1. Education Quality and Economic Growth G Balasubramanian National conference of Sahodaya Complexes 24 th December 2012

2. The capital dynamics Land and materials capitalKnowledge as capital

3. Education and Human Development Index (119/169)

4. What is the economic relevance of Education? Education as an investment in Human capital The role of education in Knowledge society

5. Why invest on human capital? Investment in Education yields a higher rate of return than investment in physical capital. – Blaug (1969), Tilak (1987)

6. Why invest in Physical capital? The skilled labour, employed exclusively in the formal sector, suffers a downward revision of relative wages, because the faster increase in human capital is not matched by a corresponding increase in physical capital in this sector. - Duflo (2002)

7. Investments in Education Direct impact Indirect impact

8. World Bank Report There is strong evidence that education increases wage earnings by increasing individual productivity

9. Literacy and agricultural growth There is evidence that literacy and numeracy improve the productivity of farmers in developing countries when new agricultural and marketing techniques are being introduced

10. Does education leads to faster economic growth? At the level of global level, it is less clear whether more education leads to faster economic growth. – M.Boissere

11. The Indian scenario- Human capital and economic growth A positive association exists between stocks of human capital and economic development and that the association becomes stronger at higher levels of education. – Mathur (1993)

12. Primary schooling and agricultural growth- the Indian experience In agriculture, primary schooling affects productivity positively, particularly in times of rapid technological change.- Chaudhri (1979)

13. The secondary level Education at the secondary level shows a positive correlation with employability in manufacturing and service sectors

14. Technical education and growth The influence of both technical and general education on per capita income to be positive with that of the former being more powerful - Mathur and Mamgain (2003)

15. Does education lead to increased wage rates? – The myth Even for very large increases in access to education the wage inequality remains unchanged. Apparently, the dominant effect on the skilled labour wage rate is that of the changes in the relative product prices in the world market (i.e., the trade effect), rather than that of increased relative supply of educated labour ensuing from enhanced access to education. - Report of NCEAR (Pradhan 2002)

16. Quantity Vs Quality in Education? More fundamentally, education is a set of processes and outcomes that are defined qualitatively. The quantity of children who participate is by definition a secondary consideration: merely filling spaces called ‘schools’ with children would not address even quantitative objectives if no real education occurred. Thus, the number of years of school is a practically useful but conceptually dubious proxy for the processes that take place there and the outcomes that result. – Unesco Report

17. Role of cognitive skills First, cognitive development is identified as a major explicit objective of all education systems. If quality is defined in terms of cognitive achievement, ways of securing increased quality are neither straightforward nor universal.

18. Creativity and enterprise as a dimension of quality The second element is education’s role in encouraging learners’ creative and emotional development, in supporting objectives of peace, citizenship and security, in promoting equality and in passing global and local cultural values down to future generations. The extent to which they are achieved is harder to determine.

19. Public Spending in education – a ‘myth’ about quality Empirical evidence in India in this regard is diverse – differing hugely across the states – and does not seem to corroborate the assumed positive linkage between public spending on education and the spread of education- (Pradhan, Tripathy and Rajan (2000)).

20. Where lies the problem? Leakages in educational investment’ Wastage in educational endeavours Issues relating to corruption in educational administration non-motivated and discouraging teachers, ill-equipped schools and unwillingness of parents to send their children to schools due to economic or non-economic constraints.

21. Demystifying education 1 Increased enrolment is not necessarily an input to economic growth. Create a need for learning

22. Demystifying education 2 Schooling is not necessarily a promoter of economic growth Making school education stress free and informal

23. Demystifying education 3 Investments in education need not necessarily result in economic growth Optimize yield and ensure accountability

24. What should we do? Suggestion 1 The relevance and processes of curriculum administration to enhanced HDI Facilitate open ended learning

25. What should we do? Suggestion- 2 Focus on cognitive abilities and skills Ensure education for employability

26. What should we do? Suggestion- 3 There is a positive correlation between teacher competencies, cognitive abilities and skills ; hence on economic growth Ensure better quality of teacher education and teacher accountability

27. What should we do? Suggestion- 4 Social construction of education – PPP models facilitate growth and development Facilitate communities and private initiatives to participate in education

28. What should we do? – Suggestion 5 Focused attention to issues of Quality and its management in school systems Quality accreditation of schools systems and periodic validation of quality appears imminent

29. Redefining economic growth with a NEW LEARNING CURVE

30. Education Quality for Economic Growth Emerging challenges – 1. Managing Change – Bridging huge gaps in school systems – 2. Synergizing informal learning with formal learning – de-conditioning learning – 3. Managing Transfer of skills – currency & Competency – 4. Facilitate further learning and continuous learning – 4. Validation of quality at personal and institutional level – strengthening school audits – 5. Improving the quality of Teacher Education – Before it is too late to regret.. What we have not done!

31. Scenario of a Developed Nation