Transcript The Knowledge Economy in the Southern Cone

KEY ELEMENTS OF LIFE LONG
LEARNING IN THE CONTEXT
OF THE KNOWLEDGE
ECONOMY
Carl Dahlman
World Bank
Presentation At China KRIVET/World Bank China
Workshop on Revamping the Life Long Learning System
Seoul, Korea
June 27, 2003
`
Structure of Presentation
1.
2.
3.
4.
The Knowledge Revolution
The Knowledge Economy
Implications for Education and Training
Key Elements of A System of Life Long
Learning
5. Key Challenges of LLL for China
6. Some Critical Issues from Korean Experience
7. Summary and Conclusions
1.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
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The Knowledge Revolution (2)
Greater 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
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World GDP/Capita and Population
World GDP/capita and Population
A Two Millennium Perspective
GDP per
capita
World Population
(mill)
6000
7000
5000
6000
5000
4000
4000
3000
3000
2000
2000
1000
1000
World GDP per capita (1990 international $)
1998
1950
1870
1800
1720
1640
1560
1480
1400
1320
1240
1160
1080
1000
920
840
760
680
600
520
440
360
280
200
120
0
0
0
World Population (Million)
Source: Computed by WBIPKD Staff based on Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001
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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.
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Growing Differences in GDP/Capita
Per Capita GDP for Selected Regions or Countries
(1990 international $, 1480-1998)
30000
25000
Western Europe
Eastern Europe
20000
United States
Latin America
15000
Japan
China
10000
India
5000
Other Asia
Africa
0
1480
1560
1640
1720
1800
1870
1950
1998
Source: Computed by WBIPKD Staff based on Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001
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GDP/Capita Growth: Korea vs Ghana
Knowledge makes the Difference
between Poverty and Wealth...
14
Thousands of constant
1995 US dollars
Rep. of Korea
12
Difference
attributed to
knowledge
10
8
6
4
2
Ghana
0
1960
1965
1970
1975
1980
1985
1990
1995
Difference
due to
physical
and human
capital
2000
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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.”
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2:2 Framework for Using K4D
Four Key Functional Areas
Economic incentive and institutional
regime that provides incentives for the
efficient use of existing and new
knowledge and the flourishing of
entrepreneurship
Educated, creative and skilled people
Dynamic information infrastructure
Effective national innovation system
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3: Implications for Education and Training
Knowledge Revolution means
Constant need for new skills for people out of
school and in labor force
Higher levels of education necessary to use,
adapt, and create new knowledge
Education and training therefore are the key
enablers of the knowledge economy
It will be necessary to increase formal
educational attainment as well as to provide
for continuous training of labor force
Dealing with this challenge will require
greater coordination among different
ministries and between government and the
private sector
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Key Trends in Education and Training
Increasing educational attainment
Continued high returns to higher levels
of education until very recently
Increasing contribution of education to
GDP growth
Increasing globalization of education
Increased prevalence of life-long
learning
Growing role of corporate training
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Changing Education & Training Paradigm
Traditional Model
Information based
Rote learning
Teacher directed
Just in case
Formal education only
Directive based
Learn at a given age
Terminal education
Knowledge Economy Model
Knowledge creation/application
Analysis and synthesis
Collaborative learning
Just in time
Variety of learning modes
Initiative based
Incentives, motivation to learn
Lifelong learning
Implications for Lifelong Learning
Stock challenge: rapid creation and diffusion of knowledge
means even adults constantly have to learn, therefore need
Multiple mechanisms for continuous training beyond formal
education system
To exploit potential of information and communications
technologies to expand training opportunities
Effective 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 skills
Broader interdisciplinary approaches
Financing mechanisms to expand access and improve
quality
Developing countries need to address both stock and flow
challenges, though severely financially constrained
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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 also
shorter degrees from polytecniques and junior colleges
specialized 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
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4. What is a Life Long Learning System?
