Education & Development – the human capital approach Since long accepted Schooling has a productive value But if compared with other investments? But how much private - social benefits? But which level of education?

Rates of return Costs of education compared to lifetime earnings How are calculations done? Compare the estimated difference of lifetime earnings resulting from an additional year of education with the costs of its provision to individuals (private rates) or society (social returns)

Findings Primary schooling has higher returns - both private and social returns - than secondary and tertiary schooling One further year of schooling returns on average 10% Returns are much higher in developing countries

Problems with the findings Assumption: market wages reflect productivity differences But: public wages are on set pay scales But: wage differences may be due to ability, background, school quality…. But: opportunity costs are not counted Returns of secondary/tertiary now on the rise THUS: Upwards bias?

Other effects than market wages Improved productivity of self-employment Fertility rates: women with 7 or more years of schooling have lower fertiliaty rates (2-3 children) than women with only up to 3 yrs Increase of marriage age Improved nutrition Improved health Increased life expectancy Decreased child mortality Reduce child labour

How many years? Primary spans from years are necessary No permanent literacy with less

Human Rights approach Elementary education shall be free and compulsory, and that the higher levels will be equally available to all on the basis of merit” (Art 26, Universal Declaration of Human Rights, 1946)

Education has an intrinsic value Gives meaning, value A means to protect and request other human rights: Health, wellbeing Freedom Security Particpation in political and social activities

Human rights within education Gender Ethnicity Religion Poverty

Governments are responsible Legislation is necessary Budget priorities Markets or charity are insufficient

before middle of 19th century before end of 19th century beginning of 20th century Prussia (1763)Austria (1869) Netherlands (1900) Denmark (1814) German Empire (1871) Turkey (1913) Greece (1834)Japan (1872)Belgium (1914) Spain (1838)Scotland (1872)entire USA (1918) Haiti (1842)Switzerland (1874)Finland (1921) Sweden (1842)Italy (1877)Thailand (1921) Argentina (1844) England & Wales (1880) China (1923) Norway (1848)France (1882)Russia (1930) Ireland (1892) Connecticut (1890) Source: Compiled data from: Flora 1975, p. 73; Schneider 1982, p. 212; Ramirez/Boli-Bennett 1982, pp. 28 Compulsory education laws in various countries

Education & Development – the capability approach Development occurs when people are more able to achieve what makes their lives valuable THUS: development is to promote and expandpeople’s freedom to enjoy their ”beings and doings” THUS: economic growth is not the objective of development

Freedom has an intrinsic as well as instrumental value Freedom includes rights of access to particular resources Policies should aim at enhancing people’s capabilities and should be assessed accordingly

Education is essential Reading and writing skills are essential for developing capabilities Education is an end of development not a means for – it is a valuable being and doing

For example A Freire-style phonetic literacy course for women was held in the peri-urban slums of Lahore, Pakistan. The course gathered women who wished to attend a literacy course as a means to generating income. As it turned out, their income did not increase – which was significant as they were very poor. And yet graduates could clearly articulate a set of additional reasons why literacy had been valuable to them. When she was asked what the literacy class had taught her, eloquent Shabnam said that literacy enabled her to trust her own judgement: ‘Women think they are like a flower bud – that they do not understand with their own eyes. But we are not buds, we are mountains. We can do anything with our lives. So I tried to open my eyes, and my eyes were opened.’