Education as the key factor of smart and inclusive growth

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Laura Tandi PhD student Doctoral School of Economics University of Szeged y

Good Governance and Civil Society (CGS 2013. 04. 19-20.) 1

TÁMOP-4.2.2/B-10/1-2010-0012 projekt

Szegedi Tudományegyetem

Cím: 6720 Szeged, Dugonics tér 13.

www.u-szeged.hu

www.ujszechenyiterv.gov.hu

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Why does Europe need smart and inclusive growth?

The relevant elements of Europe 2020

Education, knowledge and their economic results

Boosting education

Hungary’s position in

education policy

Conclusions

Good Governance and Civil Society (CGS 2013. 04. 19-20.) 2

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 3

Lisbon Strategy expired while suffering from the financial and economic crisis

New development strategy needed  Europe 2020

Productivity gap – low R&D&I investment, insufficient use of ICT

Qualifications not in line with labour market needs

Importance of acquiring and developing new skills

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 4

Confident knowledge and innovation basis for EU

Smart growth

Innovation Union – knowledge partnerships

Youth on the Move – performance of education systems

A digital agenda for Europe – internet for all

Inclusive growth

Modernizing labour markets

high employment rate, social and regional cohesion

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Knowledge  succeed, possess, occupy

Main source of economy and power

Complex modern lifestyle  people need ever-higher qualifications

A country’s economic growth comes from human capital

People are dominant resources in the organizations – knowledge workers

Education = investing in human capital

Good Governance and Civil Society (CGS 2013. 04. 19-20.) 5

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 6

Efficient investments in education

Improvement of educational outcomes

Encouraging openness of educational systems

Helping young people entering the labour market

Facing challenges: globalization, competition, demographic changes

Pre-school education – socialization

Primary/secondary education – basic skills for all

Higher education – key element for knowledge-based society

Stronger link between education and labour market

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 7

At stage of significant changes

Exceptionally important task for all nations

State intervention in many areas (management, organization)

State ensures the economic institutional framework

State creates the conditions for participants of education

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 8

First universities – education of the elite

19th-20th century - social, economic, political changes

 education available for wider scale (Barakonyi, 2004)

1993. Higher Education Act – participation of not only public or state institutions

2000. reduction of the number of higher education institutions  no institutional closures

Some says - too much institutions

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 9 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000

320 919 49 412 State-run

Private and church-run

2009-2010 academic year

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000

Hungary Germany Austria Czech Republic

Poland Norway

Per million number of state-sponsored students (2008)

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 10

1% of GDP on higher education

Private sector’s contribution = 0,1% of GDP

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000

OECD countries Hungary

8 970 5 365

12 907 6 721

higher education plus higher education R&D

higher education

Dollars per student expenditures in higher education

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Good Governance and Civil Society (CGS 2013. 04. 19-20.) 11

Economic, social, environmental challenges

Lisbon Strategy: education and competitiveness are closely related

Success of Europe 2020 depends on reforms

Establishment and maintenance of knowledge capital

Knowledge creates value

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Doctoral School of Economics University of Szeged Hungary laura.tandi@inbox.com

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