Paper Example: Role of Oil Production on Education Development

The discovery, production, and refinement of oil completely changed the economic arithmetic and situation in various countries across the world, including Saudi Arabia, Canada, Nigeria, Russia, and Iraq. Oil production in Saudi Arabia led to numerous economic developments and plans for communication, transport, food production, and health services (Diaz et al., 2016). Nigeria and Canada experienced an economic boom that changed various sectors of their economy. Mohaddes and Pesaran (2016) argued that most of the countries undertaking oil production, such as Iraq, directed much of their oil incomes to other sectors of the economy, improved the private sector, and boosted the economy from all fronts. Countries like Nigeria experienced high rates of population explosion and the rise of defragmented social set-up, leading to class formation (Aastveit et al., 2015). The production of oil has undoubtedly led to massive and rapid changes in most countries, economic, social, and political arrangements. The production of oil significantly impacts a country’s economy and especially, the development of education through programs, initiatives, and financial support, directly and indirectly.

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The United States of America

According to Tsvetkova and Partridge (2016), oil production remains vital in the US. The US also leads in oil production globally. The last two decades have seen an increased exploration and production of oil in the United States (Aastveit et al., 2015). Firstly, large oil production has led to increased employment opportunities due to the positive economic fortunes with schools employing more teachers. The country's stimulated economy has enabled most schools to equip their facilities with advanced tools and resources to give students the best learning environment. Schneising et al. (2014) argued that oil production has led to high economic activities; further enabling schools to experience low maintenance and management of their resources due to flexible financial arrangements with financial institutions and investors. Kilian (2016) averred that through the lowered maintenance and management, schools harnessed their spending with a greater focus on improving their resource mobilization (Mohaddes & Pesaran, 2017). All learning institutions in the United States had access to the Internet and full-functioning computer laboratories courtesy of the positive performance of other sectors of the economy that rely on oil production at the end of the 20th century.

Secondly, oil production contributes to various sectors of the country's economy, such as agriculture, manufacturing, exports, and imports, and small businesses such as car dealerships and restaurants. Individuals working in these sectors contribute directly to the country's education through prompt payment of their kin's fees and resource mobilization (Carnevale& Rose, 2015). With increased and prompt payment of college and university fees, administrators focus better on management, thus improving the positive outcome of education goals. Other sectors of the economy that derive their support and resources from oil production, such as agriculture, contribute to the development and growth of the education sector (Schneising et al., 2014). For example, increased agriculture produces food supply to colleges and universities, and bumper harvest support education and economic activities. Increased activities in agriculture or local businesses directly support education activities, parents, and students who depend on the same for their day-to-day needs.

Thirdly, the banking and investment sector's positive performance due to oil production helps support the education sector with increased loans, subsidies, and low-rate credit facilities. Kelsey et al., (2016) maintained that colleges and universities derive direct benefits from the investment sector, especially on resource mobilization and credit facilities. Students who rely on credit facilities also derive maximum benefits from a rejuvenated economy courtesy of oil production. The students can apply for and get loans from the government which, in turn, secure their education, thus improving the number of students who complete their education. Although the United States has a diverse economy, oil production plays a critical role in boosting its education prospects primarily due to its connection with other sectors. The federal government has the primary role of ensuring that all school-going children access high-quality education. High-quality education remains possible only in an economically viable and robust country (Hodges et al., 2018). Oil production provides the federal government an opportunity to increase its annual budgetary allocation to schools, especially for K-12 and high school students.

An increased and better-performing economy enables the federal government to provide adequate resources required by K-12 students all through the country (Aastveit et al., 2015). The federal government has ensured that schools undertake quality research through proper funding due to the proceeds from oil production (Katsinas et al., 2014). Schools have aligned their goals and objectives with their up-to-date resources and monetary skills through quality research. Adequate financing of the federal government enables schools, colleges, and universities, in addition to all learning institutions to function effectively and efficiently (Aastveit et al., 2015). The federal government also has the opportunity to enact education policies relevant to the country's economic needs (Klein, 2015). Over the years, the federal government has offered relief to learning institutions through reform ideologies such as the A-PLUS Act that ensured that all children attend school. Increased production of oil in the US will help support many sectors of the economy that have a direct relation with the education sector (Klein, 2015). This feat of connection and dependence directly impacts on the relevance of the industry in the country.

