Global Economic Solutions

Global EconomicSolutionsProposals from the Global Economic Symposium

GES | 2012/2013

Edited by Alessio J.G. Brown and Dennis J. Snower,in cooperation with Romesh Vaitilingam

Selection of Innovative Solutions

Establish information rights as a fundamental prerequisite of democracy and public policy. 26

Create a World Monetary Authority to promote a multilateral approach among central banks. 16

ECON

OMY

Fiscal rules should be given constitutional status. 22

SOCIET

Y

,QWURGXFHDJOREDORQOLQHNLWHPDUNEDVHGRQZHOOGHQHG guidelines for information quality and transparency for busi-nesses. 28

Make mental training facilities widely available in educational institutions and the workplace, to improve physical and mental health. 84

Create a pilot project for global training scholarships, matching employers in destination countries with trainees in source countries. 65

Add quality targets to quantity targets in education and provide access to high-quality education through education vouchers for poor children and free choice of institution. 78

Replace the system of temporary and permanent employment contracts with a single type of open-ended contracts with gradually increasing employment protection. 92

Governments should invest in fair, objective and com- prehensive metrics for evaluating teacher performance and provide rewards and sanctions for achieving better performance. 35, 36

Promote lifelong learning and age-appropriate career PDQDJHPHQWDVSDUWRIUPVFRUSRUDWHFXOWXUHWRLPSURYH the employability of older workers. 100

Patron of the Global Economic SymposiumJos Manuel BarrosoPresident of the European Commission

Preface The Global Economic Symposium focuses on providing solutions to global problems, i.e., problems that can only be addressed through global coopera-tion. It recognizes explicitly that our world has become increasingly interde-pendent and that challenges that cut across borders, such as climate change, QDQFLDOLQVWDELOLW\DQGRYHUVKLQJUHTXLUHDFRPPRQDSSURDFK

Since its beginnings, the European project has both anticipated and fostered such interdependence. It addresses supranational challenges and promotes cooperation that enhances the common good and the wellbeing of people across nations.

$WDWLPHRIKXJHHFRQRPLFDQGQDQFLDOFKDOOHQJHVLQ(XURSHDQGRIDQ[L-HW\ DQG VXIIHULQJ IRUPDQ\(XURSHDQVWKH DZDUGLQJ RI WKH1REHO 3HDFH3UL]H WR WKH (8 LV DQ LPSRUWDQW UHPLQGHU RI ZKDW LV DW VWDNH 7KH 1REHO3UL]H&RPPLWWHHXQGHUOLQHGKRZWKH(XURSHDQSURMHFWUHSUHVHQWVIUDWHUQLW\EHWZHHQ QDWLRQV DQG KDV FRQWULEXWHG WR WKH DGYDQFHPHQW RI SHDFH DQGreconciliation, democracy and human rights in Europe.

2XUTXHVWIRU(XURSHDQXQLW\LVQRWDQHQGLQLWVHOIEXWDPHDQVWRKLJKHUHQGV,QPDQ\ZD\VLWLVDERXWWKHTXHVWIRUDFRVPRSROLWDQRUGHULQZKLFKone persons gain need not be anothers pain and abiding by common norms serves universal values. This cosmopolitan vision is one of the most impor-WDQW FRQWULEXWLRQV WKDW WKH(8FDQEULQJ WR DQHPHUJLQJ JOREDO RUGHU ,W LVthe basis for our multilateral approach to globalization framed by the twin principles of global solidarity and global responsibility. That is why, despite its LPSHUIHFWLRQVWKH(8FDQEHDQGLVDSRZHUIXOLQVSLUDWLRQIRUPDQ\DURXQGthe world.

ii

Patron of the GES

(FRQRPLFSURJUHVV LVDNH\PHDQVRIDFKLHYLQJDJUHDWHU FRPPRQJRRG:KHQWKHHFRQRP\ LVPLVWDNHQO\YLHZHGDVDPHDQV WRDFKLHYHSRZHURUDVD]HURVXPVWUXJJOHIRUQLWHZHDOWKDQGUHVRXUFHVLWFDQVHWSHRSOHDQGQDWLRQVDJDLQVWHDFKRWKHU%XW(XURSHWDNHVDGLIIHUHQWDSSURDFKXVLQJWKHHFRQRP\WREXLOGSHDFHDQGEULQJQDWLRQVWRJHWKHUEH\RQGVHOVKLQWHUHVWV7KH(8UHFRJQL]HVWKDWHFRQRPLFH[FKDQJHLVDSRVLWLYHVXPJDPHZKHUHmy partners fortunes support my own, where we can achieve more together than we can alone and where our interests can grow so intertwined that peace becomes self-evident.

$WWKHVDPHWLPHDVWKHUHFHQWQDQFLDOFULVLVVKRZVFORVHUHFRQRPLFLQWH-gration demands stronger political governance at both a European and a global level. Within Europe, policy coordination has been strengthened and WKH(8KDVHPEDUNHGRQD MRXUQH\WRZDUGVLJQLFDQWO\GHHSHU LQWHJUDWLRQ0RUHEURDGO\WKH*WKH,0)WKH:RUOG%DQNDQGFRRSHUDWLRQDPRQJFHQ-WUDOEDQNVKDYHDQHQKDQFHGJOREDOHFRQRPLFJRYHUQDQFH

2XUFRPELQHGHIIRUWVDUHEHDULQJIUXLW)LQDQFLDOPDUNHWVDUHUHJDLQLQJFRQ-dence. Investment is gradually returning to troubled economies. A year ago, DWWKHEHJLQQLQJRIPDUNHWVZHUHJLYLQJXSRQ*UHHFH1RZWKH\DUHXSJUDGLQJWKHLURXWORRNIRUWKHIXWXUH

iii

Prefac

e

,DPWKHUHIRUHGHOLJKWHGWKDWWKH*OREDO(FRQRPLF6\PSRVLXPFKRVH*URZWKthrough Education and Innovation as the central theme of its 2012 confer-HQFHDQGWKLVHGLWLRQRI*(6ROXWLRQV

,QQRYDWLRQLVDFURVVFXWWLQJZD\RIHTXLSSLQJDOOVHFWRUVRIRXUHFRQRP\WRbe more competitive. It is more than product development, it is also about how our society changes and improves. It is about the way we do business, WKHZD\ZHZRUNWKHRSWLRQVZHFKRVHDVFRQVXPHUVDQGFLWL]HQV,WLVDERXWturning new ideas into growth, prosperity, jobs, and well-being.

Education remains a challenge across the world. Even in Europe, which invests a lot in access to education, the statistics are troubling. The number of VNLOOHGMREVRXWQXPEHUVWKHVXSSO\RIVWXGHQWVZLWKKLJKHUHGXFDWLRQTXDOL-FDWLRQV:KLOHRIDOOMREVLQWKH(8ZLOOUHTXLUHKLJKHUOHYHOTXDOLFDWLRQVE\RQO\RIWKHZRUNIRUFHFXUUHQWO\KDVVXFKTXDOLFDWLRQV

It is therefore vital, not just out of fairness, but also for our economic future, that we widen access to higher education to underrepresented groups, nota-bly the poor and the marginalized. We also need to do more to support uni-versities as drivers of growth in less developed regions.

,PSURYLQJHGXFDWLRQLVDPDWWHURITXDOLW\DVZHOODVTXDQWLW\6WXGLHVKLJK-OLJKWKRZHGXFDWLRQDOTXDOLW\UDWKHUWKDQPHUHVFKRRODWWDLQPHQWLVVWURQJO\related to the distribution of income and to economic growth. To promote excellence in higher education, we need to reward top-notch teaching, HQFRXUDJHPRUHH[LEOH WHDFKLQJSUDFWLFHV WDLORUFXUULFXODPRUHFORVHO\ WRODERUPDUNHWQHHGVHQFRXUDJHPRELOLW\DQGIDFLOLWDWH WKHFURVVERUGHUGLV-semination of ideas and best practices.

:KLOHVFDOFRQVROLGDWLRQLVHVVHQWLDOFXWWLQJLQYHVWPHQWLQNH\DUHDVVXFKas education and research and development is a false economy. It would lead to lower growth and less good jobs in the future. On the contrary, we need to be much more ambitious about education, research, innovation and science.

Jean Monnet, one of the founding fathers of European integration, once said: 7KRVHZKRGHFLGHQRWWRVWDUWDQ\HQWHUSULVHEHFDXVHWKH\DUHQRWDVVXUHGthat things will move in conformity with their plans are condemning them-

iv

Patron of the GES

selves to absolute immobility. We Europeans need to be more open to new WKLQNLQJDQGPRUHZLOOLQJ WR WDNH WKH ULVN RI VWDUWLQJ QHZHQWHUSULVHV7KHVWDNHVFRXOGQRWEHKLJKHU ,QQRYDWLRQ LVQRWKLQJ OHVV WKDQRXUFDSDFLW\ WRcreate the future we aspire to.

Content

About the GES _______________________________________________________ 21. The GES 2012 _______________________________________________ 22. Global Economic Solutions _____________________________________ 53. Intergenerational Dialogue _____________________________________ 83RSXODU6ROXWLRQV _______________________________________________ 8

THE GLOBAL ECONOMY _____________________________________________ 127KH)XWXUHRI&HQWUDO%DQNLQJ,QDWLRQ7DUJHWLQJYHUVXV)LQDQFLDO

Stability ____________________________________________________ 14)LVFDO&RQVROLGDWLRQWKURXJK)LVFDO5XOHV" ________________________ 202SWLPL]LQJ,QIRUPDWLRQ8VHWKURXJKWKH,QWHUQHWDQG6RFLDO0HGLD _____ 244. Effective Investments in Education _______________________________ 325. Improving Financial Education and Literacy ________________________ 425HGHQLQJ8QLYHUVLWLHV ________________________________________ 50

THE GLOBAL SOCIETY _________________________________________________ 60'HVLJQLQJ,QWHOOLJHQW/DERU0LJUDWLRQ3ROLFLHV ______________________ 627DFNOLQJ,QHTXDOLW\RI2SSRUWXQLWLHV ______________________________ 760HQWDO7UDLQLQJWRZDUGVD&DULQJ(FRQRP\ ________________________ 827DFNOLQJ

22

Global Economic Solutions

1. The GES 2012The Global Economic Symposium (www.global-economc-symposium.org) is meant to give a new impetus to global problem-solving.

Each year the GES has a highlighted issue that is given special attention. 7KH*(6DGGUHVVHGWKH LVVXHRI*URZWKWKURXJK(GXFDWLRQDQG,QQRYDWLRQ*OREDO FRPSHWLWLRQDQG WKHJOREDO QDQFLDO FULVLVKDYHSXWadditional pressures on global growth. At the same time, a new wave of globalization is under way, in which outsourcing and offshoring no longer MXVWDIIHFWXQVNLOOHGDQGPDQXIDFWXULQJMREVEXWDOVRVNLOOHGDQGVHUYLFHsector jobs. These trends call for a new impetus for education and innova-tion around the world, because in this new wave of globalization, educa-tion and innovation are essential to foster future growth.

The GES considered new approaches in global problem-solving and examined strategies of achieving sustainable economic policies, sustain-able business models, sustainable institutions of transnational gover-nance and sustainable civic initiatives.

While these are troubled times, they are also periods of great opportunity. The problems are global, whereas political and business decisions are XVXDOO\PDGHRQDUPQDWLRQDORUUHJLRQDO OHYHO7KXVZKDWZHQHHGare:

VKDUHG YLVLRQV RI WKH IXWXUH WKDW ZLOO LQVSLUH XV WR ZRUN WRJHWKHUembodied in

concrete policies, strategies and action plans to achieve these visions,

IRUPXODWHGWKURXJKDGLDORJXHDPRQJGLYHUVHOHDGLQJGHFLVLRQPDNHUV.

)RUZLWKRXWVXFKDGLDORJXHWKHDFWLRQSODQVZRXOGODFNFUHGLELOLW\$QGthe action plans must be based on state-of-the-art research. Our ideas must go through the crucible of rigorous analysis and evaluation.

This is the purpose of the GES:

It is a solution symposium, not a discussion forum. The focus is on proposed solutions to global problems.

33

Abou

t

It is a research-based exchange, resting on the Virtual GES (the ,QWHUQHWSODWIRUPRI WKH*(6FRQWDLQLQJEDFNJURXQGUHVHDUFKSRO-icy and strategy proposals, and discussion forums. The Virtual GES ZKLFK LVVXSSRUWHGE\WKH*HUPDQ1DWLRQDO/LEUDU\RI(FRQRPLFVWKHZRUOGVODUJHVWHFRQRPLFVOLEUDU\KDVWKHREMHFWLYHRIEHFRPLQJan international repository of proposed solutions to global problems, together with underlying analysis.

,WLVDPXOWLVWDNHKROGHULQLWLDWLYHVLQFHLWLQLWLDWHVDVWUDWHJLFGLDORJXHbetween leaders from the worlds of academia, business, politics, and civil society.

,W VHHNVD ORQJWHUPSHUVSHFWLYHDV LWVDLP LV WRPDNH WKHZRUOGD better place for the next generation.

The GES is meant to be daring and foresighted. It values intellectual integrity, not political correctness. We are not concerned with marginal LPSURYHPHQWVLQH[LVWLQJDUUDQJHPHQWVLQVWHDGZHVHHNUDGLFDOO\QHZproposals that could put our future, as a global economic community, on a better course. These proposals need to be concrete and implementable. ,QVKRUWWKHDLPLVWRWKLQNRXWRIWKHER[WREHYLVLRQDU\EXWVLPXOWDQeously practical.

The GES assembles leaders from business, politics, academia, and civil society to address global problems and formulate socially desirable responses. The dialogue is supported by the Virtual GES, the web-based SODWIRUPRIWKH*(6FRQWDLQLQJEDFNJURXQGUHVHDUFKSROLF\DQGVWUDWHJ\proposals, as well as discussion forums.

The success of the GES depends on the efforts of the GES communities that support it:

The Advisory Board deals with strategic issues of the GES.

7KH2UJDQL]HUV*(6WKH.LHO,QVWLWXWHIRUWKH:RUOG(FRQRP\DQGWKH%HUWHOVPDQQ6WLIWXQJSURYLGHXQGHUO\LQJUHVHDUFKDQGVXS-porting services.

7KH)*9)RXQGDWLRQDQG)*93URMHWRVFROODERUDWHFORVHO\ZLWKWKH2UJDQL]HUVDQGFRQWULEXWHWKHLUUHVHDUFKSROLF\PDNLQJHGXFDWLRQDO

44


and business expertise. They were also the local hosts of the GES 2012.

7KH*HUPDQ1DWLRQDO /LEUDU\ RI(FRQRPLFV SURGXFHVD NQRZOHGJHEDVHIRU WKH*(67KHUHE\ZHVHHNWREXLOGDFHQWUDO UHSRVLWRU\RIexisting solutions to global problems, on which basis the new solu-tions can be developed and evaluated. Through this repository the Virtual GES is meant to become an ongoing platform of communi-FDWLRQDPRQJDFDGHPLFV SROLF\PDNHUV EXVLQHVVOHDGHUVDQGFLYLOVRFLHW\ DGYRFDWHV )XUWKHUPRUH WKH *HUPDQ 1DWLRQDO /LEUDU\ RIEconomics has launched the following new initiatives: GES 2.0, the GES Blog and the GES Open Solution. The GES Open Solution is a QRQVFLHQWLF RSHQDFFHVV GRFXPHQW FRQQHFWLQJ WKH RQOLQH FRPPX-nity to join our search for solutions to global problems we all share. 6SHFLFDOO\LWZRUNHGRQSURSRVDOVIRUWKH*(6WRSLF7DFNOLQJ,QHTXDOLW\RI2SSRUWXQLWLHV

The session expert teams, comprising renowned specialists from around the world, select panelists for each session.

