ةيمنتلارمتؤم ةيرشبلا يف نمألاو ريغتم ملاعHuman Development & Security in Changing World 10-12-7-2007 ةليفطلا ةعماج ةينقتلا ةيمنتلارمتؤم ةيرشبلا يف نمألاو ريغتم ملاعTAFILA TECHNICAL UNIVERSITY Human Development & Security in Changing World THE IMPACT OF EDUCATION ON ECONOMICAL DEVELOPMENT ثحب ىلإمدقم ةيمنتلارمتؤم ةيرشبلا يف نمألاو ريغتم ملاع ةليفطلا ةعماج ةينقتلا10 -12-7-2007 دادعإAssist.Prof.Dr.Şenol YAPRAK Afyon Kocatepe University, Dr. Cengiz YILMAZ Afyon Kocatepe University, TURKEY ديربلا :ينورتكلالا[email protected][email protected]THE IMPACT OF EDUCATION ON ECONOMICAL DEVELOPMENT
Transcript
ريغتم ملاع يف نمألاو ةيرشبلا ةيمنتلا رمتؤمHuman Development amp Security in Changing World 10-12-7-2007
TAFILA TECHNICAL UNIVERSITY Human Development amp Security in Changing World
THE IMPACT OF EDUCATION ON ECONOMICAL DEVELOPMENT
ىلإ مدقم ثحب
ريغتم ملاع يف نمألاو ةيرشبلا ةيمنتلا رمتؤم
ةينقتلا ةليفطلا ةعماج10 -12-7-2007
دادعإ AssistProfDrŞenol YAPRAK
Afyon Kocatepe University Dr Cengiz YILMAZ
Afyon Kocatepe UniversityTURKEY
ينورتكلالا ديربلا
yaprakshotmailcom
ylmzccyahoocom
THE IMPACT OF EDUCATION ON ECONOMICAL DEVELOPMENT
AssistProfDrŞenol YAPRAK
Afyon Kocatepe University TURKEY yaprakshotmailcomDr Cengiz YILMAZ
Afyon Kocatepe University TURKEY ylmzccyahoocomAssist ResBerfu İLTER
Afyon Kocatepe University TURKEY berfu13hotmailcom
Summary
Todayrsquos globalized competitive world increased the importance of education When we examine the developed countries we could clearly notice that there is a strong relation between the level of education and the level of economical development and progress Leading societies in education is also leads in the economical development as well Nowadays the need for trained workforce is greater than before to follow innovations in manufacturing finance marketing etc the countries that are behind the high level of education standards are failing to compete with the others
The rich sources such as land capital petrol mines etc are not enough for economical development alone as long as they donrsquot combined with trained workforce who can be able create core competencies It is a well known reality that the well educated workforce can create more income than the others Nowadays the way how to find a place in between the economically and socially developed nations is having well educated workforce Key Words Development Education Human Development
Introduction
Economical development can not only be considered as an increase in production or increase in income levels It should also be considered as changes or improvements in societiesrsquo economical socio-cultural structure Increase in efficiency GNP exportation etc are some of the indicators of economical development (ŞEN and 2007)
Economical and socio-cultural advances let the mankind reach to todayrsquos modern societies from primitive societies but not every society reached to the same level There are lucid differences between them Economically developed nationsrsquo qualified and trained manpower is quite evident in these societies rate of educated people relatively higher than the others because at present key factor for development is well educated people This era mostly called as information era because main competitive advantages gained by information Companies and Nations have to generate useful information to gain their core competencies Ability to acquire information and efficiently use it depends on creativity skills and experiences of people who are the roots nation Education is the base for improving skills gaining experiences and creativity
In addition to being a human right education is also a pre condition for good management information based decision making process and well established democracy Education improves and reinforces individualsrsquo groupsrsquo communitiesrsquo institutionsrsquo and the nationsrsquo abilities to make correct choices which are mostly results with sustainable growth
Education contributes to the peace in the world health services and prosperity therefore increases the standards of living conditions (UNECE 2007)
This Erarsquos Competitive Force Core Competency
Globalization and the technological improvements have changed the world and the nature of the competition Todayrsquos competitive environment lets a small Chinese company to compete with giant American companies or Turkish small company directly Access to the world market eased widely with the world trade agreement In addition access to the factor for production is eased as well In the past an entrepreneur could be successful if heshe can combine the Factors land or capital or workforce efficiently because access to these factors was limited But todayrsquos competitive world any entrepreneur can access to the land in chine or even
Vietnam in US etc New financial techniques such as venture capitals investment banking system etc eased the abilities of entrepreneursrsquo access to financing which is also much suitable conditions (today interest rates fluctuating around 4-5) Access to cheaper workforce is also eased especially Southeast Asian countries provides these kinds of workforce in addition to this economical migration from less developed countries to the developed countries reduced the cost of labor and eased the access Therefore to create a core competency via land labor or capital became more difficult than before
Today technological innovations are the main sources of creating competitive advantages in unexplored sectors such as computing or micro-biology Best sample for this is the Bill Gatesrsquos Microsoft when he started his business he did not have a serious source as land labor or capital but the ability to innovate in technology was his biggest chance and strongest core competency In a traditional sector letrsquos say car manufacturing sector this kinds of leap is almost impossible (zero to top) since there is not much to explore or innovate
Innovation and exploration (most important core competency) requires well trained workforce who knows basic research and development techniques Here education becomes the basic for economical development fabricates a society contains innovative people and entrepreneurs who can create core competencies and are the roots of the successful enterprises which are contributes to the economical development
Human Capital For Economical Development
There are several definitions for human capital but we would classify them in to two headlines limited definitions and wider definitions Limited definitions related with school performance can be described and measured with learning outcomes which is mostly test scores Wider definitions are related with the formal and informal skills which might create core competencies for the people institutions and nations Improved skills widen the capabilities of workforce
Nussbaumrsquos capability approach (NUSSBAUM 1988 NUSSBAUM 1995) examines a personrsquos abilities skills and knowledge formed by education and called as (S-caps) Staveren concentrates on moral capabilities (M-caps) and ethical principles to rate different life paths M-caps are vital to discuss social models of production generates or modifies the ways of management styles behavior models of development via social changes The other capabilities acquired or improved individually might be called as optional capabilities (O-caps) ( STAVEREN 2001)
The combinations of capabilities give a shape for economical development as shown in figure 1
Fig 1 The Human Capital Human Capabilities Loop
Source Lanzi 2007430
Human capabilities increases well being and agency achievements and freedoms influences the productivity and finally causes social changes Taken as a whole these changes influences the life style such as the production methods education etc which redesign the human capital accumulation Redesigning of human capital generates a new form of basic skills competencies and complex functionalities
A sustainable economical development can be designed by educational policies in condition with policies have to
be sustainable in the peoples own lives brighten up new forms of behavioral attitudes provide a balance or constitution over the individual and group aims be able to understand the environmental changes be able to respond different kinds of interest groups without discriminating them and by providing fair
services to all parties
Tunccedil claims that todayrsquos competitive environment increased the need for qualified workforce to adopt technological improvements produce new goods and services and improve marketing and managerial policies (TUNCcedil 1998) Obviously qualified workforce is a function of education UNDPrsquos Report on humanitarian development indicates that real prosperity is an environment where people lives in healthy conditions with a wide range of freedom (UNDP 1995)
