Educational Technology and Economics: Impact on Learning

Posted on Dec 10, 2024 in Other subjects

Educational Technology: Definitions, Meaning, and Scope

The word “technology” is derived from the two Greek words, technic and logia. “Technic” means “art” or “skill,” and “Logia” means “science” or “study.” Therefore, the simplest meaning of technology is the “science of study of an art or skill.”

Definitions of Technology

“Technology is knowledge organized for production.” – Sachs. I
“Technology is the application of scientific knowledge to a practical purpose.” – Page T
“Technology is the set of instruments and skills which are used to satisfy the needs of the community.”

Meaning of Education

The word “education” is derived from the Latin word “educatum,” which means “to bring out.” In this sense, the meaning of education is to bring out the better qualities of the individual.

According to Ross, the word “education” is derived from the Latin word “educare,” which means “to bring up” or “to raise.” It means that education is that process which brings up or rears the individual in the right way.

Meaning of Educational Technology

There are three views regarding the meaning of educational technology:

The first view, which may be called Educational Technology 1 (ET 1), refers to the application of physical sciences and engineering technology to provide mechanical instruments or “hardware” which can be used for instructional purposes. This is the view of James O. Finn and others. Examples include tape recorders (including language laboratories), television machines, and computer-based teaching.
The second view, which we may call Educational Technology 2 (ET 2), refers to the application of scientific principles or “software approach” to instruction. This is the view of Skinner, Gagne, and others.
The third and the modern view, Educational Technology 3 (ET 3), as described by Davis and Hartley (1972), incorporates both ET 1 and ET 2 through the application of a system approach to education and training.

“Educational technology may be defined as the application of the laws as well as recent discoveries of science and technology to the process of education.” – S.S. Kulkarni

Characteristics of Educational Technology

ET has contributed to developing various methods, e.g., microteaching method, interaction analysis, audio-visual aids, and programmed learning method.
In the field of ET, psychology, science and technology, systems, art, AV aids, and machines are used.
It is based on the application of scientific knowledge.
It is helpful in making the teaching process objective, easy, clear, interesting, and scientific.
It is a continuous dynamic technology.
It is an important medium of communication.

Scope of Educational Technology

Educational technology is a process-oriented technique. It is not limited to the teaching and learning process and theories, yet the teaching-learning process is influenced much more by educational technology. Theories have been shifted from learning to teaching only due to educational technology.

If educational technology is limited to audio-visual aids, mechanical and electronic gadgets, the scope of educational technology becomes limited, but educational technology is not limited to all these things; rather, it pervades all over. Educational technology should go into:

Homes.
Management by external assistance.
Rigorous task analysis.
Specification of direct behavior.
Determination of prerequisites and gradual direct behavior.
Clear specification of the problem.
Hindrance in solving problems.
Management and organization of man, material, and resources.
Availability of a few media, as for example, films, television, radio, etc.
Developing software technology.

Economics of Education: Concept, Scope, and History

Unit 1

Economics of education is a relatively new and separate branch of study which attempts to establish a cause-and-effect relationship between education and economic aspects. It is a specialized branch of study that applies the principles, theories, and paradoxes of economics to the field of education. It uses the concepts of economics to explain the issues of education.

According to Babalola, economics of education studies human behavior in terms of decisions, actions, and reactions about schooling. It analyzes how the individual learner makes decisions on the investment and expenditure of a particular level of education. Similarly, in a country, the government has to make decisions on three central problems of education.

Central problems arise because of the scarcity of resources. These are:

What type of education does the country need for its human capital formation?
How to produce educational opportunities and social setup for providing education?
For whom the educational facilities to be produced?

These three are the crucial problems to be solved by the respective governments of each country. In this context, economics of education provides the right path to choose the alternatives available in solving these three central problems. Economics of education has to deal with how the government, society, institutions, and households use limited human and material resources to satisfy the unlimited wants of education. Therefore, economics of education is not only a theory-based knowledge area but also a practical approach to address educational challenges.

Scope of Economics of Education

The word “scope” refers to the length and breadth of a subject. In this part, we are going to learn the subject matter included in economics of education. The scope of economics of education is wide and dynamic. The subject matters of economics of education are drawn from both the economics and education disciplines. Basically, the study of economics of education includes private and social rates of return to education, human capital formation, the relation between education and economic development, educational cost and benefits, educational planning, the efficiency of education, cost-effectiveness of education, education, and equity, etc. These are the essential areas to be included in economics of education. According to Hanson, the subject matter of economics of education falls into seven categories as follows:

Human capital formation.
Education’s contribution to economic growth.
Impact of education on earning.
Historical analysis of economics of education.
Relationship between education and earning.
Program budgeting and financing of education.
Efficiency and equality of education as an opportunity.

Considering the above categories, we can further elaborate on the scope of economics of education under the following points:

Educational Cost: Educational cost is the major area of study of economics of education. The quality of education is highly influenced by the cost incurred on a particular level of education. Babalola, in his definition, refers to educational cost as a measure of what a student, an institution, or the government has to give up in order to educate an individual or a group of individuals. Educational cost is the monetary as well as non-monetary values used up in the process of educating an individual or a group of individuals. The subject matter of economics of education is incomplete without a proper discussion of educational cost and its taxonomy.
Funding Pattern of Education: The financing pattern of different levels of education is another major area of study of economics of education. The balanced growth of education is highly dependent on healthy educational finance. Economics of education suggests effective ways of financing education.
Educational Planning: Educational planning refers to the application of rational, systematic analysis to the process of educational development with the aim of making education more effective and efficient in responding to the needs and goals of its students and society. It is a system-based exercise directed towards achieving certain physical targets and objectives set by a society within a certain time frame in the education sector. Educational planning is an important subject matter of economics of education. The details of educational planning are studied in economics of education extensively.
Human Capital Formation: Another vital area of economics of education is human capital formation and its theoretical approach. Human capital refers to the stock of productive skills and technical knowledge embodied in human beings (labor) through education and training. It is regarded as the knowledge, expertise, and productive capacities that a person acquires through educational training and which enable him/her to function effectively and efficiently in society. It includes the knowledge, skills, competencies, and attributes embodied in individuals that facilitate the creation of social welfare.
Investment in Education: Investment in education is another important subject matter of economics of education. In the words of Lucy, “Investment is the process of postponing immediate consumption in the expectation of greater consumption in the future.” The investment theory in education posits that the government or individuals should invest in educational projects with greater utility or the highest rate of returns. The theoretical framework of investment in education has occupied an important place in economics of education.
Cost-Benefit Analysis (CBA) of Education: This is another concerned area of economics of education. CBA emphasizes a systematic comparison of the magnitude of the costs and benefits of some forms of educational investment in order to determine the economic profitability of such investment. It provides a rational model for investment decision-making in education by relating the profitability of investment in one sector of the education enterprise to the other, or between various levels and types of education, such as vocational, professional, technical, or general education. This content occupies an important place in economics of education as it guides investment decisions in the right direction.
Rate of Return in Education: Returns to investment in education are the benefits derived by educational consumers as a result of their investments in education. The return of education can be of two types: private rate of return and social rate of return. By private rate of return, we mean those benefits accrued to individuals at the end of schooling as a result of investment in education. The benefits derived by the government or society for an educational investment project are referred to as the social rate of return. Researchers have conducted a large number of research studies on the rate of return of different levels of education, which ultimately enhances the scope of economics of education.
Efficiencies in Education and Signaling Theories: Another concerned subject matter of economics of education is the efficiencies of education and the impact of signaling theories. Efficiency in education generally refers to the capacity of an educational system to turn its products (students) out with minimum wastage. In other words, it refers to the ability of an educational system to achieve the desired output with a minimum application of inputs or resources. Efficiency in education can be internal or external.
Relationship of Education and Economic Development: Economics of education also discusses the relationship between educational achievement and economic development. There is a direct relation between these two elements. Economic development can only be achieved with higher educational achievement, and in the reverse way, educational development is not possible without economic enhancement. In this way, both economic development and education are complementary to each other.
Demand and Supply of Education: The growth of education is highly influenced by the demand and supply factor of education. The demand for education is a function of price, utility, and the ability of the government and people to pay for it. On the other hand, the supply of education refers to the function of the fiscal strength of the government and private educational investors as well as the utility of education to society. Therefore, the balance between demand and supply of education is needed for the balanced growth of education.
Education and Labor Market: The linkage between the education sector and industry is a major concern area of economics of education. Economics of education studies how education can create efficient and skillful human resources to increase the productivity of the labor force. Education has to be designed in such a way that it caters to the demand of the labor market.
Management of Educational Finance: Economics of education has to focus on the ways of managing educational finance at the government as well as institutional level. It should develop efficient and effective procedures for managing finance in educational institutions. These are some of the vital content to be studied in economics of education. The scope of economics of education is very vast. It is difficult to elaborate on all the issues and contents of the subject matter here. You can study the suggested readings to explore more about the scope of economics of education. Let us judge why the scope of economics of education is dynamic. The contribution to economics of education during the last four and a half decades opened up new areas of research in theories of growth, labor market, public finance, and developmental economics. The theories of social justice and welfare economics are also incorporated into economics of education. Public policy becomes the major area of research in economics of education. New subject matters are incorporated in this area at a fast pace. Therefore, the scope of economics of education becomes very dynamic.

