The English term ‘Economics’ is derived from the Greek word ‘Oikonomia’. Its meaning is ‘household management’. Economics was first read in ancient Greece. Aristotle, the Greek Philosopher termed Economics as a science of ‘household management’.
Economic foundation of education refers to those factors of individual and collective economic development which are considered during the formulation of a system of education for a nation.
A struggle for the fulfillment of material needs of the individuals is the fundamental subject of economics. Education develops the potentials and abilities of the individuals for the fulfillment of these needs. It can be clearly seen that there is a close relationship between education and economies.
Concept of Economic Foundation of Education
Education is playing important role to control unemployment throughout the world ‘‘One of the best ways to tackle youth unemployment and to support economic and social growth is through education’’
Relationship between Education and Economies
Education paves the way to the fulfillment of the economic needs of the individual and society. This close relationship between education and economic needs has been acknowledged by the leading educational economists of the world.
Education trains the individual of the society and. prepares them participate in the economic-oriented activities in the society. This training provides necessary skillful manpower.
A trained and skillful society is, basically a economically stable society.
Research in education has brought about many new theories of economic development. These theories have opened new vistas of economic growth.
Education uplifts the standard of living of the individuals.
Economic prosperity leads to the social stability. All these changes are the product of education. A financially satisfied person performs his social role effectively and efficiently.
Scope of economic foundation education
Education economics or the economics of education is the study of economic issues relating to education, including the demand for education, the financing and provision of education, and the comparative efficiency of various educational programs and policies. From early works on the relationship between schooling and labor market outcomes for individuals, the field of the economics of education has grown rapidly to cover virtually all areas with linkages to education.
IMPORTANCE OF EDUCATION ON THE ECONOMY
Education is one of the key drivers of growth performance, prosperity, and competitiveness in national and global economies.
Universities and other institutions not only deliver tertiary education and ongoing skills training, but also provide a bustling research environment that produces innovations with valuable commercial applications. There are many importances of economic education such as.
1) Create a Quality Workforce
The modern workplace is in a constant state of evolution. Even within the last decade, job roles and the skills required to succeed in them have changed enormously, with technological advancements being a key factor. The higher education sector is pivotal in delivering training to student at all stages of their careers.
2) Drive Innovation
A key role of education institutions is to drive innovation, with the aim of finding solutions to global challenges in areas that matter to society. The wider economy benefits from university research and innovation as it drives investment.
3) Increase Employability
Higher education institutions are critically important here. Universities should be proactive in arranging opportunities for current students to develop industrial expertise through work experience and internships.