Humanitarian development can be defined as a process which boosts the alternatives via better living conditions more freedom to access information etc Hence indicator such as GNP is not reflects the real levels of development alone Even though a countryrsquos GNP is high but the level of education and the living conditions are low we can not assume this country is a developed country Harbison and Myers indicates that numbers of qualified workforce such as scientists engineers doctors educators etc are essential indicators for level of development Berber (1999)Taban and Kar (2004) claims that two types of education influences the production formal common education and education in work place (BERBER1999 TABAN and KAR 2004)
In his study Psacharopolous examines the education levels and the social income levels via education between the developed and developing countries as is in table 1
Table 1 The Comparison Of Developed And The Developing Countries In Terms Of Social And Personal
Income Levels Groups of nations Rate of social income level Rate of personal income level
Primary education
Secondary education
Higher education
Primary education
Secondary education
Higher education
Developing countries
lower Sahara Africa 24 18 11 41 27 28
Asia 20 13 12 39 19 20
Latin America 18 13 12 26 17 20
Developed countries 14 10 9 22 12 12
SourcePsacharopoulous G 1993 ldquoReturns to investment in education A global update ldquoWord Development
2
In developing countries higher education provides more benefit (28 20 20) than the developed countries (12) This is because in developing countries number of well educated workforce is much less than needed therefore they have more bargaining power over the others In addition to these numbers are the rates for comparison when look at to the actual number such as salaries well educated workforce is more than the others Besides inequalities in the income level in the developing countries is much more than the developing countries Table 1 proves that the relative income level for well educated workforce is higher in developing countries But the total benefits of being well educated workforce are most probably higher in developing countries
Table 2 Selected Countries Education Index HDI and GDP Per Capita
Table 2 represents Turkey is 92nd in the ranking according to Human Development Index (HDI) However it is steadily increasing its scores with its per capita annual income of 77532 dollars This means there are still much more to go for This situation could be improved by investing in education There is a positive correlation between Turkeyrsquos place in education index and the human development index
Similar relations could be investigated for the GDP per capita ranking The leading countries in the education index are also leads in both HD index and GDP Table 2 proves that the countries who invests in education has higher rates of returns and the countries who are neglecting education suffers from both human sources and income levels
Table 3 Poverty Level in the US in Terms of Education Levels (2003)
Education Level Poverty Rate
Less than High School 131
Men 116
Women 154
High School 58
Men 49
Women 70
University 15
Men 16
Women 15
Source GUNDOGAN 2007
Education level is also one of the important factors that cause income level differences In the world there are a lot of people who are working but living in poverty Their common characteristics are they are less educated and qualified people Table 3 illustrates this relation visibly the poverty rate is 131 for least educated people while the poverty rate decreases to 58 for the high school graduates and shrinks to 15 for the people who are graduated from the university These numbers also gives certain information about the men and women equality (sexual discrimination) the difference between the rate of poverty in women and the rate of poverty in men is 15 (131-116) in less educated people is considerably higher than the difference between the rate of poverty in women and the rate of poverty in men is 01 (16-15) in well educated people This information indicates that education reduces the income level differences between the men and women (maybe reduces the sexual discrimination)
A similar situation exists in Europe as well In the EU the rate of poverty is 12 in less educated people whereas this rate shrinks to 3 in well educated people (GUNDOGAN 2007)
Indicators of Educational Level
While investigating the role and importance of education in economic development of countries itrsquos necessary to understand the factors which determine the education level Some of these factors are (KaARAGUL2002)
Educational records governments have to keep certain records for managerial purposes to plan apply and monitor their policies These records provide information about rational relation between age groups of estimated population and each educational level annually Educational records include statistical information about population age groups numbers of the student rates of the educated people etc
Education period provides information about the schooling rate of the current population This indicator provides information how long is the education period
Financial indicators provide information about the rates of funds transferred from the public expenses Financial indicators give certain ideas about how efficient the public expenses spend
Physical numbers provides information about how many educational material offered to educational services such as numbers of the school buildings students teachers personal computers average students in a class and laboratories etc These numbers gives information about the physical sources provided to educational services
Rate of literacy The rate of literacy is one of the important appliances used to determine the educational situation and public funds savings of a country
Table 5 The Important Educational Statistics For Turkey And Other Countries ()
Countries
The rate of
educational expenses
within GDP (1998-
2000)
The rate of
educational expenses
within total public
expenses
Schooling rate
(2000-2001)
Adult literacy
rate
America 52 48 94 99
Belgium 50 59 107 99
England 49 45 112 99
Italy 31 45 82 985
China 23 21 64 858
Argentina 11 40 89 969
Mexico 36 44 74 914
Thailand 35 54 72 957
Tunisia 60 68 76 721
Pakistan 26 18 36 440
Bulgaria 52 34 77 985
Malaysia 52 62 72 879
South Africa 62 55 78 856
Haiti 14 11 52 508
Turkey 22 35 60 855
Source Human Development Report 2003 237-240 and 266-269
As some values are over 100 thatrsquos because of pre-school termrsquos addition for the calculation As seen in the table in developed countries literacy schooling and educational expense rates are high But the values for Turkey are below than many developed or already developing countries Empirical Studies On Education-Growth Relation
Many empirical studies have been carried out about the effect of education on economic growth In these studies mostly educational expenses and schooling rates were used as on indicator of public funds UN development reports enough information about them The empirical studies made on the effect of education for economical growth in Turkey and chosen countries have been listed in table 6
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
AssistProfDrŞenol YAPRAK
Afyon Kocatepe University TURKEY yaprakshotmailcomDr Cengiz YILMAZ
Afyon Kocatepe University TURKEY ylmzccyahoocomAssist ResBerfu İLTER
Afyon Kocatepe University TURKEY berfu13hotmailcom
Summary
Todayrsquos globalized competitive world increased the importance of education When we examine the developed countries we could clearly notice that there is a strong relation between the level of education and the level of economical development and progress Leading societies in education is also leads in the economical development as well Nowadays the need for trained workforce is greater than before to follow innovations in manufacturing finance marketing etc the countries that are behind the high level of education standards are failing to compete with the others
The rich sources such as land capital petrol mines etc are not enough for economical development alone as long as they donrsquot combined with trained workforce who can be able create core competencies It is a well known reality that the well educated workforce can create more income than the others Nowadays the way how to find a place in between the economically and socially developed nations is having well educated workforce Key Words Development Education Human Development
Introduction
Economical development can not only be considered as an increase in production or increase in income levels It should also be considered as changes or improvements in societiesrsquo economical socio-cultural structure Increase in efficiency GNP exportation etc are some of the indicators of economical development (ŞEN and 2007)
