The!governments!of!developed!and!most!of!the!developing!countries!pay!a!lot!of!
attention!to!education!as!they!realize!its!role!in!driving!countries’!economic!and!
social! development.! However,! it! was! only! after! the! creation! of! endogenous!
growth! models! in! 1980s! when! the positive! relationship! between! economic!
growth! and! human! capital was! fully! realized. Education! is one! of! the! most!
important! services! provided! by! the! governments! of! the! developed! and!
developing countries! and! it! makes! up! a! large! fraction! of! total! government!
spending.! According!to!OECD!(2011),!in!2008!the!OECD!countries!spent 6.1!%!of!
their! collective! GDP! on! education and! on! average! 83! %! of! all! the! education!
spending!was paid! for!publicly.!The!fact! that in!2008 the!governments!of!OECD!
countries! spent! an! average! of! 12.9! %! of! their! total! public! expenditure! on!