What is the Relationship between Gross Domestic Product and Literacy Rates?
No direct contemporaneous relationship. For example, some economies in the Gulf used to have high GDP (due to oil) but low litteracy rates. If you think of GDP per capita, which is GDP/number of people ($1b spread among 1million people is $1K per head, but among 10million it’s just $100), the relationship might be slightly stronger, but the same comment as above applies. The thing is that litteracy rates are more of a educational system/policy, legal framework and a product of time, not necessarily GDP. For example, Albania has extremely high literacy rates (38th in the world) but on relatively low GDP (112th ranked by GDP, 98th by GDP per capita PPP). FOr more details on ALbanian education system, check out: http://www-gewi.kfunigraz.ac.at/csbsc/gu… Also worth mentioning is Cuba, who even exports doctors, so it’s not just basic literacy but highly advanced skills. (5th in literacy, 110th in GDP per capit