7KH*OREDO(FRQRPLF3DUWQHUVKLSVHHNVWRKHOSEXVLQHVVOHDGHUVWRalign their activities with the solutions to global challenges. A central DVSHFWRIWKLVSDUWQHUVKLS LVWKHJOREDOVWHZDUGVKLSLQLWLDWLYHZKLFKencourages companies to identify opportunities that allow them to WDNHDGYDQWDJHRIWKHLUFRUHFRPSHWHQFLHVWRWDFNOHVSHFLHGJOREDOproblems.

Importantly, all these communities stand to gain by communicating with RQH DQRWKHU %XVLQHVVOHDGHUV IUHTXHQWO\ QHHG RSSRUWXQLWLHV WR WKLQNabout long-term trends and scenarios and to relate their business chal-OHQJHV WRJOREDOHFRQRPLFFKDOOHQJHV3ROLF\PDNHUVDQGFLYLF OHDGHUVQHHGWRNHHSDEUHDVWRIWKHODWHVWWKLQNLQJRQSROLF\UHVSRQVHVWRJOREDOSUREOHPVVXFK DV DJHLQJ VRFLHWLHV VRFLDOZHOIDUH SURYLVLRQ HPSOR\-PHQW FUHDWLRQ GHYHORSPHQW RI VNLOOV HWF$FDGHPLF HFRQRPLVWV QHHGto remain in close contact with business- and policy-leaders to analyze global problems and their interconnections effectively. The GES aims to meet these needs.

55

Abou

t

2. Global Economic Solutions7KHSURSRVDOVUHVXOWLQJIURPWKH*(6VPDOOEXWXVHIXOVWHSVLQDFRQ-VWUXFWLYH GLUHFWLRQ VXSSRUWHG E\ GHFLVLRQPDNHUV IURP GLYHUVH ZDONVRI OLIHZH ODEHO 6ROXWLRQV7KLV ODEHO LVREYLRXVO\QRWPHDQW WR LPSO\exhaustive answers, but rather insights concerning concrete actions that could move us up the ladder of global collaboration.

This document summarizes some prominent, innovative proposals gen-erated by the GES 2012. The proposals achieved sizable agreement from the GES panelists and the wider GES community. The proposals aim to provide shared visions of the future, which are meant to inspire coop-erative efforts to address global problems. Where possible, they are also PHDQWWREHSUDFWLFDOIHDVLEOHDFWLRQVWRZDUGVZHOOGHQHGJRDOV

The proposals are grouped into four broad areas, each subdivided into topics corresponding to the sessions of the GES:

The Global Economy

7KH)XWXUHRI&HQWUDO%DQNLQJ,QDWLRQ7DUJHWLQJYHUVXV)LQDQFLDO Stability

)LVFDO&RQVROLGDWLRQWKURXJK)LVFDO5XOHV"2SWLPL]LQJ,QIRUPDWLRQ8VHWKURXJKWKH,QWHUQHWDQG6RFLDO0HGLD4. Effective Investments in Education5. Improving Financial Education and Literacy5HGHQLQJ8QLYHUVLWLHV

The Global Society

'HVLJQLQJ,QWHOOLJHQW/DERU0LJUDWLRQ3ROLFLHV7DFNOLQJ,QHTXDOLW\RI2SSRUWXQLWLHV0HQWDO7UDLQLQJWRZDUGVD&DULQJ(FRQRP\7DFNOLQJ

66


The Global Polity

)DYHODV$*OREDO&KDOOHQJHDQG2SSRUWXQLW\2. Security in the Face of Globalization)RVWHULQJ2SHQ*RYHUQPHQW,QLWLDWLYHVLQ3XEOLF6HUYLFHV

The Global Environment

3URWHFWLQJDQG5HVWRULQJWKH:RUOGV)RUHVWV2. Exploring Energy Resources in the Arctic Ocean3. Reassessing Renewable Energies3URPRWLQJ)RRG6HFXULW\7KH&RQWULEXWLRQRI&OLPDWH6PDUW$JULFXOWXUH

There is naturally a great deal of overlap among the four areas, for the simple reason that the GES places particular emphasis on global eco-QRPLFSUREOHPVPDQ\ZLWKHQYLURQPHQWDOFRQVHTXHQFHVZLWKLPSRUWDQWimplications for global society, whose solutions can be addressed through JOREDOSROLW\1HYHUWKHOHVVWKHUHDGHUPD\ZHOOQGWKHIRXUDUHDVXVHIXOfor organizing ideas about global issues.

7KHWRSLFVLQWKHDUHDRI7KH*OREDO(FRQRP\DUHSULPDULO\HFRQRPLFWKRVHLQWKHDUHDRI7KH*OREDO3ROLW\DUHSULPDULO\SROLWLFDODQGVRRQ6RIRUH[DPSOHWKHWRSLF3URPRWLQJ)RRG6HFXULW\7KH&RQWULEXWLRQRI&OLPDWH6PDUW$JULFXOWXUHLVUVWDQGIRUHPRVWDQHQYLURQPHQWDOLVVXHHYHQWKRXJKLWFOHDUO\KDVPDVVLYHHFRQRPLFVRFLDODQGSROLWLFDOFRQVHTXHQFHV

1DWXUDOO\ZHGRQRWFODLPWKDWDOOWKHSURSRVDOVPDGHKHUHDUHQHZ:Hdo not aspire to novelty per se, but to usefulness. Myriads of new policies and strategies are invented in response to global problems each year. Our aim is not to add to their number. Rather, the epochal challenge we IDFHWRGD\LQWKLVZRUOGRIPLVVLQJFRRSHUDWLRQXQGHUJURZLQJLQWHUGH-SHQGHQFHLV WR LGHQWLI\ D FRKHUHQW VHW RI LQVLJKWV WKDW FDQ SURYLGH Dbasis for concrete cooperative action.

7KHVHLQVLJKWVVKRXOGLGHDOO\VDWLVI\DQXPEHURIEDVLFSUHUHTXLVLWHV

The insights should be internally consistent. All too often policies and strategies are created in mental silos, each formulated without refer-

77

Abou

t

ence to the others. For example, pension policies are often designed independently of employment policies; redistribution policies are usu-ally formulated independently of growth-promoting measures; energy SROLFLHV RIWHQ FRQLFW ZLWK WKH REMHFWLYHV RI HQYLURQPHQWDO SROLFLHV7KH*(6VWULYHVWRDYRLGWKLVSLWIDOO,WVHHNVDZDUHQHVVRIWKHLQWHU-FRQQHFWLRQVDPRQJJOREDOSUREOHPVDORQJZLWKWKHFRQVHTXHQWLQWHU-connections among the policy and strategy responses.

The insights should aim to serve the global public interest in the wid-est sense. In particular, they are meant to be inclusive in geographi-FDOWHUPVUHOHYDQWWRWKHFRXQWULHVRIWKHZRUOGZKHWKHUGHYHORSHGor developing. They also aim to be occupationally and socially inclu-VLYHUHOHYDQW WR WKH EXVLQHVV SROLF\PDNLQJ DFDGHPLF DQG FLYLFcommunities, to the employed and unemployed, and to the rich and poor.

7KHLQVLJKWVVKRXOGIRFXVRQDFWLRQVWKDWDUHPHDQWWRPDNHWKHZRUOGa better place for the next generation. This means that the underlying SUREOHPVDUHODVWLQJRQHVQRWWKRVHWKDWDUHOLNHO\WRGLVDSSHDULQDPDWWHURI\HDUV7KHLQVLJKWV LQYROYHWKHORQJHUWHUPWKLQNLQJWKDW LVoften displaced by the urgent day-to-day issues with which business-OHDGHUVSROLF\PDNHUVDQGRWKHUUHSUHVHQWDWLYHVRIFLYLOVRFLHW\PXVWdeal. They aim to provide a picture of the future towards which we must strive through concrete policies and strategies.

1HHGOHVVWRVD\WKLVLVDWDOORUGHU6XFFHVVFDQRQO\EHDFKLHYHGWKURXJKthe accumulation of many small steps in a coherent direction. The GES is meant to contribute to this process. The insights presented here are the SURGXFWRIDSURORQJHGH[FKDQJHRI LGHDVGXULQJ WKH*(6DQG LQ WKHPRQWKVEHIRUHDQGDIWHUZDUGVDPRQJOHDGHUVIURPWKHEXVLQHVVSROLF\PDNLQJDFDGHPLFDQGFLYLFFRPPXQLWLHV$OWKRXJKWKH*(6SDUWLFLSDQWVFRPH IURP GLYHUVHZDONV RI OLIH WKH\ VKDUH WKH EHOLHI WKDWZH QHHG DUHDZDNHQLQJRIJOREDOFRRSHUDWLRQLQRXUFXUUHQWPXOWLSRODUZRUOG

All past instances of global cooperation began as ideas in the heads of individuals that grew into visions that aligned peoples diverse efforts. The *(6VHHNVWRKHOSJHQHUDWHVXFKLGHDV:KLOHQRQHRIXVFDQPDNHDVXEVWDQWLDOGLIIHUHQFHLQLVRODWLRQHDFKRIXVFDQPDNHOLPLWHGFRQFUHWH

88


changes towards the common good and the sum of all these changes will be our legacy for the next generation.

We hope that this document will stimulate further research, debate and policy initiatives. If the GES is to have real value, it must be merely the EHJLQQLQJRIDFRQWLQXLQJSURFHVVDSURFHVVRIFUHDWLQJDVKDUHGIUDPH-ZRUNRI WKRXJKW WKDW FDQ LQVSLUHGLYHUVHGHFLVLRQPDNHUV WRSXOO LQ WKHsame direction.

3. Intergenerational Dialogue$VSDUWRILWVHIIRUWVWREHTXHDWKDEHWWHUZRUOGWRIXWXUHJHQHUDWLRQVWKHGES has initiated an intergenerational dialogue. The guiding principle is WKDWLWLVQRWVXIFLHQWIRUH[SHULHQFHGOHDGHUVWRIRUPXODWHSODQVIRUZKDWthey consider to be a more promising future: activists of the next genera-tion also need to be a central part of the discussion to say whether this is indeed the future they hope for.

As part of its intergenerational dialogue, the GES 2012 hosted 9 Global Economic Fellows, exceptional young people who have already begun to PDNHRXWVWDQGLQJ FRQWULEXWLRQV WRZDUGVDGGUHVVLQJPDMRU JOREDO SURE-lems. The Fellows had been nominated by the GES community, submitted project ideas and been selected by a jury drawn from the GES Advisory Board. Their job was to engage with the experienced leaders to help cre-ate blueprints for the future. As GES participants the Global Economic Fellows submitted their solutions proposals to some of the challenges GHEDWHGDWWKH*(6DKHDGRIWKH*(6LQWRWKH9LUWXDO*(6WKHUHE\LQX-HQFLQJWKHGHEDWHDWWKH*(6DQGWKHVROXWLRQVLQWKLVERRN

4. Popular Solutions$WWKHHQGRIHDFK*(6VHVVLRQDOOSDUWLFLSDQWVZHUHDVNHGWRYRWHfor the solution proposal they found most promising and inspiring. While

99

Abou

t

these proposals were debated in the session, they were not necessarily RQHV WKDW WKHSDQHOLVWV FKRVH WRDJUHHRQDQG LQFOXGH LQ WKHLU *OREDO(FRQRPLF6ROXWLRQV7KHSXEOLFV FKRLFH LV VLJQLFDQW LQ LWVRZQ ULJKW7KXVWKHPRVWSRSXODUSURSRVDOVLQWKHVHTXHQFHRIWKHLUSRSXODULW\DUHpublished here:

1. Preschool compassion training.2IIHUFRPSDVVLRQWUDLQLQJWRSUHVFKRROFODVVHVWRHQFRXUDJHSURVRFLDObehavior.

2. Teacher performance incentives.Reward and sanction teachers on the basis of fair, objective and compre-hensive metrics including classroom observations, portfolio reviews, and assessments by principals.

)LVFDOUXOHVIRUGHEWDQGGHFLWV%DVHVFDOUXOHVRQRSHUDWLRQDOWDUJHWVIRUEXGJHWGHFLWVDQGORQJWHUPGHEWWR*'3WDUJHWV

4. New contracts for youth workers.7RWDFNOH\RXWKXQHPSOR\PHQWUHSODFHWHPSRUDU\FRQWUDFWVZLWKVLQJOHopen-ended contracts with gradually increasing employment protection.

5. Risk indicators for central banks.(VWDEOLVKDVHWRILQGLFDWRUVRIV\VWHPLFULVNDQGFRPPLWPHQWGHYLFHVIRUFHQWUDOEDQNVDQGQDQFLDOUHJXODWRUV

6. Migrant worker training.7R GHVLJQ LQWHOOLJHQWPLJUDWLRQ SROLFLHV RIIHU H[DQWH WUDLQLQJ IRU VNLOOHGZRUNHUVLQFRXQWULHVRIRULJLQQDQFHGE\GHVWLQDWLRQFRXQWULHV

7. Mental training facilities in the workplace.,QVWLWXWHPHQWDOJ\PQDVLDLQWKHZRUNSODFHDVDFRPSOHPHQWWRSK\VLFDOgymnasia to improve physical and mental health.

8. Evaluate Arctic drilling.$VVHVVWUDQVSDUHQWO\WKHFRVWVULVNDQGSRWHQWLDOEHQHWVRI$UWLFGULOOLQJWKURXJKDFRPSUHKHQVLYHGLDORJXHEHWZHHQDOOVWDNHKROGHUV

1010


DisclaimerThe proposals summarized in this document are meant to provide insights for action to promote global cooperation in addressing major global problems. These insights have received sizable agreement from the GES panelists, participants and the wider GES community, but they GRQRWUHHFWWKHYLHZVRIDQ\SDUWLFXODUSDQHOLVWSDUWLFLSDQWRUFRPPX-QLW\PHPEHU1RUGRWKH\UHHFWWKHYLHZVRIDQ\RUJDQL]DWLRQWRZKLFKthese individuals belong.

1111

Abou

t

The Global Society 60'HVLJQLQJ,QWHOOLJHQW/DERU0LJUDWLRQ3ROLFLHV 7DFNOLQJ,QHTXDOLW\RI2SSRUWXQLWLHV 0HQWDO7UDLQLQJWRZDUGVD&DULQJ(FRQRP\ 7DFNOLQJ

1. The Future of Central #BOLJOH*OBUJPO5BSHFUJOH versus Financial Stability

15

Econom

y

1

Challenge

7KHJOREDO QDQFLDO FULVLV KDV OHG WRDSURIRXQG UHWKLQNLQJRI WKH FRQ-sensus on monetary policy. Before the crisis, most monetary economists DJUHHG WKDW H[LEOH LQDWLRQ WDUJHWLQJLQ ZKLFK FHQWUDO EDQNV IRFXVRQ PDLQWDLQLQJ SULFH VWDELOLW\ DQG VWDELOL]LQJ WKH RXWSXW JDSZDV DQDSSURSULDWHDQGVXIFLHQWPDQGDWHIRUFRQGXFWLQJPRQHWDU\SROLF\.H\assumptions underlying the consensus were that this mandate would DXWRPDWLFDOO\ OHDG WRQDQFLDO VWDELOLW\DQG WKDW WKH IUDPHZRUNRIPRQ-HWDU\SROLF\FRXOGGHDOZLWKFURVVERUGHUFDSLWDORZV

%XWWKHFRQVHQVXVLVLQFUHDVLQJO\VHHQDVLQDGHTXDWH0RQHWDU\HFRQR-PLVWVDQGFHQWUDOEDQNVKDYHEURDGHQHG WKHLUSHUVSHFWLYHRQQDQFLDOstability, viewing it as a major concern for the conduct of monetary policy. )RUH[DPSOHPDQ\FHQWUDOEDQNVDUHQRZSXEOLVKLQJQDQFLDO VWDELOLW\UHSRUWVDQGRWKHULQGLFDWRUVWKDWUHHFWWKHVWDWHRIWKHQDQFLDOV\VWHP

How much of the precrisis consensus remains valid and how much UHWKLQNLQJRIPRQHWDU\SULQFLSOHV LVQHHGHG"$UHFHQWUDOEDQNV ULJKW WREURDGHQWKHLUJRDOVWRLQFOXGHQRWRQO\LQDWLRQWDUJHWLQJEXWDOVRQDQFLDOVWDELOLW\"$QGVKRXOGWKH\EHJLYHQDQH[SOLFLWPDQGDWHIRUQDQFLDOVWDELO-LW\VXFKDVWDUJHWLQJWKHJURZWKRIFUHGLWDQGDVVHWSULFHV"

After the crisis, which tools are most appropriate for the conduct of mon-HWDU\SROLF\DQGVKRXOGWKHJRDOVRILQDWLRQWDUJHWLQJDQGQDQFLDOVWDELO-LW\EHSXUVXHGXVLQJWKHVDPHWRROV",IWKHWZRJRDOVFRPHLQWRFRQLFWKRZVKRXOGFHQWUDOEDQNVUHVROYHWKHFRQLFW"$QGWRZKDWH[WHQWVKRXOGFHQWUDOEDQNVEHLQYROYHGLQQDQFLDOUHJXODWLRQ"

GESolution 1

Central banks should adopt default countercyclical policy, using the comply or explain approach.

