EDUCATION FOR DEVELOPMENT:AN ANALYSIS OF INVESTMENT CHOICES

Book Review

George Psacharopoulos, Maureen WoodhallPhysical Description: Book - 337p. ISBN Number: 0-19-520478-6Published October 1, 1985 by World Bank; Oxford University Press US

Mohamad Adriyanto – Twitter @adriyanto

Book Description

This book analyzes the policy issues facing educational planners, administrators and policy makers in developing countries in choosing between alternative strategies of educational investment.

It draws on the World Bank's twenty years of experience in education sector analysis and research to discuss both theoretical and practical problems of analyzing investment choices.

No comparable work exists which deals solely with the problems of analyzing education investment in developing countries.

While written for those involved in policy formulation and planning, it does not assume a high degree of technical knowledge of economics.

Book Description

The topics covered include: the contribution of education to economic

and human development, criteria for investment, cost-benefit analysis, demand for educated manpower finance, internal efficiency and quality, equity considerations, and the links between investment in education

and investment in other sectors.

Review

"The strength of the book lies...in its provision of a comprehensive, excellently documented review of the relevant research and policy-oriented literature....A well-organized, authoritative volume that will serve well the needs of teachers, students, educational administrators, and policymakers. It is likely to be consulted frequently by all of these, as well as by scholars, with profit."--Economic Development and Cultural Change

"An important resource for those government officials and researchers who are confronted with meeting present and future educational demand."--Journal of Developing Areas

Review

"A unique book....In ten substantive chapters it deals competently with a range of materials that make a well-rounded presentation of the contemporary theory of human capital....No one concerned with the problems of schools can remain uninterested in the book."--Contemporary Sociology

"A useful reference document for a wide range of issues in educational planning."--Economics of Education Review

"The book is already becoming standard reading in many universities, and is likely to attract widespread interest in international agencies, planning units and Ministries of Education."--International Journal of Educational Development

Main Ideas

The purpose of this book is to show, through research and experience, how economic analysis of investment choices may help determine investment priorities for education and help in the identification and preparation of education projects.

Issues covered: Assessing the need for investment in

education Evaluating its contribution to economic

development Choosing between alternative investment

projects.

Main Ideas

World Bank experience has not yielded ready-made solutions to the complex problems of choosing the most efficient and productive types of educational investment.

The best solutions to many problems depend in some degree on a country’s economic and social conditions, physical and human endowments, and political priorities.

The economic techniques that have been offered as guides to education investment decisions, all have a part to play in making the choice, but none is sufficient by itself.

World Bank recognized that unless political and social factors are taken into account, educational investment cannot make its full contribution to development.

Main Ideas

In determining the balance between investment in human capital and investment in physical capital and infrastructure, policymakers must consider two important questions: Does education contribute to economic growth? How does the contribution of education to economic

development compare with the contribution of physical capital?

Research showed that spending on education should be regarded as productive investment, rather the pure consumption.

Educational investment must be evaluated in terms of opportunity cost and the relationship between costs and expected benefits.

Problems & Techniques

Typical problems: The level of education likely to offer the highest return The right balance between technical and general

education The combinations of inputs and technologies likely to

produce the greatest output of skills and knowledge and be most effective in preparing people for employment.

Economic techniques mostly used: Cost-benefit analysis Manpower analysis and forecasting Cost effectiveness analysis.