The initial intend is to formulate a medium term strategy for raising the country’s per capita Gross Domestic Product (GDP) over the next 15 years. To maintain this strategy government has embarked the funding of $ 2 billion.
The committee decided in previous meeting that funding of $ 2billion should be devoted to policy measures that will raise the country’s rate of enrolment in secondary. The committee also estimated that this funding will boost the secondary school enrolment rate up to 10%.
However, the country has experienced a financial collapse since the previous meeting committee. It is argued by the committee that by providing crisis financial support at present, the government can avoid the banks from shrinking their balance sheets and maintain a strong and lively banking sector, in order to maintain the targeted growth in its per capita GDP over the medium term.
It is estimated that a drop in the ratio of private credit by deposit money banks and other financial institutions to GDP, from the current figure of 0.52 to an estimated 0.38 if the $ 2billion allocated to the banking sector.
It has to investigate the empirical evidence as to whether the sum of US$ 2 billion would be spent more effectively on boosting secondary school education, or on bailing out the banking sector.