The Power of Education Policy

 

by Amory Gethin

 

Education has been and can continue to be at the center of global poverty

reduction

 

The world economy has experienced a remarkable transformation over the past four

decades. Global GDP per capita doubled in real terms, driven by the rise of

China and India and by significant growth elsewhere. Much of these gains accrued

to the global poor.

 

The proportion of the world’s population living below the international poverty

line of $2.15 a day dropped from 44 percent in 1981 to 9 percent in 2022,

according to the World Bank.

 

What was behind these developments? Recent research points to education as one

of the main drivers of inclusive growth. There has been an unparalleled

expansion of access to schooling over the past 50 years, in high-income and

low-income countries alike. This generated large productivity gains, especially

for those living in poverty. Education accounts for fully half of total economic

growth and two-thirds of real income gains among the world’s poorest 20 percent

since 1980, based on my findings in a recent paper (Gethin 2023).

 

This calls for a continued focus on expanding access to education. New