challenges of the knowledge economy for education carl dahlman world bank world education market...
DESCRIPTION
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, WBITRANSCRIPT
![Page 1: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/1.jpg)
Challenges of the Knowledge Economy for Education
Carl DahlmanWorld Bank
World Education MarketLisbon
May 20, 2003©Knowledge for Development, WBI
![Page 2: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/2.jpg)
Structure of Presentation
1: The Knowledge Revolution2: Knowledge Economy: Definition and
Framework3: Implications for Education and
Training4:Key Trends in Education and Training5: Challenges to Education and Training6:Challenges to Developing Countries7: The Way Forward
©Knowledge for Development, WBI
![Page 3: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/3.jpg)
The Knowledge Revolution - 1Ability 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
![Page 4: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/4.jpg)
The Knowledge Revolution - 2Greater 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
![Page 5: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/5.jpg)
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
![Page 6: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/6.jpg)
©Knowledge for Development, WBI
World GDP/capita and Population A Two Millennium Perspective
0
1000
2000
3000
4000
5000
6000
0
120
200
280
360
440
520
600
680
760
840
920
1000
1080
1160
1240
1320
1400
1480
1560
1640
1720
1800
1870
1950
1998
0
1000
2000
3000
4000
5000
6000
7000
World GDP per capita (1990 international $) World Population (Million)
Source: Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001
GDP per capita
World Population (mill)
World GDP/Capita and Population
![Page 7: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/7.jpg)
Growing Differences in GDP/Capita
Per Capita GDP for Selected Regions or Countries (1990 international $, 1480-1998)
0
5000
10000
15000
20000
25000
30000
1480 1560 1640 1720 1800 1870 1950 1998
Western Europe
Eastern Europe
United States
Latin America
Japan
China
India
Other Asia
Africa
Source: Angus Maddison, The World Economy : A M illennial Perspective, OECD: Paris, 2001
![Page 8: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/8.jpg)
GDP/Capita Growth: Korea vs Ghana
0
2
4
6
8
10
12
14
1960 1965 1970 1975 1980 1985 1990 1995 2000
K n o w le d g e m a k e s th e D if fe r e n c e K n o w le d g e m a k e s th e D if fe r e n c e b e tw e e n P o v e r ty a n d W e a lth . . .b e tw e e n P o v e r ty a n d W e a lth . . .
R e p . o f K o r e a
G h a n a
T h o u s a n d s o f c o n s ta n t 1 9 9 5 U S d o lla r s
D if fe re n c e a t t r ib u te d to k n o w le d g e
D if fe re n c e d u e to p h y s ic a l a n d h u m a n c a p ita l
©Knowledge for Development, WBI
![Page 9: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/9.jpg)
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
![Page 10: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/10.jpg)
2:2 Framework for Using K4DFour Key Functional Areas
Economic incentive and institutional regime that provides incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurshipEducated, creative and skilled peopleDynamic information infrastructure Effective national innovation system
©Knowledge for Development, WBI
![Page 11: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/11.jpg)
K-Assessment Benchmarking Methodology
KAM: 76 structural/qualitative variables to benchmark performance on 4 pillars
Variables normalized from 0 (worst) to 10 (best) for 112 countries and nine regional groups.
www1.worldbank.org/gdln/kam.htmBasic scorecard for 14 variables at two
points in time, 1995 and 2002Aggregate knowledge economy index
(KE)
©Knowledge for Development, WBI
![Page 12: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/12.jpg)
Education in Global Context
©Knowledge for Development, WBI
![Page 13: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/13.jpg)
3: Implications for Education and Training
Education and training are the key enablers of the knowledge economyThere is an increased premium on education because need education and new skills to adapt and use new technologiesDeveloping countries are handicapped by low enrollment rates and low educational attainment among the working populationDealing with this challenge will require greater coordination among different ministries and between government and the private sector
©Knowledge for Development, WBI
![Page 14: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/14.jpg)
4: Key Trends in Education and Training
Increasing educational attainmentContinued high returns to higher levels of educationIncreasing contribution of education to GDP growthIncreasing globalization of educationIncreased prevalence of life-long learningGrowing role of corporate training
©Knowledge for Development, WBI
![Page 15: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/15.jpg)
Increasing Educational Attainment
Countries
1980 1990 2000 (projection)
Low Income 3.9 4.7 5.4 Middle Income 5.5 6.8 7.3 High Income 9.3 9.6 10.2
Average Years of Schooling of the Total Population Aged 15 and Over
1980 1990 2000 High Income – Middle Income
3.8 2.8 (26.3%) 2.9 (- 3.6%)
High Income – Low Income
5.4 4.9 (9.3%) 4.8 (2.1%)
Difference in Average Years of Schooling Between Income Groups
(unit: years; % indicates reduction of the gap in comparison to the previous decade.)
