Presentation on theme: "IV.B Education and Development"— Presentation transcript:
1 IV.B Education and Development Carleton UniversityECON 3508(Text, Chapter 8, pp ]February 14, 2013Arch Ritter
2 The Central Roles of Education and Health Health and education are important objectives of development, as reflected in Amartya Sen’s capability approach, and in the core values of economic developmentHealth and education are also important components of growth and development
3 Education and Health as Joint Investments for Development These are investments in the same individual; Mutually supportiveGreater health capital may improve the returns to investments in educationHealth is a factor in school attendanceHealthier students learn more effectivelyA longer life raises the rate of return to educationHealthier people have lower depreciation of education capitalGreater education capital may improve the returns to investments in healthPublic health programs need knowledge learned in schoolBasic hygiene and sanitation may be taught in schoolEducation is needed in training of health personnel
4 Improving Health and Education: Why Increasing Incomes Is Not Sufficient Increases in income often do not lead to substantial increases in investment in children’s education and healthBut better educated mothers tend to have healthier children at any income levelSignificant market failures in education and health require policy actionSignifying major Government roles everywhere
6 What is Education?“All forms of learning and improving human knowledge and capabilities”Education =/= “Schooling”Types of education:Informal:At home, from our parents and family, friends…….On our own, learning by doingAt play On the job; at workIn conversation In our communitiesFormalAt “day-care”, school, college, university, classes…Employee trainingFormal apprenticeships
8 The Functions of Education General socialization;EthicalCommunity & citizenship responsibilityFundamental personal empowermentImprovement in personal and family quality of life“Joy of learning”…an “end” in itselfUnderstanding the world and ourselves“Human capital”: of particular relevance here
9 Human Capital Examples: The economist’s term for the knowledge and skills that workers acquire through education, training, and experience.Produced through investment in peopleExamples:formal education, health,informal education, sanitation,family environment water availability, nutrition,131313
10 Education and Development In general: Education promotes development and Development promotes education How does education promote development?
11 Education and Development How does education promote development?Basic literacy and numeracy are indispensible for coping and survival in the modern worldGenerates skills of all sorts needed in the economyImproved parental, esp. mothers’ education builds “human capital” of children; e.g. via nutrition, health, child-care spill-overs or “externalities”May improves quality and scope of entrepreneurship on farms and in other economic activities
12 But education on its own will not “produce” development; Public policy mess-ups, institutional stupidities and political dysfunction all can overwhelm good education and produce stagnation and contraction
13 Development and Education Does development promote education? How?
14 Education and Development How does development promote education?Development (sustainable growth plus equity) generates the resources that can improve and support educationGrowth leads to increased tax revenues for public education expenditures;Higher family incomes permit increased family financing of education
15 8.5 Educational Systems and Development Educational supply and demand: the relationship between employment opportunities and educational demands“Education Certification”:continuous up-grading of job entry requirements for jobs previously filled with less-educated workers.
16 Analyzing Education: Costs and Benefits, Private and Social Private Costs and Benefits:Social Costs and Benefits”
17 Analyzing Education: Costs and Benefits, Private and Social Private Benefits:Personal empowerment:knowledge, skills, “learning to learn”Lifetime earningsGreater potential for participationConsumption benefits?Private CostsHard work (also maybe a private benefit).Earnings foregone (opportunity cost)Direct costs (fees, supplies, board & lodging)
18 Analyzing Education: Costs and Benefits, Private and Social Social BenefitsImproved productivity benefits allImproved nutrition, health, child-care spill-overs or “externalities”, especially from women’s educationImproved potential for tech change and productive entrepreneurshipMore effective political participation?Social CostsResources dedicated to educationOpportunity costs to society
19 Investing in Education and Health: The Human Capital Approach Initial investments in health or education lead to a stream of higher future incomeThe present discounted value of this stream of future income is compared to the costs of the investmentPrivate returns to education are high, and may be higher than social returns, especially at higher educational levels
20 Figure 8.1 Age-Earnings Profiles by Level of Education: Venezuela
21 Figure 8.2 Financial Trade-Offs in the Decision to Continue in School
23 Figure 8.6 Private versus Social Benefits and Costs of Education: An Illustration
24 8.5 Educational Systems and Development Distribution of EducationLorenz curves for the distribution of educationEducation, Inequality, and PovertyNote that formal education systems can worsen income distribution
25 Lorenz Curves and Gini Coefficients for Education in India and South Korea, 1990
26 Gini Coefficients for Education in 85 Countries
31 Participation in Education for Some African Countries, 2007 CountryPrimarySecondaryTertiaryAdult LiteracyM FS. Africa103961587Ghana49658Kenya10650NaZimbabwe1014088Botswana107765Nigeria97321064Malawi1262865Ethiopia91303Liberia90.631.617.458.1All Africa94Source: UNDP. Human Development Report, 2007/2008
33 The Gender Gap: Discrimination in Education Young females receive less education than young males in nearly every low and lower-middle income developing countryClosing the educational gender gap is important because:The social rate of return on women’s education is higher than that of men in developing countriesEducation for women increases productivity, lowers fertilityEducated mothers have a multiplier impact on future generationsEducation can break the vicious cycle of poverty and inadequate schooling for womenGood news: MDG goals on parity being approached, progress in every developing region
34 School Attainment by Gender: Ratio of Female to Male, Per Cent Region19602000South AsiaMiddle East and North AfricaSub Saharan AfricaLatin America & Carib.East Asia25%51%59%83%50%52%60%71%96%84%
35 MDG Goals and Achievement: Gender Disparities Gender disparity is measured by the ratio of girls to boys enrolled in primary and secondary schools. Most regions are on track to achieve this target by 2015.
