Playing catch up with the rest

Font Size

Print

Feedback

Email

Discuss

• Discount UK Shopping

Related Articles

Educomp acquires Studyplaces.comIndian diaspora is highly competitive: ScholtenIIMB, MphasiS partner to set up disability service...MDI-Gurgaon launches Smart Grid course

: The allocation for education in Budget 2008-2009, amounts to 0.8% of the GDP (including the contribution by the states, this goes up to 3.57% of GDP) and by the end of the eleventh five-year Plan, it is expected to increase to 6% of the GDP (this would include contribution by the states). The Budget, as announced by the Union Finance Minister Palaniappan Chidambaram, brings in an increased allocation of 20% from Rs 28, 674 crore in 2007-08 to Rs 34,400 crore in 2008-09.

India requires a lot of catching up to do with the rest of the world. According to the World Development Indicators 2007, brought out by the World Bank, as percentage of GDP, Germany spends 4.7%, France 5.9%, Brazil 4.1%, Tunisia 7%, Hongkong China 4.2% (no data on mainland China), the UK 5.5%, the US 5.9% (the figures are for the year 2005), while Russia spends 3.7%, Nordic countries like Sweden 7.5% and Norway 7.7%—indeed, a whopping sum.

Meanwhile, as far as enrolment in higher education is concerned, the gross enrolment ratio (GER) in higher education is expected to increase to 15% by the end of the XIth Plan, from the current GER of 10%, according to a senior government official. Increasing educational infrastructure is crucial to increasing enrolment. No doubt with this in mind, a special grant of Rs 100-crore each has been made to three institutions of excellence—University of Delhi, University of Mysore and Mahatma Phule Krishi Vidyapeeth, Rahuri, Maharashtra. The government will also establish 16 central varsities in the hitherto uncovered states. Despite this, the overall allocation for the higher education sector is only 0.37% of GDP according to Ernst & Young-EDGE 2008 report on ‘Globalising higher education in India’, whereas Brazil spends 0.91% of its GDP, Russia—0.62% and China, 0.50% of its GDP on higher education. Developed countries such as Australia spends 1.19% of its GDP on education, Canada (1.88%), the UK (1.07%) and the US (1.41%)—therefore, these countries spend on an average 1.39% of their GDP on higher education.

Education has been seen as a means earning revenue in many developed countries including the US. Says Peggy Blumenthal, executive vice-president and COO, Institute of International Education, USA, “Usually, students who come to the US have already reached the top level in their countries. When they come to study in the US, it helps to prepare them for the global marketplace and it exposes the US students to other nationalities.” Education is on of US’ top export industries and fetches the country, annually, $14.5 billion in revenue. So, it is natural that for greater economic benefit, the US would invest in education like other developed countries.

In India, according to a recent HRD ministry document, the target for XIth Plan is to achieve 80% literacy rate while at the same time, reducing the gender gap in literacy to 10%. According to a senior government official, the aim is increase allocation to education to 6% of the GDP by the end of the

XIth Plan. The Ernst & Young report does mention that education as percentage of GDP in India is way below the “planned 6% of GDP as stated under the National Policy of Education in 1968”. It stresses that India requires to “substantially increase public funding on higher education and/or look at boosting private funding in higher education”.

Says Christian Bode, secretary general, German Academic Exchange Service (DAAD),

“Germany has spent about 5.3% of the GDP for education in 2003, and about 5.2% in 2004 (latest OECD figures). The expenditures for education have always been of high importance in German policy. The literacy rate in Germany for many years is almost 99% to 100%. Since the 1950s, education is one of the most important aspect of German policy and development. Germany has also become the number three destination for international students. There are 260,000 students of foreign nationality in German universities.”

Innovation is key to top economic performance and strengthening the education base is important, a fact recognised by nations as diverse as Germany, Sri Lanka, or even Tunisia. Says Ulrich Podewils, director, DAAD, “A country without any natural sources like Germany, we feel that ‘brain’ as a source is the only and best.”

While in an Islamic country like Pakistan in South Asia, public expenditure on educationforms 2.3% of the GDP, at the other end of the spectrum, the North African Islamic country, Tunisia, although not among the booming BRIC economies, crucially, has recognised investment in education as essential.

The ambassador of Tunisia to India, Raouf Chatty, says, “Tunisia has always given priority to development of human resources and providing access to knowledge. Today, one out of every four Tunisian is involved in acquiring general education or professional training.”

Apart from increaseing the literacy of its population, expenditure on R&D is crucial if any country wants to make it to the big league economically. Keeping this in mind, in the previous Budget, Chidambaram gave a grant of Rs 100 crore to the premier scientific research institute Indian Institute of Science, Bangalore.

However, this is mere tokenism and a lot requires to be done.

Underlining this, the Ernst & Young report says that India has the lowest expenditure on R & D at 0.81% of the GDP, behind China’s 1.31% and Russia’s 1.28%. While the US spend on R &D stands at 2.60% of the GDP, the European Union averages 3% of its GDP on research and development that is specifically related to business.