Economics of Education: History

The economics of education is an academic discipline that explores the economic aspects of education systems, including the role of education in economic development, individual earning potential, and societal well-being. It involves analyzing the costs and benefits of educational investments, the economic impact of education policies, and how education influences productivity, income distribution, and economic mobility.

Early Development and Theoretical Foundations

18th and 19th Century Beginnings:
1. The idea that education contributes to economic productivity can be traced back to classical economists like Adam Smith and John Stuart Mill, who viewed education as a key factor in improving worker productivity and contributing to economic growth.
2. Adam Smith, in The Wealth of Nations (1776), discussed the role of education in enhancing labor productivity, which laid the groundwork for later economic thinking on education.
3. The concept of human capital was implicitly present in David Ricardo and Karl Marx’s works, who acknowledged the skill level of laborers as a determinant of production.
20th Century – The Rise of Human Capital Theory:
1. The modern economics of education began to formalize in the mid-20th century with the development of human capital theory. The theory posits that education is an investment in human beings that enhances their productivity, much like physical capital (machines, buildings, etc.) increases productivity in other sectors.
2. Jacob Mincer and Theodore Schultz were key contributors to this theory. Schultz’s work emphasized that education increases the productivity of labor and is crucial for economic growth.
3. Gary Becker, a prominent economist, expanded on this with his book Human Capital (1964), which argued that education, like other forms of capital, requires investment but generates returns in the form of higher wages and better employment opportunities.
Post-World War II Period:
1. The aftermath of World War II saw a significant increase in attention to the role of education in economic development, particularly as countries sought to rebuild their economies. Education was seen as a driver of productivity and innovation.
2. This period also saw the expansion of mass education systems, especially in industrialized nations, as part of a broader social and economic development agenda. The rise of development economics further integrated education into discussions of economic policy, especially for low- and middle-income countries.

Key Themes in the Economics of Education

Cost-Benefit Analysis:
1. Economists analyze the costs of education (both direct costs like tuition and indirect costs like foregone income) against the benefits (such as increased future earnings and better job prospects). This framework helps in policy decision-making regarding public funding for education.
Private and Social Returns:
1. Economists distinguish between private returns (the benefits to an individual, typically in the form of higher wages) and social returns (the broader societal benefits, such as higher productivity, lower crime rates, and improved health outcomes). Social returns are often used to justify public investment in education.
Education and Economic Development:
1. Education is often viewed as critical to economic development. This idea was formalized in the Endogenous Growth Theory, where human capital, innovation, and knowledge accumulation are key drivers of sustained economic growth.
2. Economists like Robert Lucas and Paul Romer further emphasized how investments in education can foster innovation and long-term economic development.
Equity and Efficiency:
1. The economics of education also addresses the issue of equity – whether educational opportunities are equitably distributed across different income groups, races, and genders. Research on inequality in education has informed policies aimed at reducing the disparities in access and outcomes.
2. Amartya Sen and others have linked education to broader capabilities that affect not only income but also the ability to lead fulfilling lives, thus tying economics of education to welfare economics.
Globalization and Education:
1. With the advent of globalization, education has become even more crucial for ensuring competitiveness in a global labor market. Countries with better educational systems often have a competitive advantage in the knowledge economy.
Education Policy:
1. The economics of education provides insights for shaping policies such as subsidies for higher education, student loans, education vouchers, and the expansion of early childhood education. It explores how different policy instruments affect the demand for education and labor market outcomes.

Emerging Trends

Technological Change: The rapid growth of technology has changed the landscape of education, making digital literacy and technical skills more important in the modern economy. Economists are increasingly studying the role of technology in education delivery (e.g., online education) and its impact on labor markets.
Educational Inequality: There is growing concern about the persistence of inequality in education, which reflects in income inequality and social mobility. Economists are examining how different educational policies, like affirmative action or targeted scholarships, affect equality of opportunity.

Relationship Between Education and Economic Development

Education and economic development are closely interrelated. Education is a crucial factor in the economic development of any country. A well-educated population is vital for economic growth, productivity, and competitiveness in the global economy. Education plays a critical role in preparing individuals for the workforce, enhancing their skills, and enabling them to adapt to new technologies and industries.

There are several ways in which education can contribute to economic development:

Increased Productivity: Education enables individuals to acquire the skills, knowledge, and abilities needed to perform their jobs more efficiently and effectively, which results in increased productivity and higher economic output.
Innovation: Education plays a crucial role in promoting innovation and creativity, which are essential for economic growth. Well-educated individuals are more likely to develop new ideas and technologies, which can lead to new products, services, and industries.
Entrepreneurship: Education can also promote entrepreneurship and self-employment, which are essential for economic development. Well-educated individuals are more likely to start their own businesses, which can create jobs and contribute to economic growth.
Improved Governance: Education can lead to better governance and more effective public institutions, which are essential for economic development. Well-educated individuals are more likely to participate in the political process, hold their leaders accountable, and advocate for policies that promote economic growth.

Overall, education is a critical component of economic development. Governments and policymakers must invest in education to ensure that their citizens have the skills, knowledge, and abilities needed to succeed in the global economy.

Investment Criteria in Education

Education as an investment can be viewed as an investment in oneself or in one’s future. By acquiring knowledge and skills through education, individuals can increase their earning potential, career opportunities, and overall quality of life.

Investing in education is similar to investing in financial markets. It requires a significant upfront cost, but the benefits can compound over time. A college degree, for example, can lead to higher-paying jobs and a greater chance of career advancement.

Furthermore, education is not limited to formal schooling. Individuals can invest in their education by learning new skills, taking online courses, attending seminars and workshops, and reading books. Continuously learning and improving one’s skills can make an individual more marketable in the job market and increase their earning potential.

The following are some key features of education as an investment:

Upfront Costs: Education requires a significant upfront investment of time, effort, and money. This can include tuition fees, textbooks, and other expenses.
Long-Term Benefits: Education provides long-term benefits that can last throughout an individual’s lifetime. This includes increased earning potential, better job opportunities, and improved quality of life.
Risk and Return: Like any investment, education involves some degree of risk and return. The risk is that the investment may not lead to the desired outcome, such as a high-paying job. The return is the potential benefit of improved career prospects and increased earning potential.
Diversification: It can be seen as a way of diversifying one’s investment portfolio. By acquiring new skills and knowledge, individuals can make themselves more marketable in a variety of industries and job markets.
Continuous Learning: Education is not a one-time investment but rather a continuous process. Individuals must continue to learn and update their skills to remain competitive in the job market and to adapt to changing technological and economic conditions.

Rate of Return to Education: Cost-Benefit Analysis, Cost-Effectiveness Analysis, Agro-Based Education, Earnings Relationship

The rate of return to education refers to the economic returns (or benefits) gained from investment in education, often measured in terms of increased earnings or productivity over time. This concept is central to understanding how education impacts individuals, economies, and societies. In the context of agricultural-based education, analyzing the rate of return involves examining how education tailored to agricultural knowledge and skills influences earnings and productivity in agro-based sectors.

Here’s a breakdown of key aspects related to the rate of return to education, focusing on cost-benefit analysis (CBA), cost-effectiveness analysis (CEA), and the relationship between agro-based education and earnings:

1. Cost-Benefit Analysis (CBA) in Education

CBA evaluates the financial costs of education against the economic benefits. In general, the cost is the sum of:

Direct Costs: Tuition fees, materials, books, and infrastructure.
Indirect Costs: Foregone income (earnings lost because students are in school rather than working).

