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A survey on EDUCATION: - Muhammad Adnan Arshad - 07-15-2006
In the last four decades economic research has revealed the importance of education as a crucial factor in economic development. Education refers to the development of human skills and knowledge of the people or work force. It is not only the quantitative expansion of educational opportunities but also the qualitative improvement of the type of education, which is imparted that holds key to economic development.
On account of its contribution to economic growth, education has been termed as human capital formation and expenditure on education of the people as investment in human capital. The importance of human capital has been thus highlighted by Prof. Fredrick Harbison "human resources....constitute the ultimate basis of production, human beings are the active agents who accumulate capital, exploit natural resources, build social and political organisations, and carry forward national development. Clearly, a country which is unable to develop skills and knowledge of its people and to utilise them effectively in the national economy will be unable to develop anything else."
Several empirical studies made in developed countries, especially the U.S.A. regarding sources of growth or, in other words, contributions made by various factors such as physical capital, natural resources, education etc have shown that education or development of human resources is a significant source of economic growth. The noble laureate Prof. Robert M. Solow who was one of the first economists to measure the contribution of human capital estimated that for the United States between 1909 and 1949, 87.5 per cent of the growth in output per man hour could be attributed to the residual factor which represents the effect of the technological change and of the improvement in the quality of labour mainly as a consequence of education.
Denison, another American economist made further refinement in estimating the contribution to economic growth of various factors. Denison tried to separate and measure the contributions of various elements of âresidual factor.â According to the estimates of Denison over the period 1929-57, education was the source of 23 per cent of the growth of real national income and 42 per cent of the growth of real national income per person employed.
The contribution of education to economic growth has also been measured in terms of the rate of return. In this approach the return is calculated by measuring the flow of an individualâs future earnings expected to result from expenditure incurred on education. The present value of these is then calculated by using an appropriate rate of discount. This method has been used by Gary S. Backer who measured income differential arising from the cost or expenditure incurred on acquiring a college education in the U.S.A. His estimates show that the rates of return on education in the U.S.A. for urban white population were 12.5 per cent in 1940 and 10 per cent in 1950. According to George Psacharpoulous the estimated returns on primary education are 27 per cent and the return on secondary education are 15 to 17 per cent. World Bank studies also show that the returns on education in developing counties are higher than those in more advanced countries, although they appear to diminish over time.
The increased earnings or higher wages made by more educated workers have been considered as benefits not only to the private individuals, but also to the society as a whole. This is because higher earnings presumably reflect higher productivity and increased output in real as well as monetary terms. Aside from having a positive impact on growth in output, education has a vital role in overall social, economic and political development. As stated by Lockhead and M. Verspoor, et al in their study for the World Bank entitled; "Improving Primary Education in Developing Countries" - Education forges national unity and social cohesion by teaching common mores, ideologies and languages. It also improves income distribution, increases savings and encourages more rational consumption; enhances the status of women, and promotes adaptability to technological change. Although most analysts agree that the process of education imparts not only knowledge and skills but also plays an important role in promoting healthy attitudes, behaviours and personal characteristics.
In Pakistan, according to the Medium Term Development Framework (MTDF), 2005-10, we are at an extremely sensitive moment in time when the right choices, priorities, and strategies in education and all its manifestations can enable us to move forward on the path of sustainable and just development, but whose absence or poor implementation may deny this window of opportunity.
Schooling in Pakistan has reached gross enrolment ratios as high as 92 per cent at the primary level, and 44 per cent at the secondary level, with a total public-private sector enrolment of 25.9 million, the MTDF, however points out that high drop out rates, teacher shortages and absenteeism, and gender gaps (20 per cent at the primary and middle years of schooling and 14 per cent at the secondary level) are still too high to be acceptable. This has resulted in the low literacy rate of 56 per cent at the 10+ age group. Participation rates at Higher Secondary/Intermediate (Classes XI-XII) is 13 per cent at age group 15-16 years, and at Degree Colleges level (Classes XIII-XIV) is 7 per cent of age group 17-18 years. There are also more than 624 Technical and Vocational Education (TVE) institutions with an enrolment of 105,000.
Public sector expenditure in education has grown steadily from a total of Rs75.9 billion in 2000-2001 to Rs132.9 billion in 2004-05, which is 2.3 per cent of GDP. If to this is added the contribution from the private sector, the actual expenditure comes to 3 per cent of GDP. The MTDF proposes to raise the total public allocation to 3.6 per cent of GDP by 2010; private sector expenditure on education is expected to add another 1.5 per cent of the GDP by 2010.
MTDF plans to achieve the targets set under Millennium Development Goals (MDGs) for universal primary education (UPE), literacy and promotion of gender equality and empowerment (gender parity Index, GPI). It is also planned to raise the internal and external efficiencies of the entire educational system during 2005-10.
A portfolio of Rs119.7 billion (Federal and Provincial Funds) has been earmarked for development of Basic and College Education for the MTDF 2005-10.Primary education and literacy together with madaris receive 34.5 per cent of the proposed allocation while technical/ vocational are allocated 23.5 per cent. Colleges will also receive a major allocation for reform and improvement; teacher training has been allocated Rs9.14 billion. For scholarship the proposed allocation is Rs09.79 billion.
The MTDF acknowledges that the public sector alone cannot fully meet the educational requirements of the whole school aged and illiterate population. The private sector has to play a supporting role in meeting the educational targets articulated in the 5-year framework. In this behalf, it is heartening to note that philanthropists, NGOs and business communities involved in the education sector have achieved encouraging results. In 2004-05 nearly 42,000 private educational institutions are delivering education in the country at all levels; this number is expected to rise to 55,000 by 2010, if current trend continues.
The MTDF quite appropriately points out that the critical issue in the implementation of the educational plan proposed by it will remain the shortage of teachers. Unfortunately, this profession is not able to attract or retain the talented persons because of continually falling status, unsatisfactory working conditions, unattractive career perspectives and unsatisfactory professional development.
The MTDF quite correctly highlights the importance of accurate data collection and update which is essential for preparing comprehensive education strategies. It proposes a strengthening of the provincial and district level Education and Management Information Systems (EMIS) and improvement of their effective cohesion with the National Management Information System.