1. KEY ELEMENTS OF LIFE LONG LEARNING IN THE CONTEXT OF THE KNOWLEDGE ECONOMY Carl Dahlman World Bank Presentation At China KRIVET/World Bank China Workshop on Revamping the Life Long Learning System Seoul, Korea June 27, 2003 ` `

2. Structure of Presentation 1.The Knowledge Revolution 2.The Knowledge Economy 3.Implications for Education and Training 4.Key Elements of A System of Life Long Learning 5.Key Challenges of LLL for China 6.Some Critical Issues from Korean Experience 7.Summary and Conclusions

3. 1.The Knowledge Revolution (1) Ability to create, access and use knowledge is becoming fundamental determinant of global competitiveness Seven key elements of “Knowledge Revolution” Increased codification of knowledge and development of new technologies Closer links with science base/increased rate of innovation/shorter product life cycles Increased importance of education & up-skilling of labor force, and life-long learning Investment in Intangibles (R&D,education, software) greater than Investments in Fixed Capital in OECD ©Knowledge for Development, WBI

4. The Knowledge Revolution (2) Greater value added now comes from investment in intangibles such as branding, marketing, distribution, information management Innovation and productivity increase more important in competitiveness & GDP growth Increased Globalization and Competition Trade/GDP from 38% in 1990 to 52% in 1999 Value added by TNCs 27% of global GDP Bottom Line: Constant Change and Competition Implies Need for Constant Restructuring and Upgrading ©Knowledge for Development, WBI

5. World GDP/Capita and Population Source: Computed by WBIPKD Staff based on Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001

6. Implications for Developing Countries Developing Countries run of risk of being left behind as a result of increasing importance of knowledge and of a widening knowledge divide with advanced countries. They need to develop coherent strategies to deal successfully with the constant restructuring resulting from the knowledge revolution. They will need to make more effective use of knowledge for their development--to become knowledge economies. ©Knowledge for Development, WBI

7. Growing Differences in GDP/Capita ©Knowledge for Development, WBI Source: Computed by WBIPKD Staff based on Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001

8. GDP/Capita Growth: Korea vs Ghana ©Knowledge for Development, WBI

9. 2.1: The Knowledge Economy There are many definitions of the “Knowledge Economy”, many emphasizing just information technology and high technology We take a broader definition: “An economy that makes effective use of knowledge for its economic and social development. This includes tapping foreign knowledge as well as adapting and creating knowledge for its specific needs.” ©Knowledge for Development, WBI

10. 2:2 Framework for Using K4D Four Key Functional Areas Economic incentive and institutional regime that provides incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship Educated, creative and skilled people Dynamic information infrastructure Effective national innovation system ©Knowledge for Development, WBI

11. 3: Implications for Education and Training Knowledge Revolution means Constant need for new skills for people out of school and in labor force Higher levels of education necessary to use, adapt, and create new knowledge Education and training therefore are the key enablers of the knowledge economy It will be necessary to increase formal educational attainment as well as to provide for continuous training of labor force Dealing with this challenge will require greater coordination among different ministries and between government and the private sector ©Knowledge for Development, WBI

12. Key Trends in Education and Training Increasing educational attainment Continued high returns to higher levels of education until very recently Increasing contribution of education to GDP growth Increasing globalization of education Increased prevalence of life-long learning Growing role of corporate training ©Knowledge for Development, WBI

13. Changing Education & Training Paradigm Traditional Model Information based Rote learning Teacher directed Just in case Formal education only Directive based Learn at a given age Terminal education Knowledge Economy Model Knowledge creation/application Analysis and synthesis Collaborative learning Just in time Variety of learning modes Initiative based Incentives, motivation to learn Lifelong learning

14. Implications for Lifelong Learning Stock challenge: rapid creation and diffusion of knowledge means even adults constantly have to learn, therefore need Multiple mechanisms for continuous training beyond formal education system To exploit potential of information and communications technologies to expand training opportunities Effective system for skills assessment and certification Flow challenge: education system must teach students how to learn through their lifetime regardless of when they leave it: implies need for Better teaching and learning pedagogies for core skills Broader interdisciplinary approaches Financing mechanisms to expand access and improve quality Developing countries need to address both stock and flow challenges, though severely financially constrained ©Knowledge for Development, WBI