Central banks should improveWKHLUPRQLWRULQJRIQDQFLDOYDULDEOHVE\designing a variety of presumptive macroprudential indicators. For exam-

16


ple, they could increase their focus on credit aggregates and the growth RIDVVHWSULFHV ,QDGGLWLRQ WKH\FRXOG UHWKLQN WKHFRQFHSWVXQGHUO\LQJtheir monetary analysis, particularly the role that monetary aggregates SOD\LQWKHHPHUJHQFHRIQDQFLDOLPEDODQFHV

(DFK FHQWUDO EDQN VKRXOG GHVLJQDWH D VPDOO QXPEHU RI LQGLFDWRUV WKDWhave preceded and accompanied booms and busts in the past. They could choose whichever seems historically appropriate. These could include, for example, increases in credit expansion above the norm and DERYH WKHDYHUDJHFUHGLW WR*'3 UDWLR LQFUHDVHV LQKRXVHKROG LQGHEW-HGQHVVDERYHWKHQRUPDQGDERYHWKHDYHUDJHGHEWWR*'3UDWLRDQGincreases in housing prices above the norm and above the average ratio of house prices to the general level of prices.

8OWLPDWHO\LIFHQWUDOEDQNVGHWHFWWKHXQVXVWDLQDEOHEXLOGXSRIQDQFLDOEDODQFHV WKH\VKRXOGEHUHTXLUHGHLWKHU WRWDNHFRXQWHUYDLOLQJPDFUR-prudential steps to counteract that phase in the cycle or to explain in public why they did not do so.

The problem is not designing the appropriate instruments but getting them used in a countercyclical fashion. The only way to do that is to apply ex-DQWHUXOHV%XWUXOHVDUHDVWUDLWMDFNHWDQGDUHIUHTXHQWO\LQSUDFWLFHLQDS-SURSULDWHVRDEHWWHUSURFHGXUHLVFRPSO\RUH[SODLQ7KHSXUSRVHLVWRput some degree of countercyclical action into the default option rather than having inertia as the default option, which is normally the case now.

GESolution 2

Create a World Monetary Authority to promote a multilateral approach among central banks.

Coordination among central banks was limited during the crisis. But LQWHUQDWLRQDOFRRUGLQDWLRQLVDQHFHVVDU\FRQGLWLRQIRUJOREDOQDQFLDOVWD-bility and it needs to be enhanced.

17

Econom

y

1

7KH%DQNIRU,QWHUQDWLRQDO6HWWOHPHQWVFRXOGEHGHYHORSHGLQWRD:RUOGMonetary Authority that coordinates important monetary policy decisions DQGXQFRQYHQWLRQDOPRQHWDU\LQWHUYHQWLRQV&HQWUDOEDQNVIURPERWKWKHadvanced and emerging economies would have to participate in the new body. With their collective rise to political and economic power, Brazil, 5XVVLD,QGLDDQG&KLQDWKH%5,&VFRXOGWDNHDOHDGKHUH

International coordination is also vital given the growth of cross-border EDQNLQJUHODWLRQV7KLVQHHGVWREHFRPSOHPHQWHGE\LQWHUQDWLRQDOFRRU-GLQDWLRQRIWKHOHQGHURIODVWUHVRUWIXQFWLRQDPRQJFHQWUDOEDQNVQRWD-bly for currency swaps between them).

GESolution 3

Delivering price stability must remain central banks primary goal.

In times of crisisFHQWUDOEDQNVFDQDFWDVDUHVHUYLFHWKURXJKWKHWRROVRIOLTXLGLW\PDQDJHPHQWDQGXQFRQYHQWLRQDOPRQHWDU\LQVWUXPHQWVIn some cases, these interventions are necessary to prevent a collapse of WKHSD\PHQWVV\VWHPDQGWRPDLQWDLQQDQFLDOVWDELOLW\

)RUH[DPSOHTXDQWLWDWLYHHDVLQJLVDQDSSURSULDWHDSSURDFKDWWKHFXU-UHQWVWDJHRI WKHJOREDOHFRQRPLFUHFRYHU\)XUWKHUDFWLRQVRI WKLVNLQGE\WKH)HGHUDO5HVHUYHDQGWKH(XURSHDQ&HQWUDO%DQNVKRXOGEHVXS-SRUWHGLIWKHFHQWUDOEDQNVSXUFKDVHWKHULJKWDVVHWVDWWKHULJKWWLPHWRSURYLGHOLTXLGLW\HIIHFWLYHO\

%XWWKHVHPHDVXUHVVKRXOGDOZD\VEHWHPSRUDU\LQQDWXUH&HQWUDOEDQNVVKRXOGRQO\DFWDVDOLTXLGLW\SURYLGHULQDFULVLVDQGWKH\VKRXOGQRWSHU-manently prevent necessary economic adjustment after a crisis. Longer-ODVWLQJ QDQFLQJ RI LQVROYHQW PDUNHW SDUWLFLSDQWV PD\ WKUHDWHQ FHQWUDOEDQNVSULPDU\JRDORIPDLQWDLQLQJSULFHVWDELOLW\

18


Panelists

Charles Goodhart(PHULWXV3URIHVVRURI%DQNLQJDQG)LQDQFH7KH/RQGRQ 6FKRRORI(FRQRPLFVDQG3ROLWLFDO6FLHQFH

Pablo E. Guidotti3URIHVVRUDWWKH6FKRRORI*RYHUQPHQWDQG0HPEHU RIWKH%RDUGRI'LUHFWRUV8QLYHUVLGDG7RUFXDWRGL7HOOD Argentina

Carlos G. Langoni3UHVLGHQWRI3URMHWD&RQVXOWRULD(FRQ{PLFD/WGD

Moderator: Wei LaiJournalist, Global Times

Session Organizers

Dominik Groll5HVHDUFKHU.LHO,QVWLWXWHIRUWKH:RUOG(FRQRP\5HVHDUFK$UHD0DFURHFRQRPLF3ROLF\XQGHU0DUNHW,PSHUIHFWLRQVBjrn van Roye5HVHDUFKHU.LHO,QVWLWXWHIRUWKH:RUOG(FRQRP\5HVHDUFK$UHD0DFURHFRQRPLF3ROLF\XQGHU0DUNHW,PSHUIHFWLRQVTing Xu%HUWHOVPDQQ)RXQGDWLRQ:DVKLQJWRQ'&

19

Econom

y

1

2. Fiscal Consolidation through Fiscal Rules?

21

Econom

y

21

2

Challenge

/DUJHDQGJURZLQJ UDWLRVRISXEOLFGHEW WR*'3 LQPDQ\FRXQWULHVDUHGHPDQGLQJYLJRURXVHIIRUWVWRDFKLHYHVFDOFRQVROLGDWLRQ0DQ\REVHUY-HUVEHOLHYHWKDWDVFDOUXOHVKRXOGEHWKHFHQWUDOHOHPHQWRIDVXFFHVVIXOstrategy: they argue that a rule would restrict discretionary actions by governments, thereby strengthening the credibility of consolidation. But WKHUHDUHVXEVWDQWLDOGLIIHUHQFHVRIRSLQLRQRQ WKHSUHFLVHVSHFLFDWLRQof the rule.

7KHVH GLVDJUHHPHQWV DULVH IURP WKH GLIIHUHQW UHTXLUHPHQWV RI D VFDOrule. To be transparent to the public, the rule should be simple and easy to monitor. To stabilize the economy, the rule should reduce medium-term GHEWWR*'3UDWLRVZLWKRXWDJJUDYDWLQJF\FOLFDOXFWXDWLRQV7REHFUHG-LEOHWKHUHVKRXOGEHVDIHJXDUGVWRHQVXUHWKDWWKHUXOHZLOOQRWEHRXWHGAnd to be legitimate, the rule and the safeguards must be in line with constitutional provisions.

7RZKDWH[WHQWGRVFDOUXOHVPDNHDUHDOGLIIHUHQFHWRVFDOSROLF\RXW-FRPHV":KDWLVWKHDSSURSULDWHVFKHGXOHIRUWKHSDWKRIVFDOFRQVROLGD-WLRQ"6KRXOGDVFDOUXOHIRFXVRQWKHEXGJHWUDWLRRUWKHGHEWUDWLR"$QGKRZVKRXOGWKHEXVLQHVVF\FOHEHWDNHQLQWRDFFRXQW"

:KDWDUHDSSURSULDWHVDIHJXDUGVDJDLQVWGHYLDWLRQV IURPDVFDO UXOH"$UHH[DQWHUHVWULFWLRQVRQEXGJHWDU\SROLF\VXSHULRUWRH[SRVWSHQDOWLHV"$QGKRZVKRXOGVFDOUXOHVEHHQIRUFHGLQVWDWHVZLWKVFDOIHGHUDOLVP"

22

2. Fiscal Consolidation through Fiscal Rules?

GESolution 1

'HQH D ORQJWHUP WDUJHW IRU WKH GHEWWR*'3 UDWLR DQG DQXSSHUOLPLWIRUWKHDQQXDOEXGJHWGHFLWWR*'3UDWLRGHSHQGLQJRQWKHEXVLQHVVF\FOHWKHFRXQWU\VH[LVWLQJGHEWWR*'3ratio and its future growth prospects.

This consolidation rule focusesRQWKHRYHUDOOGHEWWR*'3UDWLRDQGWKHDQQXDOEXGJHWGHFLW6LPLODUWRWKH0DDVWULFKW7UHDW\LWVXJJHVWVDOLPLWRQWKHRYHUDOOGHEWWR*'3UDWLRDQGGHQHVDQXSSHUOLPLWIRUWKHDQQXDOEXGJHWGHFLWWR*'3UDWLRGHWHUPLQHGLQSDUWE\WKLVVWDJHRIWKHEXVLQHVVF\FOHLQZKLFKWKHFRXQWU\QGVLWVHOI

$QLPSRUWDQWH[WHQVLRQZRXOGEHWRDOORZIRUFRXQWU\VSHFLFOLPLWVZKLFKWZLWKWKHIXWXUHJURZWKSHUVSHFWLYHVDQGWKHDOUHDG\DFFXPXODWHGGHEWRIHDFKFRXQWU\6XFKDH[LEOH UXOHZRXOGSUREDEO\JDLQPRUHDFFHS-WDQFHDPRQJOHJLVODWRUVEHFDXVHLWZRXOGWDNHDFFRXQWRIWKHHFRQRPLFperformance of each country.

GESolution 2

Fiscal rules should be given constitutional status.

A core requirement for successful consolidationWKURXJKVFDOUXOHVLVWKHFUHGLEOHFRPPLWPHQWRIOHJLVODWRUVWRIROORZDVSHFLFUXOH%XWHVSH-cially when an economy is in recession, legislators might be under pres-VXUH IURP YDULRXV LQWHUHVW JURXSV WR VXVSHQG VFDO UXOHV DQG VZLWFK WRGLVFUHWLRQDU\VFDOSROLF\7KHVROXWLRQWRPDLQWDLQLQJWKHVHOIGLVFLSOLQDU\HIIHFWRIVFDOUXOHVLVWKHUHIRUHWRLQWURGXFHDFRVWRIEUHDNLQJVFDOUXOHV

,IDVFDO UXOHKDVFRQVWLWXWLRQDO UDQN LW LQGXFHVDKXJHFRVW LQ WHUPVRIpolitical reputation on the legislators (for example, the government could EHWDNHQWRWKHFRQVWLWXWLRQDOFRXUW7KHVXVSHQVLRQRIVFDOUXOHVVKRXOGonly be possible in times of severe crisis and even then only with a large (60%) majority in parliament, after which the base would return to the pre-suspension year budget levels.

23

Econom

y

23

2

Panelists

Mario Bergara3UHVLGHQW&HQWUDO%DQNRI8UXJXD\

Edward Lazear3URIHVVRURI+XPDQ5HVRXUFHV0DQDJHPHQWDQG (FRQRPLFV6WDQIRUG8QLYHUVLW\

Aolin LiuExecutive Director of the Research Department, &KLQD,QWHUQDWLRQDO&DSLWDO&RUSRUDWLRQ/LPLWHG

Aart De Geus&KDLUPDQDQG&(2%HUWHOVPDQQ6WLIWXQJ

Robert A. Johnson([HFXWLYH'LUHFWRU,QVWLWXWHIRU1HZ(FRQRPLF 7KLQNLQJ1HZ

3. Optimizing Information Use through the Internet and Social Media

25

Econom

y

25

3

Challenge

8QSUHFHGHQWHGUHFHQWSURJUHVVLQLQIRUPDWLRQDQGFRPPXQLFDWLRQWHFK-QRORJLHV ,&7V LVHQDEOLQJSHRSOHDQGRUJDQL]DWLRQV WRRYHUFRPHSHU-VRQDO DQG UHJLRQDO UHVWULFWLRQV RQ LQIRUPDWLRQ DFTXLVLWLRQ7KH ,QWHUQHWand social media are particularly important for facilitating access to an unparalleled wealth of information, as well as providing opportunities for new innovative activities and social interactions.

%XW WHFKQRORJLFDO SURJUHVV LQ LWVHOI GRHV QRW DXWRPDWLFDOO\ OHDG WR HI-cient application of the tools. The challenge is how people and organiza-WLRQVFDQEHPRWLYDWHGWRDSSO\WKH,QWHUQHWDQGVRFLDOPHGLDHIFLHQWO\WRRSWLPL]HLQIRUPDWLRQXVH$GGUHVVLQJWKLVFKDOOHQJHZLOOUHTXLUHGUDPDWLFbehavioral and organizational changes throughout society, as well as LPSURYHPHQWVLQWKHRYHUDOOGLVWULEXWLRQRILQIRUPDWLRQVXSSRUWHGE\,&7V

Which behavioral and organizational changes are needed to stimulate HIFLHQWDQGEHQHFLDOXVHRIWKH,QWHUQHWDQGVRFLDOPHGLD":KDWGULYHVpeople and organizations resistance to change and how could resistance EHWDFNOHGHIIHFWLYHO\"$QGKRZFDQLQIRUPDWLRQRYHUORDGEHDYRLGHGWRoptimize the distribution and use of relevant information among Internet XVHUV"

How can Internet users be encouraged and trained to use social media WR LQWHUDFWZLWKRWKHUV LQDVRFLDOO\ UHVSRQVLEOHPDQQHU"+RZFDQ WKHLUSULYDF\DQGLQWHOOHFWXDOSURSHUW\ULJKWVEHEHWWHUSURWHFWHG"$QGZKDWDUHWKHVROXWLRQVWRHPHUJLQJFRQLFWVEHWZHHQJRYHUQPHQWUHJXODWLRQRIWKH,QWHUQHWVXFKDV86 LQLWLDWLYHV IRU D 6WRS2QOLQH3LUDF\$FW 623$DQGD3URWHFW,3$FW3,3$DQG,QWHUQHWXVHUVIUHHGRPRIVSHHFKDQGULJKWVWRVKDUHLQIRUPDWLRQ"

26


GESolution 1

Establish information rights as a fundamental prerequisite of democracy and public policy.

