Formal Education and the Economy
Formal education is a “systematic, organized education model, structured and administered according to a given set of laws and norms, presenting a rather rigid curriculum as regards objectives, content and methodology.” (Claudio Dib) Formal education caters to the needs of an industrial economy with its main focus being on producing skilled and specialized workers. Formal education is a necessity for economic growth and development of countries. In the Commonwealth Caribbean education has many functions such as socio-political stability, alleviation of poverty and enhancement of economic growth to name a few. The formal education system has several priorities such as the transmission of knowledge and skills, attitudes and values which is a part of socialization and the assignment of individuals to different roles within the society. No country can achieve sustainable economic growth or development without substantial investment in its education system.
It is true that education services the economy but what about the type of education that is being offered? Does it push for national development or economic growth? In order for education to service the needs of the economy, it needs to be rationalized to the socio-economic capability of the country. To grow is to “increase naturally in size by the addition of material through assimilation or accretion.” (Merriam Webster) To develop is to “expand or realize the potential of…to bring naturally to a fuller, greater or better state.” (Merriam Webster) When something grows it gets bigger; when it develops it gets better. In Barbados, the natural resources are very few and they are not finite. The country is not a competitive one and it depends heavily on the North American economy. Therefore when there are changes in that economy and in the world trade such as recessions, the country’s sustainable growth and development will suffer or be very limited. Despite the many aspirations of the education systems within the Commonwealth Caribbean there are still high rates of educated underemployment and unemployment that exist. Here in Barbados, education as the key to success is reinforced and stressed. Education gained from primary level to tertiary level is free and the secondary school system is known to be one of the best in the world. Despite this, the country is faced with increasing debt and high rates of underemployment and unemployment. The University is producing more graduates than the economy can absorb. There needs to be extensive changes within the internal and external structure and relations of the education system in order for it to service the needs of the economy. The tourism, sugar and the service industry in Barbados for example, present only a limited amount of opportunities for educated labor. Education can then play a major role in the economic growth if it is rationalized to the socio-economic capability of the country.
There are many views about the role that formal schooling plays in the growth of an economy. It is necessary that the type of country and its current state is looked at in determining what extent should education service the needs of the economy. It is beneficial when the country invests in its human capital because they are then able in turn to contribute to the economy. It would be a mere waste of time if the country is consistently providing education that will not benefit the economy. This is emphasized for many of the developing commonwealth countries whose economies are struggling. What they are being taught in school should at the end not only foster their personal growth but also build the country as a healthy and well functioning body. If the education system is suffering greatly, then the economy will therefore suffer. It is therefore important that barriers to learning are identified and addressed; such improvements will reap benefits in quality, quantity, equality of human capital and most of all economy growth and development.