15. Implications for Tertiary Education Gaps remain in basic education, but higher secondary and tertiary education is becoming increasingly critical for effective use of knowledge creation and adaptation of knowledge global competition But not just full degrees and PhDs, but also shorter degrees from polytecniques and junior colleges specialized high level technical training in multiple institutional settings and across disciplines Developing countries are even further behind in enrollment ratios, flows, structure and quality of upper and tertiary education than in basic education ©Knowledge for Development, WBI

16. 4. What is a Life Long Learning System? Encompasses learning throughout a person’s lifecycle to retirement: Formal education: schools, universities and specialized training institutions Non-formal training: on the job and household training Informal training: skills learned from family members, friends, or community ©Knowledge for Development, WBI

17. Key Elements of System of Lifelong Learning New skills and competences New pathways to learning Governance challenges Financing challenges

18. New Skills and Competences Traditional academic skills Literacy, numeracy, Science, technology/ICT, international language Emerging need for a different set of skills self-regulated learning tolerance for ambiguity creative thinking ability to work in a team learning how to learn

19. New Pathways to Learning Increased access to learning opportunities Variety of ways learners can learn Increased access to knowledge resources Increased role of private formal and informal providers Additional/diverse learning modalities Modular, Part-time, Distance/e-learning,.. Different approach to learning (pedagogy) Changing role of teachers, Curricula, Technology

20. Governance Challenges of LLL: Traditional Education Lifelong learning Scope Formal schooling Formal, non/informal,. Content Acquisition/repetition Curriculum-driven Creation/application Diverse sources Delivery Limited options Institutions Uniform, supply- driven Multiple options Individuals Pluralistic, demand- driven Learning Outcome Standardized assessment Flexible recognition of soft skills

21. LLL Governance: Way Forward FromTo Sectoral approach Multi-sectoral, coordination Control and regulation Support and partnership Issue orders Direct students Create choices, pathways; Inform learners Institution-driven Learner-driven National curriculum Recognition & quality control Rules and regulations Incentives and facilitation

22. Financing Challenge of LLL Estimate size of formal education market is at least US $1.9 Trillion Adding training, it is likely to be $2.4 trillion Improving access and quality is likely to raise it significantly over next decade Most of this additional financing is likely to have to come from the private sector ©Knowledge for Development, WBI

23. Meeting the Financing Challenge of LLL: Increasing Resources for and Productivity of Education Increase public resources for education Increase students contributions to cost of delivering public education, including loans Increase private provision of education and training Improve the productivity of education Use new ICT technologies more extensively Improve the incentive regime and management of education systems Improve knowledge management in the education sector Reduce the time it takes to get different levels of education Improve the pedagogy of education ©Knowledge for Development, WBI

24. Meeting the Challenge of LLL: Increasing Quality On most international standardized tests, developing countries do worse than average for OECD countries In part due to lower expenditures, and less complementary resources such as less educated teachers, fewer books and facilities But also due to more antiquated teaching pedagogy, less effective incentive regimes and governance structures And generally more regulated sector Need not only to improve resources, but also to improve pedagogy and institutional incentive regime ©Knowledge for Development, WBI

25. Meeting the Financing Challenge of LLL: Increasing Equity Share of private financing of education in developing countries is already higher than in developed It is likely to have to increase because of limited government budgets As more toward more private financing already serious problems of inequality will be increased Government will have to pay more attention to addressing the equity problem

26. 5. Key Issues in LLL for China – (1) Fragmentation and Lack of Coordination of System Many ministries involved controlling different parts Growing private universities and training programs Great Needs, Limited Finance, Imply Need for Innovative Approaches Govt cannot afford to finance increase in access and quality Need to tap potential for private financing Need for a New Role of Government/Private Sector Key govt role as architect of system-standards, regulations, information of dynamic and rapidly growing system Key role also in addressing equity issues as have growing private provision and private finance of education & training Growing importance of domestic and foreign education and training providers ©Knowledge for Development, WBI