Governments need to recognize the critical role of open, transparent and accessible information as vital elements of modern democracy and public policy.

,QGHYHORSHGFRXQWULHVLQIRUPDWLRQLQFUHDVLQJO\LQWKHIRUPRIVRFDOOHGRSHQGDWDLVDQLPSRUWDQWWRROIRUPRQLWRULQJWKHSHUIRUPDQFHRISXEOLFservices and holding administrations to account for their actions. In devel-oping countries, the Internet and social media offer a platform for citizens to listen, receive and communicate information in much the same way as radio and television are already used to improve public engagement with government.

But with just one third of the global population now online, provisions must EHPDGHWRLQFOXGHWKRVHZKRULVNEHLQJH[FOXGHGIURPWKHDJHRIGLJLWDOempowerment. Even in developed countries, there are many people who GRQRWKDYHDFFHVVWRVRFLDOPHGLDRUGRQRWKDYHWKHVNLOOVWROHYHUDJHthese powerful tools in their personal and professional lives.

&RXQWULHVPXVWPDNHDFRKHVLYHHIIRUWQRWRQO\WRSURYLGHWKHLUFLWL]HQVwith access to the Internet but also to ensure that governments and other public authorities provide web-based learning platforms for people to OHDUQEDVLFVNLOOVWKDWZLOORSWLPL]HWKHLURQOLQHH[SHULHQFHDQGWKHLUSODFHin society.

GESolution 2

Establish a charter for individuals rights to information and their responsibilities for using information.

Enlightend public leaders recognize that information rights are as much a part of the rights of citizens as in such areas as privacy and human

27

Econom

y

27

3

ULJKWV ,QIRUPDWLRQ LQFUHDVLQJO\ RZV WKURXJK KLHUDUFKLHV WR HPSRZHUWKH LQGLYLGXDO DQG WKH JURZWK RI WKH QHWZRUNHG VRFLHW\ GHPRQVWUDWHVWKDWSHHUWRSHHUFRPPXQLFDWLRQLVQRZDQHVVHQWLDOSDUWRINQRZOHGJH sharingLQDQHIIHFWLYHGHPRFUDF\,QGLYLGXDOVULJKWVWRLQIRUPDWLRQDERXWWKHPVHOYHV WKHLU UHSUHVHQWDWLYHV DQG WKHLU JRYHUQPHQWVVKRXOG EHenshrined in a charter that establishes what those rights entail.

(TXDOO\ VXFKD FKDUWHU VKRXOG GRFXPHQW LQGLYLGXDO UHVSRQVLELOLWLHVWRensure that information is not misused, that privacy is respected and that intellectual property is suitably protected.

The Internet has enabled dramatic changes in citizen and consumer EHKDYLRU7KRVHULJKWVQHHGWREHDIUPHGEXWWKHQHHGIRUUHVSRQVLEOHLQIRUPDWLRQXVHPXVWDOVREHDFNQRZOHGJHG

GESolution 3

*RYHUQPHQWVDQGHQWHUSULVHVVKRXOGSURPRWHWKHFRPLQJSDUadigm shift away from their traditional role of controlling information to their new role of empowering people to generate, access and share information via new media.

Governments and enterprises need to adjust their organizational cul-tures and structures to become more active in participating in the digital ZRUOG*RYHUQPHQWVDQGHQWHUSULVHVDFWLYHXVHRI,&7VDUHH[SHFWHGWRintensify and facilitate their interactions with people to support consen-sus-building procedures and to enhance the transparency and account-DELOLW\RISROLWLFDODQGEXVLQHVVGHFLVLRQPDNLQJSURFHVVHV

28


GESolution 4

,QWURGXFHDJOREDO RQOLQH NLWHPDUN EDVHGRQZHOOGHQHGguidelines for information quality and transparency for businesses.

There are vast and growing quantities of information now available WKURXJKWKH,QWHUQHWDQGVRFLDOPHGLDEXWLWLVRIWHQGLIFXOWWRYHULI\WKHTXDOLW\RUYHUDFLW\RIPXFKRIWKDWGDWD7KHUHVKRXOGEHZD\VWRXQGHU-VWDQGDQGYHULI\WKHTXDOLW\RILQIRUPDWLRQ

Similarly, there are huge differences in the terms and conditions for infor-mation use on commercial websites. It is not realistic for Internet users to read and digest pages of legalistic terms and conditions for every website ZLWKZKLFKWKH\ZDQWWRLQWHUDFW

29

Econom

y

29

3

GESolution 5

6SHFLI\XVHURULHQWHGJOREDOVWDQGDUGVIRURQOLQHGDWDSURWHFtion and privacy.

ICTs facilitate the globalization that enables people and organizations to interact with others more easily than before, going beyond the limita-tions of national boundaries. As a result, people and organizations online behavior have a much broader impact on others, which also goes beyond national boundaries. The fact that different countries still pursue their own UHJXODWRU\IUDPHZRUNIRUGHDOLQJZLWKGDWDSURWHFWLRQDQGSULYDF\LVVXHVof their own citizens may not be in line with the globalized nature of the digital world.

'DWDSURWHFWLRQDQGSULYDF\OHJLVODWLRQYDULHVJUHDWO\DURXQGWKHZRUOGfrom countries with highly restrictive rules to those with little or no protec-tion. It will always be important to recognize different cultural attitudes to privacy and data protection and globally agreed legislation is impractical. But it is feasible to establish a common set of minimum standards that would ensure that citizens and consumers are protected wherever they are and wherever the website they are using is located.

To avoid severe sanctions, people and organizations may prefer opera-tional locations where the online protection regulations are the least strict. In the end, no one can be really protected by law, even if some Internet users may live in a country with a de jure better established national regu-ODWRU\IUDPHZRUN

7KHUHDUHJUHDWEHQHWVIURPQHZWHFKQRORJLHVVXFKDVFORXGFRPSXWLQJDQGWKH,QWHUQHWRIWKLQJV%XWWKHGHYHORSPHQWDQGZLGHVSUHDGXVHRIVXFKWHFKQRORJLHVPD\EHKDPSHUHGE\DUWLFLDOEDUULHUVFRQVWUXFWHGE\differences in data protection policies. By establishing global minimum VWDQGDUGV RU D JOREDO UHJXODWRU\ IUDPHZRUN HYHU\ ZHEVLWH EXVLQHVVgovernment and individual will have a basic guideline to which to adhere to engender trust and improved information use.

30


GESolution 6

Enhance peoples information competence through all the standard education and training channels and enable them to apply the inherent structure of information for knowledge disFRYHU\WKURXJKFRXUVHVDQG,QWHUQHWEDVHGOHDUQLQJSODWIRUPV

In the era of rapid changeLQ,&7VSHRSOHQHHGWREHDEOHQRWRQO\WRNHHSLPSURYLQJWKHLUPHGLDFRPSHWHQFHKRZWRXVHDGYDQFHGWHFKQR-ORJLFDOHTXLSPHQWEXWDOVRWRNHHSHQKDQFLQJWKHLULQIRUPDWLRQFRPSH-tence (how to gather relevant information for dealing with personal and professional challenges).

&RXUVHV PD\ EH SURYLGHG DW VFKRROV XQLYHUVLWLHV RU RQOLQH WKURXJKInternet-based learning platforms that help Internet users enhance their LQIRUPDWLRQ FRPSHWHQFH7KLVZLOO KHOS WKHP WR OWHU LQIRUPDWLRQ HIIHF-tively for their needs out of the vast amount of information distributed through the Internet and online fora every day.

Internet users need to be able to use not only the context and content of LQIRUPDWLRQEXWDOVR LWV LQKHUHQWVWUXFWXUH WR LQFUHDVH WKHLUHIFLHQF\ LQGLVFRYHULQJDQGOLQNLQJUHOHYDQWNQRZOHGJHIRUXVH$WSUHVHQWLQWKHGLJL-WDOZRUOGWKHPDMRULW\RILQIRUPDWLRQLVXQVWUXFWXUHGZKLFKPDNHVLWGLI-cult for Internet users to identify the inherent relations within and between different pieces of information. This hinders them from more effective use of information for solving problems.

Although Internet users may rely on search engines to obtain information, the search results depend strongly on the algorithms designed by the search providers. The relations within and between the information found are often unclear for Internet users. They need to be trained and encour-DJHGWRDSSO\QHZWHFKQLTXHVWRVHDUFKIRUDQGOLQNXSLQIRUPDWLRQEDVHGRQWKHLURZQUHTXLUHPHQWV

31

Econom

y

31

3

Panelists

Cezar Alvarez([HFXWLYH6HFUHWDU\0LQLVWU\RI&RPPXQLFDWLRQV Brazil

Paul A. Berkman)XOEULJKW'LVWLQJXLVKHG6FKRODUDQG5HVHDUFK3URIHVVRU at the Bren School of Environmental Science & Management, 8QLYHUVLW\RI&DOLIRUQLD6DQWD%DUEDUD

Robert Phillips)RUPHU3UHVLGHQWDQG&(2(0($(GHOPDQ

Klaus Tochtermann'LUHFWRU=%:/HLEQL],QIRUPDWLRQ&HQWUHIRU(FRQRPLFV .LHO*HUPDQ\

Horacio Werner'LUHFWRURI(PHUJLQJ&RXQWULHV&LVFR6\VWHPV,QF Latin America

Moderator: Bryan Glick(GLWRULQ&KLHI&RPSXWHU:HHNO\

Session Organizers

Dirk Dohse5HVHDUFKHU.LHO,QVWLWXWHIRUWKH:RUOG(FRQRP\+HDGRI5HVHDUFK$UHD.QRZOHGJH&UHDWLRQDQG*URZWKWan-Hsin Liu5HVHDUFKHU.LHO,QVWLWXWHIRUWKH:RUOG(FRQRP\5HVHDUFK$UHD.QRZOHGJH&UHDWLRQDQG*URZWKOle Wintermann6HQLRU3URMHFW0DQDJHU%HUWHOVPDQQ6WLIWXQJ

4. Effective Investments in Education

33

Econom

y

4

Challenge

(GXFDWLRQ LVD IXQGDPHQWDO ULJKW IRUHYHU\RQHDQGNH\ WR WKH IXWXUHRIDQ\ FRXQWU\ (GXFDWLRQ KDV LWV SULFH HYHU\ZKHUHEXW WKH RQO\ WKLQJmore expensive than investing in education is not investing in education. ,QDGHTXDWHHGXFDWLRQSURGXFHVKLJKFRVWVIRUVRFLHW\LQWHUPVRISXEOLFVSHQGLQJFULPHKHDOWKDQGHFRQRPLFJURZWK1RFRXQWU\FDQDIIRUGWRleave too many of its children behind and not to help them achieve the FRPSHWHQFLHVQHHGHGIRUDVHOIIXOOOHGOLIHLQHFRQRPLFLQGHSHQGHQFH

But the main challenges in education differ across countries and conti-nents. The industrialized world faces the impacts of demographic change, VXFKDVDVKRUWDJHRIVNLOOHGODERUDQGDJHLQJVRFLHWLHV(PHUJLQJFRXQ-tries need to respond to increasing demand in education. And in some parts of the world, it is still not a given that every child has the right to go to VFKRRODQGKHQFHDELJVKDUHRIWKHSRSXODWLRQFDQQRWUHDGDQGZULWH

Despite these differences, there are common challenges. For example, WKHLQKHULWDQFHRIHGXFDWLRQDOVWDWXVLVDJOREDOSUREOHPSHRSOHVHGX-FDWLRQDFKLHYHPHQWODUJHO\GHSHQGVRQWKHLUVRFLRHFRQRPLFEDFNJURXQGand the educational status of their parents. Although some countries pro-YLGHPRUHHTXDORSSRUWXQLWLHVWKDQRWKHUVLWUHPDLQVDFKDOOHQJHHYHU\-ZKHUHWRLPSURYHWKHFKDQFHVRIWKRVHFKLOGUHQORVWWRLQDGHTXDWHHGXFD-tion.

But education budgets are limited, especially in times of economic down-turn. Thus, it is worth comparing countries that have decreased and aug-PHQWHG WKHLU HGXFDWLRQ EXGJHWV GXULQJ WKH FULVLVDQG HYDOXDWLQJ WKHFRQVHTXHQFHV RI WKHVH GHFLVLRQV ,I RQ WKH RQH KDQG LQYHVWPHQWV LQeducation are vital and, on the other hand, budget constraints restrict the available resources, investments should be as effective as possible. The TXHVWLRQWKHQLVZKHUHGRHVLWPDNHVHQVHWRLQYHVWPRVWLQHGXFDWLRQ"

Researchers generally agree that investing in early education has the KLJKHVWUHWXUQV$VWKH1REHOODXUHDWH-DPHV+HFNPDQKDVVKRZQHDUO\LQYHVWPHQWVHQKDQFHHTXDORSSRUWXQLWLHVDQGKLJKHUDFKLHYHPHQWDWWKHVDPHWLPH+RZFDQWKLVEHDSSOLHGWRHGXFDWLRQQDQFLQJVWUXFWXUHVLQGLIIHUHQWFRXQWULHV"$QGJLYHQWKHIDFWWKDWHDUO\FKLOGKRRGHGXFDWLRQLV

34

4. Effective Investments in Educations

often very costly for parents while school education is usually free, what VKRXOGEHWKHQDQFLDOFRQWULEXWLRQWKDWIDPLOLHVPDNHWRWKHHGXFDWLRQRIWKHLUFKLOGUHQ"

An alternative view of investments in education is that they should be higher where the problems are greatest: that would mean greater effort to WDFNOHLQDGHTXDWHHGXFDWLRQDQGPRUHPRQH\IRUSURJUDPVIRUFKLOGUHQZKRDUH ODJJLQJEHKLQG5HVHDUFKVKRZV WKDW LQDGHTXDWHHGXFDWLRQ LVDSUREOHPIRUWKHZKROHRIVRFLHW\HYHQWKHHOLWHVDQGWKDWHYHU\RQHEHQHWV IURPPLQLPL]LQJ WKHQXPEHURI ORZHGXFDWHGSHRSOH ,V LWSRV-VLEOH WR LQYHVW LQPRUHTXDOLW\ LQHGXFDWLRQ":KDW IRUPRITXDOLFDWLRQZLOOSURGXFHWKHEHVWWHDFKHUVDQGSHGDJRJXHV"$QGZKDWPHFKDQLVPVVKRXOGEHXVHGWRDOORFDWHUHVRXUFHV"

Education remains one of the most important duties of any government: LWLVDSXEOLFUHVSRQVLELOLW\WRSURYLGHDFFHVVWRKLJKTXDOLW\HGXFDWLRQIRUeveryone. Therefore, public investments need to ensure a good educa-tional infrastructure for lifelong learning. But can private organizations, FRPSDQLHVDQGQRQSURWRUJDQL]DWLRQVSURYLGHDGGLWLRQDOVXSSO\&RXOGthey become substitutes or should they instead function as supplements WRSXEOLFLQVWLWXWLRQV"

,QWHOOLJHQW QDQFLQJFRQFHSWV IRUHGXFDWLRQVKRXOGEHEDVHGRQQHHGVDQG VSHFLF EDFNJURXQG UDWKHU WKDQ GLVWULEXWLQJ XQWDUJHWHG VXEVLGLHV1HZ FRQFHSWV RI UHVRXUFH GLVWULEXWLRQ UHTXLUH JUHDWHU WUDQVSDUHQF\%XWZKDWVKRXOGWKLVWUDQVSDUHQF\ORRNOLNH":LOOH[WHUQDODFFRXQWDELOLW\HQKDQFHTXDOLW\RUVKRXOGWKHUHEHPRUHIRFXVRQFDSDFLW\EXLOGLQJDQGVHOIDVVHVVPHQW WR LPSURYH WKH HGXFDWLRQ V\VWHP"+RZ FDQ QDQFLQJPHFKDQLVPV SURYLGH HIIHFWLYH DQG VXIFLHQW LQYHVWPHQWV LQ HGXFDWLRQHYHQLQWLPHVRIFULVLV"

35

Econom

y

4

GESolution 1

*RYHUQPHQWVVKRXOGLQYHVWLQIDLUREMHFWLYHDQGFRPSUHKHQsive metrics for evaluating teacher performance.

