Almost the teachings of all the Religions in the world are to acquire and spread knowledge, information and skills. Our Religion Islam is among the top in this category that believes on learning and spreading of both Religious as well as Global Knowledge,
Almost the teachings of all the Religions in the world are to acquire and spread knowledge, information and skills. Our Religion Islam is among the top in this category that believes on learning and spreading of both Religious as well as Global Knowledge, which enables human beings to cope with day to day matters in their lives. Discoveries and innovations always lead to improvement and development.
As it is known that there are four factors of production namely: Natural resources (Land), Human Resources (Labor), Capital and Entrepreneur. Among these factors, Human capital is the most important driver of economic growth and development. It becomes the precious asset of any country which refers to the formation of Knowledge, skills, training, and Education in the labor force. The role of Education is very much important in Human capital formation, it’s is a long term process of development of mind, character, skill, knowledge, ethics, social, cultural, Religious values and training.
The importance of knowledge based economies has been grown rapidly in today’s Global village. In other words, we can say that there is a race of Research and Innovation among all the countries in the world. History and Data shows that there is a direct relationship between investment on human capital formation and Economic development. A country, which ignores making investment on education are far below in terms of Economic growth and development than country where investment on education is the top most priority.
Let’s analyze how education makes a difference among countries. Public spending on education as a % of Gross Domestic Product (GDP) is a most common indicator or a mirror image of education sector in any economy, while GDP per capita is an indicator of economic growth and development.
Unfortunately in Pakistan, Education sector has always been neglected by the authorities since its independence. In the decade of 1970’s, Average GDP per capita of Pakistan, Malaysia and Thailand were in triple digits with $208, $991 and $350 respectively. But what happened suddenly that Pakistan lagged behind them in terms of GDP per capita? The answer is nothing but ignorance and low level of public spending on education as a % of GDP in Pakistan. In 1980’s decade, average of public spending on education as a % of GDP in Pakistan was 2.5%, Malaysia 6.42% and Thailand 3.35%. In the same period, GDP per capita Average of Pakistan stood at $375, Malaysia $1970, and Thailand $867.
Similarly, in 1990’s decade, average of public spending on education as a % of GDP of Pakistan was 2.6%, Malaysia 5.73% and Thailand 3.71%. In the same decade, GDP per capita Average of Pakistan stood at $434, Malaysia $3550 and Thailand $2200. In 2000’s decade, Pakistan’s Average public spending on education as % of GDP still stagnant at 2.4%, while Malaysia 6.43% and Thailand 4.67%. In this decade Malaysia and Thailand grew rapidly with Average GDP per capita of $5604 and $2814 respectively. Pakistan remains trapped in triple digits GDP per capita with $700 (Average) in 2000’s decade.
It becomes clear that Education is a key determinant of Economic growth and development. Several Measures are there to develop our education sector. First: There is a need to divert our resources efficiently and optimally in all categories including primary, secondary and higher education. Second: Policy makers should take initiatives on emergency basis to raise investment on social awareness, technical and vocational skills, trainings, seminars, and conferences. While making Budget, proper allocation of funds should be allocate to education sector. Third: The most important initiative by the Authority would be the implementation of Federal Responsibility and Debt Limitation Act (FRDL), 2005, which says that expenditure on education and health, should be doubled in terms of % of GDP by 2012-2013. But unfortunately Act has been violated since last 6 years. Fourth: Need to make such type of education policy, according to which our spending on education Jumps to the range of 4-5% of GDP instead of 2%.
Written By Arbab.M.Shahzad
NUST Business School Islamabad