Middle Income Trap
- 1. Stuck in the Middle? Human Capital Development and Economic Growth in Malaysia and Thailand
- 2. Sustainable Economic Growth • The role of human capital formation in the quest to sustain economic growth • Good education system is fundamental to equip workers with market skills • Focus on Malaysia and Thailand
- 3. Middle Income Trap If a country reaches a certain level of living standard but grow rate lose momentum, it may be in “middle- income trap” and would not advance to high-income status.
- 5. Role of education in economic growth - Output depends upon both quantity and quality of human capital -Human capital is endogenous -Positive association between test score and economic growth
- 6. What types of skills might middle income countries require to maintain momentum? A system stresses “STEM” S- Science T- Technology E- Engineering M-Mathematics
- 7. Creating a robust middle class is crucial for long-term growth. Middle class and long-term economic growth
- 8. Case studies
- 13. Economic Benefits of human capital Private – Better jobs, higher wages Social – Technology change and diffusion, health and life expectancy
- 14. Rate of return: The rate of return to each year of additional schooling in Thailand is more than double compared to Korean and Singapore which reflect the scarcity of skilled workers.
- 15. - Set budget priorities - Reward teacher appropriately - Avoid inflexible tracking of students - Provide autonomy with accountability - Invest in early childhood development - Finance higher education appropriately Education and the Options for Growth Prospects
- 16. Thanks