Research shows that teacher quality is the most important ingredient in student achievement. The difference in effectiveness between teachers can spell the difference between success in education and dropping out of VFKRRO%XWWKHUHLVQRVLPSOHGHVFULSWLRQRIZKDWPDNHVDJRRGWHDFKHUor how to develop a good teacher. Thus, the most important investment is a good system of teacher performance evaluation.

The ability to evaluate teachers fairly, objectively and comprehensively LV WKHVLQHTXDQRQ IRU L UHZDUGLQJ WKHEHVW WHDFKHUV DQG WKHUHIRUHcreating incentives that will attract talent into the profession), (ii) removing the worst teachers (which is essential for long-term incentives as well as SURYLGLQJDOOVWXGHQWVZLWKDIDLURSSRUWXQLW\WROHDUQLLLPDNLQJHIFLHQWinvestments in teachers professional development, (iv) identifying men-WRUVIRU\RXQJHUWHDFKHUVDQGYLQXHQFLQJWKHRULHQWDWLRQDQGFDOLEHUof teachers preservice education.

7UDGLWLRQDOPHDVXUHVRIWHDFKHUTXDOLW\VXFKDVSUHVHUYLFHHGXFDWLRQDQGtraining, advanced degrees and experience, are not closely related with HIIHFWLYHQHVVLQWKHFODVVURRP([FHSWIRULPSURYHPHQWVGXULQJWKHUVWcouple of years of teaching, none of these characteristics of teachers has been shown to predict performance very well in either developed or developing countries.

Instead, effective performance evaluations should focus on the core of teaching, including classroom observations, portfolio reviews and assess-ments by principals and master teachers. Such a system of teacher per-formance evaluation that is perceived as legitimate can sharpen the per-formance incentives for teachers at both ends of the spectrum.

But global experience suggests that only a very few education systems KDYHEHHQDEOHWRSXW LQSODFHDGHTXDWHWHDFKHUHYDOXDWLRQV\VWHPV

36


&KLOH:DVKLQJWRQ'&DQG6LQJDSRUHDUHDPRQJWKHUDUHH[DPSOHV%RWKGHYHORSLQJDQGLPSOHPHQWLQJVXFKPHWULFVDUHYHU\KDUGWHFKQL-FDOO\SROLWLFDOO\DQGLQVWLWXWLRQDOO\DVZHOODVH[SHQVLYHWKRXJKLWPLJKWEHWKHPRVWKLJKO\OHYHUDJHGLQYHVWPHQWWKDWDV\VWHPFDQPDNH

GESolution 2

Focus education policy on providing rewards and sanctions for achieving better performance to energize local capacity and knowledge instead of trying to improve outcomes through general regulation.

Education policy is plagued by attempts to improve outcomes through UHJXODWLRQDVLWXDWLRQ WKDW LPSHGHV LPSURYHPHQWDQGIUHTXHQWO\SXWVDFHLOLQJRQZKDWRXWFRPHVDUHSRVVLEOH7KHVHDWWHPSWVLQYDULDEO\UHTXLUHtreating all circumstances similarly, thus failing to recognize the impor-WDQFHRIORFDOGHPDQGVORFDONQRZOHGJHDQGORFDOFDSDFLW\7KHDOWHUQD-tive is to provide incentives for better performance so that the abilities and energies of local people can be energized.

The fundamental idea of improved incentives is establishing rewards for those who move education towards higher achievement. These rewards would be a substitute for regulations that try to change actions by central command. Instead of telling educators how to do their jobs, incentives could focus on what they should achieve. Such an incentive system could include the following elements:

Accountability is central to any incentive system. It must be clear what WKHRXWFRPHLVEHIRUHLQFHQWLYHVDUHDSSOLHGDQGWKLVZLOOUHTXLUHFOHDUand transparent measurement of achievement (see GESolution 1).

/RFDOGHFLVLRQPDNLQJSURYLGHVH[LELOLW\IRUHGXFDWRUVWRQGWKHEHVWZD\ WR DFKLHYH RXWFRPHVDOWKRXJK ORFDO GHFLVLRQPDNLQJ ZLWKRXWgood accountability can produce perverse results.

3DUHQWDOFKRLFH over schools, as far as it is feasible, directly involves parents in observing school outcomes and in setting incentives for

37

Econom

y

4

ORFDOVFKRROVVLQFHVFKRROVWKDWORVHVWXGHQWVZLOOKDYHDQLQFHQWLYHto improve their performance.

Direct rewards for the performance of teachers and leaders (prop-HUO\PHDVXUHGHQVXUHWKDWHGXFDWRUVDUHZRUNLQJWRHQKDQFHSHUIRU-mance.

Dismissing low performers after failed attempts to improve their per-formance.

GESolution 3

*RYHUQPHQWV VKRXOG IRFXV WKHLU LQYHVWPHQWV RQ ERWK LQGLYLGXDODQGFROOHFWLYHFDSDFLW\EXLOGLQJWUDLQLQJSHGDJRJXHVto use methods of individual support and to serve as learning coaches to help children learn to learn as well as being actively involved in local environments.

Raising the quality of education starts with capacity-building. Of great-HVW LPSRUWDQFH IRUDKLJKTXDOLW\HGXFDWLRQV\VWHPDUHH[FHOOHQWSHGD-JRJXHVLQDOOVFKRROVDQGHDUO\FKLOGKRRGHGXFDWLRQDOLQVWLWXWLRQVHVSH-FLDOO\ LQ GLVDGYDQWDJHGQHLJKERUKRRGV3HGDJRJXHV VKRXOG EH WUDLQHGWR XVH PHWKRGV RI LQGLYLGXDO VXSSRUW WKH\ VKRXOG VHUYH DV OHDUQLQJFRDFKHVDQGKHOSWKHFKLOGUHQLQWKHLUFDUHWROHDUQWROHDUQLQVWHDGRIMXVWWHDFKLQJRQO\IDFWXDONQRZOHGJHRUHYHQKRZWRVXFFHHGLQVWDQGDUG-ized tests.

&DSDFLW\EXLOGLQJVWDUWVZLWKWKHLQGLYLGXDOWKXVWKHTXDOLW\RIWHDFKHUVand other pedagogues is central. But individual capacity needs to be com-ELQHGZLWKFROOHFWLYHFDSDFLW\&ROOHFWLYHFDSDFLW\KDVWREHHVWDEOLVKHGamong the staff of each educational institution and between all institu-tions in a neighborhood, district or region. Special training and strategies VKRXOGKHOSWRHVWDEOLVKUHDOWHDPZRUNLQVFKRROVDQGFKLOGFDUHFHQWHUVEducational institutions are always integrated in their environment: the VXUURXQGLQJQHLJKERUKRRG UHJLRQDQGFRXQWU\KDYHDQ LPPHQVH LQX-ence on childrens development and learning and also on how an insti-

38


WXWLRQRSHUDWHV/RFDOFRQGLWLRQVSOD\DQHVSHFLDOO\LPSRUWDQWUROHDQGit would be preferable if educational institution were actively involved in their neighborhoods or districts.

3HGDJRJXHVVKRXOGEH WUDLQHG WRZRUNZLWKSDUHQWVDQG ORFDOSDUWQHUVVRWKDWDOOHIIRUWVFDQEHFRPELQHGWRHQKDQFHWKHTXDOLW\RIHGXFDWLRQ'LIIHUHQWOHDUQLQJHQYLURQPHQWVVXFKDVFRRSHUDWLRQZLWKORFDOSDUWQHUVVSRUWVFOXEVPXVLFVFKRROVFKXUFKHVHWFFDQDGGWRFXUUHQWFXUULFXOD*RYHUQPHQWVPXVWSURYLGHUHVRXUFHVWRQDQFHWKHVHORFDOSDUWQHUVKLSVas well as the methods of individual and collective capacity-building.

GESolution 4

*RYHUQPHQWV VKRXOG LQYHVW LQ HPEHGGLQJ WHFKQRORJ\ LQWRpedagogical concepts to enable interactive learning experiences. For an effective use of technology, give teachers training and rewards, integrated in incentive systems for student performance, to be champions of such new approaches.

Information and communication technologies have dramatically rede-QHGKRZSHRSOHOLYHZRUNFRPPXQLFDWHDQGOHDUQ,W LVFULWLFDOWRFRO-lective progress that there is a pervasive culture of innovation, not only in schools, colleges and universities but also within and across communities RIVWXGHQWVDQGHGXFDWRUV7KLVUHTXLUHVLQQRYDWLYHFODVVURRPDQGLQIUD-structure solutions.

7HFKQRORJ\PHDQVPXFKPRUHWKDQFORVLQJWKHGLJLWDOGLYLGHE\HTXLS-ping classrooms with computers and providing Internet access for all stu-dents. It is primarily about how well technology is applied and embedded into pedagogical concepts to enable interactive learning experiences. Technology is a critical enabler to transform education aligned with new SHGDJRJLFDOIUDPHZRUNV6FKRROVQHHGWRFKDQJHWKHZD\WKH\WHDFKWRUHHFWWKHIDFWWKDWWKH\DUHGHDOLQJZLWKVWXGHQWVZKRDUHLQWHUDFWLQJZLWKdigital technologies from an early age. Teachers should embrace these

39

Econom

y

4

QHZUHDOLWLHVDQGUHGHQHWKHLUUROHIURPFRQWHQWSURYLGHUDQGLQVWUXFWRUto facilitator, coach, and adviser.

There needs to be a new openness to collaboration across classrooms, institutions and countries to spread ideas, accelerate innovations and reengineer existing solutions. Therefore, environments should be created ZKHUHWHDFKHUVDQGVWXGHQWVZRUNWRJHWKHUDVDFWLYHOHDUQHUVLQH[SHUL-mental teaching settings.

3HUVRQDOOHDUQLQJDSSURDFKHVWHDFKHUSURIHVVLRQDOOHDUQLQJDQGFROODER-ration should play a critical role to ensure new pedagogies and technolo-gies are well designed and implemented. Leaders in education should be recognized and supported as champions of new approaches through incentive programs. All of this should go hand in hand with targeted investments in research in such areas as teaching with technology and pedagogical integration of information technology.

Teachers and leaders must see rewards for effectively using technol-ogy. Introduction of technology is best accomplished by integrating it in accountability and incentive systems for better student performance (GESolution 2). Moreover, a portion of the budget for new technology should be reserved for both training of teachers and for compensation to teachers and leaders who participate not only in the development but also the introduction of new technology.

GESolution 5

Use technological innovations to individualize public education FRVWHIIHFWLYHO\

The embedded use of technologyLQHGXFDWLRQFDQOHDGWRDVLJQLFDQWincrease in learning outcomes and an increased return on investment. At present, classrooms tend to have teachers spending 80% of their time RQUHFLWLQJVWDQGDUGNQRZOHGJHDQGRQO\RQLQGLYLGXDOL]HGVXSSRUWIRUVWXGHQWVWKLVSURSRUWLRQQHHGVWREHUHYHUVHGVRWKDWGLYHUJLQJLQGL-vidual needs based on different learning styles, aptitudes and personal

40


EDFNJURXQGVFDQEHHIIHFWLYHO\DGGUHVVHG6XFKDQDSSURDFKZRXOGQRWonly support each child individually and foster his or her personal inter-ests and competencies, but also use scarce resources much better, thus PDNLQJSXEOLFHGXFDWLRQPRUHFRVWHIFLHQW

%\XVLQJ LQQRYDWLRQ LQ WHFKQRORJ\ JRYHUQPHQWV VKRXOG VWULYH WRPDNHNQRZOHGJH DFFHVVLEOH HYHU\ZKHUH DV ZHOO DV RIIHULQJ LQGLYLGXDOL]LQJOHDUQLQJ6WDQGDUGNQRZOHGJHFDQSHUKDSVEHEHWWHU WDXJKW IRUH[DP-SOHE\KLJKTXDOLW\YLGHRFOLSVRIFKDPSLRQVUDWKHUWKDQE\DQDYHUDJHWHDFKHUDURXQGWKHEORFN2QHVL]HWVDOOWH[WERRNVVKRXOGEHUHSODFHGZLWK LQGLYLGXDOL]HG OHDUQLQJ FRQFHSWV IDFLOLWDWHG E\PRELOH GHYLFHV OLNHtablets to allow a learner to access information wherever and whenever.

The same simultaneous test for everybody is worse than an interactive test at the right level at the right time, as it can be carried out on the tab-OHW)HHGEDFNWRVWXGHQWVDERXWWKHLUOHDUQLQJSURJUHVVVKRXOGEHLQVWDQWQRWZHHNVRUPRQWKVODWHUDIWHUDQDOH[DP,QVXFKDPRGHODWHDFKHUbecomes more of a learning companion and students can learn more effectively by themselves, even if no good teachers are accessible.

6XFKDWUDQVIRUPDWLRQRI WKHXVHRI WHFKQRORJ\ LQHGXFDWLRQUHTXLUHVDFRPSUHKHQVLYHFRVWEHQHWDQDO\VLVHQVXULQJ WKDW WKHPRVWSURPLVLQJLQQRYDWLRQVFDQEHVFDOHGXSIRUWKHEHQHWRIDVPDQ\OHDUQHUVDVSRV-VLEOH,WLVFOHDUWKDWLQQRYDWLYHDSSURDFKHVRQO\ZRUNZLWKVWULFWDFFRXQW-ability and transparency. Only this can be the basis for education decision-PDNHUV WRDOLJQ WKHLU LQYHVWPHQWV WRH[SHULPHQWDO WHDFKLQJDSSURDFKHVthat systematically recognize student diversity and individuality.