27. Global Shares of Education Market (2001)

28. China’s Share in Global Education Market China ’ s share of total expenditures on formal education as share of total world expenditures is about 4% But the share of Chinese students in total world students is about 22%! This is due to much lower Chinese expenditures per student for same level of education, as well as to the different structure of education (less students in China at more expensive higher education levels)

29. Education expenditures from public and private sources as share of GDP (1980-2001 ) Source: Angang Hu 2003 ©Knowledge for Development, WBI

30. Changing Government Role from Provider to Coordinator Policy IssueCurrent RoleK-Economy Role Integration & coordina- tion at national level Compartmentalized, sectoral approach Coordinator for multi- sectoral approach Coordination across governance levels One-way control and regulation Two-way mutual support & partnerships Government as enablerControls and regulatesCreates choices, provides information & incentives, facilitates cooperation/provision Linkage between education & labor market/society Supply is institutionally driven Demand is learner driven Qualifications assurance system Natl standards linked to curriculum & student assessments Diverse system of recognition and quality control Administration and management Rules and regulations, provision Incentives Facilitation of providers ©Knowledge for Development, WBI

31. Key Issues in LLL for China – (2) Poor Demand Supply Links of Education and Training to Labor Market Mismatch between skills supplied and needs of market Poor information on career options, income streams, quality of different providers Need to Improve Quality and Content Quality at all levels low Need to improve assessments Need to reform curriculum and teaching pedagogies Need for Massive Upgrading of Skills Require innovative ways to reduce skills gaps of population already in labor force Need to put in place system to continuously upgrade skills ©Knowledge for Development, WBI

32. Higher Secondary & Tertiary Attainment: China ©Knowledge for Development, WBI

33. Higher Secondary & Tertiary Attainment: OECD ©Knowledge for Development, WBI

34. Key Issues in LLL for China – (3) Need to Realize Potential of ICT Technologies to Expand Access and Quality of Formal education Post formal education and training Need for Accreditation, Vocational Qualification and Certification Need better accreditation of education and training providers Need effective system for assessing and certifying vocational qualifications (and not necessarily just by government) Need for a More Integrated and Coordinated Approach Need system that allows for multiple providers and multiple pathways to different levels of education and skills This requires broad set of general rules and standards and coordination and mutual recognition among multiple systems ©Knowledge for Development, WBI

35. 6. Some Critical Issues from Korean Experience(1) Korea has had perhaps the most rapid expansion of its educational system of any major country Korea is a leading knowledge economy globally R&D/ GDP is 2.8% in Koreas vs. 1% in China Av educational attainment of working population 11 yrs vs. 7 years Tertiary enrollment rates 83% vs. 13% Personal computers per 1000 persons 257 vs. 19 Internet hosts per 10,000 persons 101 vs. 0.7 Korea spends more on education than any other country Spend about 13% of GDP (6.5 formal and 6.5% informal) Vs. 4.8% formal in China (no data on informal for China) Yet Korea is facing its own challenges How to be remain globally competitive How to be more flexible and innovative How to get bigger bang for large investments in R&D and education Its experience can be very valuable for a country facing for massive expansion such as China

36. 6. Some Critical Issues from Korean Experience (2) Trade-off between equity vs. excellence Investment in teacher training and pedagogy vs. reduction of class size and investment in facilities Role of public and private sectors not only in finance, but in provision of education Government regulation and standards vs. autonomy Accreditation and certification Multiple pathways vs. uniform system Use of distance education vs. face to face classroom instruction Coordination across ministries and with private sector Changing focus of education from rapid catch-up stage to global leader stage

37. Summary and Conclusions The knowledge revolution and the knowledge economy are a challenge to all countries Developing countries run big risk of falling behind They need to develop coherent strategies to take advantage of the new potential Improving access and quality of education; retraining and lifelong learning are at the very center of what they have to do to improve their prospects Because of the magnitude of challenge, can’t just replicate what traditionally has been done Need to learn about cost effective new approaches, tools and techniques Need to take advantage of these to leapfrog to catch up Workshops such as these are part of the process of re- thinking what has to be done, but then need to move to how-- implementation of new policies and more public and private partnerships and investment ©Knowledge for Development, WBI