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	Table of Contents
p. 6 of 22 BACK | NEXT Preface Executive Summary I. Introduction II. Development of the Policy Paper III. Education and Poverty Reduction IV. The Changing Context V. Experience of the Asian Development Bank VI. Assistance Policies and Support for Education VII. Role of the Asian Development Bank VIII. Dimensions of the Education Policy IX. Education Policy Principles X. After the Policy Paper XI. Recommendation Appendixes

Policy on Education

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IV. The Changing Context

9. Rapid changes in the region require ADB to continuously adapt its role and policies. Demographic changes profoundly affect education. Rapid urbanization in recent decades has implications for the type of basic education required. The Asian crisis in 1997 demonstrated the vulnerability of social sector investments to macroeconomic disruptions. The growing proportion of the school-aged population in some countries increases the need for investment in basic education. In other countries, aging populations and increasing life expectancy suggest a greater need for worker retraining, skills upgrading, and lifelong or continuing education. Meanwhile, economic change requires more attention to investment in postbasic and higher education, as well as in skills development to support the transformation to a high-technology, service-oriented economy, where research and development, and knowledge management are industries in themselves.

10. Globalization presents a major challenge to which education systems and policies must respond to ensure that international standards are met. Increased competitiveness in marketing goods and services means that countries must enhance workforce productivity and improve overall efficiency; both are linked to investment in better education and training. The movement to a market economy in many countries of the region requires fundamental changes in the way economic growth is managed and promoted, including the need to retool and upgrade the skills of the workforce through better education and training. Increased demand for good governance is manifested in many countries as events and experience strengthen recognition that transparency and fairness are not simply abstract ideals, but forceful concepts whose absence in practice extracts high social and economic costs—ideals whose realization is closely associated with the availability of education. HIV/AIDS is increasingly posing a threat to the education system in the region, and if measures are not taken to increase awareness, may result in a reduction of the teaching workforce and a rise in the number of orphans. Each of these areas of change has implications for education and training: their content, how they are provided, and how they will be financed.

11. The obvious consequence of variety and rapid change is that any policy and strategy that seeks to guide ADB in maximizing the effectiveness of its investment in education must be inherently flexible. Flexibility must be the underlying principle upon which any policy is based. If ADB is to respond effectively to both the variety and pace of change within its region, both its policy and operational frameworks must be adaptable and flexible. Education is a moving target that evolves as old needs are met and new needs emerge. Education influences and is influenced by the context in which it is developed. This synergistic relationship implies that education must be in a constant state of change, as it responds to changing social and economic needs, and that education itself is a force for social and economic change as people become more empowered and more productive. A major challenge is to ensure that ADB can provide effective support to education in an ever-changing social and economic environment. Appendix 2 provides an overview of the status and issues of education development in the region.¹²

12. Much work remains to ensure that the enduring issues of equity, quality, efficiency, and finance are addressed in a way that provides a sustainable and flexible basis for the continuous evolution of education necessary to respond to ever-changing circumstances. Today’s education must prepare children for tomorrow’s challenges, but much of today’s teaching and learning are oriented to yesterday’s conditions. How can ADB support development of education that will ensure today’s children receive an education relevant to their future needs? Workers with many more years of productive life need to acquire new and better skills. How can ADB support training systems that will ensure adults acquire new skills and increase productivity?

13. What is the main education challenge confronting the region? The answer is simply put: to ensure that all people have the knowledge, skills, attitudes, and values necessary for continuing human and economic development. But to achieve this, education systems need to reach all people, especially girls, women, and the poor. Education systems need to provide the skills required for continuing economic development. They need to ensure sufficient quality to enable the full benefits of education to be realized. They need to ensure that education is provided in a sustainable, and thus cost-effective, manner. What is ADB’s role in helping meet this challenge? It is twofold: (i) to provide funds, ensuring that these are carefully targeted to achieve maximum impact on system development within an appropriate policy framework; and (ii) to provide policy and technical advice appropriate to the context of each country’s needs and aspirations, while supporting achievement of ADB’s own strategic objectives.

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