WB Yeats famously once said that “education is not the filling of a pail, but the lighting of a fire.” His inspired words have generally stood the test of time, but are perhaps most relevant to a generation that has the potential, with the right foundation and nurturing, to knock down, rather than push the boundaries of human capability.

However, only a small percentage of the world’s current crop of first- and second-level students will have the chance or competency to make a significant impact on the direction of humankind. They are what Jason Boyers, the National Division President in Harrison College in the United States, describes in the Huffington Post as “the 10 per cent for whom failure is not an option.” Boyers classes another segment as the 10 per cent who will inevitably fail because of a lack of personal motivation and the drive necessary to reach educational goals. The remaining 80 per cent, the author says, are the majority – “a group full of bright minds that could lean toward either success or failure.”

To ensure that those in the largest group have the best possible opportunity of fulfilling a successful professional career and make a substantial contribution to the global economy in the future, former CEO and Chairman of Intel Corporation, Craig Barrett, says that companies and governments need to do more, especially when developing or maintaining a successful economy is the ultimate goal. “I’ve always looked from a very high level at what corporations and states can do to be successful and it occurs to me that there are three levers available to them,” he remarks. “The first is education because the quality of a country’s workforce generally determines its ability to generate value. The second is ideas and investment in research and development because ideas create next generation products, services and companies. And the third is creating the right environment where smart people can come together and create something great. All three levers, in my view, are critical to developing successful economies.”

Of the three though, Barrett believes that pulling the education lever is what most states and companies should focus on to create a position of sustainable competitive advantage. “If your education system is not at a high level, you cannot add value and therefore you cannot compete on the international scene,” says Barrett, who often describes education as ‘the great liberator of poverty.’ “An organisation or company that has the best workforce in the right environment is going to win every time – that’s the message I push when I talk to people in the business community.

“What we’re seeing is that the international measures of education have become much more pronounced in the last 10 or 15 years in terms of one country’s ability to compare educational accomplishments, standards and systems with those of other countries around the world. So, rather than living in a dark cave like most of us had done for almost 50 years, all of a sudden it’s pretty clear that if you’re going to compete, you’re going to have to go up against the best from China, Eastern Europe, Brazil or Scandinavia.”

Straight talking
Barrett has history with providing policymakers with straightforward, no-nonsense advice. In 2011, when Arizona’s legislatures targeted cutbacks in education when compiling the State’s budget, he said that the education system was hindering economic development efforts throughout the region, and defiantly claimed that Arizona would not be in the running for Intel’s business if the company was starting anew. Today, he is of the view that when it comes to comparing educational standards around the world, complacency often gets in the way. “In the US, we haven’t done too much comparison with other countries and systems. When we do get faced with it, we tend to come up with all the excuses as to why we shouldn’t do it or why we shouldn’t have to do it. The reality is though that comparisons like this have to done across the board – it’s something that all countries have to be on top of.”

To compare international best practice, arguably the best place to start is with Pearson’s education global league table. Combining international test results and data such as graduation rates between 2006 and 2010, the results, which were published in 2012, placed the UK in sixth place overall (see panel). The places ahead of Britain were occupied by Finland in first place, followed in descending order by South Korea, Hong Kong, Japan and Singapore. The report, entitled the Learning Curve, points out that “although they may not be able to quantify it, governments in most countries recognise a link between knowledge and skills with which people enter the workforce and long-term competitiveness.” However, the authors are quick to highlight that the research itself offers very little in terms of developing a roadmap for improving education systems, but does admit to providing some signposts for where improvements can be made.

Some of the key findings make for interesting reading, especially the relationship between education inputs and outputs, which the authors say are few. “The research examined a wide range of education inputs, both quantitative – such as spending on pupils and class size – as well as qualitative – such as level of school choice. It also looked at numerous potential outcomes, ranging from inculcation of cognitive skills to GDP growth. A number of inputs show a statistical link over time with certain outputs, notable between income and results. But the most striking result of the exercise is how few correlations there are. Education remains very much in a black box in which inputs are turned into outputs in ways that are difficult to predict or quantify consistently. Experts point out that simply pouring resources into a system is not enough: far more important are the processes which use these resources.”

Furthermore, the report says that good teachers have a hugely positive influence. “Having a better one is statistically linked not only to higher income later in life but to a range of social results including lower chances of teenage pregnancy and a greater tendency to save for retirement.”

