Higher education has in the past contributed to development by providing national Economy with the necessary human resources but criticized for not dealing directly with poverty reduction issues. The first argument is that higher education can contribute to economic growth by supplying the necessary human resources for a knowledge driven economy, by generating knowledge, and by promoting access and use of knowledge. The second argument is that higher education has the potential of increasing access to education and in turn increasing the employability of those who have the skills for a knowledge driven economy (Clayton, 1999). The third argument is that higher education could play a role in supporting basic and secondary education by supplying those sub-sectors with trained personnel and contributing to the development of the curriculum.
In recent years, there has been a growing emphasis on the local and regional role of higher education, to the extent that over three-quarters of institutions now refer to local and/or regional objectives in their strategic plans. At the same time there have been a number of attempts to measure the impact of higher education at local and regional level.
Studies have shown that higher education providers make a significant economic contribution simply by their existence in a locality, whether or not they adopt an explicit mission to generate local or regional economic activity or to play a part in the cultural life of their locality or region (Clayton, 1999). This reflects their size, both relative and absolute, in the local and regional economy, and is enhanced by the multiplier effect which they exert (i.e. the additional economic activity generated for every unit of expenditure by the institution).
It is believed by our society that the higher an education a worker receives, the greater his productivity.................
