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This study was designed to analyze the direct and indirect economic impact of education on the developing countries. Specifically, the study seeks answer to these questions:

  1. How much is the adult population is illiterate or know only the basic reading skills?
  2. How much population of women is illiterate?
  3. How many children are uneducated?



As we know in today`s world, education plays a vital role in everyone’s life and we cannot even step forward in our life without education.Education is widely accepted as a leading instrument for promoting economic growth.

Our company XYZ is planning to donate $100,000 for the welfare of education.And has gone through various research and came to know that children women and elderly people having alack of education. The main reason of behind that is alack of funding and lack of knowledge how education is important for abetter career.

Some more believes that education is not important for women and some families cannot bear the expense of education related to their basic needs. (See figure 1) Whereas our company have some certain idea where the money will be put on behalf of education. The options are that we can give them


  • Books,
  • Promoting education,
  • Stationery,
  • Transportation and
  • Other supporting tools

After doing study we find that:

  1. As PerUNESCO, 26% of the world’s adult population is illiterate and 98% of all non-literates live in developing countries.
  2. One in every five people on the planet is with either no or just basic reading skills.
  3. There are two-thirds of the illiterate population is women.
  4. Due to the literacy rate the economy get effected in the way of its development.
  5. As we all know that due to inflation the cost of everything gets high even education got affected with it and due to this issues,children cannot afford the cost, the basic needs of education like books, stationery, etc.




The result of this research indicates in which areas we can donate money.



Donate money for children education:


  1. Developmental potential in the first 5 years for children in developing countries

Many children younger than 5 years in developing countries are exposed to multiple risks, including poverty, malnutrition, poor health, and unstimulating home environments, which detrimentally affect their cognitive, motor, and social emotional development. There are few national statistics on the development of young children in developing countries. We therefore identified two factors with available worldwide data—the prevalence of early childhood stunting and the number of people living in absolute poverty—to use as indicators of poor development. We show that both indicators are closely associated with poor cognitive and educational performance in children and use them to estimate that over 200 million children under 5 years are not fulfilling their developmental potential. Most of these children live in south Asia and sub-Saharan Africa. These disadvantaged children are likely to do poorly in school and subsequently have low incomes, high fertility, and provide poor care for their children, thus contributing to the intergenerational transmission of poverty. Introduction A Previous Lancet series1 focused attention on the more than 6 million preventable child deaths every year in developing countries. Unfortunately, death is the tip of the iceberg. We have made a conservative estimate that more than 200 million children under 5 years fail to reach their potential in cognitive development because of poverty, poor health and nutrition, and deficient care.


  1. Economic implications of poor child development


Disadvantaged children in developing countries who do not reach their developmental potential are less likely to be productive adults. Two pathways reduce their productivity: fewer years of schooling, and less learning per year in school. What is the economic cost of one less year of schooling? Studies from 51 countries show that, on average, each year of schooling increases wages by 9·7%.137 Although some of the studies had methodological weaknesses, this average matches another more rigorous study,138which reported that each year of schooling in Indonesia increased wages by 7–11%.

Both stunting and poverty are associated with reduced years of schooling.

  • Improving primary education in developing countries.

 Improving educational effectiveness is defined as increasing the number of primary schools whose students master the core knowledge and skills of the curriculum. Although poor-quality education exists at all levels, improvement is urged at the primary level, where children develop their basic attitudes and approaches to learning. Improving the quality of education for students in primary schools is a prerequisite for developing the human resource base required to meet the changing technology demands of the 21st century. A brief history of primary education in developing countries is presented. The most promising avenues for improving learning achievement are then reviewed, considering both cost and effectiveness. Issues looked at include improving the curriculum, providing learning materials, time for learning and effective teaching. Improving the preparation and motivation of teachers is considered regarding their general academic background, pedagogical skill development and motivation.



