Lifelong Learning in the Global Knowledge Economy Implications for Developing Economies

Characteristics of a Globalized Knowledge Economy Rapid and continuous change Quality as important as price Organizational changes at firm level Short job tenure in competitive sectors Fundamentals of macro stability, openness, competition, good governance “Globalizers” increased trade relative to income while "nonglobalizers" trade less today than they did 20 years ago Growth for "globalizers" from 1% in 1960s to 5% in the 1990s; "nonglobalizers" growth decline from 3% in 1970s to 1% in 1980s and 1990s Vietnam: increased exports led to increased incomes, decreased poverty from 75% to 37% Trade reduced poverty in India: annual income growth 4% In China, Uganda, and Mexico trade and FDI brought higher wages and reduced poverty

Main messages I Knowledge economy puts premium on learning Requires multi-sectoral, cross-ministerial strategy Focus on equity Expand access to learning –home, school, job – through multiple learning mechanisms

Main messages II Raise quality by changing content, pedagogy, incentives Variety of financing mechanisms needed: affordable, sustainable, market-based Articulation across education and training to facilitate lifelong learning Articulate cross-Ministerial, lifelong learning strategy while building diverse partnerships

Korea: Sequenced Expansion By 2000, Korea had Universal Primary and Secondary School Enrollment 120 100 80 Gross Enrollment Ratios Primary 60 Middle School High School Tertiary Korea achieved in 50 years the educational expansion that USA achieved in 100 Investment in tertiary did not increase significantly until secondary was near universal Korea’s high educational levels enabled country to pursue high productivity growth (Source: The New Growth Agenda, Vol. II, Ch. 6) 40 20 1970 1980 1990 2000

Learning in the Knowledge Economy Then Information based Rote learning Teacher directed Just in case Formal education only Directive based Learn at a given age Now Knowledge creation/application Analysis and synthesis Collaborative learning Just in time Variety of learning modes Initiative based Incentives, motivation to learn

Education Indicators 140 119 120 106 103 97 100 GER (%) 80 70 69 62 60 46 36 40 Countries by income-level (1997) Indicators High Middle Low GNP per capita ($) 28,130 1,970 420 Preprimary GER (%) 70 36 .. Primary GER (%) 103 119 97 Secondary GER (%) 106 69 46 Tertiary GER (%) 62 12 8 Adult Illiteracy Rate (%) .. 16 40 20 12 8 Pre-Primary Primary Secondary Tertiary High Income Middle-income Low-income

Brazil: Returns to Schooling in 1982 and 1998 Blom, Verner and Holm-Nielsen 2001

Not Prepared for Knowledge Jobs

Learner-centered: Skills and Pedagogy Learner: motivation, adaptability, analytical thinking, communication, problem solving Teacher: from director to facilitator Classroom: learn by doing, team work, individual learning plans Institution: professional community centered on achievement

Traditional Learning Differs from Lifelong Learning Teacher is source of knowledge Learners receive knowledge Learners work by themselves Tests given to prevent progress All learners do same thing Teachers receive initial training Good learners identified Lifelong learning Educators are guides to knowledge People learn by doing People learn in groups Assessments guide learning Individual learning plans Educators are lifelong learners Access to lifetime learning

Alternative Delivery Mechanisms Increase access to learning opportunities Increase variety of ways learners can learn Give access to knowledge resources Enhance quality through technology learning by doing self-directed learning continuously updated curriculum Networks of good practice

Financing Lifelong Learning Expenditures increase, public resources limited Priority for public: basic education Balance between subsidies and market mechanisms given that Benefits both private and public Access to capital uneven

Variety of finance mechanisms: affordable, sustainable, market-based Cost-recovery Subsidies Traditional loan Voucher Human capital contracts Learning accounts Graduate tax Savings accounts Income contingent loans Tax credits Entitlements: combination loan/voucher

Governance for Lifelong Learning Requires multi-sectoral, cross-ministerial strategy w/ private sector, civil society Enabling environment built on incentives Focus on equity to make lifelong learning accessible/affordable to poor and vulnerable Demand-driven policy framework, enhanced accountability & transparency

Summary Premium on learning Expand access to learning through alternative mechanisms and financing Raise quality by changing content, pedagogy, incentives

Harry Anthony Patrinos hpatrinos@worldbank.org