Data Source: World Bank and Robert Barro and Jong-Wha Lee’s International Data on Educational Attainment Updates and Implications (2000).
©Knowledge for Development, WBI
![Page 16: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/16.jpg)
Continued High Returns to Higher Education Relative to Upper Secondary (1999)
0
0.5
1
1.5
2
2.5
3
3.5
Argentina Brazil Chile Indonesia Thailand
NonePrimaryLwr Sec.Tertiary
©Knowledge for Development, WBI
![Page 17: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/17.jpg)
Increasing Contribution of Education to GDP Growth
Extensive empirical research shows positive contribution of education to growthMost recent OECD study finds:
Human capital has been one of key factors tied to recent growth in OECD countriesEstimated effect on GDP of one additional year of education among 15-64 year olds is around 6% on averageIn developing countries, human capital increases have a higher impact on growth than in OECD countriesThat impact is bigger for the relatively more advanced developing countries, suggesting there is a threshold effect at higher levels of upper secondary and tertiary attainment
OECD Financing Education Investment and Returns (2002)©Knowledge for Development, WBI
![Page 18: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/18.jpg)
Increasing Globalization of Education
At higher education level there are more than 1.6 million students studying outside their home countryEducation institutions are also going global through:
Physical presence in foreign countriesAssociations with local universitiesInternet based courses
GATS is pushing for increasing liberalization in trade in educational servicesTherefore there is growing competition in educational services which will be putting increasing pressure on educational systems in developing countries
©Knowledge for Development, WBI
![Page 19: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/19.jpg)
Growing Role of Adult Learning-1
Participation in Adult Learning in US as % of adults age 18 and above By Level of Educational Attainment Educational Attainment 1991
Total 1995 Total
1999 Total
Total 37.9 44.3 48.1 Grade 8 or less 8.0 10.9 14.9 Grades 9-12 16.1 23.5 25.8 High school diploma or equivalent
26.7 33.0 38.6
Some college, including vocational / technical
52.6 58.7 58.9
Bachelor’s degree or higher 56.5 62.1 64.8 Source: U.S. Department of Education
©Knowledge for Development, WBI
![Page 20: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/20.jpg)
Growing Role of Adult Learning-2 Participation in Adult Learning in US as % of adults age 18 and above By Age Age 1991
Total 1995 Total
1999 Total
18-24 69.1 68.3 69.9 25-34 42.2 53.0 60.3 35-44 46.6 51.0 51.7 45-54 33.3 47.0 49.5 55-64 23.0 28.2 35.2 65 and above 10.5 15.2 18.7 Source: U.S. Department of Education
©Knowledge for Development, WBI
![Page 21: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/21.jpg)
Growing Role of Corporate Training
In 1994, US corporations spent $17 billion on salaries of formal trainers, and the opportunity cost of wages and salaries paid to those being trained was $74 billionThis sum of $91 billion was almost as much as total public expenditures on higher education, which was about $110 billion.Corporate training has been growing and includes not only training in firms by own trainers, but training in formal institutions as well as specialized training such as ICT certificate training by Microsoft, CISCO, etc.
