Essay About Basic Education And Government Expenditure

Measures of Economic Growth
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1. Measures of Economic Growth
Gross domestic product (GDP)
overall economic activity. It represents the total value at constant prices of final goods and
services produced within a country during a specific period, such as one year (Callen, 2017;
Parkin, 2016).
Macroeconomic stability is needed to be considered as well when a country wants to increase
their GDP. Macroeconomic stability is dependent on the structure of key markets and sectors
to sustain high rates of economic growth. It can be a
lessened its vulnerability to external shocks and it is vital for sustainable rates of economic
growth (Wessels, 2006).
To enhance to support
macroeconomic policies adjustments to expand fiscal deficits and structural reforms in areas
such as economic liberalization, capital account liberalization, corporate restructuring and
financial restructuring. (Ames, et al., 2001).
1.1 GDP = C + I + G + (X – M)
GDP is the sum of consumption expenditure (C), investment (I), government expenditure on
goods and services (G) and net exports of goods and services (X M).
So long as one of the components in the GDP formula increases, there will be an economic
growth. In order to attract more investments which will in turn spur on the increase on
consumption and export, we will need to increase government spending. Government
spending will create a multiplier effect known as the government spending multiplier.
It is the ratio of change in the output to the change in government expenditure. This will
encourage growth in investment. Consumption expenditure will also increase due to the
multiplier effect. In long term, the overall productivity will increase, GDP will increase as
well (Parkin, 2016).
This paper will explore and discuss on some of the policies that Singapore and South Korea
governments had implemented to sustain economic growth and macroeconomic stability on
the note that endowment of natural resources is not available for both countries.
2. Knowledge-based economy (KBE)
Knowledge is becoming an increasingly critical stimulant of a countr
globally (OECD, 2018). Under KBE context, knowledge plays an important role as a part of
the economic processes where production, distribution and knowledge usage are the main
driving forces of economic growth and employment in all the industries (OECD, 2005). It is
noted that the wards a KBE now.
3. Four aspects of KBE Framework
Economic growth is most sustainable for countries with the following aspects to flourish
under the KBE framework.
3.1 Human resources development (HRD)
HRD is inevitable. Basic education and lifelong training is pervasive and a long-term
investment. It is important for the government to invest in and develop human resources to
close knowledge gap amongst its citizens (OECD, 2005).
South Korea recognised the importance of education and devoted much of its resource in this
area. The government developed and introduced a comprehensive education fee support
system to target students from low-income household who need educational fee support
(Ministry of Education, Science and Technology, 2008). Government had made efforts to
provide free early childhood education to reduce financial burden on households for
expenditure on education and financial investment to increase a fair access to higher
education and initiatives to improve quality of education at all levels. (OECD, 2016)
In Singapore, basic education is mandatory as well. The Compulsory Education Act (Cap 51)
was passed by the parliament on 9 October 2000. Government had implemented the
Compulsory Education (CE) in 2003 with two main objectives: to provide common core
knowledge to build up a strong foundation for further education and training, and to build a
national identity and cohesion (Ministry of Education, 2018).
Singapore Workforce Development Agency (WDA) established in 2003 was reconstituted
into a new statutory board, Workforce Singapore (WSG) in 2016, with the aim to encourage
lifelong learning through SkillsFuture Singapore (SSG) and enhance employability where one
can upgrade their skill sets to assume quality jobs and careers in the competitive market
(Ministry of Manpower, 2016).
3.2 Innovation systems
Innovations and technologies advances every day and are seen to be of a significant role to
facilitate industries that revolutionise existing business models. It emphasized the flow of
technology and information to enhance innovative performance of KBE (APEC Economic
Committee, 2000). Acknowledging the impact of the innovation system can have to the
economy, governments