Economical and socio-cultural advances let the mankind reach to todayrsquos modern societies from primitive societies but not every society reached to the same level There are lucid differences between them Economically developed nationsrsquo qualified and trained manpower is quite evident in these societies rate of educated people relatively higher than the others because at present key factor for development is well educated people This era mostly called as information era because main competitive advantages gained by information Companies and Nations have to generate useful information to gain their core competencies Ability to acquire information and efficiently use it depends on creativity skills and experiences of people who are the roots nation Education is the base for improving skills gaining experiences and creativity
In addition to being a human right education is also a pre condition for good management information based decision making process and well established democracy Education improves and reinforces individualsrsquo groupsrsquo communitiesrsquo institutionsrsquo and the nationsrsquo abilities to make correct choices which are mostly results with sustainable growth
Education contributes to the peace in the world health services and prosperity therefore increases the standards of living conditions (UNECE 2007)
This Erarsquos Competitive Force Core Competency
Globalization and the technological improvements have changed the world and the nature of the competition Todayrsquos competitive environment lets a small Chinese company to compete with giant American companies or Turkish small company directly Access to the world market eased widely with the world trade agreement In addition access to the factor for production is eased as well In the past an entrepreneur could be successful if heshe can combine the Factors land or capital or workforce efficiently because access to these factors was limited But todayrsquos competitive world any entrepreneur can access to the land in chine or even
Vietnam in US etc New financial techniques such as venture capitals investment banking system etc eased the abilities of entrepreneursrsquo access to financing which is also much suitable conditions (today interest rates fluctuating around 4-5) Access to cheaper workforce is also eased especially Southeast Asian countries provides these kinds of workforce in addition to this economical migration from less developed countries to the developed countries reduced the cost of labor and eased the access Therefore to create a core competency via land labor or capital became more difficult than before
Today technological innovations are the main sources of creating competitive advantages in unexplored sectors such as computing or micro-biology Best sample for this is the Bill Gatesrsquos Microsoft when he started his business he did not have a serious source as land labor or capital but the ability to innovate in technology was his biggest chance and strongest core competency In a traditional sector letrsquos say car manufacturing sector this kinds of leap is almost impossible (zero to top) since there is not much to explore or innovate
Innovation and exploration (most important core competency) requires well trained workforce who knows basic research and development techniques Here education becomes the basic for economical development fabricates a society contains innovative people and entrepreneurs who can create core competencies and are the roots of the successful enterprises which are contributes to the economical development
Human Capital For Economical Development
There are several definitions for human capital but we would classify them in to two headlines limited definitions and wider definitions Limited definitions related with school performance can be described and measured with learning outcomes which is mostly test scores Wider definitions are related with the formal and informal skills which might create core competencies for the people institutions and nations Improved skills widen the capabilities of workforce
Nussbaumrsquos capability approach (NUSSBAUM 1988 NUSSBAUM 1995) examines a personrsquos abilities skills and knowledge formed by education and called as (S-caps) Staveren concentrates on moral capabilities (M-caps) and ethical principles to rate different life paths M-caps are vital to discuss social models of production generates or modifies the ways of management styles behavior models of development via social changes The other capabilities acquired or improved individually might be called as optional capabilities (O-caps) ( STAVEREN 2001)
The combinations of capabilities give a shape for economical development as shown in figure 1
Fig 1 The Human Capital Human Capabilities Loop
Source Lanzi 2007430
Human capabilities increases well being and agency achievements and freedoms influences the productivity and finally causes social changes Taken as a whole these changes influences the life style such as the production methods education etc which redesign the human capital accumulation Redesigning of human capital generates a new form of basic skills competencies and complex functionalities
A sustainable economical development can be designed by educational policies in condition with policies have to
be sustainable in the peoples own lives brighten up new forms of behavioral attitudes provide a balance or constitution over the individual and group aims be able to understand the environmental changes be able to respond different kinds of interest groups without discriminating them and by providing fair
services to all parties
Tunccedil claims that todayrsquos competitive environment increased the need for qualified workforce to adopt technological improvements produce new goods and services and improve marketing and managerial policies (TUNCcedil 1998) Obviously qualified workforce is a function of education UNDPrsquos Report on humanitarian development indicates that real prosperity is an environment where people lives in healthy conditions with a wide range of freedom (UNDP 1995)
Humanitarian development can be defined as a process which boosts the alternatives via better living conditions more freedom to access information etc Hence indicator such as GNP is not reflects the real levels of development alone Even though a countryrsquos GNP is high but the level of education and the living conditions are low we can not assume this country is a developed country Harbison and Myers indicates that numbers of qualified workforce such as scientists engineers doctors educators etc are essential indicators for level of development Berber (1999)Taban and Kar (2004) claims that two types of education influences the production formal common education and education in work place (BERBER1999 TABAN and KAR 2004)
In his study Psacharopolous examines the education levels and the social income levels via education between the developed and developing countries as is in table 1
Table 1 The Comparison Of Developed And The Developing Countries In Terms Of Social And Personal
Income Levels Groups of nations Rate of social income level Rate of personal income level
Primary education
Secondary education
Higher education
Primary education
Secondary education
Higher education
Developing countries
lower Sahara Africa 24 18 11 41 27 28
Asia 20 13 12 39 19 20
Latin America 18 13 12 26 17 20
Developed countries 14 10 9 22 12 12
SourcePsacharopoulous G 1993 ldquoReturns to investment in education A global update ldquoWord Development
2
In developing countries higher education provides more benefit (28 20 20) than the developed countries (12) This is because in developing countries number of well educated workforce is much less than needed therefore they have more bargaining power over the others In addition to these numbers are the rates for comparison when look at to the actual number such as salaries well educated workforce is more than the others Besides inequalities in the income level in the developing countries is much more than the developing countries Table 1 proves that the relative income level for well educated workforce is higher in developing countries But the total benefits of being well educated workforce are most probably higher in developing countries
Table 2 Selected Countries Education Index HDI and GDP Per Capita
Table 2 represents Turkey is 92nd in the ranking according to Human Development Index (HDI) However it is steadily increasing its scores with its per capita annual income of 77532 dollars This means there are still much more to go for This situation could be improved by investing in education There is a positive correlation between Turkeyrsquos place in education index and the human development index