Iraq

The Ministry of Education administers and has an overall role in education in Iraq. Iraq has 100 percent literacy levels and remains one of the best in the Middle East (Mohammed &Noma, 2017). In 1972, Saddam Hussein, the fifth president of Iraq, earned the highest award from UNESCO in creating one of the best modern public education systems in the region. Saddam initiated and controlled all social services that included the “Compulsory Free Education in Iraq” and “National Campaign for the Eradication of Illiteracy” (Al-Shamsi, 2017). Saddam’s government also enacted free schooling earning hundreds of locals a place in learning institutions. Dag (2019) stated that before 1990, Iraq had one of the best education systems in the Middle East. However, the country’s education system faced multiple challenges and disruptions, primarily due to economic sanctions. Since the early 1990s, the government has faced significant challenges such as internal displacement of students and teachers, lack of resources, the politicization of the education sector, corruption, and security threats (Dag, 2019). Ameen et al. (2019) stated that currently, over 20 percent have no access to a school, with women facing significant challenges of accessing school facilities. Ever since the invasion of the country in 2003, the education sector has faced numerous challenges (Al-Shamsi, 2017). The country’s National Development Strategy enacted four significant areas that required improvement.

These critical areas included improving quality of life, strengthening the basis of economic development, and vitalizing the private sector. This strategy focuses on enhancing security and good governance. Iraq remained focused on rebuilding its foundation concerning safety, economy, and government over the last 17 years (Dag, 2019). On education, the country’s leadership has focused on uplifting adult literacy, reducing drop-outs, and improving vocational training. Despite endless challenges, the education system in Iraq has continued to grow with increased collaboration, organization, focus on girl-child education, recruitment of teachers, and school rehabilitation (Ameen et al., 2019). Most resources originate from oil production, with the government utilizing proceeds from oil production in the reformation in its education sector. The Iraqi economy remains predominated by oil production. Oil production provides over 99 percent of the country’s earnings (Sassoon, 2016). With most of the country’s economy under restoration, oil proceeds remain the primary source of funds and money to undertake the massive reformation. The education sector solely relies on oil proceeds to undertake its various reformation plans and strategies.

Proceeds from oil production have enabled the country to undertake massive reformation plans for the country’s education sector. Much of the reformation primarily covers the rebuilding of schooling, hiring of teachers, and putting in place the necessary resources for training (Öztas et al., 2017). With most of the country’s infrastructure bombed and destroyed, the Iraq government allocated special funds to cover and rebuild social services, including road networks and accessibility structures. Between 2010 and 2016, the Iraqi government identified key education features and resources needed for a complete overhaul to boost girl-child education (Sassoon, 2016). These included the rebuilding of schools closer to communities, revamping the schools with necessary resources, and employing teachers. Through special fund allocation, the government also started an awareness drive that aimed at boosting the number of students in schools. With security threats and fears, the government allocated special funds to help increase security in terror-prone areas. As of 2019, oil made up approximately 70% of the government’s revenue (Sassoon, 2016). In the last five years, the government has enacted plans to diversify the country’s economy, a feat that continues to drive and support the education sector directly and indirectly.

The government continues to fund both the KRG Education System and the Iraqi Education System through the Ministry of Education. Sassoon (2016) stated that the direct injection of funds from the government into the education sector saw an increase of over 6 million kids back in school at the end of 2017. The government has also supported directly and indirectly other sectors such as the banking sector and investment sector that have primarily had a direct role in stabilizing the country’s economy (Atrushi & Woodfield, 2018). Through this, many families continue to register their children in school, further improving the general outlook of the country’s education system. For example, increased employment opportunities have enabled teachers to get opportunities in schools. Simultaneously, improved security features of the country have allowed many schools to operate without significant challenges (Öztas, 2017). Above all, the government’s commitment to funding the education sector has also necessitated other sectors of the economy to support and align their operations with learning institutions. Through this, learning institutions have continued to reform their processes in addition to improving their enrollment.