The Role of the State in Education and Development : The Case of East Asia Andy Green Andy Green Professor of Comparative Social Science Director of Centre.

The Role of the State in Education and The Role of the State in Education and Development :Development :

The Case of East AsiaThe Case of East Asia

Andy GreenAndy GreenProfessor of Comparative Social ScienceProfessor of Comparative Social Science

Director of Centre for Learning and Life Chances in Knowledge Director of Centre for Learning and Life Chances in Knowledge Economies and Societies (LLAKES) Economies and Societies (LLAKES)

Institute of EducationInstitute of EducationUniversity of LondonUniversity of London

Presentation to National Authority of Presentation to National Authority of Assessment Conference on ‘Quality and Equity Assessment Conference on ‘Quality and Equity

in Education Systems’in Education Systems’ Rabat, 20Rabat, 20thth April 2010 April 2010

Globalisation and DevelopmentGlobalisation and Development

Globalisation has changed the terms of Globalisation has changed the terms of development. It has transformed:development. It has transformed:

the nature of world markets and what it takes to the nature of world markets and what it takes to be competitive in thembe competitive in them

the nature of the national state and the relations the nature of the national state and the relations between states and other levels of governancebetween states and other levels of governance

the possible paths of developmentthe possible paths of development

Globalisation is Changing the Globalisation is Changing the Dynamics of DevelopmentDynamics of Development

In terms of the factors promoting economic In terms of the factors promoting economic development globalisation increases the development globalisation increases the importance of :importance of :

• international trade (and thus the need for export-international trade (and thus the need for export-oriented economies)oriented economies)

• knowledge, skills and technology transfer for knowledge, skills and technology transfer for development in the global ‘knowledge economy’ development in the global ‘knowledge economy’

• MNCs and FDI in knowledge and technology MNCs and FDI in knowledge and technology transfertransfer

• education and skills (as argued in endogenous education and skills (as argued in endogenous growth theory)growth theory)

The Conditions for ‘Late The Conditions for ‘Late Development’ (Amsden)Development’ (Amsden)

‘ ‘Late industrialising countries’ countries Late industrialising countries’ countries cancan develop more develop more rapidly in a global era due to:rapidly in a global era due to:

• the global disaggregation of production and services the global disaggregation of production and services industries – the global division of labourindustries – the global division of labour

• Increased possibilities for knowledge and technology Increased possibilities for knowledge and technology transfer from:transfer from:

- increased investment flows- increased investment flows

- increasing codification of knowledge and skills - increasing codification of knowledge and skills

- advances in ICT- advances in ICT

Countries which develop rapidly have the skills for Countries which develop rapidly have the skills for successful knowledge transfer.successful knowledge transfer.

The Role of the State in The Role of the State in DevelopmentDevelopment

The role of the state in development is becoming The role of the state in development is becoming

better understood partly as a result of:better understood partly as a result of:

more complex understandings of the more complex understandings of the globalisation processglobalisation process

A more historically informed approach to A more historically informed approach to development issues development issues

The Crisis and Development The Crisis and Development TheoryTheory

The current world economic crisis is also reinforcing the The current world economic crisis is also reinforcing the need to reconsider dominant model of development.need to reconsider dominant model of development.

The crisis suggests that the neo-liberal model of finance-The crisis suggests that the neo-liberal model of finance-driven, debt-based capitalism in developed countries has driven, debt-based capitalism in developed countries has run its course. run its course.

The crisis of neo-liberalism, combined with the growing The crisis of neo-liberalism, combined with the growing power on China and India on the world stage, suggests that power on China and India on the world stage, suggests that the neo-liberal model of development – encapsulated in the the neo-liberal model of development – encapsulated in the ‘Washington Consensus’ may also be re-thought‘Washington Consensus’ may also be re-thought. .

Neo-Liberal Development Neo-Liberal Development TheoryTheory

The Washington Consensus model, prescribed by the The Washington Consensus model, prescribed by the international agencies, and backed by the most developed international agencies, and backed by the most developed economies, has emphasised:economies, has emphasised:

Minimal government intervention including through Minimal government intervention including through Industrial Policy Industrial Policy

Free-trade (no tariffs, subsidies and free capital flows)Free-trade (no tariffs, subsidies and free capital flows)

Structural adjustment policies to reduce state spendingStructural adjustment policies to reduce state spending

The policies are based on neo-liberal policies for economic The policies are based on neo-liberal policies for economic development which go back to Adam Smith.development which go back to Adam Smith.

