Blog post: Is education the best tool to reduce income inequality?
Income inequality is a worldwide problem present in both developing and developed countries such as The United States where 20% of the national income is earned by the top 1% of its population. We live in a world where 50% of the population earns less than 10% of the total income produced in the world. This disproportionate distribution of wealth causes some of the biggest problems in the world such as poverty, unemployment, political instability and violence.
A survey by The World Economic Forum for the 2014 edition of their Global Agenda showed that countries should pay special attention to the influence of education on economic development in the next decade. Education was found to be the single best solution to income inequality In Asia and Latin America, being more effective than tax policies, social welfare and even redistribution policies. Also in Sub-Saharan Africa education is one of the most effective measures to reduce income inequality together with new job creation and workforce development.
Education is becoming the principal engine to drive economic growth in all regions of the world, especially in developing countries. An important question for governments and education organizations is if they are ready to support and fulfill the growing demand for it.
Based on education statistics from several developing countries we found that for every 10 students that start their primary education, just 1.5 students will finish their studies with a University Degree. Several factors explain this result such as insufficient governmental budget to support education, the lack of educational infrastructure and students’ forced abandonment of school for work to support their families.
At Brighter Investment we believe that education is the principal solution to eradicate poverty and drive economic prosperity.Our innovative approach provides education opportunities to students from all over the world, bridging the existing gap between the supply and demand of education.
If you would like to learn more about our unique approach, visit our website’s portals for students, investors, universities or high school teachers.