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Does literacy correlate with economic growth?

By Finserv MARKETS - Sep 4,2019
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Does Literacy Correlate With Economic Growth

Literacy is considered to be a stepping stone to success. And when individuals succeed, it benefits their surrounding communities. A country’s primary assets are its people and if a population is literate, it can allow them to secure well-paying jobs or even set up establishments which can employ people and thereby drastically reduce unemployment and subsequent poverty. All of these measures will significantly impact economic growth in a positive manner.

For instance, in 1900, Spain and Finland were similar in a lot of ways since they were both underdeveloped, mainly agricultural countries with a literate population of less than 40% and a similar per capita income. Fifty years later, Finland’s per capita income was double than that of Spain’s and secondary education was being accessed by all sections of the society while in Spain, illiteracy remained a widespread problem. Despite Spain’s economic development and increasing access to education for its citizens, even 70 years later, Finland’s per capita was higher than that of Spain’s as is the level of education in its citizens.

Literacy plays a large part in determining the economic growth of a nation because it improves the human capital of a country. Since human capital is one of the major factors of production, a country’s economic growth is largely dependent on how literate its human capital is.

The importance of literacy in India cannot be overstated, however, the rising costs of education act as a dampener. Education costs are consistently rising and aided by inflation, education and especially higher education is expected to get even more expensive. However, options like education loans, available on Finserv MARKETS, can help individuals attain a higher education quite easily. The personal loan online application can be completed in a matter of minutes with you uploading certain documents that prove your eligibility, and you can borrow up to Rs. 25 lakh. This portal allows for loan applications to be approved in as little as three minutes, and the loan amount will be credited to your bank account within 24 hours.Read on to learn about how literacy in India can lead to a definitive impact on the nation’s economic growth.

  1. Literacy helps individuals escape poverty

Poverty is often the direct result of illiteracy which leads to unemployment. If people are literate, they can secure jobs and leave poverty behind. As more and more people are uplifted from poverty and become a part of the literate workforce, the country’s economic growth is bound to accelerate. Throughout the world, literacy has been one of the major factors that has helped people upskill and leave behind poor economic situations. For instance, one of the foremost social reformers in India’s history Jyotirao Phule belonged to a socially and economically backward family but was able to radically change the fate of many young people owing to the education he received despite having been withdrawn from school by his family at a young age.

  1. Literacy brings down infant mortality rates

Illiteracy and subsequent poverty leads to several ill effects on an individual’s health and well being. Infant mortality rates are highest in nations where the women are uneducated since they do not know the basics of nutrition or childcare. This leads to soaring infant mortality rates. However, if women are educated and taught about the basics of offering primary care to their offspring, infant mortality rates can be significantly reduced. If infant mortality rates are lower, the workforce of the nation will grow and profit, and thereby positively impact economic growth.
Education can be attained at any age or stage in your life. Plans like the education loan, available on Finserv MARKETS, can help people avail up to Rs. 25 lakh in less than 24 hours and repay it over a flexible repayment schedule. The personal loan online application ensures that availing the loan is a smooth process, and you can focus more on securing a decent education.

  1. Literacy can empower women

According to the figures quoted by the latest Census, India’s women account for 48% of the total population. However, women in the workforce constitute only 27.2%. This is a huge gap considering the amount of human capital potential that is being wasted. If women are educated, they can contribute more significantly to the nation’s growth and thereby help in economic growth as a whole. Women form a major part of the nation’s primary sector, namely agriculture. While this sector employs the largest number of people, its contribution to the economy is less than that of the secondary and tertiary sectors. A major reason for this is the mostly illiterate labour force that works on these agricultural fields. Since women constitute close to half of the country’s total population, it is essential to educate them while ensuring literacy in India, so they can prove to be assets in building the economic growth of the nation. Jyotirao Phule went on to teach his young wife Savitribai in a time and age when it wasn’t customary for girls to be educated. However, Savitribai is now remembered as one of the doyens in the field of ensuring literacy of women and made a huge difference to the lives of thousands of young girls and their families.

A large part of the reason that people remain illiterate in India is because of the high costs associated with education. Personal loan for Education, available on Finserv MARKETS, can largely help alleviate education costs which are rising consistently. Up to Rs. 25 lakhs can be credited into your bank account at attractive personal loan interest rates within 24 hours of you filing your personal loan online application. Since the loan can be repaid flexibly over a period of 12 to 60 months, it ensures a hassle-free education.

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