The benefits of education include:

Increased Earnings: Education enhances the skillset of individuals, often leading to higher wages in the labor market.
Higher Productivity: Especially in agriculture, education in modern farming techniques can lead to more efficient land use, increased yields, and higher income for farmers.
Improved Quality of Life: Education often correlates with improved health, better decision-making, and greater social mobility.

For example, investing in agro-based education (such as training in sustainable farming, crop management, or agri-business) can increase productivity for smallholder farmers or agri-business entrepreneurs, leading to higher income over their lifetimes.

Steps in a Cost-Benefit Analysis

Estimate Costs: This includes both direct costs (e.g., training programs, facilities) and opportunity costs (lost earnings during the education period).
Estimate Benefits: This includes future increased earnings and productivity gains. In agro-based education, this may also include non-monetary benefits like improved crop yields or more sustainable farming practices.
Discount Future Benefits: Since the benefits of education occur over time, future earnings are discounted to present value using an appropriate discount rate.
Calculate Net Present Value (NPV): The difference between the present value of benefits and the present value of costs. A positive NPV indicates that the investment is worthwhile.

2. Cost-Effectiveness Analysis (CEA) in Education

CEA evaluates different educational investments by comparing costs relative to outcomes without necessarily translating the benefits into monetary terms. This is particularly useful when the goal is to compare different education programs that aim for similar outcomes (e.g., literacy rates, skill acquisition).

In the case of agro-based education, CEA could involve comparing the cost per student of different agricultural training programs based on:

Increased crop yields or
Employment rates post-education in the agro-sector.

For example, if one program costs $100 per student and results in an average 15% increase in crop yields, while another costs $200 per student but results in a 20% increase in yields, CEA helps determine which program is more cost-effective.

3. Rate of Return on Agro-Based Education

When analyzing the rate of return on agro-based education, the earnings relationship becomes crucial. Education that is specifically tailored to agricultural work can generate returns by improving:

Farm Productivity: Knowledge of modern farming techniques, improved crop management, and sustainable agricultural practices can directly boost yields and reduce costs.
Income Diversification: Agro-based education may also teach entrepreneurship or value addition, allowing farmers to move up the agricultural value chain (e.g., through food processing, marketing, or agri-business).
Resilience to Climate Change: Education in climate-smart agriculture can help farmers adapt to environmental changes, safeguarding or even boosting income in challenging conditions.

Empirical Evidence of Earnings and Returns in Agro-Based Education

Higher Earnings: Studies in low- and middle-income countries have shown that farmers with formal agricultural education often have higher incomes compared to those without it, as they are better able to adopt modern techniques and access markets.
Productivity Gains: Education in agriculture is linked to increased crop yields, improved animal husbandry, and better resource management, all of which contribute to higher profits.
Social Returns: Beyond individual earnings, agro-based education also has significant social returns – improved food security, economic development in rural areas, and reduced migration to urban centers.

Example of Rate of Return to Agro-Based Education

Suppose a smallholder farmer invests $500 in a year-long agro-based education program and expects an increase in crop yields worth $200 per year for the next 10 years. Assuming a discount rate of 5%, the present value of the benefits would be calculated as follows:

PV of Benefits = $200 * (1 – (1+0.05)^-10) / 0.05 = $1,545

Net Present Value (NPV) = $1,545 – $500 = $1,045

The rate of return is the NPV divided by the initial cost, showing how profitable the investment is over time.

4. Earnings Relationship in Agro-Based Education

The relationship between education and earnings in the agro-sector can be nuanced:

Direct Relationship: Farmers who are better educated in modern techniques, sustainable practices, and agri-business management can directly increase their productivity and income.
Indirect Relationship: Education also allows for diversification into higher-paying jobs in agri-business, agricultural consultancy, or entrepreneurship, providing a pathway out of subsistence farming and into more lucrative sectors.

Moreover, education in agriculture may lead to a higher rate of technology adoption, access to better markets, and improved efficiency in farm management, all of which contribute to higher income.

Manpower Planning

It is also known as the “Human Resource Development Approach,” which considers the fact that the social system requires different kinds of educated and trained people with certain well-defined knowledge, attitudes, and skills. The focus of this approach is to forecast the manpower needs of the economy. It stresses output from the educational system to meet the manpower needs at some future date.

As an approach used in educational planning, it aims to:

Estimate the required number of graduates by education level in the economy.
Estimate the number of teachers at different levels and types of education.
Assess the existing curriculum and give recommendations for change.

The application of manpower planning approach depends on these factors:

An appraisal and analysis of the existing employment condition.
Planning the system of education.
Using the financial resources without wastage.
Making an appraisal of the number of students enrolled, the number of existing teachers and their qualifications, enrolment in teacher education institutions, as well as the existing number of school buildings, equipment, infrastructure, and other facilities.

According to this approach, education holds a significant position in the country’s economy and the majority contributes to the nation’s growth, emphasizing the necessity of education.

It takes note of the fact that the teaching profession requires approximately 60% of the highly qualified human resources of a country, which competes with the demand for manpower in other economic sectors.

Advantages of Manpower Approach

It enables educational planners to examine the gaps and imbalances in the education output pattern against the available jobs in the labor market.
Therefore, planners are able to identify where there is either overproduction or underproduction of the labor force.
This enables planners to divert the allocation of resources from educational programs whose skills are in low demand to those whose skills are in short supply in the labor market.
Since the approach focuses on the manpower needs of a country, it effectively guides educators and policymakers on how roughly the educational qualification of the labor force ought to be developed.
This enables planners to convert occupational pyramids of labor force into educational structure, indicating the level of formal educational requirement in each category of occupation.
It aims at self-sufficiency in manpower resources, which is essential for manpower requirement; we plan for the whole country and not particular regions.
It enables planners to evaluate whether and how the education system is meeting the requirements of trained personnel in the development of different sectors of the economy and also identifies changes to be introduced in the system so as to fill any required gap.
The approach offers a useful guide on the required changes in the educational system and especially the curriculum so as to avoid the production of a residual and irrelevant labor force.

Disadvantages of Manpower Approach

It tends to limit education to strictly producing manpower while ignoring optimum resource allocation, cost-benefit analysis, and social aspects of education.
It confines itself to the high-level manpower needed in the modern sector of the economy, ignoring the educational requirement of the unskilled and semi-skilled labor force, which forms the bulk of the labor force.
It ignores the consideration of costs involved or the capacity of the country to finance its labor development.
The approach relies on the existing labor market rather than on the optimal use of the available human resources. It may thus overestimate labor needs in a situation where the available labor is not being utilized optimally.
The approach relies on borrowed employment classification and educational requirements for each job category from the Western world. These classifications may not necessarily reflect the situation in the developing nations. For instance, the educational qualification of a teacher, doctor, or engineer in the developed world may not be the same as in the developing countries. Also, the manpower-population ratios for various countries may differ, such as the desirable ratio of engineers to technicians, doctors to nurses, etc.
It is impossible to make a reliable forecast of manpower requirements far enough ahead of time because of the many economic, technological, and other uncertainties which are involved.

Education and Employability

India is a country with a contradictory approach in terms of education and employability. There is a huge population of youth in the country, but still, there is a lack of skilled manpower, and resultantly, the employment rate shows negative trends. It is a big question for the policymakers. So what and where is the problem?

Today, the number of youth in India is the highest in the world, close to one-fifth of the youngsters now living in the world, which is a great ‘Demographic Dividend.’ It means that if the youth available in the country are well-trained and skilled, they would prove to be assets for the society and the nation, contributing towards economic growth as well as ensuring employment for those willing. This apart, suitable training and education can propel many of them towards entrepreneurship, generating employment for others instead of seeking employment themselves. A suitably skilled youth is not just an asset in terms of positive contribution. They can hardly be involved in destructive anti-national activities which the misguided Kashmiri youths are indulging in. Besides, they cannot easily fall prey to drug abuse.

Today, in many states of the country, including Uttarakhand, there is a huge migration of youth from the hills to the plains, particularly to the metros, because of a lack of suitable educational and skilling facilities in accordance with the need of the current and future industrial world. There is a need, thus, to identify the gap between academics and the expectations of industry and society. To fill this gap, current education needs a major reform and up-gradation, integrating greater use of information technology with the field of education through constant updating of the syllabus. Skilling the youths with the latest in technology is a win-win situation both for the prospective youths as well as employers.