41

Econom

y

4

Panelists

Barbara Bruns/HDG(FRQRPLVW(GXFDWLRQ/DWLQ$PHULFDDQGWKH&DULEEHDQ5HJLRQ7KH:RUOG%DQN*URXS

Jrg DrgerMember of the Executive Board, Bertelsmann Stiftung

Eric A. Hanushek6HQLRU)HOORZDWWKH+RRYHU,QVWLWXWLRQ6WDQIRUG8QLYHUVLW\

Carlos Ivan Simonsen Leal3UHVLGHQW)*9)RXQGDWLRQ

Jeanette Weisschuh'LUHFWRU*OREDO(GXFDWLRQ6WUDWHJ\+32IFHRI Sustainability & Social Innovation

Moderator: Rodney Schwartz&(2DQG)RXQGHU&OHDUO\6R

Session Organizers

Sarah Menne3URMHFW0DQDJHU%HUWHOVPDQQ6WLIWXQJRalph P. Mller-EiseltExecutive Assistant to the Board, Bertelsmann Stiftung

Anette Stein3URJUDP'LUHFWRU%HUWHOVPDQQ6WLIWXQJ

5. Improving Financial Education and Literacy

43

Econom

y

5

Challenge

As governments face increasing debt burdens and companies too face VLJQLFDQW FRVW EXUGHQV WKHUH LV D FOHDU PRYHPHQW WRZDUGV LQGLYLGXDOUHVSRQVLELOLW\IRUQDQFLDOSODQQLQJIRUUHWLUHPHQW7KLVPRYHPHQWLVKDS-pening at precisely the time that individuals themselves are feeling more insecure about the future in the face of declining job security and the LQFUHDVHGUHOXFWDQFHRIQDQFLDOLQVWLWXWLRQVWRSURYLGHFUHGLW

3HRSOHIDFHEHZLOGHULQJFKDOOHQJHVLQQDYLJDWLQJWKHFRPSOH[ODQGVFDSHRIQDQFLDOSURGXFWVDQGSURYLGHUV WR UHDFK WKHPRVWHIFLHQWVROXWLRQVfor their retirement needs. Of course, there are intermediaries that could in principle help them, but in practice these intermediaries are more often WKDQQRWULGGOHGZLWKFRQLFWVRILQWHUHVWDQGKLJKFKDUJHV

At the core of this issue is the need to increase individual capability to PDNHQDQFLDOGHFLVLRQV$VORQJDVSHRSOHKDYHUHODWLYHO\ORZOHYHOVRIQDQFLDOHGXFDWLRQDQGOLWHUDF\WKH\ZLOOEHSUH\WRSUREOHPVZLWKHLWKHUhigh charges or inappropriate products.

%XWHIIRUWVWRLQFUHDVHQDQFLDOOLWHUDF\KDYHSURYHQHOXVLYH:KHQQDQ-cial education sessions are provided by industry, it is closely connected with the sales process, which is not well trusted by consumers. And when WKH\DUHSURYLGHGE\JRYHUQPHQWVXEVHTXHQWDSSOLFDWLRQLQWKHUHDOZRUOGRIWHQSURYHVGLIFXOW

:KDW DUH QHZ VROXWLRQV IRU LPSURYLQJ QDQFLDO HGXFDWLRQ DQG QDQ-FLDO OLWHUDF\"+RZFDQVRFLDODQGRWKHUQHZPHGLDEHXVHG":KDWQHZapproaches for regulation and supervision to improve performance should EHDGRSWHG"

44


GESolution 1

/LQNPDQGDWRU\QDQFLDOHGXFDWLRQFRXQVHOLQJDQGGLVFORVXUHto the point of sale.

The crux of this solutionLVWRPDNHGUDPDWLFLPSURYHPHQWVLQQDQFLDOHGXFDWLRQDWWKHSRLQWRIVDOHZKHUHLQGLYLGXDOVDUHPDNLQJWDQJLEOHGHFL-VLRQV)RUH[DPSOHWKLVPLJKWLQYROYHOLQNLQJHPSOR\HHVFKRLFHRIQDQ-FLDOEHQHWWRPDQGDWRU\HPSOR\HHHGXFDWLRQVRWKDWHGXFDWLRQOHDGVWRimmediate implementation.

,Q DGGLWLRQ PDQGDWRU\ FRXQVHOLQJ E\ FHUWLHG FRXQVHORUV VKRXOG EHUHTXLUHGSULRUWRWKHSXUFKDVHRIVXEVLGL]HGQDQFLDOSURGXFWV)RUFRP-plex products such as mortgages, annuities or mutual funds, mandatory GLVFORVXUHRIFULWLFDOQDQFLDO LQIRUPDWLRQDW WKHSRLQWRIVDOHVKRXOGEHimproved.

$QRWKHUSRVVLELOLW\LVWRDOORZDQGHQFRXUDJHEDQNVWKDWRIIHUHGXFDWLRQDOSURJUDPVRQKRZWRVDYHRIWHQGXULQJ$PHULFD6DYHVZHHNLQWKH8QLWHGStates) to open accounts immediately for attendees who have been both HGXFDWHGDQGPRWLYDWHGWRGRVR&XUUHQWO\LQWKH8QLWHG6WDWHVDWOHDVWWKLVDFWLRQLVGLVFRXUDJHGDVEHLQJVHOIVHUYLQJE\UHJXODWRUVZKRDZDUG&RPPXQLW\5HLQYHVWPHQW$FWFUHGLWWREDQNVZKRHGXFDWHEXWGRQRWXVHthat education to allow consumers to implement what they have learned.

GESolution 2

3URPRWHQDQFLDODQGHQWUHSUHQHXUVKLSHGXFDWLRQFRPELQHGZLWKEXVLQHVVLGHDFRPSHWLWLRQVDQGVWDUWXSIXQGLQJIRU\RXQJpeople.

6ROYLQJ WKH SUREOHP RI QDQFLDO OLWHUDF\ GHPDQGV ORRNLQJ PRUHEURDGO\DWEXVLQHVVOLWHUDF\)RUH[DPSOHWKH+RSH%XVLQHVVLQD%R[project encourages young people aged 8 to 18 to start small businesses, IXQGHGDQG LQLWLDWHGZLWKFDSLWDO OHYHOVEHWZHHQ86DQG86 ,W

45

Econom

y

5

is presently operational in more than 3,500 schools in South Africa and WKH8QLWHG6WDWHVZLWKVXFFHVVWUDFNHGE\WKH*DOOXS+23(LQGH[PHD-surement instrument. More details are at http://www.operationhope.org/business-in-a-box .

GESolution 3

'HYHORSPLQLPXPVWDQGDUGVIRUQDQFLDOHGXFDWLRQFRYHULQJVDYLQJVFUHGLWLQYHVWPHQWDQGQDQFLDOIUDXG

Financial education needs to be reinvented to incorporate broad train-LQJRQVDYLQJVFUHGLWLQYHVWPHQWDQGQDQFLDOIUDXG0LQLPXPVWDQGDUGVwill help to set basic expectations and provide a means for broad imple-PHQWDWLRQE\JRYHUQPHQWVHPSOR\HUVDQGQDQFLDOLQVWLWXWLRQV

GESolution 4

Adopt group counseling for social networks to improve credit scores.

Social networks play an important role in diffusing good practice. For H[DPSOH 3URMHFW +23( KWWSZZZRSHUDWLRQKRSHRUJ KDV GHYHORSHGWKH&UHGLW6FRUH&RPPXQLWLHVSURJUDPZKLFKDOORZVSDUWLFLSDQWVWRMRLQDFRPPXQLW\RIOLNHPLQGHGLQGLYLGXDOV7KH\WDNHSDUWLQRQHRQRQHand group credit counseling sessions to improve their credit scores by DSSO\LQJNQRZOHGJHJDLQHGIURPQDQFLDOHGXFDWLRQ

GESolution 5

0DNHYLVXDOL]DWLRQVFHQWUDOWRWKHDFTXLVLWLRQRIQDQFLDOOLWHUDF\

Reading materials whether online or in print can often be tedious. 3HRSOHW\SLFDOO\QGSLFWXUHVDQGYLGHRVPRUHFDSWLYDWLQJWKDQWH[WERRN

46


VW\OHWHDFKLQJ1HZDJHQDQFLDOOLWHUDF\SURJUDPVXVHYLGHRVDQGVWRU\telling to tell a more personalized story.

GESolution 6

8VHHGXFDWLRQDOJDPHVWRLPSDUWQDQFLDOHGXFDWLRQDQGQHWwork effects to spread the knowledge.

Games such as Countdown to Retirement, Financial Football, Financial 6RFFHU0RQH\0HWURSROLVDQG(GV%DQNDUHLQFUHDVLQJO\EHLQJXVHGWRWHDFKSHRSOHDERXWEDVLFQDQFLDOFRQFHSWV1HWZRUNHIIHFWVFDQVSUHDGWKLV QDQFLDO OLWHUDF\ VLQFH SHRSOH DUH XVXDOO\ LQXHQFHG E\ WKHLU SHHUJURXSV )LQDQFLDO OLWHUDF\PDWHULDOV DUH OLNHO\ WR KDYH D ODUJHU SRVLWLYHimpact when they are distributed to peer groups located closer together than more loosely connected peer groups.

GESolution 7

$GGDJRYHUQPHQWDSSURYHGVLPSOHSODLQYDQLOODSURGXFWIRUeach product category.

Financial product choices have proliferated, with complex options that very few nonprofessionals are capable of understanding, contributing to WKH FRVWO\ QDQFLDO PLVWDNHV WKDWPDQ\ FRQVXPHUV KDYHPDGH 2QHVLPSOHZD\RIUHGXFLQJWKHVHPLVWDNHVLVWRDOORZQDQFLDOVHUYLFHSURYLG-HUVWRRIIHUDSODLQYDQLOODRSWLRQIRUHDFKSURGXFWFDWHJRU\ZKLFKZRXOGbe extremely straightforward, easy to understand, and guaranteed by the JRYHUQPHQWWRFRQWDLQQRKDUPIXOFODXVHV

,ISURYLGHUVRIIHUHGVXFKDSURGXFW WKDWPHWJRYHUQPHQWVSHFLFDWLRQVit would be approved as an acceptable plain vanilla product that less NQRZOHGJHDEOHFRQVXPHUVFRXOGFKRRVHZLWKFRQGHQFH7KLVZRXOGQRWSUHFOXGHFRQVXPHUVZKRDUHPRUHNQRZOHGJHDEOHRUVRSKLVWLFDWHGIURPchoosing more complex products that better met their needs.

47

Econom

y

5

GESolution 8

Use smartphone technology to help consumers make better choices at point of sale.

Smartphones are powerful computers with visual recognition capac-ity, access to Internet data bases and instantaneous capability to utilize PRGHOV WRPDNH RSWLPDO GHFLVLRQV&RQVXPHUVZLWK VPDUWSKRQHVZKRhave been led to point of sale by agents for sellers can scan the product code with their smartphones which will access all relevant data bases concerning the legitimacy of the seller, the relative costs of the product, the products attributes and the match with the (preentered) needs of the consumer. Almost immediately, the consumer can be given a red light (stay away), a green light (product is acceptable) or a yellow light (con-VLGHUFDUHIXOO\DQGORRNDWRWKHUSURGXFWV

4XDOLFDWLRQV

The proposals above should be evaluated rigorously with control groups.

48


Panelists

John H. Bryant)RXQGHU&KDLUPDQDQG&(22SHUDWLRQ+23(,QF

Fabio Gallo Garcia3URIHVVRU6FKRRORI%XVLQHVV$GPLQLVWUDWLRQRI6mR3DXOR FGV Foundation

Dean S. Karlan3URIHVVRURI(FRQRPLFV

49

Econom

y

5

3FEFOJOH6OJWFSTJUJFT

51

Econom

y

6

Challenge

7KHUHDUHWZRELJWUHQGVLQKLJKHUHGXFDWLRQLQGLYLGXDOL]DWLRQDQG PDV-VLFDWLRQ7KHIRUPHULVLPSRUWDQWPDLQO\LQGHYHORSHGFRXQWULHVZKHUHDVWKH ODWWHU WDNHV SODFHVPDLQO\ LQ GHYHORSLQJ FRXQWULHV

52

6. 3FEFOJOH6OJWFSTJUJFT

WRUHGHQHZKDWFRQVWLWXWHVDXQLYHUVLW\)RUH[DPSOHLQ*HUPDQ\XQL-versities not run by the state have to verify that they are capable of pro-YLGLQJWHDFKLQJDQGUHVHDUFKWKDWPHHWFHUWDLQHVWDEOLVKHGVWDQGDUGV

53

Econom

y

6

LQJYHUVXVWKH OLEHUDODUWV IRUH[DPSOHDQGW\SHVRIVWXGHQWVZRUNLQJDGXOWV YHUVXV VFKRROOHDYHUV":KDW VXSSRUWPHFKDQLVPVGR VWXGHQWVQHHGWREHDEOHWRSXWWRJHWKHUVXLWDEOHPRGXOHVWRPDNHWKHLURZQFXV-tomized courses of learning, raise their employability and stay motivated RYHUWKHFRXUVHRIWKHLUVWXGLHV":KDWUROHFDQEHSOD\HGE\FRUSRUDWHpartners through mentoring, self-assessment systems or peer group sup-SRUW YLD VRFLDO QHWZRUNV" )XUWKHUPRUHZKDW LV WKH LPSDFW RQ OHDUQLQJRXWFRPHVRIRQOLQHDQGEOHQGHGOHDUQLQJRIIHULQJV"

GESolution 2

*RYHUQPHQWV KLJKHUHGXFDWLRQ LQVWLWXWLRQV DQG VFKRODUVKLSproviders need to experiment with new funding models for higher education to give access to quality education to stuGHQWVZKRFDQSD\OLWWOHRUQRWKLQJIRUH[DPSOHE\FKDUJLQJIRU FHUWLFDWLRQH[DPLQDWLRQSURFHVVLQJ OHDUQLQJVXSSRUWRUonline internships, rather than for content and its delivery.

What used to be expensive in higher education was content and deliv-HU\8VLQJWHFKQRORJ\DQGRSHQHGXFDWLRQDOUHVRXUFHVQRZPDNHVLWSRV-sible to deliver much content at very low cost or even free. This means that much of higher education can be scaled up to a far greater degree than before. An example of scaling higher education, while retaining small class sizes, is a tuition-free model in which there is no charge for tuition, DQGRQO\DQH[DPLQDWLRQSURFHVVLQJIHHDWWKHHQGRIHDFKFRXUVHRQHQRQSURWXQLYHUVLW\KDVDOUHDG\GHSOR\HGWKLVVWUXFWXUH

At present, classrooms tend to have teachers spending 80% of their time RQUHFLWLQJVWDQGDUGNQRZOHGJHDQGRQO\RQLQGLYLGXDOL]HGVXSSRUWIRUstudents. This proportion needs to be reversed, so that higher education can be scaled up cost-effectively and scarce resources used much better. In economic terms, this means that the value added of higher education DQGWKHFKDUJHVPD\PRYHIURPFRQWHQWDQGLWVGHOLYHU\WRFHUWLFDWLRQOHDUQLQJVXSSRUWRULQGLYLGXDOPDWFKLQJZLWKODERUPDUNHWGHPDQG7KHUH

54


LVJUHDWSRWHQWLDOIRULQQRYDWLYHPRGHOVWKDWPDNHKLJKHUHGXFDWLRQDYDLO-able to students who previously would never have been able to afford it.

0DQ\ 022&V PDVVLYH RSHQ RQOLQH FRXUVH DUH FXUUHQWO\ SURYLGHGFRPSOHWHO\IUHHZLWKWKHKRSHWKDWLWZLOOXOWLPDWHO\PDNHPRQH\IRUWKHinstitution by putting Silicon Valley companies in touch with the very top scorers in the end-of-course test.

7KHJOXWRI3K'VZKRDUHXQOLNHO\HYHUWRJHWWHQXUHFRXOGEHEHWWHUPRUHcost-effectively and more personally satisfying) employed as learning JXLGHVDORQJVLGHRQOLQHPRGXODUL]HGFRXUVHVUDWKHUWKDQQGLQJWKHP-VHOYHVUXQQLQJIURPLQVWLWXWLRQWRLQVWLWXWLRQGHOLYHULQJDQGPDUNLQJcourses.

Students already create a great deal of the value in traditional models of education, via peer support and classroom interaction. This could be made explicit, for example, by charging less or nothing for students who are valuable contributors in online discussion forums.

