Fix Nigeria’s Education Sector, And You’d Be Fixing Nigeria
Studying macroeconomics, you learn the major driving force of any country’s economy is it’s aggregate demand, as well as aggregate supply. Aggregate demand is the total amount of demand in a country and it’s components are; consumer spending, Investment, Government Spending, and exports minus imports. Whilst aggregate supply refers to the total production of goods and services in an economy and it’s components are consumer expenditure and savings.
In the short term, economic growth is caused by an increase in aggregate demand (AD). If there is spare capacity in the economy then an increase in AD will cause a higher level of real GDP.
But what Nigeria or any country ideally wants is long term constant growth. This is achieved by an increase in aggregate supply, because it increases the nation’s potential.
There are different ways to increase aggregate supply, each having different effects and consequences but my main focus of this article is the use of supply side policies.
Supply-side policies are mainly micro-economic policies aimed at making markets and industries operate more efficiently and contribute to a faster underlying-rate of growth of real national output.
Successful supply side policies have the effect of shifting the LRAS curve to the right (increasing long run aggregate supply) leading to a rise in potential output. An improvement in the supply-side performance of an economy is the key to achieving sustained growth without causing a rise in inflation. Supply-side policies alone are not enough to achieve this growth though. There must also be a high enough level of Aggregate demand so that the productive capacity of an economy is actually brought into play.
Better education and training to improve skills, flexibility, and mobility — also called human capital development, are a form of supply side policies i believe could do a lot for Nigeria and will be what I explain in the rest of this article.
Rapid and continuous economic growth cannot be achieved, in a country, if less than 40% of its occupants are illiterate.
One of the greatest benefits we get with education is improved health. If citizens of a country are well educated on causes of several diseases and infections, as well as importance of diet, they’d be more cautious of how they move and interact with people, and what foods to eat and not, reducing the chance of any disease being caught and improving general health. This will in turn reduce the number of sick days people take off work, as well as allowing the government to spend less money on funding the public health care sector and can use the money on a different public sector to help improve the nation.
Proper education also means higher wages and economic growth and a better way of life. For example, each additional year a child spends schooling, will increase his or her wages by 10%. Higher earnings automatically mean economic growth. Very few children in rural areas gain the necessary education to earn higher paid jobs. This once again, brings them back to the same predicament, where they are unable to support families and put their children to work at an early age repeating the cycle.
Increased higher wages for the people in a country will mean an increase in gdp which is economic growth, helping the country become more and more economically developed.
Higher wages for everyone will also mean financial crime rates will drop as more people are content with their income and don’t feel the need to engage in criminal actions to obtain more money.
I also believe, another way to improve Nigeria’s education sector in order to increase economic growth would be to reform the Nigerian School curriculum so that more vocational skills are taught so the skills can be taken by the students directly into the real world to be put into the real world to gain an instant income.
The scenario’s stated above are only a few benefits that would come along with the Nigerian government investing more and more in it’s public education sector. I feel the nation has so much potential and with the right government policy’s taken, can be on it’s way to a flourishing economy.