How do literacy rates connect to poverty and economic growth?

Question

is a country developed because it has literate people

or do literate people make a country develop?

Answer 1

There is interdependence of these variables - they both cause and require each other in order to improve. Literacy (education) helps make more rational choices thus means development of human resources and since human resources are human capital (labor) which involved in decision making and process of production in economy (thus economic growth) - so they both cause and effect of each other.

Answer 2

Generally speaking, lower literacy is found in countries that suffer form poverty and low economic growth. However, some emerging countries with large populatin are growing faster and reducing the poverty incidence from high levels. despite relatively low literacy, because the literATE population is also high. And, in these countries literacy is also improving. Inmature advance countries, already literacy level is close to 100%: the difference in their growth rates depend more on sound macro-economic policy and the advances in science in technology as well as the quality of education.. In these countries poverty incidence is negligible and growth rates are not very high as compared with emerging poor countries like China or India grwing at rte of 8%-10%. This is because when you are already in high GDP per capita level, the future growth will be small because of the effect of high base.

But talking of developing countries, literacy helps contribute better citizens and more productive workers with ability to deal with higher technology. So the developing countries try to improve literacy rates so as to improve economic groth and reduce poverty. Again, as economic growth takes place, poverty tends to reduce and people tend to go in to get literate and educated.: when the poverty levels are high they are busy along with their children to earn livlihood and cannot affort time for getting literate and educated..

So under different conditions, literacy, poverty and economic growth interact in different ways.