In a broader sense, skill development means developing oneself and the skill sets to add value to the organization where one is going to be employed. Continual improvement is what any organization looks for in its employees. Learning and developing one’s skills requires identifying the skills needed for becoming competent and then successfully seeking out training or on-the-job opportunities for developing those skills. Close to 70 percent of the development of an employable youth comes from on-job activities and hands-on learning experiences. This can include development experiences like managing a project while serving on a cross-functional team.

Twenty percent of one’s development comes from interactions with others. This includes having a mentor, being a mentor, coaching, participating in communities of practice, and serving as a leader in an organization.

Ten percent of youth’s development comes from training, including seminars, conferences, and webinars. This is a rough ratio division between various parts of training accepted worldwide.

India is growing and emerging as one of the largest economies of the world. Empowering the youth through education and the right skills have scripted success stories in many countries of the world. The time has come when we have to move away from the Macaulay Education System to something more Indian, pragmatic, and job-oriented education which does not ape the model of other countries. However, before adopting these models, it is important to study the suitability of the model to see whether it is suitable for our country or not. We should develop our own models of education, industry, economic development, and social growth.

Principles of Financing Education: Equity, Efficiency, Adequacy

Equity: The principle of equity is the foundation of the educational system. Equity refers to the need-based funding of educational programs. The government has to ensure equity in funding to bring equal educational opportunities. If equity is maintained, the quality of education can be ensured. Equity of educational finance mainly focuses on equity for learners and equity for teachers. The government should create equal educational opportunity for the learners to achieve the best outcome of education. All learners have to be ensured the same level of services to fulfill their learning needs. A scholarship scheme for socially challenged learners is an example of equity for learners. Equity for teachers signifies the availability of resources and support services provided to the teachers to satisfy the learning needs of the learners.
Efficiency:
Efficiency in education financing refers to the effective use of resources to achieve the best possible educational outcomes. It ensures that the funds invested in education are used in ways that maximize the quality of education and improve student performance.
1. Allocative Efficiency: This involves ensuring that resources are allocated in ways that produce the highest educational returns. This may include investing in teacher training, infrastructure, or targeted interventions that are proven to improve student outcomes.
2. Productive Efficiency: Productive efficiency means getting the best possible output (student achievement) with the least input (cost). This implies avoiding waste and ensuring that educational funds are used to achieve the maximum impact. For example, finding the most cost-effective way to improve reading scores or reduce dropout rates would be a focus of productive efficiency.
3. Cost-Benefit Analysis: Efficiency can be measured through cost-benefit analysis, comparing the educational outcomes (benefits) against the costs of inputs (funding, infrastructure, personnel). If the outcomes (such as improved literacy rates or graduation rates) justify the investment, then the system is considered efficient.
4. Challenges to Efficiency: Inefficient resource use can stem from bureaucratic overhead, misallocation of funds, lack of accountability, and outdated teaching methods. The goal is to balance investment in education with reforms that improve outcomes without necessarily increasing costs.
Adequacy:
Adequacy refers to ensuring that sufficient financial resources are provided to meet the basic standards of education. Adequacy emphasizes providing enough funding to ensure that all students receive a quality education, regardless of their starting point.
1)Sufficient Funding for Basic Educational Goals: Adequacy focuses on whether the total funding available is enough to meet essential educational goals, such as basic literacy and numeracy, access to textbooks and technology, and teacher quality. Adequate funding ensures that all schools can meet minimum standards for student learning and development.
2)Setting Adequate Funding Levels: Adequacy is often measured by comparing the resources available to a school with the amount needed to achieve desired outcomes. This can include factors like class size, teacher salaries, school infrastructure, and access to learning materials. The goal is to ensure that all schools have the basic resources they need to provide a quality education, even in underprivileged or remote areas.
1)Legal and Policy Frameworks: In many countries, adequacy is tied to constitutional or legal mandates, e governments are required to provide a certain level of education to all citizens. Court cases in some regions have focused on whether states or provinces are providing enough funding to ensure an adequate
education for all students.
2)Challenges to Adequacy: Ensuring adequacy can be difficult due to limited government budgets, competing social priorities (such as health or defense spending), and economic downturns that reduce available
funding for education.
Balancing the Three Principles:
1. Equity vs. Adequacy: Ensuring equity often requires providing more resources to disadvantaged groups, while adequacy focuses on ensuring a baseline level of funding for all. A balance between the two is needed so that all students have both the basic resources they need and the opportunity to achieve at high levels. 2. Efficiency vs. Equity: There can be tension between efficiency and equity. For example, focusing solely on efficiency might prioritize investments in areas where students are already performing well, but this could exacerbate inequalities. Balancing the two requires ensuring that resources are used effectively while also targeting funds to the students and schools most in need.

3. Equity and Adequacy for Disadvantaged Groups: Equity and adequacy often intersect when addressing the needs of disadvantaged groups, such as students from low-income families, those in rural areas, or students with disabilities. These groups may require both higher levels of funding (adequacy) and targeted policies to reduce disparities (equity).
Education and distribution
The relationship between education and distribution refers to how access to education and the distribution of educational resources are linked to broader social inequalities. The concept involves understanding how education can either contribute to reducing inequalities or perpetuate them, depending on how it is distributed across different social groups based on class, caste, gender, and religion.
1. Inequality in Access to Education.
Socioeconomic factors such as poverty, caste discrimination, and gender roles often restrict access to quality education for marginalized groups. For example, children from lower castes in India historically had limited access to education due to entrenched caste-based segregation.
2. Impact of Education on Social Mobility:
Education is often seen as a means of improving social mobility, allowing individuals from disadvantaged backgrounds to improve their economic and social standing. However, unequal distribution of educational opportunities can limit this potential. Those with better access to education, typically from wealthier or more privileged backgrounds, are more likely to benefit from upward mobility.
3. Role of Government and Policy:
Educational policies aimed at ensuring equitable distribution of resources, such as affirmative action (e.g., reservations for Scheduled Castes and Tribes in India), can play a crucial role in addressing historical disadvantages. However, the effectiveness of such policies depends on their implementation and public acceptance.
4. Cultural Capital:
Sociologist Pierre Bourdieu highlighted the concept of “cultural capital,” referring to the knowledge, behaviors, and skills that one acquires through education, which can provide advantages in navigating social structures. Those from higher socioeconomic backgrounds often have greater access to cultural capital, reinforcing existing class distinctions.

5. Gender and Education:
Gender-based disparities in education, such as lower literacy rates and school enrolment for girls, especially in rural or less-developed regions, show how gender intersects with class and caste to affect distribution. Social norms and expectations around gender roles can limit girls’ access to education.
6. Intersectionality:
The interplay of class, caste, gender, and religion creates complex patterns of inequality in education distribution. For example, women from lower castes or religious minorities may face compounded disadvantages, making it harder for them to access quality education.
The distribution of public spending on education is a critical issue that affects how educational opportunities are accessed across different social groups and regions. It reflects government priorities and can either address or reinforce social inequalities. The distribution of these resources can vary based on factors such as geographical regions, socioeconomic status, caste, class, gender, and even levels of education (primary, secondary, tertiary) Below are key dimensions related to public spending on education:
1. Regional Disparities in Education Spending:
1)Urban vs. Rural: Urban areas often receive a larger share of education resources, benefiting from better infrastructure, teaching staff, and technology. Rural regions, especially in developing countries, tend to have lower per capita spending on education, leading to poorly equipped schools, teacher shortages, and lower student performance.
2)State/Province-Level Variations: In federal systems (like India or the U.S.), spending on education can vary widely between states or provinces. Wealthier states may allocate more resources per student, leading to better educational outcomes, while poorer states may struggle with underfunding.
2. Class and Socioeconomic Inequalities:
1)Primary vs. Higher Education: Public spending on primary education is crucial for achieving broader social goals like literacy and basic education. However, governments often allocate more funds to higher education, which tends to benefit middle- and upper-class students. This creates inequalities, as those from disadvantaged backgrounds may have less access to higher education due to financial barriers.