Similar relations could be investigated for the GDP per capita ranking The leading countries in the education index are also leads in both HD index and GDP Table 2 proves that the countries who invests in education has higher rates of returns and the countries who are neglecting education suffers from both human sources and income levels
Table 3 Poverty Level in the US in Terms of Education Levels (2003)
Education Level Poverty Rate
Less than High School 131
Men 116
Women 154
High School 58
Men 49
Women 70
University 15
Men 16
Women 15
Source GUNDOGAN 2007
Education level is also one of the important factors that cause income level differences In the world there are a lot of people who are working but living in poverty Their common characteristics are they are less educated and qualified people Table 3 illustrates this relation visibly the poverty rate is 131 for least educated people while the poverty rate decreases to 58 for the high school graduates and shrinks to 15 for the people who are graduated from the university These numbers also gives certain information about the men and women equality (sexual discrimination) the difference between the rate of poverty in women and the rate of poverty in men is 15 (131-116) in less educated people is considerably higher than the difference between the rate of poverty in women and the rate of poverty in men is 01 (16-15) in well educated people This information indicates that education reduces the income level differences between the men and women (maybe reduces the sexual discrimination)
A similar situation exists in Europe as well In the EU the rate of poverty is 12 in less educated people whereas this rate shrinks to 3 in well educated people (GUNDOGAN 2007)
Indicators of Educational Level
While investigating the role and importance of education in economic development of countries itrsquos necessary to understand the factors which determine the education level Some of these factors are (KaARAGUL2002)
Educational records governments have to keep certain records for managerial purposes to plan apply and monitor their policies These records provide information about rational relation between age groups of estimated population and each educational level annually Educational records include statistical information about population age groups numbers of the student rates of the educated people etc
Education period provides information about the schooling rate of the current population This indicator provides information how long is the education period
Financial indicators provide information about the rates of funds transferred from the public expenses Financial indicators give certain ideas about how efficient the public expenses spend
Physical numbers provides information about how many educational material offered to educational services such as numbers of the school buildings students teachers personal computers average students in a class and laboratories etc These numbers gives information about the physical sources provided to educational services
Rate of literacy The rate of literacy is one of the important appliances used to determine the educational situation and public funds savings of a country
Table 5 The Important Educational Statistics For Turkey And Other Countries ()
Countries
The rate of
educational expenses
within GDP (1998-
2000)
The rate of
educational expenses
within total public
expenses
Schooling rate
(2000-2001)
Adult literacy
rate
America 52 48 94 99
Belgium 50 59 107 99
England 49 45 112 99
Italy 31 45 82 985
China 23 21 64 858
Argentina 11 40 89 969
Mexico 36 44 74 914
Thailand 35 54 72 957
Tunisia 60 68 76 721
Pakistan 26 18 36 440
Bulgaria 52 34 77 985
Malaysia 52 62 72 879
South Africa 62 55 78 856
Haiti 14 11 52 508
Turkey 22 35 60 855
Source Human Development Report 2003 237-240 and 266-269
As some values are over 100 thatrsquos because of pre-school termrsquos addition for the calculation As seen in the table in developed countries literacy schooling and educational expense rates are high But the values for Turkey are below than many developed or already developing countries Empirical Studies On Education-Growth Relation
Many empirical studies have been carried out about the effect of education on economic growth In these studies mostly educational expenses and schooling rates were used as on indicator of public funds UN development reports enough information about them The empirical studies made on the effect of education for economical growth in Turkey and chosen countries have been listed in table 6
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
Vietnam in US etc New financial techniques such as venture capitals investment banking system etc eased the abilities of entrepreneursrsquo access to financing which is also much suitable conditions (today interest rates fluctuating around 4-5) Access to cheaper workforce is also eased especially Southeast Asian countries provides these kinds of workforce in addition to this economical migration from less developed countries to the developed countries reduced the cost of labor and eased the access Therefore to create a core competency via land labor or capital became more difficult than before
Today technological innovations are the main sources of creating competitive advantages in unexplored sectors such as computing or micro-biology Best sample for this is the Bill Gatesrsquos Microsoft when he started his business he did not have a serious source as land labor or capital but the ability to innovate in technology was his biggest chance and strongest core competency In a traditional sector letrsquos say car manufacturing sector this kinds of leap is almost impossible (zero to top) since there is not much to explore or innovate
Innovation and exploration (most important core competency) requires well trained workforce who knows basic research and development techniques Here education becomes the basic for economical development fabricates a society contains innovative people and entrepreneurs who can create core competencies and are the roots of the successful enterprises which are contributes to the economical development
Human Capital For Economical Development
There are several definitions for human capital but we would classify them in to two headlines limited definitions and wider definitions Limited definitions related with school performance can be described and measured with learning outcomes which is mostly test scores Wider definitions are related with the formal and informal skills which might create core competencies for the people institutions and nations Improved skills widen the capabilities of workforce
Nussbaumrsquos capability approach (NUSSBAUM 1988 NUSSBAUM 1995) examines a personrsquos abilities skills and knowledge formed by education and called as (S-caps) Staveren concentrates on moral capabilities (M-caps) and ethical principles to rate different life paths M-caps are vital to discuss social models of production generates or modifies the ways of management styles behavior models of development via social changes The other capabilities acquired or improved individually might be called as optional capabilities (O-caps) ( STAVEREN 2001)
The combinations of capabilities give a shape for economical development as shown in figure 1
Fig 1 The Human Capital Human Capabilities Loop
Source Lanzi 2007430
Human capabilities increases well being and agency achievements and freedoms influences the productivity and finally causes social changes Taken as a whole these changes influences the life style such as the production methods education etc which redesign the human capital accumulation Redesigning of human capital generates a new form of basic skills competencies and complex functionalities
A sustainable economical development can be designed by educational policies in condition with policies have to
be sustainable in the peoples own lives brighten up new forms of behavioral attitudes provide a balance or constitution over the individual and group aims be able to understand the environmental changes be able to respond different kinds of interest groups without discriminating them and by providing fair
services to all parties
Tunccedil claims that todayrsquos competitive environment increased the need for qualified workforce to adopt technological improvements produce new goods and services and improve marketing and managerial policies (TUNCcedil 1998) Obviously qualified workforce is a function of education UNDPrsquos Report on humanitarian development indicates that real prosperity is an environment where people lives in healthy conditions with a wide range of freedom (UNDP 1995)
