key elements of life long learning in the context of the knowledge economy carl dahlman world bank...

KEY ELEMENTS OF LIFE LONG LEARNING IN THE CONTEXT

OF THE KNOWLEDGE ECONOMYCarl 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. The Knowledge Revolution2. The Knowledge Economy3. Implications for Education and Training4. Key Elements of A System of Life Long

Learning5. Key Challenges of LLL for China6. Some Critical Issues from Korean

Experience7. 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

©Knowledge for Development, WBI©Knowledge for Development, WBI

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



World GDP/capita and Population A Two Millennium Perspective

0

1000

2000

3000

4000

5000

6000

0

12

0

20

0

28

0

36

0

44

0

52

0

60

0

68

0

76

0

84

0

92

0

10

00

10

80

11

60

12

40

13

20

14

00

14

80

15

60

16

40

17

20

18

00

18

70

19

50

19

98

0

1000

2000

3000

4000

5000

6000

7000

World GDP per capita (1990 international $) World Population (Million)

GDP per capita

World Population (mill)

World GDP/Capita and Population

Source: Computed by WBIPKD Staff based on Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001

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.


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: Computed by WBIPKD Staff based on Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001

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


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.”


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


3: Implications for Education and Training

Knowledge Revolution meansConstant need for new skills for people out of school and in labor forceHigher levels of education necessary to use, adapt, and create new knowledge

Education and training therefore are the key enablers of the knowledge economyIt will be necessary to increase formal educational attainment as well as to provide for continuous training of labor forceDealing with this challenge will require greater coordination among different ministries and between government and the private sector


Key Trends in Education and Training

Increasing educational attainmentContinued high returns to higher levels of education until very recentlyIncreasing contribution of education to GDP growthIncreasing globalization of educationIncreased prevalence of life-long learningGrowing role of corporate training


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 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


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


4. What is a Life Long Learning System?

Encompasses learning throughout a person’s lifecycle to retirement:

Formal education: schools, universities and specialized training institutionsNon-formal training: on the job and household trainingInformal training: skills learned from family members, friends, or community


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

• Curriculum-driven

• Creation/application

• Diverse sources

Delivery • Limited options

• Institutions

• Uniform, supply-

driven

• Multiple options

• Individuals

• Pluralistic, demand-

driven

Learning

Outcome

• Standardized

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

• Create choices, pathways;

• Inform learners

• Institution-driven • 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 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


Meeting the Financing Challenge of LLL: Increasing Resources for and Productivity of Education

Increase public resources for educationIncrease students contributions to cost of delivering public education, including loans Increase private provision of education and trainingImprove the productivity of education

Use new ICT technologies more extensivelyImprove the incentive regime and management of education systemsImprove knowledge management in the education sectorReduce the time it takes to get different levels of educationImprove 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 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


Meeting the Financing Challenge of LLL: 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

5. Key Issues in LLL for China – (1)

Fragmentation and Lack of Coordination of SystemMany ministries involved controlling different partsGrowing private universities and training programs

Great Needs, Limited Finance, Imply Need for Innovative Approaches

Govt cannot afford to finance increase in access and qualityNeed to tap potential for private financing

Need for a New Role of Government/Private SectorKey govt role as architect of system-standards, regulations, information of dynamic and rapidly growing systemKey role also in addressing equity issues as have growing private provision and private finance of education & trainingGrowing importance of domestic and foreign education and training providers


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)

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

1980

1983

1986

1989

1992

1995

1998

2001

Year

Sh

are

of

GD

P

Private education fundingas share of GDP

Public education fundingas share of GDP

Source: Angang Hu 2003©Knowledge for Development, WBI

©Knowledge for Development, WBI

Changing Government Role from Provider to Coordinator

Policy Issue Current Role K-Economy Role

Integration & coordina-tion 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

Incentives

Facilitation of providers


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 ContentQuality at all levels low

Need to improve assessments

Need to reform curriculum and teaching pedagogies

Need for Massive Upgrading of SkillsRequire innovative ways to reduce skills gaps of population already in labor force

Need to put in place system to continuously upgrade skills


Higher Secondary & Tertiary Attainment: China

China: percentage of the population that has attained upper secondary or tertiary education (1998)

197 713

33

3

5

0

20

40

60

80

100

25-34 35-44 45-54 55-64Age group

%

Tertiary

Upper secondary


Higher Secondary & Tertiary Attainment: OECD

OECD: percentage of the population that has attained upper secondary or tertiary education (1998)

42 38 30

2319

14

47

25

01020

3040506070

8090

100

25-34 35-44 45-54 55-64Age group

%

Tertiary

Upper secondary


Key Issues in LLL for China – (3)Need to Realize Potential of ICT Technologies to Expand Access and Quality of

Formal educationPost formal education and training

Need for Accreditation, Vocational Qualification and Certification

Need better accreditation of education and training providersNeed 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 skillsThis requires broad set of general rules and standards and coordination and mutual recognition among multiple systems


6. Some Critical Issues from Korean Experience(1)

Korea has had perhaps the most rapid expansion of its educational system of any major countryKorea is a leading knowledge economy globally

R&D/ GDP is 2.8% in Koreas vs. 1% in ChinaAv educational attainment of working population 11 yrs vs. 7 yearsTertiary 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 countrySpend 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 challengesHow to be remain globally competitiveHow to be more flexible and innovativeHow 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. excellenceInvestment in teacher training and pedagogy vs. reduction of class size and investment in facilitiesRole of public and private sectors not only in finance, but in provision of educationGovernment regulation and standards vs. autonomyAccreditation and certificationMultiple pathways vs. uniform systemUse of distance education vs. face to face classroom instructionCoordination across ministries and with private sector Changing focus of education from rapid catch-up stage to global leader stage

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 upWorkshops 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


key elements of life long learning in the context of the knowledge economy carl dahlman world bank...

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