1) Discuss the relationship between education and economic development

Education is indispensable to economic development.No economic development is possible without

good education.A balanced education system promotes not only economic development, but
productivity and generates individual income per capita.Its influence is noticable at the micro level of an
individual family.

Education is essential in economic development because it plays a crucial role in developing human
capital,a population is knowledge, skills and abilities that contribute to economic growth,In addition,a a
well educated population is more likely to be productive and innovative, which can drive economic
growth and development.

Additionally, education can help to reduce poverty and inequality by providing individuals with the skills
and knowledge they need to participate in the workforce and improve their economic opportunities.

The value of education to economic development is that education is an integral part of economic
development.In many regions it helps to provide a skilled workforce and encourages innovation ,which
can create new opportunities and support businesses.

Education significantly impacts economic development as it promotes economic growth by providing

individuals with additional skills and greater access to resources that foster positive change within
communities.In addition,by investing in education, government can create a more educated society that
is better equipped for the future.This drives economic growth and helps reduce inequality by providing
people from all backgrounds with equal opportunities for success in their chosen proffesion or field of
study.

The connection between education and economic development can be defined directly and
indirectly.Directly, educated citizens are more employable, allowing them to take higher value added
roles in the labour force that spur increased output and improved living standards.

Indirectly, education also creates positive externalities in society by improving general knowledge,
promoting innovation, creating new businesses, fostering Entrepreurship and increasing health
outcomes through better access to health Care information.

In addition to generating public goods such as increased productivity and technological improvements,
education may act as an instrument of social equity when opportunities for higher education are made
accessible to everyone from all backgrounds regardless of race or gender.Access to quality primary
education can reduce the wealth gap between the rich and por by providing those disadvantaged with
greater mobility into the middle class.

b) Relationship between education as an investment and education as consumption goods.

Globalization has led to a considerable growth of the economic importance of knowledge.knowledge is a

resource which has become a decisive factor in economy and developmental policy.The generation and
propagation of knowledge holds a key position for economic and cultural development in industrialized
as well as in developing countries.There is growing demand for academically trained experts in such
knowledge driven economics and societies.As a result therefore, education has emerged as an industry
and investment in education is considered as the much lucrative business.Realizing this importance, the
government of India has made educational planning a constituent of the total planning process.

It has even made handsome allocations for this purpose, the first five year plan (1961_56)made an
allocations of Rs169 cores of the total plan outlay towards education.The allocation was stepped up
substantially during the third five year plan to Rs 589 crores and in the sixth five year plan it had
increased to 2 524 crores.In the eleventh FYP(2007_12), Central government envisages on outlay of
about Rs 2.70 lakh crore at current price for education.This reflects the high priority being given to the
education secor by the central government and represents a creditable progress towards raising the
public spending of the center and the states combined to 6percent of GDP.But the Question arises.

Goods and services are divided into two categories:those from which consumers derive immediate
benefit called consumption, those which are used in production to produce after a long term called
investment.

Education is both consumption as well as investment.As a consumption ,it accounts for national
development.Sometimes it is regarded as consumption in so far as t is desired for its own sake or in the
sense that it's considered to be rewarding and intellectually stimulating in itself The consumption aspect
has also been treated by analyzing the amount spent per head of population or student,As an
investment it's return are compounded in the form of developed personalities, thought behaviour and
resourceful citizens in the society.Education is 100% investment with huge return and massive growth in
human resources.Education yields knowledge, job money and happiness and most wanted peace.its is
permanent property which can't be stolen and is always productive. Education can be passed over the
next generation making them knowledge, disciplined and a perfect human being and thus it is an
investment and not an expense.

In the words of Ellea kyleal ,No investment is more productive than in education and training" three
factors are responsible for considering educations an investment as mentioned below.

At one time education..was considered an instrument only for promoting individuals self improvements
and his social relations.The thinking of education for education sake is fast changing.In the present age
of maximizing the application of science and technology it has been increasingly realized that one needs
to be educated not only to become a better man and a social being,but he should also be a better
creative and productive being in the words of Arn Rand,The only purpose of education is to teach a
student how to live his life by developing his mind and equiping him to deal with reality.The training he
needs is theoretical,that is conceptual.He has to be taught to think, to understand,to integrate,to
prove.He has to be taught the essentials of the knowledge discovered in the past and he has to be
equipped to acquire further knowledge by his own effort.This is education's economic rule.

