Professional Documents
Culture Documents
Paper to be Presented
At
Special Session
On
Sixteenth International
Input Output Conference
At
Istanbul Technical University, Istanbul
(Turkey)
2
ABSTRACT
There are many educational indicators like literacy rate, gross enrollment ratio, net
enrollment ratio, drop out rate, gender disparities etc. As a result of growing awareness
and government efforts, literacy rate in India has increased from 18.3% in 1951 to 64.8%
in 2001. However the increase has not been as expected due to government apathy and
lack of political will. The growing need of education has been accompanied by a decline
in public spending on education per capita and a consequent fairly rapid privatization of
education. This has come about not only because of inadequate state expenditure and the
downgrading of many government educational institutions and their services, but also
because the hunger for education has made it an extremely profitable private sector
activity. As against the target of education expenditure at 6% of GDP by the NPE, the
combined expenditure on education by centre and state governments was 3.74% of GDP
in 2003-2004. But there is mutual relation between education and economy.
*
Reader, Department of Economics, Agra College, Agra
**
Reader & Head, Department of Economics, Govt. Girls P.G. College, Sirsaganj,
3
X = ( I − A) −1 f ………………………….. (1)
n n
TRLE = ∑ Vi Ai j + ∑ V j A ji ……………………… (2)
i =1 i =1
Where Vj value-added per unit of final demand for jth good, and A ij and Aji are elements
Leontief Inverse. Let j-denote education sector
Introduction
Economic development of any country necessitates economic
resources and human resources. Thus, human development for an
economy is a vital necessity. A basic component of human
development is education. It captures capability of acquiring
knowledge, communication and participation in community life.
According to Human Development Report (1993), literacy is a person's
first step in learning and knowledge building and as a result literacy
indicators are essential for any measurement of human development.
4
Education holds the key to progress for any inclusionary society and
the government, acting as an instrument in providing education bears
an important responsibility. In India, education has been put on
concurrent list of VIIth schedule of the constitution. Although the
central government plays a key role in the development and
monitoring of educational policies and programmes like the National
Policy on Education (1986), the state government bears the
responsibility of implementation of these policies. Through the National
Policy on Education and several measures subsequently taken by the
Government especially through the 83rd and 86th amendments of the
constitution, now education has been declared as a fundamental right.
The primary objective of the National Policy is to obtain universalisation
of elementary education through programmes like District Primary
Education Programme (DPEP) 1997 and Sarva Shiksha Abhiyan (SSA)
launched in 2001.
Assumptions :
Analysis :
Nowadays, primary education consumes nearly 57.05 per cent of
the total plan expenditure of the education sector. Leaving the 43 per
cent to other sectors. The programmes like the Sarva Siksha Abhiyan
are giving greater emphasis on universalization of primary education. If
we rely on the statistics of the government, then the gross enrollment
ratio for boys in primary schools is more than 100 per cent and for girls
it is around 84 per cent.As a whole the GER is around 95 per cent
(Government of India, 2001-02). Practically, this high enrollment ratio
does not reflect in the final pass out from class V, because the drop out
rate was as high as 39 per cent in 2001-02 (Bhat and Padder, 2006).
However, the proportion of public expenditure on education to GDP
started increasing around the mind 80's and there has also been an
improvement in the share of elementary education (Tyagi, 1993,
p.123).
1402.9 839.39
+146.72
39350.8 16820.46
= − 748264615 ≠ 0
L
M839.39 1067.49 1402.9 1067.49 1402.9 839.39 O
P
−
M
16820.46 7288.74 39350.8 7288.74 39350.8 16820.46 P
M P
M
3 M
1623. 146.72 382.03 146.72 382.03 1623
. P
P
bI − Agij = bg
−
M −
39350.8 16820.46 P
M
16820.46 7288.74 39350.8 7288.74
M P
P
M
M
1623
. 146.72
−
382.03 146.72 382.03 1623
. P
P
M
N839.39 1067.49 1402.9 1067.49 1402.9 839.39 P Q
10
L
M
−11837577.38 3178121214 . −9433244.68O
P
− M
bI − Agij = bg 1284935.389 −2989032.034 −39285.494 P
3
M
M P
P
N 50098 . 3263 − 201979 .7167 929814917
. Q
L
M
−11837577.38 1284935.389 50098.3262 O
P
− M
bI − Agji = bg 3178121214 . −2989032.034 201979.7167P
M
M P
P
N 9433244 .68 − 39285 .494 929814917
. Q
L
M
−11837577.38 1284935.389 50098.3262 O
P
bI − Ag−1 = + 7482645161
M
M 3178121214 . −2989032.034 −201979.7167P
P
M
N−9433244.68 −39285.494 929814917 . P
Q
L
M
−0.015820041 171722057 . 6.69526852 O
P
= +M 0.042473226 −3.994618981 −2.699308676P
M
M P
P
N− 0 .012606829 − 5 .250214057 1242628474
. Q
L
M
−0.015820041 171722057 . 6.69526852 O L
P M
95O
P
bI − Ag−1 = + MM 0.042473226 −3.994618981 −2.699308676P M
P M80P
P
M
N−0.012606829 −5.250214057 1242628474 . P
QN M
15 P
Q
L
M
−0.015 1717. 6.695 O L
P M
95O
P
=+M 0.042 3.994 2.699 P M 80P
M
M P
P M P
N − 0.012 5.250 − 1242
. Q NP
M 15 Q
L
M
236.36 O
= +M356.015P P
M
N40251 . P Q
After the calculations the final input-output matrix that will be
formed where I, II and III represent primary, secondary and higher
education, respectively.
Input-output Table
Pattern of
Input-
I II III C expenditure
output
on education
I 383.03 x 162.3 x 146.72 x 95 236.36
236.36 356.015 402.51
11
Conclusion :
The pattern of growth of the education sector in India, based on
the assumption of the future requirements of the economy shows that
the higher expenditure on primary education does not fulfill the needs
of the economy as a whole. If, we want to develop the economy in the
new era of globalisation, then the public expenditure on secondary
education and on higher education must be increased. Unless the
expenditure on secondary and higher education is increased we cannot
produce the skilled manpower as per the requirements of the various
sectors of the economy especially the industrial and service sector. The
authors are of the view that the expansion of secondary and higher
education should not be brought about at the cost of reduction in
expenditure on primary education. Rather the allocation for secondary
and higher education should be increased proportionately. If public
expenditure on these two sectors of education remains short of the
requirements then the gap should be filled up by involving the private
sector with proper safe guards. The private sector in education should
not be allowed to function purely on profit making motives. Hence a
highly empowered regulatory framework is required to monitor the
working of the private sector in education.
References :
Basu Kaushik, 2006; India's Faltering Education System; BBC News,
http://newsvote. bbc.w.uk/mpapps/south-asia/4793311.stm.
Tyagi, P.N., 1993; Education for All : A Graphic Presentation, New Delhi,
p.122.