This paper is an attempt to examine the relationship between higher education and economic growth by taking a country case of the Republic of Korea and comparing this with the Republic of India to show how political educational decisions impact economic growth. Even though both countries began as relatively underdeveloped economies at the time of independence in the 1940s, this literature study shows that these two countries took different trajectories in organizing their higher education systems. Korea's strategic and sustained investment in education (along with the private sector) has eventually helped the economy to soar. India's economy, on the other hand, is still held back from strategizing and channeling its resources for the development of higher education in general. India appears to have been fallen prey to a competency trap of the general presumption among many policy makers that secondary and higher education may not be as necessary for economic growth. As a result, the economy will continue to suffer until the political commitment shifts toward investing in higher education and working with the private sector of vast potentials.