  1. Women`s Education, Autonomy, and Reproductive Behaviour: Experience from Developing Countries

Women`s access to education has been recognized as a fundamental right. At the national level, educating women results in improved productivity, income, and economic development, as well as a better quality of life, notably a healthier and better nourished population. It is important for all kinds of demographic behaviour, affecting mortality, health, fertility, and contraception, the personal benefits that women attach to education vary widely per region, culture, and level of development, but education empowers women, providing them with increased autonomy and resulting in almost every context in fewer children. Beyond these few general assertions, however, there is little consensus on such issues as how much education is required before changes in autonomy or reproductive behaviour occur; whether the education-autonomy relationship exists in all cultural contexts, always, and at all levels of development; and which aspects of autonomy are important in the relationship between education and fertility

  1. State of women Education

Several indicators- including measures of literacy, enrollment, and years in school- reveal important patterns and trends in women’s education in developing countries. Each of these indicators leads to the same conclusions: the level of female education in low in the poorest countries, with just a handful of exceptions, and by any measure, the gender gap is largest in these countries.


  1. Benefit of women education to their home and country

A mother’s schooling increases the educational attainment of her children, especially of her daughters. In many cases, it has been found to have a larger impact on children’s schooling than the father’s education. A study of female students enrolled in the public education system in Cairo found that the differences in measures of their self confidence were associated with their mother’s education. The more formal schooling the mother had, the more she gave praise and confidence to her daughters differed from those of less- educated mothers.


Education enhances women’s ability to exercise their rights and responsibilities. Violence against women in the home or on the streets has been associated not just with property but also with illiteracy, which prevents women from asserting their rights and protecting themselves through due process of law. These benefits and protecting themselves through due process of law. These benefits are as important in the lives of women as the economic and welfare benefits we have discussed.



Donation for adult population so they get educated

  1. State of education in adult population

 In 2010, the world population aged 15 and above is estimated to have an average of 7.8 years of schooling, increasing steadily from 3.2 years in 1950 and 5.3 years in 1980. The overall population over age 15 in high-income economies is estimated to have 11 years of schooling, compared to 7.1 years in developing countries. Both Sub-Saharan African and South Asian countries have the lowest at 5.2 years on average.

  1. Why adult population need to be educated

Recent evidence suggests, however, that higher education can produce both public and private benefits. The private benefits for individuals are well established, and include better employment prospects, higher salaries, and a greater ability to save and invest. These benefits may result in better health and improved quality of life. Public channels, though less well studied, also exist. One possible channel through which higher education can enhance economic development is through technological catch-up. In a knowledge economy, tertiary education can help economies gain ground on more technologically advanced societies, as graduates are likely to be more aware of and better able to use new technologies.

Our analysis supports the idea that expanding tertiary education may promote faster technological catch-up and improve a country’s ability to maximize its economic output. This research shows that Sub-Saharan Africa’s current production level is about 23 per cent below its production possibility frontier.

For several decades, development agencies have placed great emphasis on primary and, more recently, secondary education. But they have neglected tertiary education to improve economic growth and mitigate poverty. The Dakar summit on “Education for All” in 2000, for example, advocated only for primary education as a driver of broad social welfare. It left tertiary education in the background.



In contrast to this early view, recent evidence suggests higher education is a determinant as well because of income, and can produce public and private benefits.4 Higher education may create greater tax revenue, increase savings and investment, and lead to a more entrepreneurial and civic society. It can also improve a nation’s health, contribute to reduced population growth, improve technology, and strengthen governance. Regarding the benefits of higher education for a country`s economy, many observers attribute India`s leap onto the world economic stage as stemming from its decades-long successful efforts to provide high-quality, technically oriented tertiary education to a significant number of its citizens


Education is a vital piece of our life and it is we should have the right of education. But in some developing countries, people can’t afford to be educated because of low incomes and high expenses of education. Our company take a step ahead to donate $100,000 for education in developing countries. But we have a problem that in which area we must donate money that is more beneficial for our economy.

Education for children are important but we do not neglect the education for women’s also and if our elder population is educated then they earn high income and pay taxes so that the economy have good effects which is also important.


On the basis of these findings, we recommend that the child education is most important because child means both girls and boys and if girls educated then their whole family will be educated and it will give positive impact to the growth of our economy.

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