2)Private vs. Public Education: In many countries, public schools that rely on state funding are under- resourced, while private schools, which cater primarily to wealthier students, provide superior facilities and teaching. This disparity exacerbates class inequalities.
3. Caste and Minority Group Disadvantages (specific to contexts like India):
1)Caste-Based Discrimination: In countries like India, Scheduled Castes (SCs), Scheduled Tribes (STs), and other marginalized communities have historically been deprived of educational opportunities. To address this, the government has introduced reservations (affirmative action) and targeted scholarships. However, the effective distribution of public spending toward these groups remains inconsistent, often due to poor policy implementation or corruption.
2)Education for Religious Minorities: Some governments also earmark funds for the education of religious minorities to address disparities in access to schooling. However, spending is often inadequate, and these groups continue to lag behind in educational attainment.
4. Gender Disparities:
1)Female Education: Public spending on education targeted specifically toward girls can help close the gender gap, especially in regions where cultural or economic barriers prevent girls from attending school. Governments may introduce scholarships, stipends, or incentives to promote girls’ education, but often this spending is insufficient or poorly distributed.
2)Focus on STEM for Women: In some countries, public spending is directed toward encouraging women to pursue education in Science, Technology, Engineering, and Math (STEM) fields, aiming to reduce the gender gap in these traditionally male-dominated sectors.5. Equitable Spending Across Education Levels:
1)Governments often face dilemmas in deciding how to allocate funds between primary, secondary, and
higher education.
a)Primary Education: Investment in early education is essential for long-term educational and social outcomes, especially for disadvantaged groups. Insufficient spending at this level can lead to high
dropout rates and lower literacy levels.

b)Higher Education: Spending on universities and higher education institutions often benefits a smaller, more privileged section of the population, which can perpetuate socioeconomic inequalities if not done equitably.
c)Vocational Education: In many countries, there is a push for increased public spending on vocational and technical education to create job-ready graduates and bridge the gap between education and employment.
6. Global Trends in Public Spending:
1)Developing vs. Developed Countries: In developing countries, the public spending on education is often lower as a proportion of GDP compared to developed countries, which results in lower access to quality education. In contrast, developed countries tend to invest significantly in education, but disparities can still exist within these nations based on class, race, and region.
2)International Aid and Education: Many lower-income countries rely on international aid and loans to support their education systems. The equitable distribution of these funds is crucial for addressing global educational disparities.
7. Public-Private Partnerships (PPP):
1)In some countries, governments engage in public-private partnerships to increase access to education by leveraging private investment in public education infrastructure or resources. While this can improve access and quality in underfunded areas, it can also create dependency on private companies and potentially widen inequalities if not carefully regulated.
IMPORTANCE OF PUBLIC EXPENDITURE ON EDUCATION
Public expenditure on education is essential for building a strong, equitable society and fostering long-term economic and social development. The importance of government spending on education can be understood through its far-reaching impacts on individual growth, social equity, economic prosperity, and national development.

Reasons Why Public Expenditure on Education is Important:
1. Promotes Social Equality and Reduces Inequality:
1)Equal Access to Education: Public expenditure ensures that education is accessible to all, regardless of socioeconomic background. By funding free or subsidized education, governments help level the playing field for marginalized groups, including low-income families, caste minorities, women, and rural populations.
2)Breaking the Cycle of Poverty: Education is a powerful tool for breaking intergenerational cycles of poverty. Investing in public education gives children from disadvantaged families a pathway to better job opportunities and upward mobility, reducing income inequality over time.
2. Economic Growth and Productivity:
1)Human Capital Development: Education enhances human capital, which is essential for a country’s economic growth. A well-educated workforce is more productive, innovative, and capable of adapting to changing economic conditions.
2)Workforce Competitiveness: In a globalized economy, countries that investi
edge. Public expenditure on education contributes to a more skilled and knowledgeable workforce, turn attracts investment, fosters entrepreneurship, and boosts economic development.
3)Long-Term Economic Returns: Studies show that investments in education yield significant economic returns. Educated individuals tend to earn higher incomes, contribute more in taxes, and require fewer
social services, which benefits the overall economy.
3. Improves Health and Well-Being:
1)Healthier Populations: Public investment in education has a direct impact on public health. Educated individuals are more likely to make informed health decisions, seek preventive care, and maintain healthier lifestyles. Education also plays a role in reducing child mortality and improving maternal health.
2)Lower Crime Rates: Education is linked to lower crime rates, as it provides individuals with skills and opportunities that reduce the likelihood of engaging in criminal activities. Public spending on education thus has a ripple effect on improving public safety and reducing the social costs associated with crime.

4. Promotes Social Cohesion and Democratic Participation:
1)Strengthens Democracy: Education fosters informed and engaged citizens who are more likely to participate in democratic processes. By increasing literacy, critical thinking, and political awareness, public education helps strengthen democratic governance and accountabili
2)Reduces Social Divisions: A well-funded public education system promotes social cohesion by bringing together children from diverse backgrounds, fostering mutual understanding, and reducing divisions based on caste, class, religion, and ethnicity. Inclusive education systems promote shared values and a sense of community.
5. Empowers Women and Promotes Gender Equality:
1)Closing the Gender Gap: Public spending on education is crucial for reducing gender disparities in access to education. Investment in girls’ education has been shown to increase female participation in the workforce, improve health outcomes, and delay early marriages and childbearing, leading to more empowered women.
2)Boosting National Development: Educating girls and women has a multiplier effect. Research indicates that educating women boosts overall economic growth and has positive intergenerational impacts, as educated women are more likely to invest in their children’s education and well-being.
6. Fosters Innovation and Scientific Advancement:
1)Research and Development: Public investment in higher education, particularly in research and development (R&D), drives innovation and technological advancements. Countries that prioritize education often lead in scientific research, which is vital for addressing global challenges such as climate change, healthcare, and food security.
2)Encourages Entrepreneurship: Education nurtures creativity and critical thinking, which are key drivers of entrepreneurship and innovation. Public expenditure on education creates an environment where new ideas and businesses can thrive, contributing to economic dynamism.

7. Addressing Structural Inequalities:
1)Caste, Class, and Racial Inequalities: Public expenditure on education can be used to redress historical and systemic inequalities in society, especially for marginalized groups such as Scheduled Castes and Tribes (SC/ST) in India, or ethnic minorities in other countries. Government spending on affirmative action, scholarships, and special educational programs can help bridge the gaps created by social hierarchies.
2)Rural-Urban Divide: In many developing countries, rural areas are underserved by the education system. Public spending targeted at rural schools can help reduce the educational disparities between urban and rural areas, ensuring that children in rural communities have access to quality education.
8. Prepares Societies for Future Challenges:
1)Adapting to Technological Change: The rapid pace of technological change, particularly with the rise of automation and Al, means that education systems must constantly evolve to prepare students for future job markets. Public investment in education ensures that societies can adapt to these changes by teaching new
skills and fostering lifelong learning.
2)Sustainability and Global Citizenship: Education plays a crucial role in promoting sustainable development by teaching individuals about environmental issues, sustainability, and responsible citizenship. Governments that prioritize public spending on education can prepare citizens to engage with and address
global challenges such as climate change.
9. Reduces the Burden on Families:
1)Affordable Education: Public expenditure reduces the financial burden of education on families, especially in countries where private education is expensive. This is particularly important for low-income families, as it allows their children to access education without accruing significant debt or financial stress.

Determinants of expenditure on education – public, household
The determinants of expenditure on education, both public and household, are shaped by a combination of economic, social, political, and institutional factors. These determinants influence how much governments and households allocate to education, reflecting their priorities and capacities. Below is a breakdown of the determinants of educational expenditure at both the public and household levels:
1. Public Expenditure on Education: Determinants
Public expenditure on education refers to the financial resources allocated by the government toward the education system. These expenditures cover teacher salaries, infrastructure, scholarships, educational materials, and more.
The following are key determinants:
a. Economic Factors:
1)Gross Domestic Product (GDP) and National Income: Countries with higher GDPs and national income levels are typically able to allocate more resources to education. Wealthier nations often prioritize education as part of their development strategies, while low-income countries may struggle to meet educational demands due to budgetary constraints.
2)Fiscal Capacity and Tax Revenue: The government’s ability to generate tax revenue influences how much can be allocated to education. Countries with strong tax systems and higher levels of taxation can invest more in public services, including education.
3)Debt and Fiscal Deficits: High levels of national debt or fiscal deficits can limit public spending on education as governments may prioritize debt servicing and other urgent expenditures. Economic crises often lead to
spending.
b. Government Priorities and Political Will:
1)Political Ideology and Governance: The ideology of the ruling government significantly impacts how much is spent on education. Governments with social welfare-oriented policies tend to prioritize education more than those with neoliberal policies that may favor privatization and lower public spending. 2)Commitment to International Goals: Governments may increase education spending to meet global commitments, such as the Sustainable Development Goals (SDGs), which emphasize inclusive and equitable quality education. International pressure or agreements can play a role in prioritizing education in national budgets.

