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The World Bank The Bank’s Portfolio in LAC Washington, February 18,2004

The Bank’s Portfolio in LAC

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The Bank’s Portfolio in LAC. Washington, February 18,2004. - PowerPoint PPT Presentation

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Page 1: The Bank’s Portfolio in LAC

The World Bank

The Bank’s Portfolio in LAC

Washington, February 18,2004

Page 2: The Bank’s Portfolio in LAC

The World Bank

Economic and social development are increasingly driven by the advancement and application of knowledge. Education in general — and tertiary education and research in particular — are fundamental to the construction of a knowledge economy in all nations

Page 3: The Bank’s Portfolio in LAC

The World Bank

However, S&T systems in developing and transition countries face persistent problems of finance, efficiency, equity, quality and governance

New challenges linked to rapid changes in technology, communication and the globalization of trade and labor markets have amplified the traditional problems of tertiary education and S&T

Page 4: The Bank’s Portfolio in LAC

The World Bank

Challenge ...

Page 5: The Bank’s Portfolio in LAC

The World Bank

Knowledge Market

the knowledge market is global and open, – knowledge producers exchange

knowledge at “low price”– knowledge users have access at “high

price” knowledge is not consumed when it is

applied

Page 6: The Bank’s Portfolio in LAC

The World Bank

Lessons ...

Page 7: The Bank’s Portfolio in LAC

The World Bank

Knowledge is a critical determinant of economic growth and quality of life

Knowledge is transformed into goods and services through a country’s NIS

Trained human brains are the most effective knowledge transfer and adaptation mechanism

Good science is international

Page 8: The Bank’s Portfolio in LAC

The World Bank

Recognition of the Importance of S&T for Development is Not New

technology transfer is involved in virtually every sector

usually includes building of capacity to understand and use new technologies

sectors such as agriculture, education, and health have emphasized building local capacity to generate or utilize new knowledge for development

Page 9: The Bank’s Portfolio in LAC

The World Bank

EA60%

AFR4%

LAC31%

MENA4%

ECA1%

SA0%

World Bank Lending, 1992-02 (volume by region)

HE and S&T Lending not including Agricultural Lending was concentrated predominantly in East Asia and Latin America

ECA1%

SA0%

MENA4%

LAC31%

EA60%

AFR4%

Page 10: The Bank’s Portfolio in LAC

The World Bank

Trends ...

Page 11: The Bank’s Portfolio in LAC

The World Bank

Scientists and Engineers 1988 y 1998

Source: World Development Indicators 2002

Argentina

Spain

Chile

Korea

0

500

1000

1500

2000

2500

20 25 30 35 40 45

Science and enginnerng students (% of total tertiary)

Scie

nce a

nd e

ngin

eers

in R

&D

Page 12: The Bank’s Portfolio in LAC

The World Bank

Tertiary- OK given level of GDP but...

0

20

40

60

80

100

120

Arg Bra Chi Mex Gre Cor Esp Irl Hol Fin

Source: Brunner 2001

Ph.D.s in Science/million habitants 1996-1997

Page 13: The Bank’s Portfolio in LAC

The World Bank

Increased Returns to Schooling(Brazil)

60

70

80

90

100

110

120

130

1982 1984 1986 1988 1990 1992 1994 1996 1998

Tertiary

Upper sec

Primary

Low er sec

Page 14: The Bank’s Portfolio in LAC

The World Bank

Increased Private Sector Response(Colombia)

0%

20%

40%

60%

80%

100%

1960 1965 1970 1975 1980 1985 1990 1995

Public

Private

Page 15: The Bank’s Portfolio in LAC

The World Bank

Demand and GNP(Colombia)

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

1988 1990 1992 1994 1996 1998 2000

Changes in

first tim

e e

nro

lment

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

GD

P-g

row

th in

%

First time enrolment Private GDP growth

Page 16: The Bank’s Portfolio in LAC

The World Bank

.. an Equity Challenge(Colombia -- 1992 and 1997)

0

0.1

0.2

0.3

0.4

0.5

1 2 3 4 5

Quintiles

Co

vera

ge 1992

1997

Page 17: The Bank’s Portfolio in LAC

The World Bank

Origin of Foreign Students in OECD - 1999

Source: OECD

East and Southeast Asia

27%

Latin America and the

Caribbean3%

South Asia6%

China & SAR H.K.14%

Europe34%

Middle East and North

Africa10%

North America (excl. Mexico)

6%

Page 18: The Bank’s Portfolio in LAC

The World Bank

NIS …

Page 19: The Bank’s Portfolio in LAC

Human Capital

UniversityThink Tanks/ Antenna

Firms

Innovation & TFP Growth

The FPSI Challenge: Other Public Policies

Rules of the Game Infrastructure (ICT) Demand for innovation

Global Knowledge Economy

National Innovation System

Innovation Clusters

Global Knowledge Economy

Page 20: The Bank’s Portfolio in LAC

The World Bank

Closing the gap

Skilled people Knowledge networks and centes of

excellence Creation and transformation of knowledge Strengthening of culture and language Information infrastructure National Information System

Page 21: The Bank’s Portfolio in LAC

The World Bank

WB Education Portfolio in LAC 2002

Science and Technology

6%

Primary48%

Secondary17%

Vocational12%

Tertiary17%

Page 22: The Bank’s Portfolio in LAC

The World Bank

Tertiary Education in LAC

ProjectComponents

Strategy Addressing Needs

Building a Market for

Tertiary Education

Improving Public Sector’s

performance

5. Student Loans

4. Labor Market Observatories

3. Quality Assurance Mechanisms

2. Public Competitive Funding

1. Institutional Capacity Building

Low Enrolment

Low Quality

Low Relevance

Low Equity

Page 23: The Bank’s Portfolio in LAC

The World Bank

• it is critical to aim at subsidiarity and coherence in policies and practices. Ofthen lack of continuity in funding and coherence of science and technology policies.

governments should resist the risk of neglecting fundamental science and social sciences, which both are very important components of the NIS.

transparency in communication between players are of critical importance. Can be facilitated by international participation, fx. as peer reviewers, program committees, program reviews, and supervision teams

Page 24: The Bank’s Portfolio in LAC

The World Bank

• improve policies and institutions within a framework of autonomy and accountability

• recognize and support human resources and management capacity

• achieve funding sustainability through public-private interaction and cost-recovery

• aim at merit and scientific rigor (through competitive funding, peer review, etc.)

• establish linkages from productive and the knowledge sectors to basic research and the international knowledge base

Page 25: The Bank’s Portfolio in LAC

The World Bank

Thanks for the Invitation

Lauritz B. Holm-Nielsen

[email protected]