Literacy and Economic Development

September 5, 2020 Facebook Twitter LinkedIn Google+ Blog

An Educated country is a developed country. Literacy level plays a major role in the economic development of a nation. If people are literate, then there will be minimum violence in the country. Literacy leads to good employment opportunities. If literacy level is high in a nation, then there will be more number of entrepreneurs and the flow of money will be huge. If new enterprises come up, the economy of the country grows with the amount of tax collected. New enterprises lead to more employment generation and in turn reduce the unemployment rate. A Nation with a low unemployment rate will develop very rapidly. Let’s elaborate on the above.

Literacy level is directly related to economic development. The cycle goes like this Literacy leads to rise of entrepreneurs and new enterprises which in turn provide employment and there will be huge demand for employment. When there is demand for employment, there will be a huge rise in the number of schools and colleges. When there are more number of schools, public can get easy access to schools and colleges at affordable costs. In this manner all will get education and the literacy level will go up. The demand in the industry is directly relational to the demand in the education sector and in turn directly related to literacy level and vice versa. This is a circular flow of activities depicted in the diagram below. The literacy level will make the nation in demand. Recently, the economic growth of INDIA and CHINA are mainly due to the rapidly growing literacy level in these countries.

In the case of literacy level, both supply and demand are increasing rapidly in INDIA and CHINA. The Population of both the countries is increasing and the education sector is increasing and the literacy level is increasing and with it the economy of both these nations are booming. Still, the beautiful aspect of both these nations is although the supply is increasing, the demand keeps on increasing and so far no saturation point has reached and it is expected to continue for the next ten years. Both the nations have a strong literate teenage group and that is the power of these nations growing into knowledge packed zones.

Source by Chella Durai

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