Humanitarian development can be defined as a process which boosts the alternatives via better living conditions more freedom to access information etc Hence indicator such as GNP is not reflects the real levels of development alone Even though a countryrsquos GNP is high but the level of education and the living conditions are low we can not assume this country is a developed country Harbison and Myers indicates that numbers of qualified workforce such as scientists engineers doctors educators etc are essential indicators for level of development Berber (1999)Taban and Kar (2004) claims that two types of education influences the production formal common education and education in work place (BERBER1999 TABAN and KAR 2004)
In his study Psacharopolous examines the education levels and the social income levels via education between the developed and developing countries as is in table 1
Table 1 The Comparison Of Developed And The Developing Countries In Terms Of Social And Personal
Income Levels Groups of nations Rate of social income level Rate of personal income level
Primary education
Secondary education
Higher education
Primary education
Secondary education
Higher education
Developing countries
lower Sahara Africa 24 18 11 41 27 28
Asia 20 13 12 39 19 20
Latin America 18 13 12 26 17 20
Developed countries 14 10 9 22 12 12
SourcePsacharopoulous G 1993 ldquoReturns to investment in education A global update ldquoWord Development
2
In developing countries higher education provides more benefit (28 20 20) than the developed countries (12) This is because in developing countries number of well educated workforce is much less than needed therefore they have more bargaining power over the others In addition to these numbers are the rates for comparison when look at to the actual number such as salaries well educated workforce is more than the others Besides inequalities in the income level in the developing countries is much more than the developing countries Table 1 proves that the relative income level for well educated workforce is higher in developing countries But the total benefits of being well educated workforce are most probably higher in developing countries
Table 2 Selected Countries Education Index HDI and GDP Per Capita
Table 2 represents Turkey is 92nd in the ranking according to Human Development Index (HDI) However it is steadily increasing its scores with its per capita annual income of 77532 dollars This means there are still much more to go for This situation could be improved by investing in education There is a positive correlation between Turkeyrsquos place in education index and the human development index
Similar relations could be investigated for the GDP per capita ranking The leading countries in the education index are also leads in both HD index and GDP Table 2 proves that the countries who invests in education has higher rates of returns and the countries who are neglecting education suffers from both human sources and income levels
Table 3 Poverty Level in the US in Terms of Education Levels (2003)
Education Level Poverty Rate
Less than High School 131
Men 116
Women 154
High School 58
Men 49
Women 70
University 15
Men 16
Women 15
Source GUNDOGAN 2007
Education level is also one of the important factors that cause income level differences In the world there are a lot of people who are working but living in poverty Their common characteristics are they are less educated and qualified people Table 3 illustrates this relation visibly the poverty rate is 131 for least educated people while the poverty rate decreases to 58 for the high school graduates and shrinks to 15 for the people who are graduated from the university These numbers also gives certain information about the men and women equality (sexual discrimination) the difference between the rate of poverty in women and the rate of poverty in men is 15 (131-116) in less educated people is considerably higher than the difference between the rate of poverty in women and the rate of poverty in men is 01 (16-15) in well educated people This information indicates that education reduces the income level differences between the men and women (maybe reduces the sexual discrimination)
A similar situation exists in Europe as well In the EU the rate of poverty is 12 in less educated people whereas this rate shrinks to 3 in well educated people (GUNDOGAN 2007)
Indicators of Educational Level
While investigating the role and importance of education in economic development of countries itrsquos necessary to understand the factors which determine the education level Some of these factors are (KaARAGUL2002)
Educational records governments have to keep certain records for managerial purposes to plan apply and monitor their policies These records provide information about rational relation between age groups of estimated population and each educational level annually Educational records include statistical information about population age groups numbers of the student rates of the educated people etc
Education period provides information about the schooling rate of the current population This indicator provides information how long is the education period
Financial indicators provide information about the rates of funds transferred from the public expenses Financial indicators give certain ideas about how efficient the public expenses spend
Physical numbers provides information about how many educational material offered to educational services such as numbers of the school buildings students teachers personal computers average students in a class and laboratories etc These numbers gives information about the physical sources provided to educational services
Rate of literacy The rate of literacy is one of the important appliances used to determine the educational situation and public funds savings of a country
Table 5 The Important Educational Statistics For Turkey And Other Countries ()
Countries
The rate of
educational expenses
within GDP (1998-
2000)
The rate of
educational expenses
within total public
expenses
Schooling rate
(2000-2001)
Adult literacy
rate
America 52 48 94 99
Belgium 50 59 107 99
England 49 45 112 99
Italy 31 45 82 985
China 23 21 64 858
Argentina 11 40 89 969
Mexico 36 44 74 914
Thailand 35 54 72 957
Tunisia 60 68 76 721
Pakistan 26 18 36 440
Bulgaria 52 34 77 985
Malaysia 52 62 72 879
South Africa 62 55 78 856
Haiti 14 11 52 508
Turkey 22 35 60 855
Source Human Development Report 2003 237-240 and 266-269
As some values are over 100 thatrsquos because of pre-school termrsquos addition for the calculation As seen in the table in developed countries literacy schooling and educational expense rates are high But the values for Turkey are below than many developed or already developing countries Empirical Studies On Education-Growth Relation
Many empirical studies have been carried out about the effect of education on economic growth In these studies mostly educational expenses and schooling rates were used as on indicator of public funds UN development reports enough information about them The empirical studies made on the effect of education for economical growth in Turkey and chosen countries have been listed in table 6
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
A sustainable economical development can be designed by educational policies in condition with policies have to
be sustainable in the peoples own lives brighten up new forms of behavioral attitudes provide a balance or constitution over the individual and group aims be able to understand the environmental changes be able to respond different kinds of interest groups without discriminating them and by providing fair
services to all parties
Tunccedil claims that todayrsquos competitive environment increased the need for qualified workforce to adopt technological improvements produce new goods and services and improve marketing and managerial policies (TUNCcedil 1998) Obviously qualified workforce is a function of education UNDPrsquos Report on humanitarian development indicates that real prosperity is an environment where people lives in healthy conditions with a wide range of freedom (UNDP 1995)
Humanitarian development can be defined as a process which boosts the alternatives via better living conditions more freedom to access information etc Hence indicator such as GNP is not reflects the real levels of development alone Even though a countryrsquos GNP is high but the level of education and the living conditions are low we can not assume this country is a developed country Harbison and Myers indicates that numbers of qualified workforce such as scientists engineers doctors educators etc are essential indicators for level of development Berber (1999)Taban and Kar (2004) claims that two types of education influences the production formal common education and education in work place (BERBER1999 TABAN and KAR 2004)
