Tertiary Education and Economic Growth: The Bank Strategy Brazil HD Team Seminar 7 February 2006

the future of tertiary education?

outline of the presentation... main messages fit with overall Bank strategy role of the World Bank

main message # 1 n social and economic progress is achieved principally through the advancement and application of knowledge World Development Report 1998/99

knowledge is a key factor in the difference between poverty and wealth

Korea vs. Ghana n Korea u 1950s: F growth of public tertiary education with tuition fees u 1960s: F government financial incentives to promote private tertiary sector growth u 1970s and 80s: F development of science and engineering programs u 1990s: F emphasis on quality assurance, R&D, accountability, performance-based funding

Ghana vs. Korea n Ghana u 1950s – 1970s F slow growth of “free” public tertiary education u 1980s: F initiation of reforms: quality, financial sustainability, expansion of public tertiary education u 1990s: F weak application of reform programs

Korea vs. Ghana n evolution u enrollment rate F Korea: 5% to 80% F Ghana: remained at 2% u private sector enrollment F Korea: 75% of total F Ghana: 6% of total u public expenditure per student F Korea: increase from $2.700 to $4.500 F Ghana: decrease from $1.200 to $850 u tertiary education linkages with economy and labor market F Korea: strong F Ghana: weak

main message # 2 n to increase national productivity, tertiary education is necessary: u to create, disseminate and apply knowledge u to achieve the MDGs u to build local capacities

Tsunami 26 December 2004

disaster preparedness n sismology n vulcanology n climatology (floods, tsunamis, droughts, etc.)

understanding of global issues

main message #3 n tertiary education systems in most developing and transition countries are not adequately prepared to play these roles of knowledge acquisition and capacity building

long-standing challenges n financially sustainable expansion n equity in access n quality and relevance n governance and management

new challenges n new education and training needs n increased competition and emergence of new providers (borderless education) n potential of new information & communication technologies

changing education and training needs n higher skill levels

Female Male relative earning gaps are increasing

changing education and training needs n higher skill levels n flexibility to adapt to change

changes in job task-skill demands in the USA (1960 – 1998) Source: Autor, Levy, and Murnane (2003) “The Skill Content of Recent Technological Change: An Empirical Exploration,” Quarterly Journal of Economics.

OECD Average PISA results for selected countries

changing education and training needs n higher skill levels n flexibility to adapt to change n need for continuing education

from innocence

… to wisdom

South Korea and Brazil % 3% 17% 49% 42% 9% 18% 55% 26% % 14% 2% 87% 9% 4% 78% 14% 8%

university of the future? postgraduate studies first degree continuing education

new providers n long distance competition n franchise universities n corporate universities n media companies, libraries, museums & secondary schools n education brokers

new forms of competition …

new challenges n new education and training needs n increased competition and emergence of new providers (borderless education) n potential of new information & communication technologies

same GEOGRAPHIC PLACE TIME Physical mtgs. Print-on-paper books, journals Hands on labs, shops, studios

same GEOGRAPHIC PLACE TIME different Physical mtgs. Print-on-paper books, journals Hands on labs, shops, studios Shared notebook Library reserves Time-shared labs, shops, studios AV Conference Web search Online, real time instruments Autonomous instruments

a brave new world n social and economic progress is achieved principally through the advancement and application of knowledge World Development Report 1998/99

main message # 4 n responsibility of the State: to put in place an enabling framework that encourages tertiary institutions to be more innovative and responsive

role of the State n define a coherent national strategic vision and policy framework n establish an enabling regulatory environment n offer appropriate financial incentives

main message # 5 n the World Bank Group can assist client countries by sharing international experience and mobilizing the resources needed to improve their tertiary education systems

outline of the presentation... main messages fit with overall Bank strategy

tertiary education… n reduces poverty through economic growth n conditions the achievement of most MDGs n strengthens the entire education system

poverty reduction through economic growth n knowledge for development framework (1999 WDR): u macroeconomic incentives & institutional regime u human capital base u information & telecommunication infrastructure u national innovation system

poverty reduction through economic growth n tertiary education contributes to the last two pillars by: u training a qualified and adaptable labor force u generating new knowledge u adapting global knowledge to local use to resolve concrete economic and social problems

supporting agriculture, environment, health and education to achieve the Millennium Development Goals ( ) 1. Eradicate extreme poverty and hunger  Halve the proportion of people with less than a dollar a day.  Halve the proportion of people who suffer from hunger. 2. Achieve universal primary education  Ensure that boys and girls alike complete primary schooling 3. Promote gender equality and empower women  Eliminate gender disparity at all levels of education.

achieving the Millennium Development Goals (cont’d) 4. Reduce child mortality  Reduce by two thirds the under-five mortality rate. 5. Improve maternal health  Reduce by three quarters the maternal mortality ratio. 6. Combat HIV/AIDS, malaria and other diseases  Reverse the spread of HIV/AIDS. 7. Ensure environmental sustainability 8. Develop a global partnership for development

strengthening the entire education sector to achieve the education MDGs n teacher training & retraining n training of principals and system managers n curriculum development n education research & policy advice

outline of the presentation... main messages fit with overall Bank strategy role of the World Bank

contribution of the World Bank n policy dialogue and knowledge sharing on tertiary education reform n financing and technical assistance to support reforms n enabling framework for global public goods

role of the World Bank policy dialogue and guidance informed by: u understanding of political economy u stakeholder consultations u relevant international experience

contribution of the World Bank n policy dialogue and knowledge sharing on tertiary education reform n financing and technical assistance in support reforms

priorities for Bank involvement support of reforms where: u adequate country knowledge is available u a need for change exists u political will to reform is expressed

menu of project interventions n system diversification & lifelong learning n science & technology development n innovations for quality and relevance n access with equity n sustainable financing n governance and management n information & communication technologies

contribution of the World Bank n policy dialogue and knowledge sharing on tertiary education reform n project lending to support reforms n enabling framework for global public goods

global public goods n brain drain / brain gain n quality assurance for borderless education n trade barriers (GATS) n ICT infrastructure (access and pricing) n intellectual property rights

global public goods: achievements so far n analytical work on international labor migration and diaspora n DGF grants for Asia, LAC and Africa n Africa connectivity initiative n open education resources