An important motivation for individuals to invest in education is that the acquired knowledge and skills
tend to raise their productivity and hence earning potential.Education appears to provide not only and
initial earning advantage but also a wage premium that increases with time spent in the labour
market.Education is not only productive of economic welfare but also has psychic and moral value and is
necessary for cultural satisfaction.S kuznets says, capital formation, should be broadened to include
investment in health, education and training of the population itself,that is investment in human
beings.Dr Ellea kyeal avers , from the stand point of economic development three factors are of basic
importance: natural resources, physical capital and human resources.

A large number of studies have conclusively proved that by fat the major factor in economic growth is
not natural resources, physical capital and human resources but the residual factors life
organization,Inventiveness and education better organizational skills and sharp Inventiveness are the
direct results of education.

In a way education is considered as an industry which absorb material and human resources.The
education industry consists of schools, colleges, Universities and various private institutions.The
'inputs'are teachers: buildings and outputs are students.It not only serves to diffuse the existing stock of
knowledge but also acts to increase that stock of human capabilities.There are several modes of
acquiring human capabilities such as education and training.

This includes primary and secondary education, primary or elementary is the first years of formal
education generally beginning when children are four to seven years of age.Primary education aims to
provide literacy and numeracy skills, and foundations in other subjects.Secondary education follows
after this.

This includes students following tertiary education abroad or people purchasing online distance learning
from abroad can be distinguished from tertiary education provided domestically.

c) Examine how education planning contributes to an employment.

Education planning refers to the systematic process of setting goals,formulating strategies and making
decisions to improve and enhance the quality of education.

The role of education planning towards creation of employment in modern society is very
complex.Formal schooling transforms the individuals in a number of ways.Part of the new attributes
acquired because of school attendance relate to the performance of the individual later in life as a
responsible citizen.Other attributes relate to the performance of women as mothers or housewives.And
of course education provides the individual with specific vocational skills to be used in the world of
work.These diverse and mostly overlapping educational plans of many nation's, but sometimes in
Constitution itself.

In recent years there has been an explicit emphasis in labour market related educational goals in many
countries.Titles like the transition from educational goals in many countries.Titles like the transition
from education to work, preparation for adult life credentialiasm and certification,vocationalization of
the curricula provide the theme for many national and especially international conferences.

According to 2014 pew Research, college graduates ages 25-32earn more each year than those with just
a high school diploma.Education is an influential step in staying competitive and enhancing your
skills.Whether you're starting out in your career or returning to continue to build upon your years of
experience,pursuing educational training helps you keep moving forward.

The following are the contributions of education planning towards employment.

Gain knowledge

This reason may be a given when you pursue an undergraduate or graduate degree, you're equipped
with practical skills and knowledge that you can apply to your workplace,For example,in a business
administration degree program, you'll learn best practices in accounting to understand the financial
aspects of your work in a management program you will learn leadership principles.This knowledge can
be both factual and practical, this means that the information you learn is not just interesting to know
but will be of great use in your current role and to whole use in in your current role and to where you
hope to go.

And just because you've reached a high level management position doesn't mean you should stop
learning.Undergraduate and graduate degrees can help build upon your experience and broaden your
skillset.

Enhance your soft skills

When you return to school, you learn for more than just different management styles or how to create
an influential presentation.You also learn more subtle but equally important skills.These so called soft
skills include strong abilities in areas like communication teamwork, critical thinking and problem
solving.Each of these talents can add value to your organization, wherever you are,And such skills can
give you the experience to be prepared and equipped to take that next step towards achieving your
goals.

Demonstrate a strong work ethic

Pursuing education in addition to your normal work routine will most likely not make your schedule
easier.It takes work and determination to achieve a degree but doing so will demonstrate a strong work
ethic to your team and your supervisors gives management hope that you can continue to be successful
in your work environment.And,if you're already in management,a committed and dedicated attitude
sets an example for your coworkers and your direct reports.

Boost your confidence for success

When you earn a degree, you accomplish a big step you can gain knowledge, skills and experience to
help you gain knowledge to help you both in your career and in life, education levels and findings
showed that those who reported higher confidence levels earlier on earned better wages and were
promoted quicker.

Education planning grow your social network

No,we're not talking about adding more friends on Facebook.In a classroom setting, you have the
opportunity to interact and meet with fellow students who may come from a variety of professional
backgrounds.In being exposed to a broader professional network through continuing your education you
can get.

In conclusion, through the above ways, education planning contributes largely to an employment.