Education as a Tool of Economic Development

What is Economic Development : Economic development is identical with prosperity and better life. Faster economic development helps the people of country to enjoy higher standards of living. It leads to better social services. It gives more aid to the people of other countries. Following are some definitions of economic development :

(i) Marshall : The result of the labour acting on the natural resources of country which produce within a given period of time a certain, non-aggregate of commodities after avoiding double counting.

(ii) Mayer and Baldwin : Gross National Product and per capital income.

Role of Education : The system of education and the economic development in a given social set-up are inter-related. One cannot exist without the other. Deterioration in education results in slow economic development. On the other hand, slow economic development will affect educational system and standards. According to B.G. Tilak, the relationship between education and economic development is a two way process-one of a reciprocal nature, of mutual contribution. To sum up, the role of education in economic development is as follows :

(1) Production of material wealth : According of Alfred Marshall, education makes a man “more intelligent, more ready, more trust-worthy in his ordinary work; it raises the tone of his life in working hours and out of working hours; it is thus an important means towards the production of material wealth.”

(2) Development of talents and virtues : An accelerated and higher level of economic welfare depends on bringing about fundamental changes in both the mental outlook and technical knowledge and skills. An awakened mind, right knowledge, appropriate skills and desirable attitudes are the great levers of economic development. Conceived and imparted correctly, education produces these talents and virtues. It yields an automatic bonus in the ‘growth process’ and the ‘change process’.

Development of human resources : The development of human beings is the key resource of economic development. Human resource has both quantitative as well as qualitative aspects—quantitative in terms of effective man-hours and qualitative in terms of skills, knowledge and attitudes of human beings, on whom depends the tempo of development of a country.

Karl Marx pleaded for education on the ground that, “It is counter balance to the inhuman results of the division of labour.” Education improves man-power engaged in production. This improvement achieves higher and higher targets of growth and production in all areas and aspects of industrial development and economic prosperity.

(4) Quantitative and qualitative improvement : The role of education in economic growth has both quantity and quality dimensions. Educational innovations and research are necessary and must be encouraged in planning to provide quality labour, efficient administrators, well-trained teachers and various other professionals. The role of education in (discoveries and inventions) should be supported further with necessary finance.

Education has the power to improve quality. It adopts human resources and makes more productive.

Japan has been to make very rapid economic progress in the twentieth century, in spite of the late arrival in the field, large density of population and paucity of natural resources. By spending more than half of the national wealth on education, USA has attained great hights of economic prosperity in return.

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