Why do differences in higher-education enrollment create gaps between richer and poorer countries?

Disparities in higher education enrollment contribute to significant gaps between richer and poorer countries primarily by limiting the development of human capital.

According to human-capital theory, education is a vital investment that enhances the economic worth of individuals, thereby increasing a nation’s overall productivity and competitiveness. When countries fail to provide broad access to tertiary education, they struggle to cultivate the high-quality workforce necessary for modern economic sectors.123

The gap is reinforced by several factors:

• Research and Innovation: Developed nations invest heavily in the research-and-development infrastructure of their universities. Differences in the capacity of higher-education systems to foster scientific research and technological innovation can create a divide even more profound than differences in material wealth.2
• Access and Opportunity: While industrialized nations often see enrollment rates exceeding 50 percent of the relevant age group, the least-developed countries often see rates below 5 percent. This lack of access prevents these populations from entering prestigious occupations or high-level political offices.2
• Economic Performance: Because human capital is a primary determinant of economic performance, limited educational attainment hinders a country’s ability to improve its national quality of life and sustain long-term growth.3