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Table of Contents

  1. Topic pack - Development economics - introduction
  2. 4.1 Economic development (notes)
  3. 4.1 Economic development (questions)
  4. 4.2 Measuring Economic Development (notes)
  5. 4.2 Measuring development (questions)
  6. 4.3 The role of domestic factors in economic development (notes)
    1. Domestic factors - introduction
    2. An introduction to Tanzania
    3. Education
    4. Primary, secondary or tertiary education?
    5. A dependent population
    6. Tanzanian database
    7. Exploring education in Tanzania - data
    8. Exploring education in Tanzania - Maua and Namyani (video)
    9. Exploring education in Tanzania - lost dreams
    10. Exploring education in Tanzania - reflection
    11. Exploring health in Tanzania - data
    12. Exploring health in Tanzania - videos
    13. Exploring health in Tanzania - living with HIV
    14. Exploring health in Tanzania - reflection
    15. Use of appropriate technology
    16. Technology - sawdust stoves and clean water (videos)
    17. Technology - building good roads
    18. Use of appropriate technology - reflection
    19. Access to credit and micro credit
    20. Microcredit in the community (videos)
    21. Microcredit in the news
    22. Microcredit - reflection
    23. The origins of microcredit
    24. What are the pros and cons of microcredit?
    25. Empowerment of women
    26. Issues relating to empowerment of women (video)
    27. Empowerment - in the news
    28. Empowerment - reflection
    29. Income distribution
    30. Lorenz curve and Gini Coefficient
    31. Income distribution - Tanzania
    32. Income distribution - case studies
    33. Income distribution - reflection
    34. Building a development database (part 7)
  7. 4.3 The role of domestic factors in economic development (questions)
  8. 4.4 The role of international trade (notes)
  9. 4.4 The role of international trade (questions)
  10. 4.5 The role of Foreign Direct Investment (FDI) (notes)
  11. 4.5 The role of foreign direct investment (questions)
  12. 4.6 The role of foreign aid and multilaterial development assistance (notes)
  13. 4.6 The role of foreign aid and multilateral development assistance (questions)
  14. 4.7 The role of international debt (notes)
  15. 4.7 The role of international debt (questions)
  16. 4.8 The balance between markets and intervention (notes)
  17. 4.8 The balance between markets and intervention (questions)
  18. Print View

Primary, secondary or tertiary education?

Many LDCs have made enormous efforts to provide universal primary education. As more and more capital is used, labour has to be better trained in the skills to use the capital, such as servicing tractors and water pumps, running hotels and installing electricity.

However it is difficult to determine the impact of educational provision as it is the quality of the education that is important in term of improving the life chances of the young people who attend the schools.

It should always be remembered that education spending involves an opportunity cost in terms of current consumption and thus it is often referred to as investment spending on human capital.

You discovered in Section 4.2 that one of the Millennium Development Goals, Goal 2, advocates universal primary education and aims to "ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling".

Organisations, such as the World Bank, have tended to encourage less developed countries to invest resources into the development of the primary and secondary educational sectors, but less so in the tertiary sector. Economists are now challenging the wisdom of this philosophy. They argue that in a world increasingly reliant on new technologies, developing skills and competencies to utilise these technologies effectively is as important in developing economies as in developed economies.

Bolsa Família
 (Portuguese pronunciation: [ˈbowsɐ faˈmiliɐ], Family Allowance) is a social welfare program of the Brazilian government, part of the Fome Zero network of federal assistance programs. Bolsa Família provides financial aid to poor Brazilian families; if they have children, families must ensure that the children attend school and are vaccinated.

Article Cont...

A higher level of education leads to higher levels of income and savings and consequently, growth and development. Thus one question that has emerged for less developed countries relates to the targeting of educational expenditure. Given the scarcity of resources and the significant opportunity costs incurred the question many are asking is it better to direct the resources into primary, secondary or tertiary education?

Kofi Annan, the former Secretary General of the United Nation went on record as saying

A successful higher education sector also has the effect of reducing the 'brain drain', where the more educated members of society attend universities abroad and often end up remaining overseas and contributing to the growth and development of other countries

Advanced learning in science, engineering, medicine and management allows countries to benefit by sending their best minds abroad to bring back the newest advances in their fields of expertise.


One major area that is being targeted by enlightened developing countries is the entrepreneur. Through schemes such as in education and training and the lessening of bureaucracy, taxation and easier access to funding (eg Microcredit schemes) business start-up is becoming easier. Sadly this is not true in all developing countries.

You can go the World Bank comparisons on business start-up

World Bank Website Link

One interesting Statistic is that it takes on average 83 days to start a business in Brazil and in UK it takes an average of 4 days. Go figure!