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Jens Johansen, ETF 23 February 2010, Cairo

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The role of human capital in international economic competitiveness indices and implications for national education policy reform. Jens Johansen, ETF 23 February 2010, Cairo. Education is a driver of competitiveness, but why and how?.

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slide1

The role of human capital in international economic competitiveness indices and implications for national education policy reform

Jens Johansen, ETF

23 February 2010, Cairo

slide2

Education is a driver of competitiveness, but why and how?

  • Is it the amount of education? At an individual and at a macro level? The quality? The manner of teaching? Is it the changes in the mindset of participants which education gives rise to that create competitiveness? Is it what you teach? Is it a question of how many students complete education?
slide3

Today’s session:

  • We will demonstrate the effect of the current indicators
    • How much can a country improve its competitiveness through education reforms?
  • We will see that it is possible to weigh different reform options against each other through simulations
  • We will discuss what elements within education that can create a basis for future competitiveness
slide4

World Economic Forum (WEF)

  • The WEF uses simple measurements of education & training to cover many countries:
  • Extent of formal education (hard data)
  • Cost of formal education (hard data)
  • Quality of education (survey)
  • Training on-the-job (survey)
  • Facilities, i.e. internet access (survey)
  • ETF did simulations using the full dataset of the Global Competitiveness Inex: 2007-2008
slide6

Which WEF indicators cover education and training in human capital?

  • Pillar 4: Quality of primary education, Primary enrolment, Education expenditure
  • Pillar 5: Secondary enrolment, Tertiary enrolment, Quality of the educational system, Quality of science and mathematics education, Quality of management schools, Internet access in schools, Local availability of research and training services, Extent of staff training
  • Pillar 12: Capacity for innovation, Quality of research institutions, Company spending on research and development,University-industry research collaboration, Availability of researchers and engineers, Utility patents.
  • + Brain-drain (pillar 7)
slide7

Effect of the E&T indicators: Some results

  • Three stages of analysis;

1- Number of E&T and Innovation indicators in GCI 2007-2008: 18/113 = 15.9% of total

2- Weight of these indicators on the overall GCI 2007-2008:

slide8

Effect of the E&T indicators:

Some results, cont.

3- Simulations: What would be the effect on the total competitiveness score for a country that became equal to the best (or worst) performer in E&T and Innovation indicators?

slide10

Tool for improving national economic competitiveness

  • Possibility of analysing the potential of a given country’s competitiveness if it improved its performance on the E&T & Innovation variables
  • Possibility of exploring time series, combined with educational reforms data.
  • And we can assess which kind of E&T or innovation reforms that will have the biggest impact on competitiveness…
what are the elements within education that can foster competitiveness
What are the elements within education that can foster competitiveness?
  • Europe has been advocating more education and training broadly as part of its Lisbon agenda
  • But we need to look deeper…
pillars of national economic competitiveness
Pillars of national economic competitiveness

Trust

Risk-taking

I nnovation

Creativity

= Keys to success

education policy for national economic competitiveness
Education policy for national economic competitiveness
  • Concept of knowledge
    • Dynamics of knowing and learning
    • Construction vs. storage of knowledge
  • Understanding innovation
    • Extracting value from knowledge
    • Social rather than individual process
  • Building social capital
    • Shared knowing, skills and expertise
    • Collaborative procedures
  • Power of human imagination
    • Crisis of ‘human resources’
    • Finding personal talent
education policy for national economic competitiveness1
Education policy for national economic competitiveness

Knowledge

Social capital

Imagination

POLICY

Innovation

possible ways forward
Possible ways forward
  • Make national education and competitiveness policies coherent
    • Trust, risk-taking, strategic alliances and learning from mistakes
    • Cultivate diversity, not standardisation
    • Less competition
  • Unlock creativity at all levels of education
    • Value creative behaviours and institutions
    • Redesign static and content-driven curricula
  • Increase collaboration and communication in teaching and learning
    • Shift focus from individual seatwork toward cooperative learning
    • Reward teacher collaboration and networking
  • Focus on building healthy identities and strong personalities
    • Character education and role modelling
    • Allow differences and support self-esteem development
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