Potential of Higher Education for National Economic Development of Developing Countries

Abstract

As knowledge, skills and technology has become more critical for national economic development, policy interest in higher education has increased, because higher education plays a crucial role in equipping students with knowledge and skills of higher standards and creating innovative technology. Quality labor trained and new knowledge and technology generated by higher education decide productivity and competitiveness of a country’s economy. Despite its importance as a key policy measure for national economic development, higher education in developing countries did not get much attention in education investment strategies since investment focus of international donors like the World Bank was on primary education following the rate of return study results, and thus now faces serious challenges. Based on the analyses of the relationship between higher education and national economic growth and the problems of higher education in developing countries, this paper attempts to suggest strategic guidelines for designing and implementing higher education reform measures in developing countries with focus on collaboration among higher education institutions and industry and quality assurance of higher education.