | not be interfered with but the government policies |
| advancement is attributed to the high levels of | | | | should only be used to steer the economy in the |
| technological advancement as a result of extensive | | | | right direction, in developing countries there are |
| research. Research and technological advancement is | | | | private primary schools that provide education, |
| achieved through education. | | | | investing in education will mean that the free market |
| Zambia on the other hand had a strong economy, | | | | will be interfered with and the cost of primary |
| after the decline in copper prices the economy was | | | | education will be zero. |
| at crisis, however the country cut down on spending | | | | The free market is a situation whereby the price of |
| on primary schools, this resulted into the current | | | | goods and services are determined by the demand |
| situation in the Zambian economy, Zambia today is | | | | and supply, therefore through subsidizing education |
| ranked as one of the poorest economies in the | | | | costs will result in a distortion in the market of the |
| world. | | | | developing country. |
| ARGUMENT FOR PRIMARY EDUCATION: | | | | Evidence of development through education in |
| Human capital development: | | | | Zambia: |
| The theory of human capital development was | | | | Zambia is a developing country and it is termed as |
| developed by Becker (1964), other scholars such as | | | | one of the poorest countries in the world, despite its |
| Schultz (1960) have supported the human capital | | | | previous economic performance which depended on |
| development theory, and an increase in education | | | | copper export, the country today is at crisis. |
| levels in an economy will result into the development | | | | Zambia gained independence in the year 1964, at this |
| of human resource resulting to economic | | | | time it had a strong economy that dependent on |
| development in the long run. | | | | copper mining whose reserves were enormous at |
| This theory depict that when investment in education | | | | the time in the country, however in 1970's the price |
| is undertaken then this will provide skills to the | | | | of copper declined and the Zambian economy |
| population who will be capable of working in high and | | | | exhausted its foreign reserves and also run fiscal |
| middle occupation opportunities in the economy, | | | | deficits in following years. |
| these occupations in the economy will eventually lead | | | | The country borrowed loans from the IMF and the |
| to economic growth. | | | | world banks and the country was forced to |
| This theory can also be associated with the work of | | | | undertake structural condition that were required by |
| classical economist who depicted that economic | | | | these organizations, this included devaluation of the |
| development can be achieved through capital | | | | currency, increasing agricultural products and freezing |
| accumulation, capital accumulation can be also | | | | wages in the public sector. |
| associated with the development of human capital in | | | | By 1985 the state of the economy worsened and |
| the economy and therefore investing in education will | | | | the country opted to join free trade organizations |
| lead to economic development. | | | | and laying off workers in the public sector was |
| Education and productivity and earnings: | | | | evident in order to reduce fiscal deficits and trade |
| Mince and Schultz (1974) developed a model that | | | | balances. |
| associated education levels and earnings; they | | | | After these crisis the Zambian government did not |
| developed a model that explained earnings of | | | | invest more in primary education, it cut down its |
| individuals and the time period attended in school, the | | | | spending on primary education, the current situation in |
| model depicted that the higher the number of years | | | | the country is that the economy is ranked one of |
| in school then the higher the level of individual | | | | the poorest country in the world. |
| earnings. | | | | Education in Japan: |
| Education investment will increase the literacy levels | | | | Japan is a developed country and it is ranked the |
| of developing countries, since many developing | | | | second largest economy in the world in terms of it's |
| countries are agricultural countries a study made on | | | | GDP per capita, Japan has a good economic |
| these countries proved that an increased investment | | | | performance track record because after world war |
| in education will lead to improvement in agricultural | | | | two it suffered a lot of destruction and in 1952 it |
| productivity. | | | | was referred to as a less developing country but |
| Education will also increase the level of skills to the | | | | from the ruins of war it developed to become one |
| entire population; the increased skills in the labor force | | | | of the largest economies in the world, it now the |
| will result into an increase in labor productivity, | | | | first country to develop from a less developed to a |
| therefore it is the role of the government to invest | | | | developed economy. |
| in primary education. | | | | After in 1952 Japan initiated investment in education, |
| Education and economic development: | | | | today it is a leading economy in terms of technology, |
| The Solow's (1956) model which associated the | | | | medical research and machinery, the countries |
| relationship between economic development and | | | | movement from a less developed country to a |
| education and technological advancement, the model | | | | developed country was as a result of extensive |
| considered education as human capital and also | | | | investment in research and technological |
| technological advancement as exogenous variables, | | | | advancement through education. Therefore |
| however later scholars developed a model that | | | | developing economies should invest in education |
| depicted the relationship between GDP, human capital | | | | which will aid in technological advancement which as a |
| and technological advancement. | | | | result will lead to economic development. |
| These model developed by Solow (1956) clearly | | | | CONCLUSION: |
| depicts that developing countries can experience | | | | Investment in developing countries should be |
| economic development, therefore governments | | | | undertaken, investing in human capital is a long term |
| should invest in primary education in order to | | | | strategy that will lead to economic development, |
| experience growth in the economy. | | | | reduction in poverty levels and inequality and at the |