The Myths of Liberal The Myths of Liberal Development TheoryDevelopment Theory

However, these policies are based upon myths about how the now However, these policies are based upon myths about how the now rich countries actually developed and there is little evidence that rich countries actually developed and there is little evidence that they work well now.they work well now.

Historically, most successful developing countries, including the Historically, most successful developing countries, including the recent cases in East Asia, have used substantial state intervention recent cases in East Asia, have used substantial state intervention (in industrial, trade and education policy) to assist development.(in industrial, trade and education policy) to assist development.

As Ha-Joon Chang, the Cambridge development economist, has As Ha-Joon Chang, the Cambridge development economist, has

argued, successful developing economies often have more to learn argued, successful developing economies often have more to learn from Frederick List than Adam Smith. Liberal free trade policies from Frederick List than Adam Smith. Liberal free trade policies have generally advantaged the already powerful economies. have generally advantaged the already powerful economies. Advocacy of ‘free trade’ policies to poorer countries is often a case Advocacy of ‘free trade’ policies to poorer countries is often a case of rich countries tending to ‘kick away the ladder’ on which they of rich countries tending to ‘kick away the ladder’ on which they ascended. ascended.

List on the StateList on the State List criticised Smith for ignoring the historical evidence of how the rich List criticised Smith for ignoring the historical evidence of how the rich

countries had developed through harnessing the power of the state. countries had developed through harnessing the power of the state. He aHe advocated using the power of the state to develop manufactures dvocated using the power of the state to develop manufactures and to gain a foothold in world trade through the nurturing and and to gain a foothold in world trade through the nurturing and protection of infant industries and the use of mercantilist strategic protection of infant industries and the use of mercantilist strategic trading policies. trading policies.

‘‘Power is more important than wealth...because national power is a Power is more important than wealth...because national power is a dynamic force by which new productive forces are opened out, and dynamic force by which new productive forces are opened out, and because the forces of production are the trees on which wealth grows, because the forces of production are the trees on which wealth grows, and because the tree which bears the fruit is of greater value than the and because the tree which bears the fruit is of greater value than the fruit itself. fruit itself.

...industry and thrift, innovation and enterprise, on the part of ...industry and thrift, innovation and enterprise, on the part of individuals, have not yet accomplished ought of importance where individuals, have not yet accomplished ought of importance where they are not sustained by municipal liberty, by suitable public they are not sustained by municipal liberty, by suitable public institutions and laws, by state administration and foreign policy, but institutions and laws, by state administration and foreign policy, but above all by the unity and power of the nation’ (p. 132.)above all by the unity and power of the nation’ (p. 132.)

Late Development TheoristsLate Development Theorists

Late development theorists, from Alexander Late development theorists, from Alexander Gerschenkron to Alice Amsden, have built on Gerschenkron to Alice Amsden, have built on List’s insights. They argued that nations that List’s insights. They argued that nations that industrialised after Britain had to do it differently industrialised after Britain had to do it differently since technology was more advanced, and more since technology was more advanced, and more easily transferred, and since industries were on a easily transferred, and since industries were on a larger scale.larger scale.

Industrialisation could happen more quicklyIndustrialisation could happen more quickly Required more state interventionRequired more state intervention Relied heavily on skills and skills transferRelied heavily on skills and skills transfer

Developmental State TheoristsDevelopmental State Theorists

Developmental state theorists, such as Manual Castells and Developmental state theorists, such as Manual Castells and Chalmers Johnson, have applied a similar analysis to the Chalmers Johnson, have applied a similar analysis to the way in which Japan and the Asian Dragons have used neo-way in which Japan and the Asian Dragons have used neo-mercantilist strategic trading and industrial policy to mercantilist strategic trading and industrial policy to develop their economies. develop their economies.

Their analysis not only shows the important role of the state Their analysis not only shows the important role of the state in economic development but also the importance of in economic development but also the importance of developing state capacity through education and policies developing state capacity through education and policies for national cohesion. All ideas familiar to List for national cohesion. All ideas familiar to List

In practise the successfully globalising East Asian states In practise the successfully globalising East Asian states have followed List rather than Adam Smith and it has have followed List rather than Adam Smith and it has worked. worked.

