* Education is a key driver of economic growth. Literate individuals are more likely to be employed and earn higher wages than illiterate individuals. This is because literacy allows individuals to acquire the skills and knowledge necessary to participate in the modern economy.
* Education helps to reduce income inequality. Literate individuals are more likely to have access to better education and job opportunities, which can help to narrow the gap between the rich and the poor. This can lead to increased social stability and economic growth.
* Education helps to promote political participation. Literate individuals are more likely to be informed about current events and to participate in the political process. This can lead to better governance and more accountable governments, which can in turn lead to economic growth.
In addition to these direct effects, literacy also has a number of indirect effects that can contribute to economic growth. For example, literacy can help to improve health and nutrition, reduce crime, and increase social cohesion. All of these factors can lead to a more favorable environment for economic growth.
As a result of the strong positive correlation between literacy rate and GDP per capita, many governments have made significant efforts to improve their literacy rates. These efforts have included investing in education, providing literacy programs for adults, and promoting the use of literacy materials in local languages. These efforts have been successful in many countries, and have contributed to significant increases in GDP per capita.
In conclusion, there is a strong positive relationship between literacy rate and GDP per capita. This relationship is due to a number of factors, including the fact that education is a key driver of economic growth, education helps to reduce income inequality, and education helps to promote political participation. As a result, many governments have made significant efforts to improve their literacy rates, and these efforts have been successful in many countries.