The role of education in economic development: Case of Finland and inferences for Turkey

The aim of this study is to reveal the key role of education in the economic development of a society. After the First World War, two agricultural countries- Finland and Turkey- that faced similar conditions are not included in the same category of development today. Finland, which participated in the Second World War and experienced a serious destruction, reaped the fruits of investing in education, that is people, in the long term and has become one of the prosperous societies. In the first part of the study, the concept of development in general, the significance and objectives of economic development, the relationship between the educational level of the society and economic development, and the role of education in economic development are mentioned. The second part begins with the general condition of Finland after the Second World War, and the economic and social transformation of the country, which has a semi-closed economy with the Soviet effect, is explained over the years. Subsequently, the reforms experienced in the Finnish education system, the success of Finland in PISA tests and the factors underlying this success are examined. In the last chapter, Turkey's situation, and some other changes that happened over time regarding its education system in the early 21th century are discussed. The importance of education for the economic development of a country, which has a youthful population such as Turkey, is emphasized and advices, which are based on the example of Finland's success and strategy in education, are suggested. As a result of the study carried out based upon the Finland example, it is concluded that to raise the education level of societies and each individuals who compose them, to create a sufficent and free working environment, in other terms, to trust in people, to invest in human capital and develop it, are the key determinants for ensuring economic development.