Financial Times

Education for a knowledge-based economy
By Sunil Karunanayake
Our regular columnist on corporate and macro-economic issues focuses on the need to train students to suit the emerging knowledge-based society without which Sri Lanka could lose to competitors in the region.

Amidst rising prosperity in most parts of the world, poverty reduction is established as an essential process for peace and stability in countries striving for prosperity. It is now a well recognized development of human capital as important as the financial capital in this process. Education and skills development is listed high in the agendas of developing countries as a necessary condition to achieve faster economic growth. Government spending in education as a percentage of GDP has been 4.1 in Africa, 3.1 in Asia, 3.6 in Latin America and 5.2 in Middle East and North Africa. According to IMF in 2000 113 million children worldwide in the age group of 6 - 11 did not attend school.

In 2003 Sri Lanka spent 2.2 percent (Rs 40 billion) of its GDP on education and boasts of a literacy rate of 90 percent to be well ahead in the region. Though the expenditure is relatively lower it has been commended by IMF for quality and coverage. The Finance Minister in the 2005 budget speech clearly stated the government's intention to expand the introduction of English and Information Communication Technology in the school curriculum. An educated workforce is an asset for wealth creation.

Despite many reforms from the time of Independence, national education system is yet to deliver an acceptable standard to meet the labour market demands. Though the national education commission has highlighted the deficiencies of increasing politicisation and lack of coordination among policy makers little progress has been achieved. Still the numbers graduating in arts and oriental studies at 37 percent is highest while the medical graduates account for a mere nine percent.

According to the initial findings of the Central Bank consumer finance survey incidence of private tuition has increased dramatically from 35 percent in 1996 to 50 percent at present and the expenditure has risen with incomes. This is a major malady affecting the entire student population, and does not speak well of the formal free education system nor government investment on teacher salaries, that accounts for nearly 80 percent of recurrent costs. Year in year out grade 1 admissions to government schools kick up lot of dust with no remedial action being taken. The two-mile radius theory has become meaningless leading to blatant violations and high level of corruption. Revisions to this anomaly is long overdue.

Politically motivated student conflicts and the consequent violence in the universities cost a large number of academic sessions for a year. Sudden closures and the resultant crisis developments totally disorient the academic calendar, which should normally run parallel with other global partners. These disturbances no doubt affect the quality of graduates at tremendous cost to the state. Perhaps the undergrads should be taught how to resolve conflicts without violence.

Those who enter the universities out of nearly 220,000 advanced level students are a mere 7 - 8 percent who represent the cream of the country's intellectual resources. Those who fail to enter seek their careers abroad at a high cost, while majority of the others give a poor return to the state. Despite the provisions in the University Act setting up of accredited universities is yet resisted in some quarters particularly in the field of medical education.

Investments in education have a long gestation period for future returns and must take notice of the emerging trends and future requirements. If present day students are not trained to be part of the future world economy in a knowledge-based society characterized by advanced technologies, communication and business developments, opportunities would be lost to competitors in the region.

The university community with other key stakeholders must be committed to meet this challenge. It is a pity that progressive steps taken in setting up the North Colombo Medical College (private) was abruptly halted and successive steps to establish private medical colleges are violently opposed while large amounts of foreign exchange are used to achieve the same purpose by students seeking medical degrees overseas including in neighbouring Nepal, India and Pakistan.

(The writer could be reached at - suvink@eureka.lk)

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