In his study Psacharopolous examines the education levels and the social income levels via education between the developed and developing countries as is in table 1
Table 1 The Comparison Of Developed And The Developing Countries In Terms Of Social And Personal
Income Levels Groups of nations Rate of social income level Rate of personal income level
Primary education
Secondary education
Higher education
Primary education
Secondary education
Higher education
Developing countries
lower Sahara Africa 24 18 11 41 27 28
Asia 20 13 12 39 19 20
Latin America 18 13 12 26 17 20
Developed countries 14 10 9 22 12 12
SourcePsacharopoulous G 1993 ldquoReturns to investment in education A global update ldquoWord Development
2
In developing countries higher education provides more benefit (28 20 20) than the developed countries (12) This is because in developing countries number of well educated workforce is much less than needed therefore they have more bargaining power over the others In addition to these numbers are the rates for comparison when look at to the actual number such as salaries well educated workforce is more than the others Besides inequalities in the income level in the developing countries is much more than the developing countries Table 1 proves that the relative income level for well educated workforce is higher in developing countries But the total benefits of being well educated workforce are most probably higher in developing countries
Table 2 Selected Countries Education Index HDI and GDP Per Capita
Table 2 represents Turkey is 92nd in the ranking according to Human Development Index (HDI) However it is steadily increasing its scores with its per capita annual income of 77532 dollars This means there are still much more to go for This situation could be improved by investing in education There is a positive correlation between Turkeyrsquos place in education index and the human development index
Similar relations could be investigated for the GDP per capita ranking The leading countries in the education index are also leads in both HD index and GDP Table 2 proves that the countries who invests in education has higher rates of returns and the countries who are neglecting education suffers from both human sources and income levels
Table 3 Poverty Level in the US in Terms of Education Levels (2003)
Education Level Poverty Rate
Less than High School 131
Men 116
Women 154
High School 58
Men 49
Women 70
University 15
Men 16
Women 15
Source GUNDOGAN 2007
Education level is also one of the important factors that cause income level differences In the world there are a lot of people who are working but living in poverty Their common characteristics are they are less educated and qualified people Table 3 illustrates this relation visibly the poverty rate is 131 for least educated people while the poverty rate decreases to 58 for the high school graduates and shrinks to 15 for the people who are graduated from the university These numbers also gives certain information about the men and women equality (sexual discrimination) the difference between the rate of poverty in women and the rate of poverty in men is 15 (131-116) in less educated people is considerably higher than the difference between the rate of poverty in women and the rate of poverty in men is 01 (16-15) in well educated people This information indicates that education reduces the income level differences between the men and women (maybe reduces the sexual discrimination)
A similar situation exists in Europe as well In the EU the rate of poverty is 12 in less educated people whereas this rate shrinks to 3 in well educated people (GUNDOGAN 2007)
Indicators of Educational Level
While investigating the role and importance of education in economic development of countries itrsquos necessary to understand the factors which determine the education level Some of these factors are (KaARAGUL2002)
Educational records governments have to keep certain records for managerial purposes to plan apply and monitor their policies These records provide information about rational relation between age groups of estimated population and each educational level annually Educational records include statistical information about population age groups numbers of the student rates of the educated people etc
Education period provides information about the schooling rate of the current population This indicator provides information how long is the education period
Financial indicators provide information about the rates of funds transferred from the public expenses Financial indicators give certain ideas about how efficient the public expenses spend
Physical numbers provides information about how many educational material offered to educational services such as numbers of the school buildings students teachers personal computers average students in a class and laboratories etc These numbers gives information about the physical sources provided to educational services
Rate of literacy The rate of literacy is one of the important appliances used to determine the educational situation and public funds savings of a country
Table 5 The Important Educational Statistics For Turkey And Other Countries ()
Countries
The rate of
educational expenses
within GDP (1998-
2000)
The rate of
educational expenses
within total public
expenses
Schooling rate
(2000-2001)
Adult literacy
rate
America 52 48 94 99
Belgium 50 59 107 99
England 49 45 112 99
Italy 31 45 82 985
China 23 21 64 858
Argentina 11 40 89 969
Mexico 36 44 74 914
Thailand 35 54 72 957
Tunisia 60 68 76 721
Pakistan 26 18 36 440
Bulgaria 52 34 77 985
Malaysia 52 62 72 879
South Africa 62 55 78 856
Haiti 14 11 52 508
Turkey 22 35 60 855
Source Human Development Report 2003 237-240 and 266-269
As some values are over 100 thatrsquos because of pre-school termrsquos addition for the calculation As seen in the table in developed countries literacy schooling and educational expense rates are high But the values for Turkey are below than many developed or already developing countries Empirical Studies On Education-Growth Relation
Many empirical studies have been carried out about the effect of education on economic growth In these studies mostly educational expenses and schooling rates were used as on indicator of public funds UN development reports enough information about them The empirical studies made on the effect of education for economical growth in Turkey and chosen countries have been listed in table 6
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
Table 2 represents Turkey is 92nd in the ranking according to Human Development Index (HDI) However it is steadily increasing its scores with its per capita annual income of 77532 dollars This means there are still much more to go for This situation could be improved by investing in education There is a positive correlation between Turkeyrsquos place in education index and the human development index
Similar relations could be investigated for the GDP per capita ranking The leading countries in the education index are also leads in both HD index and GDP Table 2 proves that the countries who invests in education has higher rates of returns and the countries who are neglecting education suffers from both human sources and income levels
Table 3 Poverty Level in the US in Terms of Education Levels (2003)
Education Level Poverty Rate
Less than High School 131
Men 116
Women 154
High School 58
Men 49
Women 70
University 15
Men 16
Women 15
Source GUNDOGAN 2007
Education level is also one of the important factors that cause income level differences In the world there are a lot of people who are working but living in poverty Their common characteristics are they are less educated and qualified people Table 3 illustrates this relation visibly the poverty rate is 131 for least educated people while the poverty rate decreases to 58 for the high school graduates and shrinks to 15 for the people who are graduated from the university These numbers also gives certain information about the men and women equality (sexual discrimination) the difference between the rate of poverty in women and the rate of poverty in men is 15 (131-116) in less educated people is considerably higher than the difference between the rate of poverty in women and the rate of poverty in men is 01 (16-15) in well educated people This information indicates that education reduces the income level differences between the men and women (maybe reduces the sexual discrimination)
A similar situation exists in Europe as well In the EU the rate of poverty is 12 in less educated people whereas this rate shrinks to 3 in well educated people (GUNDOGAN 2007)
Indicators of Educational Level
