The Role of Education in Breaking the Cycle of Poverty
More than 808 million people live in severe poverty, making less than $3 a day, which accounts for 9.9% of the global population; according to a study by the World Bank in 2025.
Following the shift of the poverty line from $2.15 to $3 in 2021, the amount of people living in absolute poverty went up by 125 million globally. As for India, it prevailed with a relatively lower value of 5.25% of the population living under the poverty line.
Lack of money is only one aspect of poverty; other factors include restricted access to opportunities, necessary services, and resources to better one's future. Education is one of the best strategies for dealing with this problem. One's prospects of overcoming poverty are greatly increased by education.
According to UNESCO, a person's income might rise by as much as 10% for every extra year of education, and individuals who have completed secondary school are far more likely to find continual, official work. Beyond the workplace, education fosters the growth of critical thinking, problem-solving skills, and effective decision-making while also boosting self-confidence, skills that are required in the 21st century to create and market individualised services or products.
A good education can be the key to ending a lifetime of poverty for a child born into a low-income family, and ending a cycle of intergenerational poverty. As per UNICEF, children with educated moms had a 50% higher chance of surviving past the age of five and of finishing school themselves. Having access to education raises one's chances of going to college, landing a good job, and eventually improving their family's quality of life. People with a higher education are better able to maintain their families, contribute to the economy, and earn a steady income.
A population's higher levels of education are linked to greater economic output, innovation, and civic engagement. For instance, the OECD has discovered that nations with more fair educational systems had faster rates of GDP development over the long run.
Therefore, education is a vital economic policy for a country like India which has had a history of poverty and low education. India’s “The New Education Policy 2020,” recognises its role in increasing the aggregate supply of the nation, and simultaneously, pushing down the proportion of poverty.
A well educated worker results in a more productive workforce and an upturn in output, largely increasing the aggregate supply. The same will also lead to the worker with a steady income able to consume products and services, increasing the aggregate demand. When both go hand-in-hand, it creates the perfect situation for a reduction in poverty. Moreover, in a growing economy, where the tax revenue is higher, the government is more likely to spend a larger sum on education, allowing the same benefits to continue.
Citizens with higher levels of education are more likely to be aware of their rights, take part in politics, and support social and economic change. Additionally, they are more likely to mentor younger generations, launch enterprises, and pursue careers, all of which support sustainable economic development.
In conclusion, societies can lower poverty rates, and create healthier and more inclusive economies by investing in education. Ensuring that all children, regardless of background, have access to high-quality education is an important step in breaking the cycle of poverty.
- Malishka Jaiswal & Stuti Desai