3)Corruption and Bureaucracy: High levels of corruption can divert public funds from education to other non- productive uses. Inefficiencies in bureaucracy may also hinder the effective allocation and use of education budgets.
c. Demographic Factors:
1)Population Size and Growth: Countries with growing populations, particularly with a high percentage youth, face higher demand for educational services. Public expenditure on education must expand to
accommodate growing numbers of students.
of
2)Age Structure: A country with a younger population may need to invest more in primary and secondary
education, while a country with a more aging population may prioritize different sectors.
d. Socioeconomic and Cultural Factors:
1)Cultural Attitudes Toward Education: Societies that place a high value on education tend to exert pressure
on governments to increase public spending on education. For example, societies that see education as a tool for social mobility or modernization may prioritize it more.
2)Inequality and Marginalization: Governments in countries with high levels of inequality may need to allocate more resources to education, particularly for marginalized communities, such as low-income families, rural populations, or disadvantaged castes and ethnic groups.
e. International Aid and Development Assistance:
1)External Funding: In low-income countries, public expenditure on education can also be influenced by foreign aid, loans, or grants from international organizations such as the World Bank, UNESCO, or bilateral donors. International development agencies often provide funds earmarked for specific educational reforms or programs.

f. Educational Infrastructure and Human Resources:
1)Quality and Quantity of Educational Infrastructure: The existing state of schools, universities, and other educational institutions can dictate public spending needs. Governments may need to allocate funds for building or maintaining physical infrastructure or for investing in digital infrastructure.
2)Teacher Salaries and Training: Teacher recruitment, salaries, and training are significant components of education budgets. If there is a shortage of qualified teachers, governments may need to allocate more resources to recruitment and training programs.
2. Household Expenditure on Education: Determinants
Household expenditure on education refers to the amount families spend on educational expenses, including school fees, uniforms, books, private tuition, and higher education costs. Several factors determine how much a household
spends on education:
a. Household Income and Wealth:
1)Income Level: Wealthier families can afford to spend more on education, often opting for private schools, additional tutoring, and higher education abroad. Conversely, low-income families may struggle to cover even basic educational expenses, particularly in countries where public education is underfunded.
2)Economic Stability: During economic downturns, households may cut back on educational spending, especially on non-essential items such as private tutoring or extracurricular activities. In contrast, periods of economic growth often lead to increased household spending on education.
b. Education Costs:
1)Cost of Public and Private Education: The availability of affordable public education can greatly influence household spending. In countries where public education is of poor quality or underfunded, families may choose private education, increasing household expenses. School fees, uniforms, books, transportation, and technology costs are direct determinants of household expenditure.
2)Higher Education Costs: As higher education costs (e.g., university tuition fees) increase, households may need to save or borrow more to support their children’s education. This is particularly pronounced in countries with privatized or costly higher education systems.

c. Parental Education and Aspirations:
1)Parental Educational Attainment: Households with more educated parents tend to spend more on their children’s education, as they are often more aware of its benefits and place a higher value on educational achievement.
2)Aspirations for Children’s Education: Households with higher aspirations for their children’s education, such as wanting them to attend prestigious universities or achieve high professional status, are likely to invest more in education, including private tuition, extracurricular activities, and special courses.
d. Social and Cultural Factors:
1)Cultural Attitudes Toward Education: In many cultures, education is highly valued as a means of social mobility and economic success. This cultural attitude drives households to allocate more resources to their children’s education, even at great financial sacrifice.
2)Gender Norms: In some societies, gender norms influence household education spending. For example, families may prioritize sons over daughters in terms of educational investment, though this trend is shifting in many places.
e. Access to Credit and Savings:
1)Availability of Educational Loans: Access to credit and educational loans can enable households to finance expensive education, especially higher education. Where such credit facilities are unavailable, household spending may be limited by income and savings.
2)Household Savings: The ability to save for education is another important determinant. Households that prioritize education are more likely to allocate savings toward school fees, university costs, or related expenses.
f. Government Policies and Support:
1)Subsidies and Scholarships: Government programs that offer scholarships, grants, or subsidies for education can reduce the financial burden on households. Where such support is extensive, household expenditure on education is lower. Conversely, when government support is minimal, households bear a greater share of the costs.
2)School Choice: Policies that allow or promote school choice (e.g., charter schools, private school vouchers) may drive households to spend more on education, especially when opting for private or specialized schools
over Public options.

Public (taxes-general,earmarked;grants, vouchers, fees as a sourse of finances, scholar loans) and private (community.contribution and external aid)
In education financing, both public and private sources play critical roles in ensuring access to and the quality of educational services. Public sources include government funding mechanisms such as taxes, grants, and scholarships, while private sources can involve contributions from households, communities, and external aid from international organizations.
Here’s a detailed breakdown of public and private sources of education financing:
1. Public Sources of Financing Education
Public financing refers to funds generated or allocated by governments to support educational institutions and services. These funds come from various public revenue mechanisms, both general and targeted, and are essential for maintaining equitable access to education.
a. Taxes
1)General Taxes: Most public funding for education comes from general taxes collected by the government, such as income taxes, corporate taxes, property taxes, and value-added taxes (VAT). These taxes are pooled into the national or local budget and then allocated to different sectors, including education. The amount of tax revenue available for education often depends on the overall size of the tax base and political priorities.
2)Earmarked Taxes: In some countries, specific taxes are earmarked for education. For example, a portion of sales taxes, excise duties, or lottery proceeds may be dedicated to funding education. Earmarked taxes ensure a steady revenue stream for education, although they can also limit the flexibility of government spending.
b. Grants
1)Intergovernmental Transfers: Grants from higher levels of government to local governments or school districts are a significant source of funding in federal systems. These can be unconditional (general purpose) or conditional (tied to specific educational goals or programs).
2)Targeted Grants: Some governments offer grants to schools or educational institutions for specific purposes, such as improving infrastructure, boosting STEM education, or promoting education for marginalized groups. These grants are often tied to performance indicators or educational reforms.

c. Vouchers
1)School Vouchers: Vouchers are government-issued certificates that allow parents to use public funds to pay for tuition at private or charter schools. This is a form of public funding designed to promote school choice and competition between public and private institutions. The use of vouchers is often controversial, as it may divert public funds from traditional public schools to private institutions.
d. Fees and User Charges
1)Tuition Fees: In some countries, public schools charge minimal tuition fees, particularly at the higher education level. These fees are often regulated by the government and contribute to the operational costs of public schools or universities.
2)Service Fees: Schools may also charge additional fees for specific services such as extracurricular activities, school transportation, meals, and school supplies. Though these fees are relatively small, they add to the overall public financing structure.
e. Scholarships and Loans
1)Scholarships: Government scholarships provide financial aid to students, especially those from low-income families or marginalized communities, enabling them to access education without the burden of fees. These scholarships are usually targeted at primary, secondary, or higher education levels.
2)Student Loans: Publicly funded student loan programs provide financial assistance for higher education, allowing students to borrow money to pay for tuition and repay the loan after graduation. The interest rates on these loans are often subsidized by the government to make them affordable for students.
f. Public-Private Partnerships (PPPs)
1)Collaborations with Private Sector: In some cases, public authorities partner with private companies or organizations to provide educational services, build infrastructure, or supply learning materials. These partnerships can reduce the financial burden on the government while ensuring quality education services.
2. Private Sources of Financing Education
Private financing involves funds contributed by non-governmental entities, including households, private organizations, communities, and international donors. These sources complement public funding and are especially important in countries with limited public resources for education.

a. Household Contributions
1)Private Tuition: Families often bear the cost of sending their children to private schools, which generally have higher tuition fees than public schools. In countries where public schools are underfunded or of lower quality, households may opt for private education, increasing their educational expenses
2)Private Tutoring: Many families invest in private tutoring for their children, especially in competitive education systems where entrance to prestigious schools or universities is determined by exam performance. This informal private spending is a significant part of household expenditure on education.
3)Extracurricular and Supplementary Education: Households may also contribute to education by paying for extracurricular activities, such as sports, arts, or language classes, that enhance their children’s educational experience.
b. Community Contributions
1)Local Fundraising: Communities often raise funds to support local schools, especially in rural or underserved areas. These funds may be used to build new classrooms, purchase learning materials, or pay teachers’ salaries in cases of government funding shortfalls.
2)Voluntary Labor and In-Kind Contributions: In some communities, parents and community members contribute to schools by volunteering their labor, providing materials, or organizing events to support education. In-kind contributions can also include donations of school supplies, equipment, or land for building schools.
3)Parent-Teacher Associations (PTAs): In many schools, PTAs raise funds to improve facilities, organize activities, or provide scholarships for students. These associations play a significant role in supplementing public funds.
c. External Aid and International Funding
1)Bilateral Aid: Foreign governments may provide bilateral aid to support education in developing countries. This aid can be in the form of grants, technical assistance, or loans aimed at building educational infrastructure, improving teaching quality, or providing access to marginalized populations.

