Abstract |
This study aims to analyze and uncover the relationship between education (defined here as human capital) and economic growth in Indonesia. It is hoped that this study could provide explanations on the nature and magnitude in which education relates and contributes to economic growth and performance.The links between education and economic growth could happen in many ways. The links are also likely to involve a two-way rather than one-way relationship. This study attempts to do a broad based research on education and economic growth in Indonesia. The stream of analysis is done at three levels.1. The Macro-Aggregate Level (Human-Education-Skills)2. The Household Level (Human-Education-Allocation)3. The Ideology-Policy Level (Human-Education-Ideology) and The Institutional Level (Human-Education-Institution/Culture).Based on the three levels of analysis, it is clear that economic growth should not and cannot be simply viewed only in terms of physical or material phenomenon.Structural change occurs both at the physical and at the deeper ideological level. Economic growth has brought changes in both the society and the individuals. While it may provide support for a??physicala?? growth in the framework of human capital both in the household and national levels, education or schooling could have done better should it also be directed towards building an a??Indonesian Mana?? that is self-sufficient, independent and entrepreneurial. Only then, economic growth could be said to be a??self-drivena??, and not to follow the current pattern of dependence, either on FDI, international trade, or on oil. |