Hello everyone! It's another opportunity to be here to share some of the effects hidden in the overwhelmed joy of bursary disbursement to students in higher institutions, as beautiful as this could be, which in other hands, could be of help to the lucky ones but it's adverse effects are enormous and sometimes, irrecoverable to the economy. A monetary award to university students that allows them to continue their studies.
There could be some positive impact of bursary disbursement to economy as the result of increasing access to education, fostering skill development, and promoting social mobility when it's directed towards the desired purpose but the reverse is alway the case, Bursary are meant to providing financial support to students, whereby helps to reduce barriers to education, which enables the students or individuals to acquire knowledge and skills that contribute to the overall workforce in an economy. When this is correctly done, it will increase the numbers of skilled and competitive labors in the market which leads to an economic growth and innovation.
Meanwhile, bursary disbursement should be set to target underprivileged groups by this it will helps to address the issue of inequalities and promoting a more inclusive and diverse economy but in most cases, it's not done so especially in less developed countries which create so much inflation as result of means to meet the targeted set, this lack of means to pin picked the unprivileged individuals, the bursary been released into the economy which results in increase of money in circulation, increase in consumption and high rate of inflation. The mention of bursary disbursement tents to trigger a lot of people at the expense of the economy dampening, here are some adverse impact of bursary disbursement in economics development of any Economy
An Adverse Effect of Bursary Disbursement to an Economy
- Inflationary Pressures: Greater percentage of people receiving bursary directed towards consumption, the Average Propensity to Consume (APC) tents to increase, people especially the unprivileged individuals sees such income as an #awoof. In Nigeria, "Awoof Money" is an income/money that doesn't have any economy backup that's not worked for the more the greater number of students/people that received bursaries, the more the demand for goods and services even increased demand for educational resources, which results to inflation in tuition fees, house rents and related expenses. This inflationary pressure has longer effect in an economy before it can be corrected.
Resource Allocation: Allocation of resources is another problem bursary Disbursement since the payment failed to meet the targeted audience in most cases whereby leading to demand-pulled inflation. The failure to align with the most critical needs create a problem to an economy. The must be a strategic disbursement of funds but when funds are not
strategically allocated, there is tendency that it's impact cannot be maximized.Potential for Misuse of funds: Funds not worked for, will be misused by the people, they don't contribute any value to it, thereby diverting the funds into non-educational purposes or investment purposes. No room for accountability, since there's no refunds or interest based on it, some funds are misused for any purpose. For bursary disbursement to be effective, proper monitoring and accountability measures must be put in place.
Dependency: An assurance of constant disbursement of bursary may lead to high rate of dependency mindset, it increases poverty mentality, and reduces ability to work hard among the beneficiaries, making them solely dependent on financial aid rather than developing Managerial and others skills including financial management skills, thereby hindering ability to have effective budget planning for the future.
Certainly, the impact of bursary disbursement to students in higher institutions depends on the implementation and oversight of bursary programs. To solve the problem of inequality and poverty, such funds can be invested in other social amenities which generate general utilities. Also, effective policies with regular evaluation can help mitigate these impacts whereby ensuring that bursary disbursement are directed to economics programs that will contribute positively development and growth of the economy.
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