1. Is Education Key to the Growth? Motoo Kusakabe

2. Have we achieved a progress in Education? Improvement in last 30 years Primary Enrollment Rates nearly 100%, except for Sub-Saharan Africa, (78%) One in Four adults in developing countries are illiterate (47% in 1970 to 26% in 1998) Entire decrease in illiterate since 1990 has been achieved in East Asia

3. Still There are problems 110 million children are not in school, of these 60% are girls In Sub Saharan Africa, 12 countries net primary enrollment rates are less than 50% 15 countries declined enrollment from 1990 to 1997

4. Why Education so important to Growth? Increase the number of labors in efficiency units Different skill is needed for higher technology industries Contribution to technological progress Mothers’ education is important for the health of children

5. How to measure the economic impact of education? Micro: Calculate the rate of return of education by the incremental life-time income divided by cost of additional education Macro Schultz & Denison made a growth accounting estimation including the quality of labor Historically Growth is preceded by high literacy rate, (Japan, Korea)

6. What are the rate of return on Education? Rate of return on Education is much higher in developing countries (17% vs. 12% for secondary education) Rate of return on Primary education (26%) is higher than that of secondary education(17%) which is higher than that of university education (14%) Private rate of return is higher than social return

7. Why investment in girls ’ education so important? Increase the number and quality of labor force Lowers infant and child mortality rates Lowers maternal mortality rates Educated Mothers will give better education for their children Girls’ education gives higher rate of return

8. Does Human Capital actually increase Growth? Benhabib & Spiegel: Human Capital growth has insignificant and negative effect in explaining per capita income growth Pretchet: Increase in educational capital had no positive impact on the growth rate of output per worker.

9. Why education has no growth impact? Schooling may not create real cognitive skills, Demand for educated labor is small and saturated Educated persons will engage in activities not contributing to economic growth