While investigating the role and importance of education in economic development of countries itrsquos necessary to understand the factors which determine the education level Some of these factors are (KaARAGUL2002)
Educational records governments have to keep certain records for managerial purposes to plan apply and monitor their policies These records provide information about rational relation between age groups of estimated population and each educational level annually Educational records include statistical information about population age groups numbers of the student rates of the educated people etc
Education period provides information about the schooling rate of the current population This indicator provides information how long is the education period
Financial indicators provide information about the rates of funds transferred from the public expenses Financial indicators give certain ideas about how efficient the public expenses spend
Physical numbers provides information about how many educational material offered to educational services such as numbers of the school buildings students teachers personal computers average students in a class and laboratories etc These numbers gives information about the physical sources provided to educational services
Rate of literacy The rate of literacy is one of the important appliances used to determine the educational situation and public funds savings of a country
Table 5 The Important Educational Statistics For Turkey And Other Countries ()
Countries
The rate of
educational expenses
within GDP (1998-
2000)
The rate of
educational expenses
within total public
expenses
Schooling rate
(2000-2001)
Adult literacy
rate
America 52 48 94 99
Belgium 50 59 107 99
England 49 45 112 99
Italy 31 45 82 985
China 23 21 64 858
Argentina 11 40 89 969
Mexico 36 44 74 914
Thailand 35 54 72 957
Tunisia 60 68 76 721
Pakistan 26 18 36 440
Bulgaria 52 34 77 985
Malaysia 52 62 72 879
South Africa 62 55 78 856
Haiti 14 11 52 508
Turkey 22 35 60 855
Source Human Development Report 2003 237-240 and 266-269
As some values are over 100 thatrsquos because of pre-school termrsquos addition for the calculation As seen in the table in developed countries literacy schooling and educational expense rates are high But the values for Turkey are below than many developed or already developing countries Empirical Studies On Education-Growth Relation
Many empirical studies have been carried out about the effect of education on economic growth In these studies mostly educational expenses and schooling rates were used as on indicator of public funds UN development reports enough information about them The empirical studies made on the effect of education for economical growth in Turkey and chosen countries have been listed in table 6
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
Education Level Poverty Rate
Less than High School 131
Men 116
Women 154
High School 58
Men 49
Women 70
University 15
Men 16
Women 15
Source GUNDOGAN 2007
Education level is also one of the important factors that cause income level differences In the world there are a lot of people who are working but living in poverty Their common characteristics are they are less educated and qualified people Table 3 illustrates this relation visibly the poverty rate is 131 for least educated people while the poverty rate decreases to 58 for the high school graduates and shrinks to 15 for the people who are graduated from the university These numbers also gives certain information about the men and women equality (sexual discrimination) the difference between the rate of poverty in women and the rate of poverty in men is 15 (131-116) in less educated people is considerably higher than the difference between the rate of poverty in women and the rate of poverty in men is 01 (16-15) in well educated people This information indicates that education reduces the income level differences between the men and women (maybe reduces the sexual discrimination)
A similar situation exists in Europe as well In the EU the rate of poverty is 12 in less educated people whereas this rate shrinks to 3 in well educated people (GUNDOGAN 2007)
Indicators of Educational Level
While investigating the role and importance of education in economic development of countries itrsquos necessary to understand the factors which determine the education level Some of these factors are (KaARAGUL2002)
Educational records governments have to keep certain records for managerial purposes to plan apply and monitor their policies These records provide information about rational relation between age groups of estimated population and each educational level annually Educational records include statistical information about population age groups numbers of the student rates of the educated people etc
Education period provides information about the schooling rate of the current population This indicator provides information how long is the education period
Financial indicators provide information about the rates of funds transferred from the public expenses Financial indicators give certain ideas about how efficient the public expenses spend
Physical numbers provides information about how many educational material offered to educational services such as numbers of the school buildings students teachers personal computers average students in a class and laboratories etc These numbers gives information about the physical sources provided to educational services
Rate of literacy The rate of literacy is one of the important appliances used to determine the educational situation and public funds savings of a country
Table 5 The Important Educational Statistics For Turkey And Other Countries ()
Countries
The rate of
educational expenses
within GDP (1998-
2000)
The rate of
educational expenses
within total public
expenses
Schooling rate
(2000-2001)
Adult literacy
rate
America 52 48 94 99
Belgium 50 59 107 99
England 49 45 112 99
Italy 31 45 82 985
China 23 21 64 858
Argentina 11 40 89 969
Mexico 36 44 74 914
Thailand 35 54 72 957
Tunisia 60 68 76 721
Pakistan 26 18 36 440
Bulgaria 52 34 77 985
Malaysia 52 62 72 879
South Africa 62 55 78 856
Haiti 14 11 52 508
Turkey 22 35 60 855
Source Human Development Report 2003 237-240 and 266-269
As some values are over 100 thatrsquos because of pre-school termrsquos addition for the calculation As seen in the table in developed countries literacy schooling and educational expense rates are high But the values for Turkey are below than many developed or already developing countries Empirical Studies On Education-Growth Relation
Many empirical studies have been carried out about the effect of education on economic growth In these studies mostly educational expenses and schooling rates were used as on indicator of public funds UN development reports enough information about them The empirical studies made on the effect of education for economical growth in Turkey and chosen countries have been listed in table 6
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
Educational records governments have to keep certain records for managerial purposes to plan apply and monitor their policies These records provide information about rational relation between age groups of estimated population and each educational level annually Educational records include statistical information about population age groups numbers of the student rates of the educated people etc
Education period provides information about the schooling rate of the current population This indicator provides information how long is the education period
Financial indicators provide information about the rates of funds transferred from the public expenses Financial indicators give certain ideas about how efficient the public expenses spend
Physical numbers provides information about how many educational material offered to educational services such as numbers of the school buildings students teachers personal computers average students in a class and laboratories etc These numbers gives information about the physical sources provided to educational services
Rate of literacy The rate of literacy is one of the important appliances used to determine the educational situation and public funds savings of a country
Table 5 The Important Educational Statistics For Turkey And Other Countries ()
Countries
The rate of
educational expenses
within GDP (1998-
2000)
The rate of
educational expenses
within total public
expenses
Schooling rate
(2000-2001)
Adult literacy
rate
America 52 48 94 99
Belgium 50 59 107 99
England 49 45 112 99
Italy 31 45 82 985
China 23 21 64 858
Argentina 11 40 89 969
Mexico 36 44 74 914
Thailand 35 54 72 957
Tunisia 60 68 76 721
Pakistan 26 18 36 440
Bulgaria 52 34 77 985
Malaysia 52 62 72 879
South Africa 62 55 78 856
Haiti 14 11 52 508
Turkey 22 35 60 855
Source Human Development Report 2003 237-240 and 266-269
