The Global Competitiveness Report released by the World Economic Forum this week assesses the competitiveness of 144 economies through its Global Competitiveness Index (GCI). The top three on the Rankings are Switzerland, Singapore and then the United States. The UK falls at slot number 9.
The GCI is widely recognised, and measures competitiveness through a nation’s function using 12 ‘pillars’, which are then grouped into 3 categories (Basic Factors, Efficiency Factors, Innovation Factors). One of the 12 ‘pillars’ is Education and Skills Development’, which falls under the Efficiency Factors category.
The Report is interesting in that it suggests the efficiency of the education system plays a significant role in a nation’s competitiveness and employment rate. It claims that by ‘educating, training and rewarding people appropriately, a country ensures that its workers have the skills to attain productive employment and that it can attract and retain talent’. It further states that this point is relevant to both advanced and developing economics, as ‘talent generates ideas that in turn power innovation’.
Other key points the report raises towards the value of Education are quoted below:
‘While the shortcomings in advanced economies are most likely to center on higher education, the skills gap, as well as labor market and wage-setting rigidities, in less-developed countries the issues center on public health and basic education. Even in countries where primary and secondary education is almost universal, the quality of that education can be mediocre and curricula are not adapted to the needs of businesses. The difficulty of finding jobs in the formal sector reduces the incentives for workers to invest in their own education.’
‘Higher education and training Quality higher education and training is crucial for economies that want to move up the value chain beyond simple production processes and products. In particular, today’s globalizing economy requires countries to nurture pools of well-educated workers who are able to perform complex tasks and adapt rapidly to their changing environment and the evolving needs of the production system.’
It is worth taking these factors on board, and recognising that Higher Education is, in fact, critical to the economy.