Encompasses learning throughout a person’s
lifecycle to retirement:
Formal education: schools, universities and
specialized training institutions
Non-formal training: on the job and
household training
Informal training: skills learned from family
members, friends, or community
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Key Elements of System of
Lifelong Learning
• New skills and competences
• New pathways to learning
• Governance challenges
• Financing challenges
New Skills and Competences
• Traditional academic skills
• Literacy, numeracy,
• Science, technology/ICT, international
language
• Emerging need for a different set of skills
• self-regulated learning
• tolerance for ambiguity
• creative thinking
• ability to work in a team
• learning how to learn
New Pathways to Learning
• Increased access to learning opportunities
•
•
•
Variety of ways learners can learn
Increased access to knowledge resources
Increased role of private formal and informal
providers
• Additional/diverse learning modalities
•
•
•
Modular,
Part-time,
Distance/e-learning,..
• Different approach to learning (pedagogy)
•
•
•
Changing role of teachers,
Curricula,
Technology
Governance Challenges of LLL:
Traditional Education
Lifelong learning
Scope
• Formal schooling
• Formal, non/informal,.
Content
• Acquisition/repetition • Creation/application
• Curriculum-driven
• Diverse sources
Delivery • Limited options
• Institutions
• Uniform, supplydriven
• Multiple options
• Individuals
• Pluralistic, demanddriven
Learning • Standardized
Outcome
assessment
• Flexible recognition
of soft skills
LLL Governance: Way Forward
From
To
• Sectoral approach
• Multi-sectoral, coordination
• Control and regulation
• Support and partnership
• Issue orders
• Direct students
• Institution-driven
• Create choices, pathways;
• Inform learners
• Learner-driven
• National curriculum
• Recognition & quality control
• Rules and regulations
• Incentives and facilitation
Financing Challenge of LLL
Estimate size of formal education
market is at least US $1.9 Trillion
Adding training, it is likely to be $2.4
trillion
Improving access and quality is likely to
raise it significantly over next decade
Most of this additional financing is likely
to have to come from the private sector
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Meeting the Financing Challenge of LLL:
Increasing Resources for and
Productivity of Education
Increase public resources for education
Increase students contributions to cost of
delivering public education, including loans
Increase private provision of education and
training
Improve the productivity of education
Use new ICT technologies more extensively
Improve the incentive regime and management of
education systems
Improve knowledge management in the education
sector
Reduce the time it takes to get different levels of
education
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Improve the pedagogy of education
Meeting the Challenge of LLL:
Increasing Quality
On 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 facilities
But also due to more antiquated teaching
pedagogy, less effective incentive regimes and
governance structures
And generally more regulated sector
Need not only to improve resources, but also to
improve pedagogy and institutional incentive
regime
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Meeting the Financing Challenge
of LLL: Increasing Equity
Share of private financing of education in
developing countries is already higher than in
developed
It is likely to have to increase because of
limited government budgets
As more toward more private financing
already serious problems of inequality will be
increased
Government will have to pay more attention
to addressing the equity problem
5. Key Issues in LLL for China – (1)
Fragmentation and Lack of Coordination of System
Many ministries involved controlling different parts
Growing private universities and training programs
Great Needs, Limited Finance, Imply Need for
Innovative Approaches
Govt cannot afford to finance increase in access and quality
Need to tap potential for private financing
Need for a New Role of Government/Private Sector
Key govt role as architect of system-standards, regulations,
information of dynamic and rapidly growing system
Key role also in addressing equity issues as have growing
private provision and private finance of education & training
Growing importance of domestic and foreign education and
training providers
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Global Shares of Education Market (2001)
China’s Share in
Global Education Market
China’s share of total expenditures on formal
education as share of total world
expenditures is about 4%
But the share of Chinese students in total
world students is about 22%!