![Page 22: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/22.jpg)
5: Challenges to Education and Training
The Irony of Low Productivity of the Educational SectorImproving the productivity of education and trainingFinancing needs of education and trainingRole of Public vs Private
©Knowledge for Development, WBI
![Page 23: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/23.jpg)
Productivity Irony
Education is the fundamental enabler of the knowledge economyYet it has very low productivity improvement over timeEducation is one of the most traditional sectors in the economyProduction function basically has not changed over several centuriesNot clear there has been much of an improvement in quality as measured by standardized tests
©Knowledge for Development, WBI
![Page 24: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/24.jpg)
Increasing Cost Per Student 1960-2000 (US Data)
Public School Resources in the United States, 1960-2000
Source: U.S. Department of Education (2002)
1960 1970 1980 1990 2000 Pupil-teacher ratio
25.8 22.3 18.7 17.2 16.0
% teachers with master’s degree or more
23.5 27.5 49.6 53.1 56.2
Median years teacher experience
11 8 12 15 15
Current expenditure/ADA (2000/2001 $’s)
$2,235 $3,782 $5,124 $6,867 $7,591
©Knowledge for Development, WBI
![Page 25: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/25.jpg)
Virtually No Increase in Quality
Figure 1: US Student Achievement by Age Group in 1970 and in 1994
222261
305
231266
300
050
100150
200250
300350
Age 9 Age 13 Age 171970/73 1994
Average NAEP* Test Score(Mathematics and Science)
Source: US Department of Education
*NAEP: The US National Assessment of Educational Progress
©Knowledge for Development, WBI
![Page 26: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/26.jpg)
Why Has Productivity Been So Low?Education policies are very input based They ignore incentives to improve student performance or to conserve on costsUntil recently education sector has had characteristics of public monopolyThere is also evidence of little correlation between educational expenditures and performanceEducation sector has very long lead times so accumulating evidence is slowEducation also has very important social and consumption features, not just economic
©Knowledge for Development, WBI
![Page 27: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/27.jpg)
Improving the Productivity of Education
Use new ICT technologies more extensivelyImprove the incentive regime and management of education systemsImprove knowledge management in the education sectorImprove the pedagogy of educationReduce the time it takes to get different levels of education
©Knowledge for Development, WBI
![Page 28: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/28.jpg)
Financing Needs for Education
Estimate size of formal education market is at least US $1.9 TrillionAdding training, it is likely to be $2.4 trillionImproving access and quality is likely to raise it significantly over next decadeMost of this additional financing is likely to have to come from the private sector
©Knowledge for Development, WBI
![Page 29: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/29.jpg)
Global Shares of Education Market (2001)
![Page 30: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/30.jpg)
Expenditures by Education Level(Public vs Private as % GDP)
0
1
2
3
4
5
6
7
OECD US WEI China
<Ter. Pub<Ter. PriTer. PubTer. PriTotal
©Knowledge for Development, WBI
![Page 31: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/31.jpg)
Tapping More Private Resources
Rely more on private tuitions
Develop student loan systems
Rely more on private providers of formal education specialized education and training
But address growing equity problems as there is growth of private share
![Page 32: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/32.jpg)
Role of Public and Private
Increasing role of private educationincreased from 13%n in 1996 to 18% in 2000Increasing focus on life-long learningImplies need for system with multiple pathways and multiple providersImplies setting up institutional and regulatory system that permits thisImplies changing the role of government
©Knowledge for Development, WBI
![Page 33: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/33.jpg)
Changing Government Role from Provider to Coordinator
Policy Issue Current Role K-Economy Role
Integration & coordination 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 enabler Controls and regulates Creates 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
IncentivesFacilitation of providers
©Knowledge for Development, WBI
![Page 34: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/34.jpg)
6: Challenges for Developing Countries
Increasing access to basic educationIncreasing access to secondary and higher educationProviding education for population already outside standard formal system Increasing qualityIncreasing equityResponding to increasing international competition
©Knowledge for Development, WBI
![Page 35: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/35.jpg)
In 1990 the UN Conference on Education for All called for universal primary education by 2000. But in 2000 there were still 113 million primary-school-age children not in school, 60 percent of them girls and 80 percent living in South Asia and Sub-Saharan Africa. The Millennium Development Goals (MDGs) set a more realistic but still difficult deadline of achieving universal primary education by 2015. They have also set a target of obtaining gender equality in primary and secondary education by 2005 and at all levels no later than 2015.
