How Low Education Affects Development of Emerging Countries

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Neglecting the role of education in emerging countries is one more commonly made mistake and low Human Development Index pointing out the limited possibilities of human resources has its negative impact on economic as well as on social processes in particular country. How educated residents are, determine the speed of economic growth, while shortage of accumulated human capital makes difficult to implement innovations and lack of adaptation of proven technologies, methods, and practices. The importance of human capital for economic development in general is widely accepted (cf. Bils & Klenow,2000; Krueger & Lindahl, 2001; Prichett, 2001; Romer, 1989). As concerning on education, implies more capable and productive workers, who in turn increase an economy’s output of goods and services. Well-educated human resources also help to make possible the absorption of advanced technologies from developed countries (Barro & Lee, 2001, p. 541). As a consequence, states lacking institutions which promote the demand for education have to give incentives for human capital accumulation. Human capital was the main factor to South Korea’s fast economic development. Investment in education was more than 7% of GDP and 2.8% was private sector’s investment that is the highest rate among OECD countries. But the same policy, investing in education to develop economic, was not as successful in different countries as in South-Korea; consequently the same policies can lead to different results and
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