Page 25 - Education for Development:George Psacharopoulos University of Illinois at Urbana-Champaign, USA

Education for Development: What Policies?c23

Is too much spent on tertiary education relative to preschool that has the

highest returns? Is too much spent on vocational education and training relative
to general education that has the highest returns? Is too much spent on trying to
train older workers? Give priority to general rather than vocational curricula and

training. The reason is that a good foundation of general education facilitates
later specialization and training. In addition, employers today want trainable
employees with soft communication skills who could learn on the job, rather

than narrow specialists (World Bank, 2013).
Before asking for additional money for education, assess the way the
present budget is allocated. Are education funds used in the most efficient and
equitable way? Are they been used in the most cost-effective activities, or those

with the highest social benefit-cost ratios? To what extent do present education
funds allocation promotes social equity?

Reallocation of resources from traditional uses to new ones is a painful
process in any organization, public or private. It is most difficult in the public
sector because it requires political support. To the extent politicians may fear
that because of the new allocation they would lose votes in the new election,

reallocation will not happen.

Provide incentives

To the extent that teachers and university professors are civil servants, their

salaries essentially are based on years of service. In such scenario, good teachers
may have less incentive to shine. How are the teachers selected? Is the teacher
occupation a well-regarded one as in Finland and Switzerland, or attracting only

those who cannot find another job? Merit-based pay might be the right policy in
this case, but usually abhorred by unions and not enacted.