The Millennium Development Goals for Education
© Knowledge for Development, WBI
![Page 36: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/36.jpg)
Challenge of Meeting Universal Primary Education
©Knowledge for Development, WBI
![Page 37: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/37.jpg)
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 alsoshorter degrees from polytecniques and junior collegesspecialized 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
![Page 38: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/38.jpg)
Implications for Lifelong LearningStock challenge: rapid creation and diffusion of knowledge means even adults constantly have to learn, therefore need
Multiple mechanisms for continuous training beyond formal education systemTo exploit potential of information and communications technologies to expand training opportunitiesEffective 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 skillsBroader interdisciplinary approachesFinancing 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
![Page 39: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/39.jpg)
Increasing QualityOn 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 facilitiesBut also due to more antiquated teaching pedagogy, less effective incentive regimes and governance structuresAnd generally more regulated sector
Need not only to improve resources, but also to improve pedagogy and institutional incentive regime
©Knowledge for Development, WBI
![Page 40: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/40.jpg)
Increasing Equity
Share of private financing of education in developing countries is already higher than in developedIt is likely to have to increase because of limited government budgetsAs more toward more private financing already serious problems of inequality will be increasedGovernment will have to pay more attention to addressing the equity problem
![Page 41: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/41.jpg)
Responding to Increasing International Competition
Higher levels and better quality of education increasingly critical for intl. competitivenessEducation sector itself facing greater international competitionDeveloping countries are going to have to make major investments in increasing quantity and quality of education and trainingIn addition,their education and training sectors are going to have to become much more efficient and competitiveThis is going to require major reform and innovation, as well as better realignment of public and private roles as well as domestic and foreign
![Page 42: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/42.jpg)
7: Way Forward
Must improve productivity of educationImprove efficiency through better management accountability etcUse ICT technologiesChange the production functionImprove incentive regime
Change the content of educationBasic skillsTeaching learning to learnJust in time knowledge
©Knowledge for Development, WBI
![Page 43: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/43.jpg)
Summary and ConclusionsThe knowledge revolution and the knowledge economy are a challenge to all countriesDeveloping countries run big risk of falling behindThey need to develop coherent strategies to take advantage of the new potentialImproving access and quality of education; retraining and lifelong learning are at the very center of what they have to do to improve their prospectsBecause of the magnitude of challenge, can’t just replicate what traditionally has been done
Need to learn about cost effective new approaches, tools and techniquesNeed to take advantage of these to leapfrog to catch upConferences 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
![Page 45: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/45.jpg)
A N N E X
©Knowledge for Development, WBI
![Page 46: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/46.jpg)
Benchmarking Changes Over Time
©Knowledge for Development, WBI
0
5
10Econ. Incentive Regime
Innovation
Education
Information Infrastructure
most recent 1995Brazil
INFORMATION INFR.:-Tel. Lines per 1000 people- Computers per 1000 people- Internet hosts per 10,000 people
ECON. INCENTIVE REGIME:-Tariff & Non-tariff barriers-Property Rights-Regulation
EDUCATION:- Adult literacy rate- Secondary Enrollment- Tertiary Enrollment
INNOVATION:-Researchers in R&D- Manuf. Trade as % of GDP- Scient. & Tech. Pub. per million people
![Page 47: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/47.jpg)
Strong Correlation KEI & GDP/Capita
©Knowledge for Development, WBI
![Page 48: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/48.jpg)
Virtually No Productivity Increase in Most OECD Countries
© Knowledge for Development, WBI
![Page 49: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/49.jpg)
Three Sectors Compared
©Knowledge for Development, WBI
Source: Knowledge Management in the Learning Society, OECD, 2000
![Page 50: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/50.jpg)
Educational Attainment in OECD: Adult Population
OECD: percentage of the population that has attained upper secondary or tertiary education (1998)
42 38 30
2319
14
47
25
0102030405060708090
100
25-34 35-44 45-54 55-64Age group
%
Tertiary
Upper secondary
©Knowledge for Development, WBI
![Page 51: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/51.jpg)
Low Educational Attainment AmongAdult Population in LDCs
China: percentage of the population that has attained upper secondary or tertiary education (1998)
197 713
53
3 3
0
20
40
60
80
100
25-34 35-44 45-54 55-64Age group
%
Tertiary
Upper secondary
©Knowledge for Development, WBI
![Page 52: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/52.jpg)
Challenge of Meeting Universal Primary Education
©Knowledge for Development, WBI
![Page 53: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/53.jpg)
Higher Education Enrollment Ratio (1997)
![Page 54: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/54.jpg)
Average Exp./ Full time Student 1999 in US$ Equivalent PPP
0100020003000400050006000700080009000
10000
OECD WEI CHINA
PrimayBsc Sec.Upr SecTertiary
©Knowledge for Development, WBI
![Page 55: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/55.jpg)
Low Secondary Enrollment Rates Relative to Per Capita Income
.
