Literacy and Economic Development

An Educated country is a developed country.education and the literacy level will go up. The
Literacy level plays a major role in the economicdemand in the industry is directly relational to the
development of a nation. If people are literate,demand in the education sector and in turn
then there will be minimum violence in the country.directly related to literacy level and vice versa.
Literacy leads to good employment opportunities.This is a circular flow of activities depicted in the
If literacy level is high in a nation, then there willdiagram below. The literacy level will make the
be more number of entrepreneurs and the flownation in demand. Recently, the economic growth
of money will be huge. If new enterprises comeof INDIA and CHINA are mainly due to the rapidly
up, the economy of the country grows with thegrowing literacy level in these countries.
amount of tax collected. New enterprises lead toIn the case of literacy level, both supply and
more employment generation and in turn reducedemand are increasing rapidly in INDIA and CHINA.
the unemployment rate. A Nation with a lowThe Population of both the countries is increasing
unemployment rate will develop very rapidly. Let'sand the education sector is increasing and the
elaborate on the above.literacy level is increasing and with it the economy
Literacy level is directly related to economicof both these nations are booming. Still, the
development. The cycle goes like this Literacybeautiful aspect of both these nations is although
leads to rise of entrepreneurs and newthe supply is increasing, the demand keeps on
enterprises which in turn provide employment andincreasing and so far no saturation point has
there will be huge demand for employment. Whenreached and it is expected to continue for the
there is demand for employment, there will be anext ten years. Both the nations have a strong
huge rise in the number of schools and colleges.literate teenage group and that is the power of
When there are more number of schools, publicthese nations growing into knowledge packed
can get easy access to schools and colleges atzones.
affordable costs. In this manner all will get