| Reduction of poverty and income distribution: | | | | same time it provides labor with more skills in that |
| Investing in primary education in developing countries | | | | they become more productive in the economy. |
| will lead to an improvement in income distribution and | | | | Theories of human capital have prove that an |
| at the same time poverty reduction, developed | | | | increase in the level of education will reduce illiteracy |
| countries have a large percentage of the population | | | | levels which will in turn result into improvement in |
| living under the poverty level, parents therefore do | | | | human capita leading to economic development, |
| not have enough to sustain their family and therefore | | | | therefore there is need to invest in education in |
| they cannot afford school fees, therefore through | | | | developing countries so that to improve the current |
| primary education investment children will attend | | | | situation in the economy. |
| school and therefore give them opportunities to | | | | From the examples of Zambia and Japan it is evident |
| acquire high paying jobs reducing poverty. | | | | that investing in education is major determinant of |
| Education provision to children from these poor | | | | economic performance, Zambia had a strong |
| families will have the opportunity to access high | | | | economic base due to copper mining in the country, |
| paying job and this will break the poverty vicious | | | | however after the prices for copper declined and |
| cycle, this will reduce poverty levels in an economy | | | | resources were deprived the country was in crisis, |
| and also solve the problem of inequality. | | | | despite all this the country did not invest in primary |
| Theoretical evidence of this can also be associated | | | | education instead it cut down on spending on primary |
| with the study done on east African countries by | | | | schools, today it is rankled one of the poorest |
| Knight and Sabot (1990), they confirm the possibility | | | | country in the world with very low per capita income |
| of poverty reduction and improvement in income | | | | and high inequality levels. |
| distribution through education investment and | | | | Japan on the hand advanced due to technological |
| improvement of illiteracy levels. | | | | advancement, this was achieved through investment |
| Opportunity for higher education: | | | | in education especially primary education, Japan is |
| Investing in primary education will increase the | | | | now the first country to move from a less |
| number of children attending primary school, this is | | | | developed country to a developed country, also it is |
| because many children do not attend school due to | | | | the second largest economy in the world. |
| lack of funds, when investing in primary education it | | | | Governments should initiate strategies like those that |
| gives children the opportunity to advance in | | | | Japan undertook in the early years of development, |
| education levels to higher levels of education levels. | | | | investing in research and technological advancement is |
| Therefore governments should invest in education so | | | | a major determinant of the future of an economy. |
| as to give the more opportunities for advancement | | | | However investing in primary school education will |
| to higher levels of learning; this will improve the levels | | | | result into an increase in government spending, |
| of human capital and skills of labor in the economy | | | | investing in primary education is a very costly |
| which will lead to improved productivity in the | | | | government undertaking, it requires high levels of |
| economy. | | | | investment whose rate of return to the economy is |
| ARGUMENTS AGAINST PRIMARY EDUCATION: | | | | very low, however in the long run investment in |
| Developed countries investment levels: | | | | education will bear high economic growth, this is as a |
| Despite high levels of GDP and economic | | | | result of returns on investment in human capital. |
| development in developed countries, they have not | | | | Primary education should however require that proper |
| invested in primary education; they have high levels | | | | teaching and follow up is undertaken, governments |
| of GDP compared to developing countries, therefore | | | | should undertake quality checks to ensure this |
| it would not be a good policy to developing countries | | | | investment is not a waste. |
| that have low levels of GDP and per capita income. | | | | REFERENCES: |
| Diverting priorities: | | | | Appleton S and Teal F (1999) ‘Human Capital and |
| Investing in education will distort the priorities of the | | | | Economic Development' Economic Research Paper No |
| government; this will result into an increase in | | | | 39 African Development bank |
| spending in public goods, in developing countries there | | | | Benn ell P. (1995) ‘Using and Abusing Rates of |
| are those spending policies that are very crucial in | | | | Return: A Critique of the World Bank's 1995 |
| economic development such as infrastructure and | | | | Education Sector Review institution of development |
| investing in education will result into diversion of funds | | | | studies working paper no.22 |
| from other important projects. | | | | Blaug M. (1970) an Introduction to the Economics of |
| Government deficits: | | | | Education Penguin |
| Developing countries run government deficits in their | | | | Hough, J (1993) ‘Educational cost-Benefit analysis' |
| budgets, an increased spending will either mean an | | | | Education Research Paper No 2 |
| increase in borrowed funds or taxation, when funds | | | | Overseas Development Administration |
| are obtained from international loans then the debt | | | | Methods, Human Capital Development and Operations |
| problem will increase putting the countries economy | | | | Policy Working Paper No 63 work bank |
| to more difficult situations, if the primary education | | | | Psacharopoulos G. and Patrinos A. (2002) |
| that result into deficit and it is funded through | | | | ‘Returns to investment in education: A further |
| taxation, then these will result into increased taxation | | | | update' World Bank Policy Research paper no 2881 |
| to offset this balance, this will mean that there will be | | | | Schultz, T. (1998) ‘the formation of human |
| an increased burden to tax payers and also inflation in | | | | Capital and the Economic Development of Africa: |
| the entire economy. | | | | Returns to Health and Schooling investments' |
| Evidence in developed countries: | | | | Economic Research Paper no 37. African |
| Developed countries despite having invested in | | | | Development bank. |
| primary education, they report that there are no | | | | |