Education is most important factor in national development

Kseniia Gontar 09.45-11.15

Education is most important factor in national development

Nowadays, the level of education plays significant role in national development. When the structure of the employment of population is changing, increasing the share of mental labor in the production, reduced the demand for low-skilled labor, there is a question about finding additional sources of internal reserves of the country's economic growth. One such source is the level of education of the population. There are three main points. Firstly, the high level of science and technology of the country. The rate of economy growth of a country determined by the development of this sphere.  Secondly, infusion the capital into the country. A high level of education attracts a lot of students come to the country for studying. Lastly, country need  competent educated population to create strong economic system.

To start with, the most significant area through which has the impact of education on economic growth is science and technology. Higher education system prepares scholars, which is crucial for the emergence of a new generation of knowledge and innovation. And innovations, in turn, enable economies to function effectively in modern world. This has an impact on the growth of labor productivity. Furthermore, this relationship between science and education has been studied extensively and is supported by numerous studies.  For example, in the leading countries of the world, for which 70 to 90% of GDP is determined by scientific and technological progress and innovation economy. In particular, at the end of XX century American GDP by almost 45 % was generated in the areas of research, education , health care and manufacturing software. Innovation economy can grow only in improving the level of education of workers involved in it , which give a significant contribution to social production. According to experts, in the countries with the most developed economies are on average 60 % increase in national income is determined by the growth of knowledge and education of society

Secondly, high level of education involving intellectual potential into the country which enriches the economy. It is called export of education. The export of higher education provides to the leaders of this market significant revenue. For instance, according to some estimates revenues from the export of higher education in the budget of the United States occupy the fifth place among the branches of the economy and exceeded 20 billion dollars a year. Moreover, in Australia and New Zealand revenues from the provision of higher education to citizens of other countries with comparable income derived from exports of wool - one of the main export products of these countries.

Lastly, every country in order to have a high level of economy needs educated people. Smart economists, politicians, analysts and bankers who build the political and economic system of the country. They have to be able to make a system based on previous experience, learning the history and be able to quickly adapt to the changes that occur in the world, to think rationally and critically, to draw conclusions from their mistakes, competently carry out the reforms. From my point of view, all of this can be taught only by getting a  good education. Of course, studying in high school does not mean everybody can become a perfect politician, but it help to acquire the skills for sure.

To conclude this, education has a direct impact on the economic situation of the country. First, the rate of the development of science and technology should be on high level to make the country to grow.  Second, export of education, which brings great income into the budget. Third, smart economy system cannot be build without well-educated population.