Education and the economic crisis - IIEP - Unesco

Education and the economic crisisInnovativeinvestmentsin education inOECD countriesCrises result incuts to educationbudgets. Yet theseare the times whenmore investmentis needed.Bernard Hugonnier OECDbernard.hugonnier@oecd.orgGovernment expenditure on educationis vulnerable, and systems sometimeshave to compromise on quality. Publicfunding for higher education has been cut inseveral countries, and many universities fearthat private investment will fall in the nearfuture. Firms hit by the recession find it harderto finance training, while apprenticeshipoffers are declining because of bankruptcyand a decline in business activity.Yet some members of the Organisation forEconomic Co-operation and Development(OECD) are investing more in educationto address the challenge. Indeed, supportfor education and training that enables© UNESCO.the transition to new jobs and emergingopportunities is recognized as important ineconomic stimulus plans. Improving educationfacilities is a core component in the recoveryplans in Australia, Austria and Canada.Similarly, the US stimulus package proposesnew funding for school districts, a new schoolmodernization and repair programme, and atechnology programme to improve highereducation and expand fellowships for science.Related initiatives can be seen inEurope. Hungary has launched new trainingprogrammes for teachers with resourcesof 70 million Euros. Spain is creating newschool places for children under the age ofthree. Portugal is reinvigorating its highereducation institutions. And Germany isseeking a balance between investments inschool buildings and teachers.RecommendationsThe restructuring brought about by the crisiswill accelerate changes: new sectors willappear, while old ones will fade away; newwork organizations will be introduced undernew rules and regulations; new skills will beneeded, while the demand for others will abate.Competencies such as entrepreneurial skillsand creativity will be crucial in an economythat needs to be enriched by more adaptive andinnovative education and training systems. Inparticular, there is a need to address youth wholeave school with few or no qualifi cations andwho are hit the hardest.Educational infrastructure can be animportant element of public investments tosupport economic recovery. In many countries,there are huge challenges regarding schoolbuildings. It is crucial that this opportunitybe used to renovate the school infrastructure,including through the construction ofecologically-friendly schools. Investmentin information and communicationstechnologies in schools and homes can alsosupport education and training.Support to individuals’ investments ineducation should also be considered. Inparticular, the backing of student loansmight be necessary to prevent a decrease ininvestment in higher education. ■12 IIEP Newsletter May-August 2009