*RYHUQPHQWVFRPSDQLHVRUQRQSURWVFRXOGFRQVLGHUFRPPLWWLQJWREX\-LQJEORFNDFFHVVIRUODUJHJURXSVWRRQOLQHFRXUVHVWKDWUHDFKSUHGHQHGVWDQGDUGV RI TXDOLW\ DQG XVHIXOQHVV WKXV VSXUULQJ LQQRYDWLRQ 6LPLODUideas for vaccines and new treatments for diseases that predominantly affect people in poor countries have gained widespread support.) An edu-FDWLRQFUHGLWV\VWHPPXFKOLNHWKHFDUERQFUHGLWV\VWHPFRXOGEHFUHDWHGwhereby the governments will place greater, tradable value on online education resources, which because of few capacity constraints are not YDOXHG VXIFLHQWO\ DQG WKHUHIRUH QRWPDUNHWHGHIIHFWLYHO\%\ FUHDWLQJDUWLFLDOVFDUFLW\DQGWUDGDEOHYDOXHJOREDORQOLQHOHDUQLQJSODWIRUPVZLOObe more meaningful for students and for institutions.

Bridging the academia-industry gap at a massive scale could be achieved through online internships as not all students have the ability to get an internship opportunity and not all companies are willing to hire interns but the same companies may be willing to support online internship pro-grams.

55

Econom

y

6

But ways must be found to ensure that students who are paying nothing (the most that many of those wanting higher education can afford) still value their education and invest emotionally in it. There is a danger that IUHHFDQPHDQ ZRUWKOHVV ,W LVYLWDO WRHQVXUH WKDWVXFKVWXGHQWVVWLOOKDYHVNLQLQWKHJDPH

GESolution 3

*RYHUQPHQWV VKRXOG GHYHORS VWDQGDUGL]HG FHUWLFDWLRQ RIstudent learning outcomes at the individual course level, thus ensuring transferability and transparency of courses and modules on a global scale.

The obvious goal in timesRIJOREDOL]HGOHDUQLQJDQGZRUNLQJLVVWDFNup degrees, which allow students to collect credits from different insti-tutions and customize their own learning. Much accreditation is already FDUULHGRXWE\WKHODERUPDUNHWYDOXDEOHFRXUVHVDUHUHZDUGHGE\EHWWHUMREV2WKHUTXDOLFDWLRQVIRUH[DPSOHODZRUHQJLQHHULQJDUHFHUWLHGE\learned and professional societies. Much, perhaps most, third-level edu-FDWLRQ LV QRZXQGHUWDNHQ IRU SURIHVVLRQDO SXUSRVHVHLWKHU WREHFRPHPRUHHPSOR\DEOHRUWRJDLQWKHVNLOOVWRVHWXSLQEXVLQHVV&RQVHTXHQWO\DOOWKHVHDFWRUVPXVWSOD\DUROHLQPDNLQJVXUHWKDWVXLWDEOHPHWKRGVDUHIRXQGIRUDFFUHGLWLQJOHDUQLQJDQGHQVXULQJWKDWZKDWLVEHLQJDFFUHG-ited is actually valuable and transferable to other learning environments.

This implies a need for greater transparency both for students and employ-ers at the most modular level possible on learning aims, pass rates and potential destinations (progression to other courses, institutions or jobs). Such trustworthy ways for learners to signal learning outcomes at all lev-HOVZLOODOVRDYRLGZDVWHIXO FUHGHQWLDOLQJWDNLQJFRXUVHVVROHO\ WREHDEOHWRSURYHZKDWWKH\DOUHDG\NQRZDQGDWWKHVDPHWLPHHQVXUHWKDWHPSOR\DELOLW\VNLOOVDUHQRWGLVUHJDUGHG5HDFKLQJWKHVHJRDOVRIXQEXQ-dling education demands a joint effort to build up regional or international accreditation agencies.

56


GESolution 4

Refocus institutional accreditation on criteria that really matter: HIFLHQWTXDOLW\FRQWURODQGDSSURSULDWHOHDUQLQJRXWFRPHV

Governments have a strong lever in promoting change in higher edu-cation: they decide which institutions can award degrees. At present, DFFUHGLWDWLRQLVRIWHQIRFXVHGRQRXWPRGHGVLJQDOVRI LQVWLWXWLRQDOTXDO-LW\RRUDUHDQXPEHURIOLEUDU\ERRNVDQGWKHOLNH

There is no doubt that governments should set lower limits on what counts DV KLJKHU HGXFDWLRQQRW OHDVW WR SURWHFW VWXGHQWV IURP ZURQJ DQGXQSURWDEOHHGXFDWLRQDOLQYHVWPHQWV%XWWKHFRUHTXHVWLRQLQUHGHQLQJuniversities is whether a higher education institution serves the essential purpose of a university: that it follows a consistent educational strategy ZLWKFRKHUHQWFXUULFXODDQGDSSURSULDWHTXDOLW\DVVXUDQFHPHFKDQLVPVWRGHOLYHUVXFFHVVIXOSUHGHQHGOHDUQLQJRXWFRPHV$FFUHGLWDWLRQSURFH-GXUHVVKRXOGLQVLVWRQWKLVEDVLFDQGTXDOLW\GHQLQJFULWHULRQEXWGRQRmore than this.

GESolution 5

*RYHUQPHQWVVKRXOGVWLPXODWHLQVWLWXWLRQDOGLYHUVLW\DQGPDNHexcellence beyond research visible, for example, through multidimensional rankings.

The relevance and excellence of universities are not only determined by their research output: they have to be understood and assessed multi-GLPHQVLRQDOO\8QLYHUVLWLHVKDYHWRGHQHWKHLULQVWLWXWLRQDOSUROHVFOHDUO\to satisfy different needs. A university should be successful not only in research but also in regional development, teaching, continuing educa-WLRQDQGRUE\IRFXVLQJRQDYHU\VSHFLFWHDFKLQJPRGHRUWDUJHWJURXS

3ROLF\PDNHUVVKRXOGDSSUHFLDWHGLIIHUHQWNLQGVRIH[FHOOHQFHLQXQLYHU-VLWLHV2YHUFRPLQJ WKH GHHSURRWHG UHSXWDWLRQVHHNLQJ DFDGHPLF GULIW

57

Econom

y

6

WRZDUGVDUVWFODVVUHVHDUFKLQVWLWXWLRQXUJHQWO\UHTXLUHVVXLWDEOHLQFHQ-tive systems, for example, substantial initiatives in teaching or universityLQGXVWU\FRRSHUDWLRQDQGFRUUHVSRQGLQJO\H[LEOHIXQGLQJVFKHPHV

1RW WKH YHU\ OHDVW LQVWLWXWLRQDO GLYHUVLW\ FDQ EH VWLPXODWHG E\ PXOWLGL-PHQVLRQDOUDQNLQJVEDVHGRQGLYHUVHFULWHULDIRUH[DPSOHWHDFKLQJDQGOHDUQLQJUHVHDUFKNQRZOHGJHWUDQVIHULQWHUQDWLRQDORULHQWDWLRQUHJLRQDOHQJDJHPHQWVRFLDOUHVSRQVLELOLW\HWF7KLVNLQGRIKRUL]RQWDOGLIIHUHQWLD-WLRQPDNHVYDULRXVSUROHVYLVLEOHEXWVWLOODOORZVIRUYHUWLFDOSHUIRUPDQFHdifferentiation within a certain type of higher education institutions.

58


Panelists

Sandeep Aneja)RXQGHUDQG0DQDJLQJ'LUHFWRU.DL]HQ3ULYDWH(TXLW\

Jrg DrgerMember of the Executive Board, Bertelsmann Stiftung

Michael W. Kirst(PHULWXV3URIHVVRURI(GXFDWLRQDQG%XVLQHVV $GPLQLVWUDWLRQ6WDQIRUG8QLYHUVLW\

Shai Reshef3UHVLGHQW8QLYHUVLW\RIWKH3HRSOH

Moderator: Helen Joyce%XUHDX&KLHI7KH(FRQRPLVW1HZVSDSHU/LPLWHG 6mR3DXOR

Session Organizers

Ulrich Mller3URMHFW0DQDJHU&HQWUHIRU+LJKHU(GXFDWLRQRalph Mller-EiseltExecutive Assistant to the Board, Bertelsmann Stiftung

59

Econom

y

6

The Global Polity 116)DYHODV$*OREDO&KDOOHQJHDQG2SSRUWXQLW\ 2. Security in the Face of Globalization 124)RVWHULQJ2SHQ*RYHUQPHQW,QLWLDWLYHVLQ3XEOLF6HUYLFHV

The Global Economy 127KH)XWXUHRI&HQWUDO%DQNLQJ,QDWLRQ7DUJHWLQJYHUVXV)LQDQFLDO

Stability 14)LVFDO&RQVROLGDWLRQWKURXJK)LVFDO5XOHV" 2SWLPL]LQJ,QIRUPDWLRQ8VHWKURXJKWKH,QWHUQHWDQG6RFLDO0HGLD 4. Effective Investments in Education 325. Improving Financial Education and Literacy 425HGHQLQJ8QLYHUVLWLHV

The Global Society 60'HVLJQLQJ,QWHOOLJHQW/DERU0LJUDWLRQ3ROLFLHV 7DFNOLQJ,QHTXDOLW\RI2SSRUWXQLWLHV 0HQWDO7UDLQLQJWRZDUGVD&DULQJ(FRQRP\ 7DFNOLQJ

1. Designing Intelligent Labor Migration Policies

6363

Society

63

1

Challenge

While the world economy continues to become more global, international labor mobility remains severely restricted for all but those with rare or high VNLOOV0DQ\SHRSOHLQGHYHORSLQJFRXQWULHVZRXOGOLNHWRHPLJUDWHOHJDOO\WRZRUNDEURDGEXWWKH\GRQRWTXDOLI\IRUDGPLVVLRQWRGHVWLQDWLRQFRXQ-WULHV7KLV LVEHFDXVHSROLF\PDNHUV W\SLFDOO\ IRFXVRQ WKHQHWQDWLRQDOeconomic impact when considering reforms of their labor migration poli-cies and they naturally respond to public opinion about that impact.

64


&RXOGIRVWHULQJWHPSRUDU\RUFLUFXODUPLJUDWLRQKHOSUHDSWKHEHQHWVRIinternational labor mobility and, at the same time, alleviate opposition to PLJUDWLRQ LQ GHVWLQDWLRQ FRXQWULHV" &RXOG LQWHJUDWLRQ SROLFLHV VXFK DVlanguage courses, alleviate (perceived) negative effects of immigration RQQDWLYHVDQGWKXVFUHDWHVXSSRUWIRUOHVVUHVWULFWLYHPLJUDWLRQSROLFLHV"

&RXOGPRUHSXEOLFLQIRUPDWLRQRQWKHEHQHWVRILPPLJUDWLRQIRUPLJUDQWVthemselves (and for source and destination countries) pave the way for OHVV UHVWULFWLYH LPPLJUDWLRQ SROLFLHV" +RZ FRXOG D FRQVWUXFWLYH GHEDWHabout migration be initiated, one that balances the needs of both the VRXUFHDQGGHVWLQDWLRQFRXQWULHVDQGWKHGHVLUHVRIPLJUDQWV"$QGKRZcan national debates and migration policies become more sensitive to WKHQHJDWLYHFRQVHTXHQFHVRIEDUULHUV WR WKRVHZKRDUHGHWHUPLQHG WRPLJUDWH"

How could noneconomic barriers to mobility, such as xenophobia and DQWLLPPLJUDQWVHQWLPHQWEHRYHUFRPH"$QGZKDWQDUUDWLYHFDQEHEXLOWDQGZKDWNLQGRIDEDODQFHVKHHWXVHGWRFRQFHLYHDPLJUDWLRQSROLF\WKDWKDVWULSOHZLQRXWFRPHVIRUVRXUFHFRXQWULHVGHVWLQDWLRQFRXQWULHVDQGPLJUDQWV"

GESolution 1

Establish multientry sectoral work permits for labor migrants in destination countries.

Multientry work visas would allow for the departure and reentry of ZRUNHUVRYHUVHYHUDO\HDUVZLWKRXWWKHQHHGIRUUHDSSOLFDWLRQ7KLVZRXOGHQKDQFH ODERU PRELOLW\ E\ DOORZLQJ ZRUNHUV WR FLUFXODWH EHWZHHQ WKHLUVRXUFHDQGGHVWLQDWLRQFRXQWULHVLQSXUVXLWRIWKHEHVWZRUNRSSRUWXQLWLHV/DERUPLJUDQWVRIWHQJHWORFNHGLQWRDGHVWLQDWLRQFRXQWU\EHFDXVHWKH\GRQRWZDQWWRULVNORVLQJWKHLUZRUNDQGUHVLGHQFHSHUPLWV

(PSOR\HUVZRXOGDOVREHQHW IURP LQFUHDVHGFHUWDLQW\ZKHQSUHGLFWLQJtheir human resource needs, as well as decreased administrative bur-GHQV7KHZRUNSHUPLWVZRXOGQRWEHUHVWULFWHGWRRQHHPSOR\HUEXW WR

6565

Society

65

1

DOO HPSOR\HUVZLWKLQD VHFWRU IRU H[DPSOH DJULFXOWXUH WRXULVP VKLQJRUFRQVWUXFWLRQ WRHQVXUH WKDW ODERUPDUNHWQHHGVFRQWLQXH WREHPHWHVSHFLDOO\LQORZDQGPLGOHYHOVNLOOVHFWRUV6HFWRUDOZRUNSHUPLWVZRXOGalso help to protect migrants against exploitation because they would no longer be tied to a single employer.

,Q LQGXVWULHV ZLWK VHDVRQDO DQG F\FOLFDO XFWXDWLRQV LQ ODERU PDUNHWGHPDQGVXFKDVDJULFXOWXUHDQGFRQVWUXFWLRQWKLVH[LELOLW\ZRXOGDOVRDOORZZRUNHUVWRPRYHIURPRQHHPSOR\HUWRDQRWKHUGHSHQGLQJRQZKHQZRUNLVDYDLODEOHPD[LPL]LQJHDUQLQJVIRUZRUNHUVDQGGHFUHDVLQJWKHLUGRZQWLPH,IWKHUHZHUHFRQFHUQVWKDWPLJUDQWVPLJKWVWD\SHUPDQHQWO\in the destination country, limits could be placed on their ability to stay EH\RQGWKHSHULRGRIWLPHDOORWWHGLQWKHZRUNSHUPLWIRUH[DPSOHLQGL-YLGXDOZRUNHUVFRXOGEHJUDQWHGDRQHWLPHYH\HDUFXPXODWLYHZRUNpermit).

GESolution 2

&UHDWHDSLORWSURMHFWIRUJOREDOWUDLQLQJVFKRODUVKLSVPDWFKing employers in destination countries with trainees in source countries.

The pilot project would match employers, such as hospitals, in des-tination countries with trainees, such as nurses, in source countries. (PSOR\HUVZRXOGEHQHW IURPQGLQJVXLWDEOHHPSOR\HHVDQG ORZHULQJWKHLUWUDLQLQJFRVWVZKLOHZRUNHUVZRXOGEHQHWIURPPRUHZLGHO\DYDLO-able funding for vocational degrees or other training.

Internationally accredited programs for nurses in source countries and hospitals in destination countries could be matched. Wage differentials EHWZHHQWKHFRXQWULHVZRXOGPDNHLWSODXVLEOHWKDWWUDLQHHVIURPVXFKDSURJUDPFRXOGSD\EDFNWKHJUDQWWKDWWKHHPSOR\HUVDGYDQFHGWKHPWRfund their studies within one or two years.