The Poor Track Record for Neo-The Poor Track Record for Neo-Liberal GrowthLiberal Growth

As Ha-Joon Chang has shown in ‘Kicking Away the Ladder’ :As Ha-Joon Chang has shown in ‘Kicking Away the Ladder’ :

During 1960-1980 (when world trade regimes allowed During 1960-1980 (when world trade regimes allowed developing countries to nurture their industries and developing countries to nurture their industries and external trade through import substitution policies and external trade through import substitution policies and strategic trading) developing countries grew at an average strategic trading) developing countries grew at an average rate of 3% pa.rate of 3% pa.

Since 1980, with Washington Consensus policies, only 13 of Since 1980, with Washington Consensus policies, only 13 of 88 developing countries saw average growth rates in 1980-88 developing countries saw average growth rates in 1980-2000 period at more than 0.1% over the previous period. 2000 period at more than 0.1% over the previous period.

And many of those which grew fastest ignored liberal And many of those which grew fastest ignored liberal policies of the Washington consensuspolicies of the Washington consensus

The Role of EducationThe Role of Education

Education can play major role in promoting Education can play major role in promoting successful engagement with the global economy successful engagement with the global economy by six key processes:by six key processes:

• Providing skills which attract inward investmentProviding skills which attract inward investment• Assisting in knowledge and technology transferAssisting in knowledge and technology transfer• Upgrading the economyUpgrading the economy• Reducing inequalityReducing inequality• Promoting social cohesionPromoting social cohesion• Strengthening state capacityStrengthening state capacity

East Asian Growth 1965 - 1990East Asian Growth 1965 - 1990

23 economies in East Asia grew faster than all other regions 23 economies in East Asia grew faster than all other regions at 5.3% pa, mostly due to rapid growth of 8 high performing at 5.3% pa, mostly due to rapid growth of 8 high performing Asian economies (HPAEs) : Japan, the four tigers (S. Korea, Asian economies (HPAEs) : Japan, the four tigers (S. Korea, Taiwan, Singapore and Hong Kong) and the East Asian Taiwan, Singapore and Hong Kong) and the East Asian NICS: Indonesia, Malaysia and Thailand.NICS: Indonesia, Malaysia and Thailand.

Average % growth pa:Average % growth pa:

• HPAEs:HPAEs: 5.35.3• East Asia minus HPAEs: East Asia minus HPAEs: 2.32.3• OECD: OECD: 2.32.3• Latin America: Latin America: 1.91.9• Sub-Saharan Africa:Sub-Saharan Africa: 0.10.1 (World Bank : East Asian Miracle, 1996))(World Bank : East Asian Miracle, 1996))

Growth rate of Japan and tigers during 25 years from 1960 Growth rate of Japan and tigers during 25 years from 1960 was over 8% pa on average (Wade, 1990). Growth rate of S. was over 8% pa on average (Wade, 1990). Growth rate of S. Korea 1962-1979 averaged 18.4% (Amsden, 1992)Korea 1962-1979 averaged 18.4% (Amsden, 1992)

Growth, Distribution and Well BeingGrowth, Distribution and Well Being

• Between 1960 and 1998 real income pc in Japan and tigers Between 1960 and 1998 real income pc in Japan and tigers increased x 4increased x 4

• Life Expectancy in HPAEs grew from 56 years in 1960 to 71 Life Expectancy in HPAEs grew from 56 years in 1960 to 71 in 1990in 1990

• Proportions living in absolute poverty declined between Proportions living in absolute poverty declined between 1960 and 1990 from 58% to 17% in Indonesia and from 1960 and 1990 from 58% to 17% in Indonesia and from 37% to 5% in Malaysia (compared with 54% to 43% in 37% to 5% in Malaysia (compared with 54% to 43% in India)India)

• HPEAs also achieved low and often declining levels of HPEAs also achieved low and often declining levels of income inequality, particularly in Japan and Taiwan but income inequality, particularly in Japan and Taiwan but also, until the 1980s, in S. Korea and Singapore.also, until the 1980s, in S. Korea and Singapore.