2)Multilateral Aid: International organizations such as UNESCO, the World Bank, and UNICEF provide financial and technical support for educational development. Multilateral aid can include grants or concessional loans targeted at achieving specific educational goals, such as universal primary education or gender equity.
3)Non-Governmental Organizations (NGOs): NGOs play an important role in funding education, particularly in developing countries. They may run schools, provide scholarships, or fund teacher training programs. NGOs also often focus on improving access to education for marginalized or vulnerable groups, such as girls, refugees, or people with disabilities.
4)Corporate Social Responsibility (CSR): Private companies, through their CSR programs, may fund education- related projects. This can include building schools, providing scholarships, donating computers or learning materials, and organizing training programs for teachers or students.
5) Philanthropy and Foundations: Private philanthropists and foundations, such as the Bill & Melinda Gates Foundation or the Open Society Foundations, often provide significant financial support to educational initiatives, particularly in areas like literacy, girls’ education, and educational technology.
Public expenditure on education in India
The education sector in India is growing swiftly with large private individuals collaborating with the government to develop this sector. The government is also considering many steps to enhance the quality of education in India. Primary education is increasing and many international schools are making their presence felt in India. Parents are now willingly enrolling their children into international schools for good quality education straight from the primary level.
In India, the government expenditure in the education sector is expressed in the following two ways:
1)Total government expenditure percentage: The total government expenditure in education shows the significance of education in the plan of things before the government. From the year 1952 to 2014, the total government education investment grew from 7.92 to 15.7.
2)Gross domestic product (GDP) percentage: The education expenditure of GDP states the total amount of income being invested in the development of education in the country. From the year 1952 to 2014, the total GDP percentage increased from 0.64 to 4.13.

The major share of the total education expenditure goes to the elementary education, rather than the tertiary or higher education, i.e., the least. Though, the state invests the limited amount on higher education, its investment per student is higher than that of elementary.
With the aim of promoting education, the government of India has also initiated imposing two percent of ‘education cess’ on all the union taxes. This education cess tax is spent on enhancing elementary education in the country. The government of India has also initiated various new loan schemes for students who want to pursue higher education.
Educational Achievements in India :
In most of the country, the educational achievements are shown according to the adult literacy level, primary education completion rate, and youth literacy rate. The statistical comparison of the last two decades in the education sector is given as follows:

Centre state relation in financing education: planning commission and finance commission
1)Centre State financial relations: In Financial Relations, the center holds greater authority than the states.The states’ development objectives are entirely dependent on the central government.
2)Without the central government’s active financial support, no state could afford to function.
3)Undoubtedly, in all federations, the units are not financially self-sufficient, but in India, the state’s economic dependency on the center is excessive.
4)The division of subjects allowed for in the constitution is such that the states have far more sources of expenditure than revenue.
5)The Union Parliament has the authority to legislate on any issue on the State list under Articles 249,250, 252,253, and 356.
Provisions Related to Financial Relation Between Centre And States:
1)Article 249 is an important article of the Indian constitution that deals with Parliament’s 249
Legislative Powers in relation to issues on the state list.
2)Article 250 of the Indian Constitution deals with Parliament’s power to legislate for the whole or 250 any part of the country, on any issue in the State List if a Proclamation of Emergency is in effect.
3)Article 252 of the Indian Constitution deals with Parliament’s power to legislate for two or more 252
states by approval and acceptance of such legislation by any other state.
4)Article 253 deals with issues relating to legislation for putting international agreements into 253 effect.
5)Article 356 of the Constitution grants the federal government the authority to establish direct control over any state, a practice is known as the President’s Rule.

Constitutional Provisions Related to Levying and Collection of Taxes :
1)Articles 268 to 281 of the Indian Constitution contain detailed provisions that provide the centre instructions on how to distribute financial resources among the states.
2)It establishes guidelines for the centre and states to follow in order to coordinate tax levying and collecting through methodical procedures and helps understand the centre-state financial relations.
1. Article 268
*Duties imposed by the Union but collected and appropriated by the States – As stated in article 268, the Central Government shall levy stamp duties on items listed in the Union List. These charges are levied by the states and collected by them. The profits from such charges are divided among the states.
*The profits of any such charge levied inside any State in any fiscal year must not be credited to the Consolidated Fund of India. However, the revenues must be allocated to that state.
2. Article 268A – Union levies a service tax, which is collected and appointed by the Union and the States
*This article was added by the Constitution (88th Amendment) Act, 2003, empowering the Union of India to levy service taxes to be collected and appropriated by the Union and the States in accordance with such principles as could be formulated by Parliament by law, was removed by the Constitution’s 101st Amendment in 2016.
3. Article 269
*Taxes are levied and collected by the Union, but assigned to the States within which they are leviable.
4. Article 269A
*Except as stipulated in article 269A, states that taxes on the sale or purchase of products and taxes on the assignment of goods should be imposed and collected by the government, but they must be allocated in the manner authorized by parliament.
*It stipulates that the net earnings of such tax, excluding those attributable to Union territory, shall not constitute part of the consolidated fund of India, but shall be allotted to the states in accordance with such distinction principles as may be defined by parliament by legislation.

5. Article 270
*Taxes levied and collected by the Union and distributed between the Union and the States.
*The Constitution (80th Amendment) Act of 2000 replaced a new article for article 270, which was declared to have been substituted on April 1, 1996.
*This article deals specifically with income taxes other than agricultural income and corporate tax, which shall be levied and collected by the Union and divided between the Union and States.
6. Article 271
*It states that if parliament increases any of the charges or taxes stated in articles 269 and 270, excluding the goods and services tax under article 246A, by imposing a surcharge, the money would be deposited in the Consolidated Fund of India.
Five year plans :
Five year plans are documents that the Government of India prepares. This shows the income and expenses of the government for the next five years.
1)The budget of the central government and all the state governments is divided into two parts:
*non-plan budget, spent on routine items every year
*plan budget, spent on a Five year basis according to the priorities fixed by the plan
2)The Indian economy was based on the concept of planning based on five year plans from 1951 to 2017.
3)The Five Year Plans were formulated, implemented, and regulated by a body known as the Planning Commission.
4)The Planning Commission was replaced by a think tank called NITI AAYOG in 2015. The NITI Aayog has come out with three documents:
*3-year action agenda
*7-year medium-term strategy paper
*15-year vision document

Liberalisation privatisation and globalisation in education:
Liberalization
The basic aim of liberalization was to put an end to those restrictions which became hindrances in the development and growth of the nation. The loosening of government control in a country and when private sector companies’ start working without or with fewer restrictions and government allow private players to expand for the growth of the country depicts liberalization in a country.
Objectives of Liberalization Policy:
1)To increase competition amongst domestic industries.
2)To encourage foreign trade with other countries with regulated imports and export
3)Enhancement of foreign capital and technology.
4)To expand global market frontiers of the country.
5)To diminish the debt burden of the country.
Impact of Liberalization:
Privatization –
This is the second of the three policies of LPG. It is the increment of the dominating role of private sector companies and the reduced role of public sector companies. In other words, it is the reduction of ownership of the management of a government-owned enterprise. Government companies can be converted into private companies in two ways:
1)By disinvestment
2)By withdrawal of governmental ownership and management of public sector companies.
Forms of Privatization :
1)Denationalization or Strategic Sale: When 100% government ownership of productive assets is transferred to the private sector players, the act is called denationalization.

