1. Chapter 19 How can education promote social progress?
Possible role of higher education for social progress?
Can be related to the following perspectives:
The continuous relevance of the enlightenment values for higher education.
The role of higher education in the creation of economic growth and wealth
Higher education’s importance in strengthening social inclusion and equality
IPSP - General information

2. The array of higher education benefits
Public
Private
Increased Tax Revenues
Greater Productivity
Increased Consumption
Increased Workforce Flexibility
Decreased Reliance on Government Financial Support
Higher Salaries and Benefits
Employment
Higher Savings Levels
Improved Working Conditions
Personal/Professional Mobility
Economic
Reduced Crime Rates
Increased Charitable Giving/Community Service
Increased Quality of Civic Life
Social Cohesion/Appreciation of Diversity
Improved Ability to Adapt to and Use Technology
Improved Health/Life Expectancy
Improved Quality of Life for Offspring
Better Consumer Decision Making
Increased Personal Status
More Hobbies, Leisure Activities
Social
Source: The Institute for Higher Education Policy, “Reaping the Benefits: Defining the Public and Private Value of Going to College”, March 1998.

3. Higher education and development
Higher education has a major effect on both economic development and private returns – it is a public and a private good.
The “engine of development in the new knowledge economy theorists argue that the new modes of economic production are increasingly dependent on knowledge and information technology. Knowledge and ‘informationalism’ have become central to development in the global economy” (Castells, 1991).
“if knowledge is the electricity of the new informational international economy, then institutions of higher education are the power sources on which a new development process must rely” (Castells, 2001).
According to the Harvard-led World Bank study (Bloom 2005), a 1-year increase in the stock of Africa’s tertiary education would boost the annual rate of economic growth by a sizable 0.63 percentage points. If the current stock of tertiary education in Africa increased to the level of Egypt (0.59 years/person), the annual rate of GDP growth would increase by 0.28 percentage points.

4. Stage 2: Efficiency-driven Stage 3: Innovation-driven
Primary education
Secondary Education
Tertiary education
GCI
GER QR
QR (+M&S)
RoR
Stage 1: Factor-driven
Ghana 89
104 67
76 (72) 12 29
119
Kenya 84
36 (78) 4 22 99
Mozambique 87
138 26
119 (133) 5 18
133
Pakistan 72
112 38
75 (89) 10 15 64
Tanzania
124 33
98 (130) 19
120
Uganda 92
113 27
81 (111) -
115
Transition from 1 to 2
Botswana 90 85 82
77 (95) 20 71
Stage 2: Efficiency-driven
Egypt 95
139 86
139 (131) 30
116
South Africa
127
111
138 (140) 40 49
China 98 55
56 (49) 21 28
Transition from 2 to 3
Chile
108
86 (107) 75 35
Costa Rica 39
109
28 (55) 48 52
Brazil
132
132 (134) 17
Malaysia 97
6 (12) 37
Mauritius 96
49 (50) 41 46
Turkey
100
92 (103) 70 51
Stage 3: Innovation-driven
Austria
37 (37) 9 23
Finland 1
4 (2) 94 8
Korea, Rep. 36
66 (30) 13
Norway
11 (24) 74 11
Singapore 3
3 (1) 83 2
United States 91
18 (44)

5. Major challenges facing higher education
3. Preparing students for the knowledge economy
Accept that all work will require the use of knowledge and information
Large parts of the world will have to move from commodity driven to service and innovation economies
Appropriate skills - self programmable labour, workers who can adjust to changing technologies and changing work
Academic – vocational debate
Entrepreneurship
Quality

6. Private/public returns to HE
Globally, and in Africa, there are considerable benefits to HE.
In Sub-Saharan Africa, private returns to HE are higher than returns to primary and secondary education.
The region with the highest private returns to HE is Sub-Saharan Africa.
South Africa has the highest private returns to HE in the world:
South Africa 40, Ghana 28; Uganda 23
Mauritius 21, Mexico 20, Brazil 17,
Turkey 14, US 14, Spain 11, Norway 10
Higher education also has numerous private benefits such as higher salaries, savings, professional mobility, life expectancy and quality of life. Public benefits include greater productivity, increased consumption, workforce flexibility, reduced crime rates, greater appreciation of diversity and improved ability to new technologies.
SA high returns to tertiary education and high levels of inequality (Gini coefficient 0.70) mean that free higher education will proportionally privilege the privileged (Patrinos 2015). High equality countries have a smaller return to tertiary education.

7. Private returns to education by level and region (WB, 2014)
Source: Montenegro & Patrinos 2014 Human development reports comparable estimates of returns to schooling around the world. Washington DC: The World Bank

8. University access by income level (recent matric cohort)
Source: S. Van der Berg / RESEP (October 2016).

9. Conditional probability of employment and conditional log of wages by years of education
Source: Van den Berg 2015 Inequality, poverty and prospects for redistribution. Dev South Afr. 31(2):

10. Fees is a global issue
Fees and fee schemes
Student debt
Importance of fees for higher education institutions
Major differences between countries and contexts and levels of equality and inequality in societies
Can elaborate this if Group agrees

11. Inequality/ Economic growth
Trilemma of trade-offs and effects on growth and inequality
Enrolment
Inequality/ Economic growth
Public investment
Private cost

12. Trilemma of trade-offs: England, China, SA & Africa
Source: Busemeyer (2015). Graphic by CHET/Francois van Schalkwyk.

13. Piketty: Capital (2014)
“Climate change and educational access are two of the greatest challenges to the human race. Ameliorating schooling is even more important than fixing governmental debt: the more urgent need is to increase our educational capital” (568).
“Furthermore the best way to reduce inequality and increase the overall growth of the economy is to invest in education. To maintain a competitive edge in a rapidly transforming knowledge economy, countries need to invest more in quality education. Not even minimum wage schedules can multiply wages by factors of five or ten: to achieve that level of progress, education and technology are the decisive factors.”
One of Piketty’s five prescriptions for South Africa is quality schooling – but poor kids go to poor quality schools

14. Two big issues for educators
Research – evidence – policy
Most of the research cited comes from economists
Dearth of research on processes and outcomes of policies and policy implementation – policy implementation with research
Experimental methodologies are mainly small-scale and ignored
2. Teachers and teacher educators
Are teachers prepared for challenges: economic, rise of populism, citizenship, humanistic?
Are education faculties prepared to simultaneously ‘’retool’’ teachers and train new teachers for this changing world?