As some values are over 100 thatrsquos because of pre-school termrsquos addition for the calculation As seen in the table in developed countries literacy schooling and educational expense rates are high But the values for Turkey are below than many developed or already developing countries Empirical Studies On Education-Growth Relation
Many empirical studies have been carried out about the effect of education on economic growth In these studies mostly educational expenses and schooling rates were used as on indicator of public funds UN development reports enough information about them The empirical studies made on the effect of education for economical growth in Turkey and chosen countries have been listed in table 6
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
Table 6 The Results of Empirical Studies for the Effect of Education on Economic GrowthAuthor and Authors Consisting
countries
Valid term Educational indicator Result
RanisStewart and
Ramirez (2000)
35-76 developing
countries
1970-1992 Educational expenses Positive
Mankiw Romer and
Weil (1992)
75 countries 1960-1985 Numbers of the students
registered to secondary
schools
Positive
RanisStewart and
Ramirez (1997)
76 developing
countries
1970-1992 Humanitarian development
index
Positive
Piazola (1995) South Korea 1955-1990 Numbers of students
registered to secondary
schools and universities
Positive
Webber (2002) 46 low income
countries
1960-1990 Numbers of the students
registered to primary
secondary schools and
universities
Positive
In and Doucouliagos
(1997)
ABD 1949-1984 Total numbers of students
and investments on
education
Positive
Barro (1991) 98 nation 1960-1985 Orta oumlğrenime kayıtlı
oumlğrenci oranları
Positive
Tallman and Wang
(1990)
Taiwan 1965-1986 Workforce and skills index Positive
Guumlloğlu and Yılmazer
(2002)
More than 60
developing and
developed
countries
1975-1999 Humanitarian development
index
Positive
Yanıkkaya (2002) 114 countries 197019801990 Rate of literacy
registration rates and
expenditures for education
Positive
Bassanini and Scarpette
(2001)
21 OECD
countries
1971-1998 Average schooling rates Positive
Sacerdoti Brunschwig
and Tang (1998)
8 west African
countries
1970-1996 Average schooling periods Negative
Landau (1986) 96 developing and
developed
countries
1961-1976 Rates of registered students
and educational
expenditures
Positive
(registered
students)
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
Guumlngoumlr (1997) Turkey 1980-1990 Average official education
period
Positive
Bozkurt and Doğan
(2003)
Turkey 1983-2001 Schooling rates and rates
of expenditures over the
budged
Positive
Kar ve Taban (2003) Turkey 1971-2000 Educational expenditures Positive
Kar ve Ağır (2003) Turkey 1926-1994 Educational expenditures Positive
Source Taban and Kar 2004
According to the results from table 6 both Turkeyrsquos developing and developed countriesrsquo education
levels are affected positively with the increases in public funded expenditures
Where Does The World Stand in The Fight Against Poverty
Worldwide poverty has declined by 20 in the past decade compared to the previous 10 years But in spite of the overall progress some countries suffer unexpected results For example in sub-Saharan countries in Africa the number of people who are earning less than 1 dollar a day was 100 million more than in the year 2001 compared to year 1990 Another controversial result comes from Central and South European countries and former soviet countries the ratio for the people who lives with a earning less than 2 dollars in a day was 2 in 1990 this ratio reached up to 20 in 2001 Life expectancies and the living standards are also declined in these countries despite of general progress in the world Children in the sub-Saharan regions of African are born with the risk of living 33 years less than the children who born in rich countries Average life expectancy in Russia in mid-1980s was 70 years on the contrary todayrsquos 59 years
If the developed and wealthy nations do not make significant progress against the poverty by the year 2015 41 million more children are expected to die 210 million more people will not have access to clean water 380 million more people will go on living on less than 1 dollar every day and 47 million children (19 million in Africa) will not be able to go to the schools
Inequities in income distribution are also extremely high Total annual income of the richest 500 people of the world is greater than the total annual income of the poorest 416 million The cost of eliminating absolute poverty on the other hand is around 300 billion dollars which is approximately 2 of the total yearly income of the richest 10 population of the world (UNDP New Horizons UNDP Turkey Monthly Newsletter Issue 11 November 2006)
Controversial results from the Africa can be the result of lacking of reach a volume in expenses for education These countries already cannot spend necessarily amount of money for the basics of their educational requirements even though ratios for educational expenditures seems to increase Additionally African countriesrsquo educational problems are quite high and become conical When there is a conical problem lets say illness doctors have to use more efficient medicines with high doses So the solution of African countriesrsquo educational problem would be injection of more funds for the education and the efficient usage of these funds
Situation is a bit different in the ex-soviet union countries The populations in these countries are well educated compared to African nations When the system is changed to capitalism they had difficulties during the transformation period and the numbers are reduced Some of these countries joined to the EU which let these countriesrsquo citizens to move and trade within the EU countries Adaptation to the new system and the support from EU is improving the economical situation in these countries Hence we should not misinterpret these numbers as education is not contributes to economical development
Conclusion
Therersquos a strong relation between the economical development and the educational levels of citizens societies and the nations Qualified and well educated people contributes to economy and social life Today undeveloped countries are lack of qualified and well educated human force In our present world goods and service producing requires more qualified and educated work force the importance of education has increased Countries willing to develop should invest more in human capital and give more importance to education by spearing more funds for it and make sure these funds used efficiently For medium and long term improving human sources by education exposes greater returns
Todayrsquos competitive world human capital as one of the production factors and source of core competency becomes more and more valuable Examining of the characteristics of the countries in terms of
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
humanitarian capital education and skills and the qualifications of the citizens shows that there is a strong relation between education and the economical development
REFERANCES
BERBER Ş1999 ldquoBeşeri Sermaye ve İktisadi Kalkınmardquo Selccediluk Uumlniversitesi İktisadi ve İdari Bilimler Fakuumlltesi Dergisi Yıl1999 Cilt2Sayı1 ss361-375
GUumlNDOĞANN2007 Yoksulluğun Değişen Yuumlzuuml Ccedilalışan Yoksullar Anadolu Uumlniversitesi Yayını Eskişehi
KARAGUumlL M2002 ldquoBeşeri Sermayenin İktisadi Gelişmedeki Roluuml ve Tuumlrkiye Boyutu Afyon Kocatepe Uumlniversitesi Yayın No37 AfyonLANZİ D 2007 Capabilipies Human Capital and Education
NUSSBAUM MC 1995 Human capabilities female human beings In Nussbaum M Glover J (Eds)Women Culture and Development Oxford University Press Oxford
NUSSBAUM MC 1988 Nature Function and Capability Aristotle on Political Distribution Oxford Studies in Ancient Philosophy no 6
PSACHAROPOULOUS G 1993 ldquoReturns to investment in education A global update ldquoWord Development 2
STAVEREN V I 2001 The values in economics In An Aristotelian Perspective Routledge London
ŞEN H S AKCcedilAY ve B ALTAY 2007 Makro İktisat İktisadi BuumlyuumlmeampKalkınma İktisadi Duumlşuumlnceler Tarihi Arın Yayınları Ankara
TABAN Sve M KAR 2004 Kalkınma Ekonomisi Seccedilme Konular Ekin Kitapevi Bursa
TUNCcedil M 1998 ldquoKalkınmada İnsan Sermayesiİccedil Getiri Oranı Yaklaşımı Ve Tuumlrkiye Uygulamasırdquo DEUumlİİBF Dergisi Cilt13 SayıI ss83-106
UNDP 1995Human Development Report-1995 Oxford University Press NewYork
UNDP 2003Human Development Report 2003 New York
UNDP 2006 Human Development Report 2006 Indicators New York
UNDP 2006New Horizons UNDP Turkey Monthly Newsletter Issue 11 November
UNECE 2007 Suumlrduumlruumllebilir Kalkınma İccedilin Eğitim Stratejisi Vizyonu httpdigmmebgovtrbelgeUNECE_SKalknma_EgitStrtj_trpdf