Tasa
Net
a de
Esc
olar
idad
en
Sec
unda
ria, 1
998
PIB per cápita (en log), 19985 6 7 8 9 10 11
20
40
60
80
100
Nicaragu
Guyana
Ecuador
El SalvaParaguay
Jamaica
Dominica
Peru
Colombia
Belize
Venezuel
Mexico
Costa Ri
Brazil
TrinidadChile
Argentin
China
Indonesi
PhilippiThailand
MalaysiaKorea
Hong Kon
New ZealCanada
Australi
SwedenFinlandUnited S
©Knowledge for Development, WBI
![Page 56: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/56.jpg)
Even Lower Tertiary Enrollment Rates Relative to Per Capita Income
.
Tasa
Bru
ta d
e E
scol
arid
ad e
n U
nive
rsid
ad, 1
998
PIB per cápita (en log), 19985 6 7 8 9 10 11
0
20
40
60
80
Haiti
NicaraguHondurasGuyana
Bolivia
SurinameGuatemal
EcuadorEl Salva
ParaguayJamaica
Dominica
Peru
Colombia
Belize
PanamaVenezuel
Mexico
Costa Ri
Brazil
Trinidad
ChileBarbados
Argentin
Bahamas
ChinaIndonesi
PhilippiThailand
Malaysia
Korea
Hong Kon
Singapor
New ZealCanada
Australi
Sweden
Finland
United S
©Knowledge for Development, WBI
![Page 57: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/57.jpg)
La calidad de la educación también es pobreResultados académicos promedio en las
pruebas de matemáticas, lectura y ciencias y su relación con el PIB per cápita.
Resultados académicos en ingreso nacional
©Knowledge for Development, WBI
![Page 58: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/58.jpg)
Global Population and GDP by Income Classification of Countries
Population
Global population 6.1 billion
GDP
Global GDP 31,121US$ bn
©Knowledge for Development, WBI
![Page 59: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/59.jpg)
Population (%) GDP (%) Education Market (US$ bn)
Education Market (% of
total)
USA 4.7 32.3 654 35Other High Income 11.0 47.6 860 46Upper Middle Income 8.2 7.8 133 7Lower Middle Income 35.3 8.8 151 8Low Income 40.9 3.5 60 3World (%) 100 100 1,857 100Total Real Values (current US$ bn ) 6.1 31,121 1,857
Global Shares 2001
Note: For the calculations of the Education Market shares we used 6.5% of GDP for the USA, 5.8% for High Income and 5.5% for the rest of the group classifications
![Page 60: Challenges of the Knowledge Economy for Education Carl Dahlman World Bank World Education Market Lisbon May 20, 2003 ©Knowledge for Development, WBI](https://reader033.vdocument.in/reader033/viewer/2022051123/5a4d1b3f7f8b9ab0599a01c0/html5/thumbnails/60.jpg)