HI Umesh Thanks again for outlining the methodology. I am sure the UNESCO has its reasons for pegging the expenditure to the GDP. But my question still remains: What if a country or state is NOT able to achieve its intended GDP goals? Countries frequently reassess/revise and project expected GDP rates. In those situations, wouldn't the 'percent of GDP formula' affect education expenditures, detrimentally. For one, the education managers of a state would have to frequently change their budgets because of revisions in projected GDPs.
Isn't it better to figure out what expenses would be required to for education at a certain level, as opposed to setting a pre-determined limit and then fitting the education model to those funds? Again, I am just posing questions with no background in such research. --Ram da On 9/16/05, umesh sharma <[EMAIL PROTECTED]> wrote: > 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% > http://www.unesco.org/education/efa/know_sharing/grassroots_stories/russia.shtml > > > 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: > 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 wrote: > > > > > > > > > > > > > > > > Calculation of Assam's Optimal School Edu. Spending > > > > and Optimal State GDP > > > > > > > > Assam's population = 26 million > > > > Assam's school age population = 8 million (30% of total) > > > > Assam's current Edu spending =$100 million per annum* > > > > > > > > [* 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.] > > > > > > > > Expenditure for Effective Edu. Per school kid = $220 per annum. > > > > For Assam Effective School Expenditure = $220 * 8 million = $1.75 Billion > > > > > > > > > > Optimal Total Edu. Spending = > > > > $1.75 Billion for school ed. > > > > + $.9 Billion for Higher Ed (50% of school spending) > > > > > > Total Optimal Edu. Spending needed = $2.65 Billion per annum > > > > > > > > > > So Assam needs to increase its Education spending by 26 times from current > meager $100 million per annum to $2.65 Billion per annum. > > > > > > > > Optimal GDP for Assam –extrapolating: > > > > > > > > Assam's State GDP currently = $ Rs 35,000 crore = $ 7 Billion > > > > > > > > Optimally 6% of GDP should be spent on Education. > > > > Current spending but if Optimal Edu. Spending is $2.65 Billion, then it > would be 6% of a State GDP of $45 Billion!! > > > > > > > > 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. > > > > > > > > If any errors – please point out. > > > > > > > > Umesh > > > > College Park, > > > > Maryland, USA. > > > > (857) 928 0174 (cell) > > > > ________________________________ > How much free photo storage do you get? Store your holiday snaps for > FREE with Yahoo! Photos. Get Yahoo! Photos > > > > > > _______________________________________________ > > assam mailing list > > [email protected] > > http://assamnet.org/mailman/listinfo/assam_assamnet.org > > > > > > > _______________________________________________ > assam mailing list > [email protected] > http://assamnet.org/mailman/listinfo/assam_assamnet.org > > > ________________________________ > Yahoo! Messenger NEW - crystal clear PC to PC calling worldwide with > voicemail > > _______________________________________________ assam mailing list [email protected] http://assamnet.org/mailman/listinfo/assam_assamnet.org