66


Such a pilot project would not promote brain drain. Indeed, it would expand WKHEUDLQSRROE\DOORZLQJWUDLQHHVWRQDQFHWKHLUHGXFDWLRQVRPHWKLQJthey would have been unable to do in absence of the pilot project.

GESolution 3

Create a rigorous skills forecast for key talent hubs around the globe.

Too little is knownDERXWZKLFKVNLOOVVKRUWDJHVZLOOHPHUJHZKHQDQGZKHUH$QHDUO\ZDUQLQJV\VWHPVKRXOGEHGHYHORSHGWRGHWHFWVXFKVNLOOVVKRUWDJHVDQGH[WHQGWKHVNLOOVSLSHOLQH

GESolution 4

(VWDEOLVKFHUWLFDWLRQRIUHFUXLWLQJDJHQFLHVWRZHHGRXWODZless and unethical recruiting agencies.

Recruiting agencies are key players in moving brains and muscles DURXQGWKHJOREH

6767

Society

67

1

empowering countries with less experience in the battle for brains to com-SHWHIRULQWHUQDWLRQDOWDOHQWWKDWLVWRSDUWLFLSDWHLQWKHEUDLQJDPH

Background

Temporary migration programs

One of the criticisms of labor migration programs is that many of them IRFXVRQKLJKHUVNLOORFFXSDWLRQVRUWDOHQWPRELOLW\EXWODUJHO\RYHUORRNVKRUWDJHVLQORZHUVNLOOHGRFFXSDWLRQV7KHDVVXPSWLRQLVWKDWMREYDFDQ-FLHVUHTXLULQJORZHUOHYHOVRIIRUPDOHGXFDWLRQRURQWKHMREWUDLQLQJFDQEH UHDGLO\ OOHGE\ ORFDO UHVLGHQWVZKRVLPSO\QHHG WREHPRELOL]HGRUencouraged to accept the positions.

But this is not necessarily true as there are a multitude of factors that DIIHFWHYHU\MREVHHNHUVZLOOLQJQHVVWRDFFHSWORZHUVNLOOHGZRUNSDUWLFX-ODUO\LQ*FRXQWULHV,QGHHGWKHWHUPLQRORJ\RIORZVNLOOHGZRUNLWVHOIGHYDOXHVWKHFRQWULEXWLRQVPDGHE\ZRUNHUVLQWKHVHVHFWRUVDQGRFFXSD-WLRQVDQGWKHVNLOOVWKDWDUHUHTXLUHGWRZRUNHIIHFWLYHO\LQWKHP0DQ\RIWKHVNLOOVDUHE\QRPHDQVXQLYHUVDO LQFOXGLQJDWWHQWLRQWRGHWDLOFOLHQWservice, physical strength, and dexterity.

)XUWKHUPRUH WKHUH LV D SHUFHSWLRQ WKDW ORZHUVNLOOHG PLJUDQWV PLJKWbe a potential burden on the social programs of destination countries EHFDXVHLIWKH\EHFRPHXQHPSOR\HGGXHWROD\RIIVRUDEUHDNGRZQLQWKHHPSOR\HUHPSOR\HHUHODWLRQVKLSWKH\KDYHIHZHUQDQFLDOUHVRXUFHV

)RUWKHVHDQGRWKHUUHDVRQVZKHQFRQVLGHULQJORZHUVNLOOHGODERUPLJUD-WLRQWKHSUHIHUHQFHKDVWUDGLWLRQDOO\EHHQWRPDNHWKHVHSURJUDPVWHP-SRUDU\RUFLUFXODUDQGWRHQVXUHUHSDWULDWLRQRQFHWKHODERUPDUNHWQHHGis no longer apparent.

But certain sectors and occupations seem to have systemic labor mar-NHWVKRUWDJHVZKLFKFDOOVLQWRTXHVWLRQZKHWKHURUQRWWKHQHHGLVWUXO\WHPSRUDU\ LQ QDWXUH 7KHVH VKRUWDJHV DUH SDUWLFXODUO\ SURQRXQFHG LQVHDVRQDORFFXSDWLRQVVXFKDVDJULFXOWXUHWRXULVPDQGVKLQJEXWDOVR

68


in nonseasonal and cyclical sectors (such as construction) and sectors GRPLQDWHGE\ZRPHQVXFKDVGRPHVWLFZRUN

There are a number of reasons why the national labor force may not be able to meet labor demand in these sectors. These include low levels of unemployment, opportunities in higher-paying occupations, preferences IRUIXOOWLPH\HDUURXQGZRUNRYHUVHDVRQDOZRUNDQGRYHUVNLOOHGQDWLRQ-DOVZKRQRORQJHUZLVKWRZRUNLQORZHUVNLOOHGRFFXSDWLRQV

The result is a paradox where employers have cyclical or long-term labor PDUNHWQHHGVIRUORZHUVNLOOHGZRUNHUVEXWPLJUDQWZRUNHUVKDYHUHGXFHGaccess to permanency because current policies fail to recognize the sys-WHPLFQDWXUHRI WKHVH ODERUPDUNHW JDSV7KLV FDQ UHVXOW LQ D VLWXDWLRQZKHUHPLJUDQWVQG WKHPVHOYHV SHUPDQHQWO\ WHPSRUDU\ LQ WKHVHQVHWKDW WKH\ZRUN LQ WKH VDPHRFFXSDWLRQ VRPHWLPHV HYHQ IRU WKH VDPHemployer, year after year but without many of the rights afforded perma-nent labor migrants.

&ULWLFVRI WKHVHSURJUDPVDUJXH WKDW WKH\ LQFUHDVHZRUNHUYXOQHUDELOLW\to employment-related abuse and exploitation because there is usually QRULJKWRIUHWXUQRUVHQLRULW\ZKLFKPDNHVZRUNHUVPRUHGHSHQGHQWRQWKHLUHPSOR\HUV ,QDGGLWLRQDOWKRXJK WKHZRUNHUVDUHVHPLSHUPDQHQWPHPEHUVRI WKHKRVW FRPPXQLWLHV WKHLU WHPSRUDU\VWDWXVRIWHQPDNHVthem ineligible to participate in integration programs designed for perma-nent residents.

In the host countries, employers complain of the increased administra-WLYHEXUGHQDQGFRVWDVVRFLDWHGZLWKKDYLQJWRUHDSSO\IRUZRUNSHUPLWVIRU ZRUNHUV DQGRU GHPRQVWUDWH WKHLU QHHG IRU IRUHLJQ ODERU \HDU DIWHUyear. This may result in reduced capacity for human resource planning because the employers cannot rely on a continued relationship with their WUDLQHGDQGH[SHULHQFHGZRUNHUV

Global training scholarships

5LFKFRXQWULHV IDFLQJDVKRUWDJHRIVNLOOHGZRUNHUVVKRXOGSDUWQHUZLWKtechnical schools in neighboring developing countries to foster a mutually

6969

Society

69

1

EHQHFLDOH[FKDQJHRIVNLOOVDQGRSSRUWXQLWLHVDWQRFRVW WR WKHVRXUFHcountries.

,QWKHQDUUDWLYHRIEUDLQGUDLQULFKFRXQWULHVDUHVDLGWRUREWKHGHYHORS-LQJZRUOGRIWDOHQWWUDLQHGZLWKWKHLUOLPLWHGUHVRXUFHV3HUKDSVWKHPRVWZLGHO\GLVFXVVHGVNLOORZIURPSRRUWRULFKFRXQWULHVLVWKHPLJUDWLRQRIKHDOWKFDUHZRUNHUVZKRDUHLQKLJKGHPDQGDOORYHUWKHZRUOG0DODZLand other source countries invest in training nurses, many of whom then PLJUDWHWRWKH8QLWHG.LQJGRPDQGRWKHUGHVWLQDWLRQFRXQWULHV0DODZLLVseen to lose valuable human capital, receiving nothing in return.

This simple narrative does not capture the full effects of emigration on WKHVRXUFHFRXQWU\3URIHVVLRQDORSSRUWXQLWLHVIRUPLJUDQWVDUHYDOXDEOHand creating those opportunities is part of the reason for higher education HYHU\ZKHUH7KHRSSRUWXQLW\WRPLJUDWHUDLVHVWKHYDOXHRIVNLOOVUDLVLQJWKHGHPDQGIRUQXUVHWUDLQLQJ,QSULQFLSOH LI WKLVUHDFWLRQLVVXIFLHQWO\large, the number of professionals in the source country could rise, net of departures.

0DQ\PLJUDQW KHDOWKFDUHZRUNHUV UHWXUQ LGHDVPRQH\ DQG VHUYLFH WRWKHLUKRPHFRXQWULHV

70


)LQDOO\DQGSHUKDSVPRVWLPSRUWDQWIRUSROLF\PDNHUVLQVRXUFHFRXQWULHVWKHHPLJUDWLRQRIZRUNHUVZRXOGQRWFRVWWKHLUWD[SD\HUV7KHQDQFLQJFRVWVDUHDIUDFWLRQRIWKHYDOXHRIWKHZRUNHUDQGSURJUDPFRVWVZRXOGEHminimal in relation to the foreign aid budget. For example, it costs around 86WRWUDLQDQXUVHLQ0DODZLZKLOHWKHDYHUDJHVWDUWLQJVDODU\IRUDSURIHVVLRQDOQXUVHLQWKH8QLWHG.LQJGRPLV86SHU\HDU

It should be noted that this is not a proposal for ex-post compensation of WUDLQLQJFRVWVIRUSULRUHPLJUDQWVEXWIRUH[DQWHQDQFLQJRIHPLJUDQWVWUDLQLQJ([SRVWFRPSHQVDWLRQLVIUDXJKWZLWKGLIFXOWLHVLQFOXGLQJPRQ-LWRULQJWKHH[SHQGLWXUHRIWKHPRQH\DQGHVWLPDWLQJFRVWVRFFDVLRQHGE\WKRVHZKRPLJUDWHDIWHU\HDUVRIZRUN

6RPHH[LVWLQJSURJUDPVFRPHFORVHWRVXFKDQDQFLQJPRGHO$XV$,'WKH$XVWUDOLDQDLGDJHQF\SDUWQHUVZLWKWHFKQLFDOVFKRROVLQWKH3DFLFLVODQGV RI9DQXDWX DQG3DSXD1HZ*XLQHD WR WUDLQ VHPLVNLOOHGZRUN-HUV LQD UDQJHRIRFFXSDWLRQVUHTXLUHG LQ WKH3DFLF ,VODQGV)RUXPDJURXSRIFRXQWULHVWKDWLQFOXGHV$XVWUDOLDDQG1HZ=HDODQG7KH\SURYLGHscholarships and courses but use existing infrastructure in the source FRXQWU\VRWKHUHDUHQRODUJHXSIURQWFDSLWDOFRVWV

7KH -DSDQ,QGRQHVLD (FRQRPLF 3DUWQHUVKLS $JUHHPHQW -,(3$ KDVD VLPLODU VFKHPH IRU WUDLQLQJ QXUVHV IURP ,QGRQHVLD WRZRUN LQ -DSDQ1XUVHV IURP ,QGRQHVLD DUH JLYHQ WKUHH RU IRXU\HDU YLVDV WR ZRUN LQ-DSDQRQFRPSOHWLQJ-DSDQHVHODQJXDJHFRXUVHVDQGSDVVLQJFHUWLFD-tion exams. After signing the bilateral agreement in 2008, Japan aimed to recruit 400 nurses in two years.

%RWKWKHVHSURJUDPVDUHLQWKHLUHDUO\VWDJHVDQGKDYHUXQLQWRGLIFXO-WLHV6RIDUWKH$XVWUDOLD3DFLF7HFKQLFDO&ROOHJHKDVRQO\PDQDJHGWRSODFHDERXWRILWVJUDGXDWHVLQSRVLWLRQVDEURDG7KH-,(3$KDVDOVRfallen short of its recruitment targets due to logistical issues in implement-ing the new program. Judging from the early experiences, these initiatives UHTXLUHFRRUGLQDWLRQEHWZHHQPXOWLSOHDFWRUVZLWKLQWKHVWDWHWRVXFFHHG

7KHDLGDJHQF\PXVWUVWZRUNZLWKLPPLJUDWLRQWRHQVXUHWKDWJUDGX-DWHVTXDOLI\IRUHQWU\VHFRQGHQVXUHWKDWWKHWUDLQLQJOHDGVWRFHUWLFDWLRQ

7171

Society

71

1

that will be recognized widely; and third, align the scholarships with the UHFUXLWLQJ UHTXLUHPHQWVRI WKH LQGXVWU\)RUQRZDVD UHVXOWRI YLHZLQJPLJUDWLRQ KHDOWKFDUHZRUNHU VKRUWDJHV DQG GHYHORSPHQW DV VHSDUDWHLVVXHV SROLF\PDNHUV LQ WKH GHYHORSHG ZRUOG DUH PLVVLQJ WKLV JROGHQRSSRUWXQLW\IRUDWULSOHZLQ

This model can be adapted to partnerships between Europe and Africa, EHWZHHQWKH8QLWHG6WDWHVDQGWKH&DULEEHDQDQGEHWZHHQ-DSDQDQGWKH (DVW$VLD3DFLF UHJLRQ )RU H[DPSOH WKH (XURSHDQ &RPPLVVLRQestimates a shortage of roughly 500,000 nurses by the year 2020 to address the needs of an ageing population.

7KHKHDOWKFDUHQHHGVRI(XURSH1RUWK$PHULFDDQG-DSDQFDQQRWEHmet by local human resources alone. Bilateral agreements for ex-ante QDQFHRIWHFKQLFDOWUDLQLQJLQVRXUFHFRXQWULHVZRXOGEHDVWHSWRZDUGVaddressing this widening gap in a manner that shifts the balance sheet towards greater gains from migration for all parties.

Collaboration on talent mobility practices

At the core of good talent mobility practices is collaboration. Whether at the organizational level, within an industry or region or across multiple VWDNHKROGHUV ZRUOGZLGH FROODERUDWLRQ HQDEOHV VWDNHKROGHUV WR JUDSSOHHIIHFWLYHO\ZLWKWDOHQWPDUNHWFKDOOHQJHVVRDVWRHQKDQFHJURZWK,QGHHGFROOHFWLYHDFWLRQPD\EHWKHRQO\ZD\WRFKDQJHODERUPDUNHWRXWFRPHVVLJQLFDQWO\0RUHRYHUWKHEURDGHUWKHFROODERUDWLRQWKHJUHDWHULVOLNHO\to be its impact on global economic growth.

:KLOHWKHEHQHWVDUHFOHDUFROODERUDWLRQLWVHOILVFRPSOH[DQGGLIFXOWWRLPSOHPHQW&RQYLQFLQJVWDNHKROGHUVWRFRQVLGHUJRDOVJUHDWHUWKDQWKHLURZQ LPPHGLDWH RQHV WDNHV GLSORPDF\ DQG SHUVXDVLRQ &ULWLFDO WR VXF-FHVVLVWKHGHYHORSPHQWRIDFROODERUDWLYHPLQGVHWSUHSDUHGWRWKLQNEURDGO\ FRPIRUWDEOH ZLWK FRPSOH[LW\ DQG DEOH WR XQGHUVWDQG DQG QGFRPPRQJURXQGZLWKWKHJRDOVRIRWKHUVWDNHKROGHUV

With the right mindset in place, successful collaboration on talent mobility SUDFWLFHVDOVRUHTXLUHVEXLOGLQJVWUHQJWKDQGIDFLOLW\E\UVWGHYHORSLQJa clear, common understanding of the problem, as well as a fact-based

72


FDVHIRUPXOWLSOHVWDNHKROGHUFROODERUDWLRQVHFRQGHVWDEOLVKLQJDOLJQHGincentives for participation and

Documents

Global Economic Solutions