2)Partial Privatization or Partial Sale: When private sector owns more than 50% but less than 100% ownership in a previously construed public sector company by transfer of shares, it is called partial privatization. Here the private sector owns the majority of shares. Consequently, the private sector possesses substantial control in the functioning and autonomy of the company.
3)Deficit Privatization or Token Privatization: When the government disinvests its share capital to an extent of 5-10% to meet the deficit in the budget is termed as deficit privatization.
Objectives of Privatization:
1)Improve the financial situation of the government.
2)Reduce the workload of public sector companies.
3)Raise funds from disinvestment.
4)Increase the efficiency of government organizations.
5)Provide better and improved goods and services to the consumer.
6)Create healthy competition in the society.
7)Encouraging foreign direct investments (FDI) in India.
Globalization :
It means to integrate the economy of one country with the global economy. During Globalization the main focus is on foreign trade & private and institutional foreign investment. It is the last policy of LPG to be implemented. Globalization as a term has a very complex phenomenon. The main aim is to transform the world towards independence and integration of the world as a whole by setting various strategic policies. Globalization is attempting to create a borderless world, wherein the need of one country can be driven from across the globe and turning into one large economy.
Outsourcing as an Outcome of Globalization:
The most important outcome of the globalization process is Outsourcing. During the outsourcing model, a company of a country hires a professional from some other country to get their work done, which was earlier conducted by their internal resource of their own country.

The best part of outsourcing is that the work can be done at a lower rate and from the superior source available anywhere in the world. Services like legal advice, marketing, technical support, etc. As Information Technology has grown in the past few years, the outsourcing of contractual work from one country to another has grown tremendously. As a mode of communication has widened their reach, all economic activities have expanded globally.
Various Business Process Outsourcing companies or call centres, which have their model of a voice-based business process have developed in India. Activities like accounting and book-keeping services, clinical advice, banking services or even education are been outsourced from developed countries to India.
Resource mobilization in financing elementary education: equity, efficiency and adequacy
Resource mobilization for financing elementary education involves the strategic collection and allocation of financial and non-financial resources to support educational systems. When evaluating resource mobilization, three critical principles come into play: equity, efficiency, and adequacy. Each of these concepts addresses different aspects of how resources are raised and used to ensure that elementary education is accessible, high-quality, and sustainable.
1. Equity in Resource Mobilization
Equity in education finance refers to ensuring that resources are distributed fairly and are targeted to promote equal access to educational opportunities, particularly for disadvantaged and marginalized groups. In the context of elementary education, equity addresses how funding systems reduce disparities caused by income, caste, gender, geographical location, or disability
a. Ensuring Equal access-
* Target funding for Disadvantaged Groups: Mobilizing resources equitably means directing more funds to disadvantaged groups, such as children from low-income families, girls, children with disabilities, and those living in rural or remote areas. This can be done through mechanisms like conditional cash transfers, scholarships, or special grants for marginalized communities.

* Geographical Equity: Resource mobilization should consider regional disparities, particularly between urban and rural areas. In many developing countries, rural schools are underfunded and underserved. Resources should be mobilized to address these disparities by improving infrastructure, teacher availability, and learning materials in underserved regions.
b. Affordability and Cost-Sharing
* Eliminating Fees and Hidden Costs: To ensure equity, governments must mobilize enough resources to eliminate or reduce fees and hidden costs associated with elementary education, such as fees for uniforms, textbooks, or transportation. For the poorest households, even minimal costs can be a significant barrier to accessing education.
* Progressive Taxation for Education: To raise resources equitably, governments should consider progressive taxation systems where wealthier individuals and corporations contribute a larger share to finance education. This ensures that public education funding is derived from those who can afford to pay more, reducing the financial burden on the poor.
c. Inclusive Education Policies
* Policies for Marginalized Communities: Resource mobilization should ensure that policies designed to include marginalized groups (e.g., Scheduled Castes and Tribes, ethnic minorities, girls) are well-funded. Equity-focused strategies include free meal programs, provision of learning materials, and infrastructure to accommodate children with special needs.
2. Efficiency in Resource Mobilization
Efficiency refers to how well resources are used to achieve the desired educational outcomes with the waste or misallocation. Efficient resource mobilization means that funds are not only raised but also effectively utilized to maximize learning outcomes.
a. Cost-Effective Spending
* Teacher Training and Deployment: A significant portion of elementary education budgets goes toward teacher salaries. Efficient use of resources requires that teachers are well-trained and deployed in a way that maximizes their impact. Properly distributing teachers, especially to underserved areas, and ensuring they have adequate support can improve educational outcomes without requiring additional resources.

* Avoiding Resource Misallocation: In many educational systems, inefficiencies arise due to funds being used for administrative costs or poorly prioritized projects. Mobilizing resources efficiently means prioritizing investments that have a direct impact on learning, such as improving teacher quality, providing adequate classroom materials, or enhancing school infrastructure.
b. Leveraging Public-Private Partnerships (PPPs):
* Collaboration with the Private Sector: Public-private partnerships can enhance the efficiency of resource mobilization by leveraging private sector expertise and capital. For instance, private companies can be involved in building schools, providing digital tools, or managing certain aspects of education delivery, reducing the burden on government resources.
c. Use of Technology
* EdTech Solutions: Incorporating technology in classrooms can improve educational delivery in a cost- effective way. For example, e-learning platforms and digital tools can supplement teacher instruction, particularly in remote areas where qualified teachers are scarce.
* Data and Monitoring Systems: Efficient resource mobilization also requires the use of data to monitor progress and track how resources are spent. Implementing data-driven policies helps identify where funding gaps exist and ensures that resources are directed to areas with the most need.
d. Community Involvement
* Decentralized Decision-Making: Involving local communities and school management committees in budgeting and resource allocation can lead to more efficient use of resources. Community involvement helps ensure that funds are spent in ways that meet local needs, reducing the likelihood of waste or misallocation
3. Adequacy in Resource Mobilization
Adequacy refers to ensuring that sufficient resources are raised to meet the educational needs of all students. While equity and efficiency focus on fair distribution and optimal use of resources, adequacy emphasizes whether there are enough resources overall to provide quality education for every child.

a. Sufficient Government Investment
* budget allocation: Adequate funding for elementary education requires that government prioritise education in their national budgets.International benchmarks,such as allocating 20% of the national budget or 4-6% of GDP to education, provide a standard for determining adequacy. Many countries, particularly developing nations, fall short of these benchmarks, leading to overcrowded classrooms, inadequate facilities, and teacher shortages.
* Commitment to Long-Term Funding: Adequate resource mobilization also requires a long-term commitment to funding. Consistent and predictable funding is essential for maintaining infrastructure,retaining quality teachers, and ensuring that students receive a continuous and comprehensive education.
b. External Aid and Support
* International Aid: In low-income countries, international aid is often critical to achieving adequacy in education financing. Organizations like UNESCO, UNICEF, and the World Bank provide financial assistance to help countries meet the basic needs of their education systems, particularly for elementary education.
* Philanthropy and Non-Governmental Support: Philanthropic organizations, NGOs, and corporate donors also play a role in addressing funding shortfalls. Mobilizing resources from these external sources can provide additional funding for initiatives like school construction, teacher training, or scholarship programs.
c. Adequate Physical and Human Resources
* Infrastructure Development: Adequate resource mobilization must address the need for proper school infrastructure, including classrooms, sanitation facilities, and transportation, especially in rural and underserved areas. Poor infrastructure is often a barrier to both access and learning outcomes.
* Teacher Recruitment and Retention: Ensuring adequate resources involves hiring a sufficient number of trained teachers to maintain reasonable student-to-teacher ratios. Teacher shortages, especially in remote areas, often result in poor educational outcomes.
d. Monitoring Adequacy Through Performance
* Learning Outcomes as a Benchmark: Adequacy should not only be measured by the amount of money spent but also by the quality of educational outcomes. Governments should monitor whether resources lead to improved literacy and numeracy rates, higher retention rates, and better overall student performance.

Conclusion
Resource mobilization for financing elementary education must strike a balance between equity, efficiency, and adequacy:
* Equity ensures that resources are fairly distributed, especially to those in need, reducing disparities in
* Efficiency ensures that resources are used optimally to achieve the best possible outcomes without
* Adequacy guarantees that enough resources are mobilized to provide quality education for all students.