What steps can governments and policymakers take to ensure that education remains a priority amid competing societal and economic challenges?
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period, typically a year. GDP, by expenditure method, is calculated as: GDP = Private consumption (C) + Government spending (G) + InvestmenRead more
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period, typically a year. GDP, by expenditure method, is calculated as: GDP = Private consumption (C) + Government spending (G) + Investment (1) + Exports (X) Imports (M).
- Payment of pensions to retired government employees: It is included in the GDP as it is a deferred wage. It is part of payment for factor services rendered by the recipients prior to their retirement. However, old age pension is not included in the GDP accounting as it constitutes transfer payments.
- Income from the sale of an old car: It is not included in the GDP since its value has already been included in the GDP of the year in which it was produced. Including it in the GDP will be equivalent to double counting. However, commission earned on the sale of the old car by agents will be included in GDP accounting of the current year.
- Interest on national debt: It is not included in the GDP as interest is paid upon the borrowing/loans taken by the government to fund its consumption expenditure and no productive activity is linked with such loans.
- Foodgrains produced by farmers for their own consumption: Foodgrains used for own consumption form a part of the private consumption. Producing foodgrains has an opportunity cost in terms of factors used for production. Equivalently, it would have generated income, had the same foodgrains been sold in the market. So, an imputed value of foodgrains used for own consumption is included in the GDP.
- Services provided by housewives: These are not included in the GDP because they constitute personal services rendered within the household or family. These services are not marketed and it is hard to assess monetary value of such personal services.
Thus, GDP is limited in the sense that it only measures the market value of final goods and services produced in an economy in a given period of time.
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Government and policymakers can do a couple of things to keep education a priority. Among these are: -Increased Funding; Allocating more funds into education specifically public schools and higher education institutes. -Targeted Spending: Funding for early childhood education, teacher training, andRead more
Government and policymakers can do a couple of things to keep education a priority. Among these are:
-Increased Funding; Allocating more funds into education specifically public schools and higher education institutes. -Targeted Spending: Funding for early childhood education, teacher training, and specific infrastructural development.
-National Policy Reforms include:
-Quality Assurance: High quality assurance standards for both educational institutions and training programs for teachers.
-Accountability: A monitoring system of results and accountability.
-Policies in Inclusive Education: Formulate inclusive education policies to cater to the needs of diverse learners such as students with disabilities and marginalized groups.
New Directions:
Digital Learning: Exploiting technology for improving learning experiences in particularly those areas with little access. Lifelong Learning: Extend Learning Opportunities for all age segments. Skills Development: Place education in tune with industry to create employable graduates.
Public-Private Partnerships:
-Collaborate: Bring government, private sector, civil society together to pool resources and expertise. Incentivize: Provide tax incentives and other benefits to induce private sector benefits to the education field.
These measures will ensure that education always remains at the top of the priority list, producing a workforce of skills, social mobility, and the engine of economic growth for governments and policymakers.
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