Abstract

This week, the Organisation for Economic Cooperation and Development (OECD) is publishing the findings of new research undertaken to explore the relationship between educational spending and economic growth. The report, “The High Cost of Low Educational Performance – The Long-Run Economic Impact of Improving PISA Outcomes”, employs recent economic modelling to relate cognitive skills to economic growth, as measured by instruments of international assessment. By claiming a causal relationship between the two, the report argues that governments can create enormous economic and social benefits should they more deeply commit to education-related spending, something which, in view of recent budget cuts in several countries, including the United Kingdom and Japan, is unlikely to happen in the immediate future. With current government spending arguably threatening the sustainability of national higher education sectors – let alone growth – challenging times are indeed here. Coinciding with the publication of the report is the 40th World Economic Forum, an annual meeting this year premised on rethinking, redesigning and rebuilding business, government, civil society and education. Divided into two parts, this article first considers the new realities facing higher education. How is investment in higher education set to change, and why?