Read The Times Australia

Daily Bulletin

Teach all young people universal basic skills by 2030 – it will give huge boost to GDP

  • Written by: The Conversation
imageQuality control: in Liberia in 2014, all students failed their university entrance exams. Ahmed Jallanzo/EPA

Ministers and education officials from a wide range of countries and international agencies are converging on Incheon in the Republic of Korea this week to discuss a new set of development goals at the World Education Forum. A draft document lays out a set of Sustainable Development Goals (SDGs), which will follow on from the Millennium Development Goals (MDGs) that included education goals to be accomplished by 2015.

It is difficult to fault the SDGs as noble ambitions – end poverty everywhere, combat climate change, and more. But it is also clear that, even though they provide a plethora of targets, it will not be easy to use them either as policy levers for change or as a means of charting progress. There are also historical reasons to believe that what is not measured will not get done.

The MDGs were clearer on measureable goals. In education they called for universal access to secondary schooling. And, they showed real progress was possible: primary school enrolment rates in South Asia rose from 78% in 1999 to 94% in 2012 while they moved from 59% to 79% in sub-Saharan Africa over the same period.

Unfortunately, the best available evidence shows that many of the students appeared not to learn anything. The evidence on international achievement tests showed dismal levels of knowledge for many of the countries that improved in school access – seat time is not the same as learning. This is a huge problem, because it is knowledge and skills that pay off economically.

In a new report issued by the Organisation for Economic Co-operation and Development (OECD), Universal Basic Skills: What Countries Stand to Gain, we show the economic impact of meeting a quality goal of bringing all children up to a level of basic skills. The economic impact is huge, even for developed countries. We estimate that introducing universal basic skills by 2030 could boost GDP for lower-middle income countries by 1,302%, and 162% for high-income OECD countries.

Back to basics

Basic skills can readily be measured for a large number of countries, ones that participate in the international testing of either the Programme for International Student Assessment (PISA) or the Trends in International Mathematics and Science Study (TIMSS). These tests allow country comparisons of mathematics and science skills. In our research, we considered basic skills to be Level 1 on PISA. This level of skills corresponds to what might today be called modern functional literacy, and it provides a measuring rod for judging the skills needed for economic participation.

Our estimation of the economic impact of bringing all children up to this level comes from seeing how educational improvements translate into more economic growth. In other analysis that we have done, we show that differences in growth rates across countries are very closely related to the aggregate achievement of societies – what we call the knowledge capital of nations.

In measuring the economic impact of achieving universal basic skills, we placed countries in four income categories: lower middle income, upper middle income, high income non-OECD, and high income OECD. Based on the assumption that each of the 76 nations reaches the goal of all youth attaining at least basic skills by 2030, we calculated the average present value increases in “discounted future GDP” compared to current GDP. Discounted future GDP means that in all our calculations, the estimates further in the future were weighted less than those close to the present. By making these estimates of “present value”, we were able to make direct comparisons to current GDP when we project the impact of educational improvement on growth.

Poorest countries have the most to gain

As the graph below – which gives a selection of the results from our research – shows, the largest gains typically come for the countries in the lowest income group. The differences between countries reflects the variety in both current enrollment rates and the current achievement levels between countries.

imageCC BY

Ghana, for example, has the lowest enrollment rate in secondary schools (46%) and also the lowest achievement levels for those in school (291 PISA points). It is extraordinarily unlikely that Ghana could move quickly enough to meet the universal skills goal in 15 years; but if it did, it would see a gain that in present value terms was 38 times its current GDP. This is equivalent to an average annual increase in discounted future GDP of 83%. The goal is more realistic for a number of other middle income countries, where the results would still be stunning.

A development goal of universal basic skills would also have meaning for high income OECD countries. High income countries have generally been left out of previous development discussions. While most of these countries have achieved nearly universal access to secondary schools, all continue to have a portion of their population that fails to achieve basic skills and that represents a group not included in any growth.

On average, these countries would see average GDP rise 3.5% over the next 80 years, which is almost exactly the average percentage of GDP they devote to public primary and secondary school expenditure. The present value of gains for the high income OECD countries averages a nontrivial 1.6 times current GDP.

Our research also separates out what would happen to economic gains under three different scenarios: increasing the quality of schools for all current students so that they reach basic skills; expanding access to secondary schools to universal enrollment at current quality levels; and simultaneously increasing enrollment and ensuring basic skills for all.

Quality over quantity

It is not surprising that the gains from expanded access are slight for the high income OECD countries, given that their average enrollment rate for secondary schools is already 98%. But even in the lowest income countries we looked at, where the secondary enrollment rate averages just 75%, the gains from improving the current quality of schools for those currently in school are three times as large as those from expanding enrollment with the current quality. Guaranteeing access to higher quality schools is six times more valuable than just expanding access to current quality schools.

The inclusive growth made possible through universal achievement of basic skills has tremendous potential as a way to address issues of poverty and limited healthcare, and to foster the new technologies needed to improve the sustainability of growth.

The SDGs on education being developed in Incheon could be substantially accomplished by focusing first on universal basic skills. No other approach has been identified that offers similar possibilities of facilitating the inclusive growth needed to address the full range of development goals. To us, the primary development goal should be universal basic skills.

Eric A. Hanushek received funding from the OECD to conduct the underlying study. He is affiliated with Stanford University, the National Bureau of Economic Research, the CESifo Network, and IZA.

Ludger Woessmann received funding from the OECD for this work. He works for the Ifo Institute at the University of Munich and is affiliated with CESifo and IZA.

Authors: The Conversation

Read more http://theconversation.com/teach-all-young-people-universal-basic-skills-by-2030-it-will-give-huge-boost-to-gdp-41792

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

The Importance of Reliable Plumbing Services During Home Renovations

A freshly renovated bathroom can make an ordinary Monday morning feel a little more inviting. The ne...

Backyard Living Options for Campbelltown Homes: What Works Best?

You know that feeling at the end of a long, busy week when all you want is a calm spot outdoors, whe...

Smart Wardrobe Storage Ideas for Small Sydney Apartments and Bedrooms

A well-designed wardrobe is one of the most useful things a home can have. It's meant to keep clothe...

Colorbond Fencing in Australia: Costs, Colours, Rules and What Actually Lasts

Drive through almost any Australian suburb built in the last thirty years and you are looking at the...

Why Your Dental Clinic Is Not Getting Enough New Patient Bookings From Google

Introduction SEO for Dentist is not just about getting a dental clinic to appear somewhere on Goo...

Low Water Pressure in Sunbury: Is the Problem Inside Your Home or Outside It?

Low water pressure is one of those problems that can send a homeowner in the wrong direction. A we...

4 Beige Rugs for Beautiful and Comfortable Wooden Flooring

Wooden flooring already brings warmth and character to a room, but a beige rug can make that found...

How to Fix Poor Subfloor Ventilation in Older Homes

Older homes have character, but many were built before today's ideas about moisture and airflow were...

Early Engagement on Instagram: What Those First Reactions Really Tell You

The first few hours after an Instagram post goes live are worth paying close attention to. A massi...