36 Educational Issues Achieving 100% primary school enrollments Expanding secondary enrolmentsExpanding tertiary educationEqual access to education for girls and womenChild labour and educationRelevance of curricula; especially in rural areas; balancing supply of graduates with demand for labourFinancial and equity issues“Balance” among primary, secondary and tertiary educationImproving QualityEducation, Internal Migration, and the Brain Drain
37 Educational IssuesAchieving 100% primary school enrollments; almost complete2. Expanding secondary educationMajor achievements so far in these areas:But noteAfrica:gross enrollment ratiosUnevenness of advances among countries197020002007Primary51.081.794.0Secondary6.325.730.0Tertiary0.83.65.5
38 Participation in Education for Some African Countries, 2007 CountryPrimarySecondaryTertiaryAdult LiteracyM FSouth Africa103961587Ghana49658Kenya10650NaZimbabwe1014088Botswana107765Nigeria97321064Malawi1262865Ethiopia91303D. R. Congo85334All Africa94Source: UNDP. Human Development Report, 2007/2008
39 Educational Issues., continued 3. Equal access to education for girls and women, especially in East Asian and some African countriesWhy the imbalances?Cultural traditions in some countries;“At home” tradition for women; Early withdrawal for work at homeIncome potentials for males vis-a-vis females outside the home?Lack of resourcesPolicy approach of governmentsEarly pregnancies; early marriageMost countries are catching up regarding women’s education,quickly enough?A Millennial Development Goal
41 5. Child Labor Child labor is a widespread phenomenon Children need to learn to work; but when does this become exploitative and ant-developmental?Government intervention may be necessarySometimes this shift can be self-enforcing, so active intervention is only needed at first
42 Other approaches to child labor policy Get more children into school e.g. new village schools; and enrollment incentives for parentsConsider child labor an expression of poverty, so emphasize ending poverty generally (a traditional World Bank approach, now modified)If child labor is inevitable in the short run, regulate it to prevent abuse and provide support services for working children (UNICEF approach)Ban child labor; or if impossible, ban child labor in its most abusive forms (ILO strategy;)Activist approach: trade sanctions.Concerns: could backfire when children shift to informal sector; and if modern sector growth slows
43 Educational Issues, continued 6. Relevance of curricula;especially in rural areasAre “school-leavers” also “village-leavers”? (Rural brain drain?)“Education for Development”
44 Educational Issues, continued 7. Financial and equity issuesHow should costs be shared between society and individual for higher education?[Hint: Observe social and private costs and benefits]
45 Public Expenditure per Student per Year as a Percent of GDP pc CountryPrimarySecondaryTertiaryBotswana16.1%41.2%440.6%Burundi20.077.5363.1Ghana18.429.1213.4Mauritius10.317.440.4Niger28.746.1371.4Rwanda10.2365.1372.8South Africa15.616.744.3CanadanaUSA22.224.626.Source:: World Bank, World Development Report, 2009, Table 2.11
46 Re. 7 and 8: The Issue of Balance and Fairness among Levels of Education
47 Educational Issues, continued 8. “Balance” among primary, secondary and tertiary educationWhat should be the relevant emphases placed on these?
48 Educational Issues, cont’d: 9. Improving Quality while the systems expand rapidly A Major task. How can this be done??
49 Increase resource allocations (from Taxation via economic growth) 9. Improving Quality while the systems expand rapidly. How can this be done??Increase resource allocations (from Taxation via economic growth)Easily said, hard to do;Relevamce of economic growth to undergird tax increases and educationBetter teacher training;better salaries to incentivate good full-time workImprove ability of children to learn(nutrition at school sometimes)Concentrate attention on primary schools ?Reconsider financing for higher education ?
50 10. Education, Migration and various “Brain Drains”