Economic Development 333 Term Paper- First ...

Economic Development 333
Term Paper- First draft
The Key to Growth is Education
By: Jeanie Do
CWID: 892-56-1911
Due date: 2-18-2009
Table of Content
Introduction
Section 1 (Government Programs Polices: Education Reform)
Section 2 (Creating Specialized and Skilled labor)
Section 3 (Higher incomes, human capita)
Section 4 (Rural to Urban Migration)
Section 5 (Rate of Return of Education: Growing GDP)
Section 6 (Recommendations for Developing Countries)
Conclusion
References
Citations
Introduction:
Within the last decade, China’s GPD has grown on an average of 10 percent a year (two and a half times more than the rest of the world). It is predicted, from the article “Riders on the Storm”, that China’s economy will be in better shape than most western economies because China have successfully avoided the financial excessive by having low debts in private-sectors, and most banks have small amount of risky assets (Citation 1 here). High funds were invested in the Education sector to increase the number of skilled labor force. As a result, most of the Asian countries were not hit as hard by the global credit deficit. Although China has been hit with many natural disasters such as typhoons and earthquakes, China’s export-driven economies had most benefited from America’s consumer boom by being able to fulfill the necessary manufacturing labor. If China continues its growth, China will soon have the biggest economy in the world, outdoing America, Great Britain, and many other strong economies. China’s consistent rate of growing GDP from high rate of national productivity and output from a large labor force and high rate of income, is a result of strict government education polices that includes nine-years of education compulsory for all Chinese students to create human capital to support and meet the demand of skilled labor.
Section 1 (Government Polices/Education Reform)
The education reform began in 1985 as a result the lack of trained workers to meet the society’s needs, and the traditional structure of higher education system was unable to meet the needs of economic and technology boom. Since 1985, nine years of education is compulsory for all Chinese students. This includes five years primary education and four years of secondary education (Citation 2 here). The development of China’s education focused on the advancement of economic modernization for economic development.
As a commitment to modernization, China reinforced nine years of education and providing good quality higher education. To fulfill the goals of modernization, it was essential to advance in science, technology, and to improve the population’s education level. In the article China should boost public spending on health and education by Margit Molnar stated that demand on education – for new technology, information, ...