This is due to much lower Chinese
expenditures per student for same level of
education, as well as to the different
structure of education (less students in China
at more expensive higher education levels)
Education expenditures from public
and private sources as share of GDP
(1980-2001)
6.00%
Share of GDP
5.00%
4.00%
Private education funding
as share of GDP
3.00%
Public education funding
as share of GDP
2.00%
1.00%
19
80
19
83
19
86
19
89
19
92
19
95
19
98
20
01
0.00%
Year
Source: Angang Hu 2003
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Changing Government Role from
Provider to Coordinator
Policy Issue
Current Role
K-Economy Role
Integration & coordination at national level
Compartmentalized,
sectoral approach
Coordinator for multisectoral 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
Incentives
Facilitation of providers
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Key Issues in LLL for China – (2)
Poor Demand Supply Links of Education and Training
to Labor Market
Mismatch between skills supplied and needs of market
Poor information on career options, income streams, quality
of different providers
Need to Improve Quality and Content
Quality at all levels low
Need to improve assessments
Need to reform curriculum and teaching pedagogies
Need for Massive Upgrading of Skills
Require innovative ways to reduce skills gaps of population
already in labor force
Need to put in place system to continuously upgrade skills
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Higher Secondary & Tertiary Attainment: China
%
China: percentage of the population that has attained upper
secondary or tertiary education (1998)
100
80
60
Tertiary
Upper secondary
40
20 5
13
0
25-34
3
19
3
7
3
7
35-44
45-54
55-64
Age group
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%
Higher Secondary & Tertiary Attainment: OECD
100
90
80
70
60 25
50
40
30
20 47
10
0
25-34
OECD: percentage of the population that has attained upper
secondary or tertiary education (1998)
23
Tertiary
19
14
42
38
35-44
45-54
Upper secondary
30
55-64
Age group
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Key Issues in LLL for China – (3)
Need to Realize Potential of ICT Technologies to
Expand Access and Quality of
Formal education
Post formal education and training
Need for Accreditation, Vocational Qualification and
Certification
Need better accreditation of education and training providers
Need effective system for assessing and certifying
vocational qualifications (and not necessarily just by
government)
Need for a More Integrated and Coordinated
Approach
Need system that allows for multiple providers and multiple
pathways to different levels of education and skills
This requires broad set of general rules and standards and
coordination and mutual recognition among multiple systems
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6. Some Critical Issues from Korean Experience(1)
Korea has had perhaps the most rapid expansion of its
educational system of any major country
Korea is a leading knowledge economy globally
R&D/ GDP is 2.8% in Koreas vs. 1% in China
Av educational attainment of working population 11 yrs vs. 7 years
Tertiary enrollment rates 83% vs. 13%
Personal computers per 1000 persons 257 vs. 19
Internet hosts per 10,000 persons 101 vs. 0.7
Korea spends more on education than any other country
Spend about 13% of GDP (6.5 formal and 6.5% informal)
Vs. 4.8% formal in China (no data on informal for China)
Yet Korea is facing its own challenges
How to be remain globally competitive
How to be more flexible and innovative
How to get bigger bang for large investments in R&D and
education
Its experience can be very valuable for a country facing for
massive expansion such as China
6. Some Critical Issues from Korean Experience (2
Trade-off between equity vs. excellence
Investment in teacher training and pedagogy vs.
reduction of class size and investment in facilities
Role of public and private sectors not only in finance,
but in provision of education
Government regulation and standards vs. autonomy
Accreditation and certification
Multiple pathways vs. uniform system
Use of distance education vs. face to face classroom
instruction
Coordination across ministries and with private sector
Changing focus of education from rapid catch-up
stage to global leader stage
Summary and Conclusions
The knowledge revolution and the knowledge economy are
a challenge to all countries
Developing countries run big risk of falling behind
They need to develop coherent strategies to take advantage
of the new potential
Improving access and quality of education; retraining and
lifelong learning are at the very center of what they have to
do to improve their prospects
Because of the magnitude of challenge, can’t just replicate
what traditionally has been done
Need to learn about cost effective new approaches,
tools and techniques
Need to take advantage of these to leapfrog to catch up
Workshops such as these are part of the process of rethinking what has to be done, but then need to move to
how-- implementation of new policies and more public
and private partnerships and investment
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