Education-industry issues need to be addressed

THE GOVERNMENT must address “disconnects” in the educational system for colleges and universities to fuel productivity, a World Bank official said yesterday, noting how educational financing must be aimed at improving skills and research in higher educational institutions.

At the launch of the Washington-based lender’s report entitled “Putting Higher Education to Work: Skills and Research for Growth in East Asia,” World Bank lead economist Emanuela di Gropello said skills and research produced by higher education institutions do not match the needs of business and the labor market.

Ms. di Gropello said firms in the region complain that newly hired professionals lack required skills.

“Employers in both manufacturing and services in the East Asia and the Pacific region including the Philippines are looking for problem-solving, communications, management and other skills that will support higher productivity,” she explained.

Ms. di Gropello also noted that only 2% of companies use research produced by higher education institutions.

The World Bank expert said this is because colleges and universities have poor information on employment trends and labor market returns. Most higher education institution also have low capacity to update their curriculums, while the government provides no incentives for them to do so, she added.

To address these issues, Ms. di Gropello recommended effective financing, better management of public institutions and good stewardship.

“[The government] must make sure that public money is used where it can have its most beneficial impact and effect,” the World Bank expert said, highlighting the need to improve research; skills in science, technology, engineering and mathematics; and access.

Ms. di Gropello said the World Bank report found no direct correlation between the amount of spending and outcomes in education.

In the Philippines, the government allowed P225.52 billion for education this year, up from 2011’s P215.27 billion. This budget covers the Department of Education, the Commission on Higher Education (CHEd) and state universities and colleges.

“If you look at [higher-income] countries, you will soon realize that they actually spent relatively little in higher education, but get really good outcomes,” Ms. di Gropello said.

“So what really matters, much more than the amount is how money is being used and allocated.”

Moreover, Ms. di Gropello said the educational system fails to work as a system.

“Higher education institutions require input from employers who use skills of graduates; companies that use research produced; research institutions; training providers; and earlier education, which prepares students for higher education,” she explained.

Ms. di Gropello said the government must promote better information flow from employers to education stakeholders while improving the latter’s capacity to adapt educational programs to employment trends.

Incentives must also be provided for higher education institutions to improve their performance.

“The problem is that there is no accountability mechanism and so schools sometimes don’t care about their students after graduation,” she said.

The issue of equity must also be addressed, the World Bank noted, in order to allow more students to access the higher educational system.

This, following reports that about 300 colleges and universities nationwide are seeking CHEd permission to increase tuition next school year.

In school year 2011-2012, tuition rose by over 10%, with more than 300 schools collecting more fees from students.

World Bank economist Prateek Tandon, however, said in the same event that aside from direct funding and regulation, there are other ways of promoting equitable access to higher education.

These include pushing for more needs-based scholarship, establishing a framework for student loans and producing commercially relevant research to augment school funds.

Mr. Tandon said: “There’s no blueprint for success, there’s no one model for success for a higher education.

“What [the report] advocates for is looking at the country system in its own terms, looking at the strengths and weaknesses and where some areas for improvement are.” — Kim Arveen M. Patria, Businessworld