Tertiary Education and Economic Growth: The Bank Strategy

1. Tertiary Education and Economic Growth: The Bank Strategy Brazil HD Team Seminar 7 February 2006

2. the future of tertiary education?

4. outline of the presentation... • main messages • fit with overall Bank strategy • role of the World Bank

5. main message # 1 • social and economic progress is achieved principally through the advancement and application of knowledge World Development Report 1998/99

6. knowledge is a key factor in the difference between poverty and wealth

7. Korea vs. Ghana • Korea • 1950s: • growth of public tertiary education with tuition fees • 1960s: • government financial incentives to promote private tertiary sector growth • 1970s and 80s: • development of science and engineering programs • 1990s: • emphasis on quality assurance, R&D, accountability, performance-based funding

8. Ghana vs. Korea • Ghana • 1950s – 1970s • slow growth of “free” public tertiary education • 1980s: • initiation of reforms: quality, financial sustainability, expansion of public tertiary education • 1990s: • weak application of reform programs

9. Korea vs. Ghana • evolution 1960-2000 • enrollment rate • Korea: 5% to 80% • Ghana: remained at 2% • private sector enrollment • Korea: 75% of total • Ghana: 6% of total • public expenditure per student • Korea: increase from $2.700 to $4.500 • Ghana: decrease from $1.200 to $850 • tertiary education linkages with economy and labor market • Korea: strong • Ghana: weak

10. main message # 2 • to increase national productivity, tertiary education is necessary: • to create, disseminate and apply knowledge • to achieve the MDGs • to build local capacities

12. Tsunami26 December 2004

13. disaster preparedness • sismology • vulcanology • climatology (floods, tsunamis, droughts, etc.)

14. understanding of global issues

15. main message #3 • tertiary education systems in most developing and transition countries are not adequately prepared to play these roles of knowledge acquisition and capacity building

16. long-standing challenges • financially sustainable expansion • equity in access • quality and relevance • governance and management

18. new challenges • new education and training needs • increased competition and emergence of new providers (borderless education) • potential of new information & communication technologies

19. changing education and training needs • higher skill levels

20. relative earning gaps are increasing Male Female

21. changing education and training needs • higher skill levels • flexibility to adapt to change

22. changes in job task-skill demands in the USA (1960 – 1998) Source: Autor, Levy, and Murnane (2003) “The Skill Content of Recent Technological Change: An Empirical Exploration,” Quarterly Journal of Economics.

24. PISA results for selected countries OECD Average

25. changing education and training needs • higher skill levels • flexibility to adapt to change • need for continuing education

26. from innocence

27. … to wisdom

28. 8% 2000 14% 78% 4% 1980 9% 87% 2% 14% 1960 84% South Korea and Brazil 26% 2000 55% 18% 1980 9% 49% 42% 1960 3% 17% 80%

29. university of the future? continuing education postgraduate studies first degree

30. new providers • long distance competition • franchise universities • corporate universities • media companies, libraries, museums & secondary schools • education brokers

31. new forms of competition …

32. new forms of competition …

33. new forms of competition …

34. new challenges • new education and training needs • increased competition and emergence of new providers (borderless education) • potential of new information & communication technologies

35. TIME same Physical mtgs. Print-on-paper books, journals Hands on labs, shops, studios GEOGRAPHIC PLACE same

36. TIME different same Physical mtgs. Print-on-paper books, journals Hands on labs, shops, studios Shared notebook Library reserves Time-shared labs, shops, studios same GEOGRAPHIC PLACE AV Conference Web search Online, real time instruments Email Autonomous instruments different

37. a brave new world • social and economic progress is achieved principally through the advancement and application of knowledge World Development Report 1998/99

38. main message # 4 • responsibility of the State: to put in place an enabling framework that encourages tertiary institutions to be more innovative and responsive

39. role of the State • define a coherent national strategic vision and policy framework • establish an enabling regulatory environment • offer appropriate financial incentives

40. main message # 5 • the World Bank Group can assist client countries by sharing international experience and mobilizing the resources needed to improve their tertiary education systems

41. outline of the presentation... • main messages • fit with overall Bank strategy

42. fit with overall Bank strategy tertiary education… • reduces poverty through economic growth • conditions the achievement of most MDGs • strengthens the entire education system

43. poverty reduction through economic growth • knowledge for development framework (1999 WDR): • macroeconomic incentives & institutional regime • human capital base • information & telecommunication infrastructure • national innovation system

44. poverty reduction through economic growth • tertiary education contributes to the last two pillars by: • training a qualified and adaptable labor force • generating new knowledge • adapting global knowledge to local use to resolve concrete economic and social problems

45. supporting agriculture, environment, health and education to achieve the Millennium Development Goals (1990-2015) • Eradicate extreme poverty and hunger • Halve the proportion of people with less than a dollar a day. • Halve the proportion of people who suffer from hunger. 2. Achieve universal primary education • Ensure that boys and girls alike complete primary schooling 3. Promote gender equality and empower women • Eliminate gender disparity at all levels of education.

46. achieving the Millennium Development Goals (cont’d) • 4. Reduce child mortality • Reduce by two thirds the under-five mortality rate. • 5. Improve maternal health • Reduce by three quarters the maternal mortality ratio. • 6. Combat HIV/AIDS, malaria and other diseases • Reverse the spread of HIV/AIDS. • 7. Ensure environmental sustainability • 8. Develop a global partnership for development

47. strengthening the entire education sector to achieve the education MDGs • teacher training & retraining • training of principals and system managers • curriculum development • education research & policy advice

48. outline of the presentation... • main messages • fit with overall Bank strategy • role of the World Bank

49. contribution of the World Bank • policy dialogue and knowledge sharing on tertiary education reform • financing and technical assistance to support reforms • enabling framework for global public goods

50. role of the World Bank policy dialogue and guidance informed by: • understanding of political economy • stakeholder consultations • relevant international experience