Role of Education in East AsiaRole of Education in East Asia

General view : education played major role General view : education played major role in East Asian Miraclein East Asian Miracle

WB from growth accounting estimates:WB from growth accounting estimates:

‘ ‘far and away the major difference in far and away the major difference in predicted growth rates between HPAEs predicted growth rates between HPAEs and sub-Saharan Africa derives from and sub-Saharan Africa derives from variations in primary school enrolment variations in primary school enrolment rates.’ (EAM p. 54)rates.’ (EAM p. 54)

Human Capital AccountHuman Capital Account Skills contributed significantly to productivity growth and Skills contributed significantly to productivity growth and

technology transfer. technology transfer.

Educational development was successful because it largely Educational development was successful because it largely followed the market and was informed ‘sound’ policies:followed the market and was informed ‘sound’ policies:

• HPAEs had high initial levels of literacy (although so did Sri Lanka HPAEs had high initial levels of literacy (although so did Sri Lanka and Philippines in 1960s)and Philippines in 1960s)

• Investment focused initially on universalising primary education Investment focused initially on universalising primary education which had highest rate of returnwhich had highest rate of return

• Secondary and higher education were developed sequentially Secondary and higher education were developed sequentially when growth and higher rates of return to higher levels when growth and higher rates of return to higher levels encouraged private investmentencouraged private investment

• Growth, private investment and declining birth rates (earlier and Growth, private investment and declining birth rates (earlier and sharper than in other developing countries) allowed increased in sharper than in other developing countries) allowed increased in per capita spending and higher enrols in education without per capita spending and higher enrols in education without excessive public cost.excessive public cost.

Developmental Skills Formation Developmental Skills Formation CritiqueCritique

Developmental skills formation theory (Ashton and Green) Developmental skills formation theory (Ashton and Green) does not disagree with many of the human capital does not disagree with many of the human capital assertions. However, it claims they miss:assertions. However, it claims they miss:

• the importance of secondary, technical and higher the importance of secondary, technical and higher education expansion in later stages of developmenteducation expansion in later stages of development

• the role played by the state in generating demand for skillsthe role played by the state in generating demand for skills

• the role played by the state in coordinating skills supply the role played by the state in coordinating skills supply and Demand.and Demand.

Commonalities of East Asian Commonalities of East Asian SchoolingSchooling

East Asian education and training systems differ East Asian education and training systems differ in some significant ways: in some significant ways:

• Japan, Taiwan and Korea are highly egalitarian Japan, Taiwan and Korea are highly egalitarian (non-selective neighbourhood comprehensive (non-selective neighbourhood comprehensive schools; mixed ability classes; equal resource schools; mixed ability classes; equal resource distribution between schools) – Singapore and distribution between schools) – Singapore and Hong Kong are comparatively elitistHong Kong are comparatively elitist

• Japan and Korea have extensive company based Japan and Korea have extensive company based training in large firms. Singapore relies much training in large firms. Singapore relies much more heavily on Gov’t funded workforce more heavily on Gov’t funded workforce development development

• However, they have a number of features in However, they have a number of features in common (Cumings)common (Cumings)

Commonalities of East Asian Commonalities of East Asian SchoolingSchooling

• Highly centralised administration Highly centralised administration (although this is beginning to change now)(although this is beginning to change now)

• Major stress on dissemination of basic Major stress on dissemination of basic skillsskills

• Bias towards Maths and Engineering (20% Bias towards Maths and Engineering (20% get maths A level in Singapore and 40% of get maths A level in Singapore and 40% of graduates are engineers)graduates are engineers)

• Major stress on Moral and Civic education Major stress on Moral and Civic education (made possible by centralised control)(made possible by centralised control)

Importance of SocialisationImportance of Socialisation

Arguably the most important contribution of education to Arguably the most important contribution of education to economic development in Japan and Tigers has been economic development in Japan and Tigers has been through effective youth socialisationthrough effective youth socialisation

• Encouraging disciplined attitudes to hard workEncouraging disciplined attitudes to hard work

• Generating ‘national spirit’ of struggle and sacrifice in early Generating ‘national spirit’ of struggle and sacrifice in early years of developmentyears of development

• Creating ability to work in teams (more notable in Japan Creating ability to work in teams (more notable in Japan and Korea than Singapore perhaps)and Korea than Singapore perhaps)

• Development of state capacity.Development of state capacity.