Transcript Strategic Implications of Human Capital Today

Strategic Implications of Human
Capital Today
Draft work
Presented at IDSA International Workshop on National Security
Strategy,
December 2010
Not to be cited without permission
G. Balatchandirane
Department of East Asian Studies
University of Delhi
Education in Economic Development … 1
 The Residual
 Human Capital aspect
 The Returns
 Actual contributions
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More important than physical capital
Reduction of poverty
Income inequalities reduced
Non-economic benefits - reduction of infant mortality, increase in life
expectancy, reduction in fertility rates, promotion of democracy,
human rights, political stability, reduction in pollution and lowering
of crime
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Education in Economic Development … 2
 Best measure for poverty reduction
 Knowledge Economy
 Demographic dividend
 Globalization aspect
 “Low-Skill, Bad-Job” trap
 Elimination of inequalities
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The Knowledge Economy …1
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The Knowledge Economy …2
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The Knowledge Economy …3
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Number of Researchers
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Recent Developments
 India emerging as important Innovation
Centre
 IT Captive Centre
 Competitiveness Index improvement
 Frugal engineering
 Demographic Dividend
 IT Super Power?
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Human Capital Deficit … 1
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Human Capital Deficit … 2
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Human Capital Deficit … 3
 Major Issues of
Quantity
Quality
 Progress of countries like China
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Scientific Publications in India
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The Gathering Storm Report
 Why the Report
 Major findings
 Recommendations - The four recommendations focused on:
 school education
 research
 higher education
 economic policy
 It is significant that three of the four issues that were to be addressed
are education related.
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The Report revisited
 Developments in the last five years
 Importance of Higher Education
 In the last half century, 50% to 85% of
the increase in the US GDP is
attributable to advancements in science
and engineering
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Issues to consider
 The triangle
 The three sectors and what correctives
 Historical legacies no excuse today
 Role of the State –
 Shifting goal posts
 Abdication (e.g. RTE)
 Merit non-merit good debate – Case of East Asia,
US
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Who said it and when?
 “Our culture has always considered higher education a public
good … We have agreed as a society that educated citizens benefit
the whole society; that the benefit accrues to us all and not just to
those who receive the education …
 … These seem to be indications that our society increasingly sees
higher education as a private good, of value only to the individual
receiving it. … the shift of the cost burden to individuals have
made it increasingly difficult for low-income students to advance
beyond high school. In the long run, the nation as a whole will
suffer from the lack of new talent that could have been discovered
and nurtured in affordable, accessible, high quality public schools,
colleges, and universities.”
 “… the investments are modest relative to the magnitude of the
return the nation can expect …”
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