Impact of economy system on education

An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments.

By the economy or economic system is meant the type of sources of income and the extent of state control over these sources.

Types of economy
From the viewpoint of sources of income, the three types of economic systems are:
1. Agricultural economy - An applied social science that deals with the production, distribution, and consumption of agricultural or farming goods and services. 2. Commercial Economy - Those aspects of an economy that are tied to the exchange of goods, services, and labor activities that have a well-defined monetary value. 3. Industrial economy - the branch of economic science that studies industry as an integrated system of interrelated branches, sectors, and enterprises, or associations. Industrial economics took shape with the advent of large-scale socialist industry, which constitutes its field of inquiry.

From the viewpoint of economic structure, the three types of economy are : 1. Capitalist economy - an economy in which each person has the right to invest money, to work in business, and to buy and sell, with no restrictions from the state 2. Socialistic economy - A national financial system based on the public or cooperative ownership and administration of primary production capabilities. 3. Mixed economy - An economic system in which both the private enterprise and a degree of state monopoly (usually in public services, defense, infrastructure, and basic industries) coexist. All modern economies are mixed where the means of production are shared between the private and public sectors. Also called dual economy.

Economy and education

The economic system of a country has impact over its education directly and indirectly both. Firstly, the educational system follows the type of economic system; Secondly, the better the natural resources and human resources in a country, the better they are used, the better is the economic development of that country, and the more the country can spend on education.

Impact of economy on education 1. Economy and administration of education in mixed economy sources of income are distributed
between public and private sectors, so provision of education is the responsibility of both these. Of course, the responsibility and the right of policy formulation and administration of education rest with the government.

2. Economy and aims of education a country of society develops is consonance with its economic system, and the extent of education depends on this factor. The more widespread is education, the wider are its aims. A state cannot provide for good educational system in the lack of sources of income and economic prosperity3.economy and curriculum of education the curriculum of education depends on the type of economic system and economic development of a country. In an agricultural economy, more emphasis is laid on agricultural is education, while this emphasis shifts to industrial economies, and naturally it a commerce education in commercial economies. 4. Economy and methods of teaching at present, oral methods of teaching have been replaced with experimental methods of teaching, which requires well-equipped laboratories and workshops, as well as good means of mass communication. All these can be provided by economically developed countries. 5. Economy and discipline in socialist economic system, the state keeps a complete control over all fields, including education, and expressionistic discipline is established there. On the contrary, in a mixed economy, a balance between freedom and discipline is maintained.

Role of education in the development of economy

Education is a basic tool to cause human development, as well as construction, preservation and development of economic system. 1. Education and construction of economic system the economic system of a country depends on natural resources and human resources. The latter can be constructed by education. So it would not be out of place to mention that education is a basic tool of construction of economic system of a country. 2. Education and preservation of economic system the people of a country can be educated about the economic system only through education, so it would be pertinent to state that education plays a vital role in preservation of an economic system. 3. Education and modification and development of economic system highly educated people in the field of economics undertake research, compare merits and demerits of economic systems of different countries, and thus help in further development of economic system, sometimes it has to be changed altogether. Thus, education is a basic tool of developing the economic system of a country.

Conclusion:
It is evident that economic system and education influence each other. If it is true that economy has a role to play in determining the form of education, it is equally true that the education can effect modification and development of economic system of a country.