Question

Juan has been doing some research on countries in Europe and Africa. Juan has observed that European countries are wealthier and that they have a higher percentage of workers who are college educated. Therefore, Juan concludes that sending more Africans to college will increase economic growth and wealth in Africa. Discuss the validity of this conclusion.

Answer 1

Although there is a positive correlation between wealth and education, however it does not imply that education itself is solely responsible for the amount of wealth accumulated. There seems to be a limit to the degree to which education can make people wealthier. Thus a strong correlation exists between education and wealth, however not-so-strong causation. To sustain its economic growth, Africa will need improved macroeconomic management, pro-private sector growth policies, opening up to foreign trade and investment, population growth and urbanisation, strengthened governance and rule of law, booming markets for natural resources, and a drastic reduction in conflict and political instability.