Ram-da,
Thank you for your comment. Unless someone asks a clarification it is difficult to identify what might be unclear -- since I was doing such an analysis for the first time - trying to combine my bachelors degree knowledge of Economics with what I have learnt in Edu. Policy Analysis masters program.
I will add the methodolgy portion to the write up before submitting it for ASA Newsletter.
Methodology:
It is believed that any economy should spend atleast about 6% of its GDP on education . Every economy has limited resources so it is perhaps not possible for all economies to spend huge portions on everything. Thus, a figure of 6% of GDP has been arrived at by international consensus as a minimum requirement expenditure on education.
USA spends 4.2 % of its GDP on school education and 2.6% on higher ed. In total USA spends about 6.8% of its GDP on education. http://nces.ed.gov/pubs98/98009.pdf USSR used to spnd 10% of its GDP on education but Russis now spends only 0.10%
India as a whole spends only 3.3% of its GDP on education. But even if it were to increase its spending to 6% of the GDP - will that be enough?? My calculations are to identify how much money needs to be spent to provide effective and efficient education to school kids in India and Assam state. My calculations show that India needs to spend about $100 Billion on education, with $66 Billion of it on school education alone. India currently spends only $13 Billion on Education overall.
So the question is how rich should India be - to afford to have $100 Billion to spend on education - and run short on other priorities. With the current GDP of India - a $100 Billion expenditure on Education would be equivalent to about 22% of its GDP ($455 Billion).
Thus, the question is what should be the GDP of India - to be able to spend $100 Billion -- as only 6% of their GDP. India needs to have 4 times its current GDP - i.e. $1700 Billion -- to be able to afford a $100 Billion Education expenditure. Similarly Assam needs to have 7 times its current State GDP to afford Good Quality School education for ALL school children.
Pl. comment.
Umesh
Ram Sarangapani <[EMAIL PROTECTED]> wrote:
Ram Sarangapani <[EMAIL PROTECTED]> wrote:
Umesh,
Thank you for that analyses. I am not sure if I undersatnd all of it,
but I have a question
>Optimally 6% of GDP should be spent on Education
How does this optimality arrived at? I mean why is it pegged to the
GDP of Assam. I can visualize a scenario where (if) the GDP for Assam
were to come down, then this optimal you indicate would also come
down.
Would it still be optimal spending on education?
Some netter should be able to tell us how this optimal spending for
education (or anything else) is calculated: On GDP, on the budget, or
just on what is required to be spent on education for a perceived
level of excellence.
IMHO, once a predetermined goal for education is set, the Govt. will
have to find the funds to meet the goal or at least a percent of it.
Maybe others could weigh in.
Interesting though. Once again Umesh thats a good start.
--Ram da
On 9/15/05, umesh sharma <[EMAIL PROTECTED]>wrote:
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> Calculation of Assam's Optimal School Edu. Spending
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> and Optimal State GDP
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> Assam's population = 26 million
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> Assam's school age population = 8 million (30% of total)
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> Assam's current Edu spending =$100 million per annum*
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> [* Rs 400 per school kid per annum or $8 per kid per annum ( Rs 199 per primary school kid per annum (in 1995-96 at 1998 prices) or $64 million per annum for Assam School education or $100 million on Assam's Education incl 50% more for higher ed.]
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> Expenditure for Effective Edu. Per school kid = $220 per annum.
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> For Assam Effective School Expenditure = $220 * 8 million = $1.75 Billion
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> Optimal Total Edu. Spending =
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> $1.75 Billion for school ed.
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> + $.9 Billion for Higher Ed (50% of school spending)
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> Total Optimal Edu. Spending needed = $2.65 Billion per annum
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> So Assam needs to increase its Education spending by 26 times from current meager $100 million per annum to $2.65 Billion per annum.
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> Optimal GDP for Assam extrapolating:
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> Assam's State GDP currently = $ Rs 35,000 crore = $ 7 Billion
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> Optimally 6% of GDP should be spent on Education.
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> Current spending but if Optimal Edu. Spending is $2.65 Billion, then it would be 6% of a State GDP of $45 Billion!!
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> So Assam's GDP should be 7 times of its current level (at current prices) to have quality education. It should be $45 Billion and NOT just $7 Billion as currently is. And then its Total education Spending should increase by 26 times to be Atleast $2.65 billion , with $1.75 Billion to be spent on School Education alone atleast. Extra amount to be needed to improve supervision, in-service teacher training etc as pointed out earlier.
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> If any errors please point out.
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> Umesh
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> College Park,
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> Maryland, USA.
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> (857) 928 0174 (cell)
>
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