1. What Did We Hear? Reflections From Education Case Studies, Site Visits and Discussion Maureen McLaughlin World Bank Budapest Knowledge Economy Conference March 26, 2004

2. Education Key to a Knowledge Economy To compete effectively in global economy need: –An educated and skilled labor force To create, share and use knowledge –Vibrant system of research and innovation To tap into global knowledge; assimilate and adapt it to local needs; and innovate Knowledge and human capital are increasingly important to successful economies. –Lifelong learning, from preschool thru tertiary/adult ed Knowledge divide is more than ever linked to human capital.

3. Key Competencies Are Changing  Individuals need knowledge, skills, competencies to:  Meet changing economic conditions, job requirements, and technology  Encourage risk taking, flexibility, and adaptability  Function independently, use tools interactively, and work well with others  ECA countries do not fare well on international tests benchmarking skills and competencies rather than factual knowledge (PISA, for ex.)

4. ECA Education Systems Need To Change  ECA education systems have not been well-suited to changing demands of open societies and market economies.  Need to invest in knowledge infrastructure—quality of institutions matters.  Need new more flexible curriculum at all levels of education with new kinds of teacher training. ICT in education is necessary BUT computers alone won’t bring about change. –Use computers to help change how teaching and learning occur. Students learn by doing, discovering answers. Role of teacher changes. –Essential to complement hardware with soft stuff—new teacher training, for ex,-- to make it really work.

5. Two Case Studies: Changing Educational Outcomes Case Study: Romania National ITC Project: guarantees every high school student is fluent in using a computer. –Students become used to technology and demand changes, affects continuum of education. –Must penetrate all areas; can also be used to benefit communities. Use to reduce disparities.  Case Study: Reforming Medical Education in Kazakhstan— innovative, problem-based learning in a student-centered environment, community oriented curriculum linking universities to clinics.  Can apply approach to all levels of education  To reform health care system depends in part on medical education reform--Analogous to reform in education system and teacher training.

6. ECA Countries Need New Skills to Apply and Use Knowledge Economies and business leaders demanding more highly trained and flexible work force. –Contributes to lack of investment and to lack of innovation. –For ex, recent Turkey Investor Advisory Group highlighted needs in education and training. ECA countries do not have sufficient numbers of highly skilled and competent technicians. Overly rigid and narrow secondary and vocational training; also problems at tertiary level. Case Study: University-Industry Partnership Using Distance Learning to Train Petroleum Engineers—BP partnership with private university in Baku to build capacity in AZ, more agile and flexible than public system. Student scholarships. ECA countries need training and skills in entrepreneurship and management—how to use and apply knowledge in innovation, organization, and application. For ex, Turkey KE project.

7. Disconnect Between Universities and Industry Disconnect between universities (research) and industry (markets/applications/innovations). Area needing careful attention. –Research not often translated into new products –Research often not targeted to areas of potential new products Incentives for research and development—who benefits financially— intellectual property rights/patents. Are there subsidies? By whom? For whom? For how long? How are areas of research selected? How are institutions selected? Higher education institutions—which institutions show flexibility and agility to change and take advantage of opportunities? Established public institutions? Newcomers, more often private institutions? Public/private institutions—how to build partnerships recognizing mixed models and avoiding false dichotomy between the public and private.

8. Disconnect (cont) Higher education is resistant to change but knowledge economy and role of higher education raise real issues of financing, governance and management, issues needing significant change. New models of HE financing needed. Big area for future work. Students—the future labor force– and public sentiment may be a more effective driver for reform than higher education institutions themselves. Case study: Bosnia Herzegovina—Using the Bologna Process, University of Tuzla. Creating institutional autonomy for the university. Site visit: College Karoly Robert, agricultural college continuing to provide strong tie to regional agricultural development while seeking to diversify using distance learning.

9. Closing Knowledge economy issues vary for countries depending on size, technology position, economic situation and education levels of population—one size does not fit all. But knowledge and education are important in every case. Equity issues are important—between countries and within countries, across regions, urban/rural, between population groups. Government policy needs to keep a focus on equity issues and unintended negative consequences. Relationship to Europe and EU standards—how does this play out in educational change?