Back to school: Education pays off for Asian economies

First published in the Singapore Business Times
December 6, 2007

By James W. Adams, World Bank Vice President, East Asia & Pacific Region

Education has long been a key ingredient of most Asian countries' growth strategies. Giving education priority has paid off. Increasing levels of education have been estimated to account for well over one third of growth in the highest performing Asian economies between 1960 and 1990.
 
Globalisation and rapid technological change since then have only upped the ante, as a nation's competitiveness has come to depend more and more on its ability to acquire, apply and produce knowledge.

The growing value of education is widely recognised. What family today does not see education as a means to a better future for its children? Governments across the East Asia and Pacific region are responding with a drive to improve the quality and quantity of schooling. The private sector is also responding with a wide range of new offerings from pre-school to university and continuing education.

More than 90 percent of children in East Asia are now enrolled in primary school, 68 percent in secondary, and 20 percent in tertiary institutions. The increase in the tertiary education enrolment rate has been most dramatic, nearly doubling between 2000 and 2005.

Economics is not the only reason families and countries invest in higher levels of education. Universities are about much more than producing successful, skilled young people. As the international Task Force on Higher Education and Society noted in its 2000 report Peril and Promise, universities satisfy a growing demand from students for a sophisticated and rewarding education - this is an intrinsic recognition of the rewards of learning and knowledge.

Universities provide a forum in which societies can examine their problems and identify appropriate solutions. They offer a setting in which society's culture and values can be studied and developed. Universities train people needed to run a modern society and contribute to its advancement.

The evolution of university systems is particularly important in developing countries. While wealthy societies have, by and large, developed mechanisms that ensure a steady supply of well educated people, we should remember that many developing countries still face shortages of medical personnel to deliver basic health care and teachers to deliver reasonable quality basic education.

Countries need scientists who are dedicated to working on important issues of tropical disease, tropical agriculture, or novel applications of existing technology to development issues. They need more environmentalists capable of helping society deal with the effects of climate change, if not prevent it, qualified public administrators, journalists and civil society leaders who help to hold them accountable; and legal professionals dedicated to strengthening the rule of law.

Countries need engineers to support the rapid expansion of 'smart' infrastructure.

Universities - GOOD universities - are an essential part of building healthy and strong individuals, societies and economies.

Increasingly, countries in Asia have set a goal of building 'world- class universities'. We would like to emphasise that such universities grow out of world-class university systems. While there is no single definition of a world-class system and no single path to development, there is growing consensus on many of the characteristics of a world-class system.

Above all, these include an emphasis on excellence in teaching and research, the foundations of which are faculty recruitment policies, incentives for professional development and performance, and well equipped laboratories and libraries.

World-class systems provide equal educational opportunities for students, regardless of income level, gender, ethnicity, or other distinguishing characteristics. In this regard, it bears repeating the obvious: They are built on strong pre-university systems that provide rich educational opportunities for the entire population.

World-class university systems have flexible financing mechanisms that encourage innovation, and enable governments to align resources with strategic development priorities. Governance systems more often than not are characterised by high levels of institutional autonomy.

Quality assurance and accreditation systems offer guidance to universities for continual improvement, while providing information on the quality of various institutions to consumers. World-class university systems foster deep links to employers, research institutes, and the range of institutions which shape social policy and debate.

Many countries in the East Asia and Pacific region share a vision for developing 'knowledge societies', characterised by peace, prosperity, cultural distinctiveness, innovation, and responsible environmental stewardship.

The World Bank has been privileged to be a partner in this venture by supporting a broad range of education programmes from early childhood education through university development. The job is far from complete. As the demand for higher levels of education continues to increase, it looks forward to working with clients in the region to build ever more effective education systems and institutions.