However, in comparing education systems with other international jurisdictions and standards, Craig Barrett believes that certain interventions will be required if the systems themselves are going to change to meet the needs of the commercial world. “In the United States for example, we have an educational challenge – the established bureaucracy and localisation of education mean that there are 15,000 school districts across the country that get to roll the dice as they see fit. If change is expected in a system like that, it will be a very long and slow process. However, now there is a discussion in America centred on the fact that maybe the government control system is incapable of changing itself. To drive change, some sort of catalytic action must be imposed – things like school choice, charter schools and/or competition, for instance, will help. Indeed, it’s quite amazing how fast the system can and will respond to that as opposed to a top down demand that says you have to change. Also, unless there are some consequences of not adjusting, then change will not happen quickly, if at all.”

The ramifications of not modifying and transforming the education system in countries that find themselves outside the top half of Pearson’s Learning Curve will be severe, says Intel’s former CEO. “Without change, we are faced with losing our customers, and consequently, our sources of revenue. When that goes, we lose control.” To avoid such a scenario, he insists that governments need to maintain levels of investment in education, even in recession-hit economies. “Countries around the world that are doing this correctly dedicate large proportions of GDP into research and development, and they take education very seriously.

They consider the necessary factors that form the foundations of a stand-out system – good teachers and  high expectations. Countries like Finland and South Korea are leading the way here, but when it’s broken down, the issues that lower ranking countries face are not too difficult to overcome. Simply introducing some form of accountability where all stakeholders realise that if you don’t perform, you lose, will yield results. To do this though, there must be competition with the public monopoly, which should focus on success and doing things in the best possible way without the constraints of history or bureaucratic infrastructure.”

Finite resource
Creating the right schooling environment becomes more pertinent when one considers that importing talent has its limitations and is, in all probability, a finite resource. “I like to think that governments are realising that they have to do something with their own indigenous workforce – bringing people from overseas to fill positions of importance will only work for so long. In the US, we talk a lot about the great middleclass jobs of the 21st century but we do precious little to create the workforce to take advantage of those roles. It’s always easier to sit back and have armchair discussions about what needs to be done as opposed to doing something about it. But fundamentally, decision makers at the very highest level in all countries need to understand that if there is not a competitive workforce, then there’s little point having any debate because quite simply, the game is over. Most governments don’t like to acknowledge that, especially when their system is not working so well.”

However, the responsibility, while lying principally at the door of national legislators, should also be shared by business, who, says Barrett, can be the strongest voice to instigate change in educational systems where it is most needed. “Businesses should be demanding the best workforce possible and leaders in the business community are in the very unique position of being able to let governments know whether they are doing a good job or not. After all, business is the ultimate consumer of education so its support is vital to national changes or movements. The business community in America is starting to stand up and say that as the consumer of the system’s output, it is unhappy with the quality of what it is receiving. The message is that as a community, they believe that the fundamental aspects of education need to change and that they will stand behind any political leader that wants to achieve that. This is hugely significant because business leaders too are beginning to realise that without the best equipped talent, the game is most definitely up.”

PEARSON’S EDUCATION GLOBAL LEAGUE TABLE – TOP 20
1. Finland
2. South Korea
3. Hong Kong
4. Japan
5. Singapore
6. UK
7. Netherlands
8. New Zealand
9. Switzerland
10. Canada
11. Ireland
12. Denmark
13. Australia
14. Poland
15. Germany
16. Belgium
17. USA
18. Hungary
19. Slovakia
20. Russia

EDUCATION EXPORT OPPORTUNITIES FOR THE UK
In the UK, Minister for Universities and Science, David Willets MP, acknowledged in July, 2013 in his foreword for International Education: Global Growth and Prosperity – the publication outlining the Government’s international education strategy – that “education is changing fast, and we must be agile in our response. We start from a position of tremendous strength.”

Indeed, Willets’ approach is a positive one – he recognises that education is in the very early stages of globalisation and that middle income nations such as Indonesia and Turkey, for example, are keen to expand their education systems as soon as possible. The Minister says that this presents a “huge opportunity” for UK firms and one that must be embraced.

The strategy, which is estimated to be worth over £17 billion to the economy and was developed in partnership with the education sector, has been put in place to ensure that educational institutions throughout Britain remain at the forefront of the global education market. Furthermore, the document sets out an intention to secure an extra £3bn worth of contracts of education providers from the UK overseas, as well as a plan to attract 90,000 extra overseas university students by 2018.

“There are few sectors of the UK economy with the capacity to grow and generate export earning as impressive as education,” the Minister said at the launch of the strategy. “Our universities, colleges, awarding organisations and schools are recognised globally for their excellence. However, there is more that we can do to take advantage of this powerful reputation.”