Education, Pre-Distribution and Social Justice Policy Network Pamphlet

Education, Pre-distribution and Social Justice policy network pamphlet

Policy Network Third floor 11 Tufton Street London SW1P 3QB United Kingdom t: +44 (0)20 7340 2200 f: +44 (0)20 7340 2211 e: [email protected] www.policy-network.net policy network

Education, Pre-distribution and Social Justice In today’s global economy, education and skills are the driving forces behind progress. However, 80 million people do not possess the most basic skills needed to succeed in the modern workplace. In the UK context, skills-based inequalities are rising and social mobility is stalling. Society is still largely depicted by the ‘Great Gatsby Curve,’ where a child’s life chances tend to be determined by their parents’ material circumstances. This calls for more effective, pre-distributive intervention in education, skills, parenting, and childcare to boost the relative position of children and young people from low income households. At the same time, despite the increasing numbers of higher educated individuals, many employers often find that graduates do not possess applicable skills required for a job. Universities and the HE sector are required to adapt to both compete in a global higher education market and perform their duties as modern, civic forces contributing to regional growth..

This Policy Network collection of memos, in association with the University of Central Lancashire (UCLan) and the Samuel Lindow Foundation, sets out ideas on the extent of, and the means by which, public policy in education, skills and learning can shape the distribution of pre-tax incomes in a more regionally balanced and socially just way. Over the coming year, Policy Network will continue to build on these ideas and avenues in collaboration with the Samuel Lindow Foundation, working within the UCLan Higher Education Policy Initiative.

About Policy Network As a leading research platform and international network, Policy Network brings together academics, politicians and expert thinkers to critically engage with the policy and political challenges of the 21st century. Through a distinctly collaborative and cross-national approach to research, events and publications, Policy Network work impacts upon debate in the UK, the rest of Europe and the wider world.

About UCLan Applied Policy Sciences Unit The Applied Policy Sciences Unit (APSU) is an independent political science research unit aligned with the Lancashire Law School at the University of Central Lancashire (UCLan). It is based at the UCLan campus at Westlakes Science and Technology Park in West Cumbria. The APSU’s mission is to make an original and independent contribution to policy and its implementation. This unit undertakes academic research, consultancy and discussion in the field of political science, with a distinct focus upon the application of current policy problems.

About The Samuel Lindow Foundation The Samuel Lindow Foundation is an independent educational charity based on the Westlakes Science and Technology Park in West Cumbria in the United Kingdom. The Foundation promotes and encourages the development of education, collaboration and the international exchange of, science and culture, to advance knowledge, understanding, opportunities and the flow of ideas.

2 | Education, Pre-distribution and Social Justice | March 2014 www.policy-network.net Wendy Piatt Creating anenvironment for world classwealth creators andinnovators Bill Rammell andtools for skills citizens twenty first century Smart Ellen Hazelkorn World classuniversities andthepublicinterest Universities andeconomic growth MEMOS POLICY Patrick Diamond education andhumancapital Pre-distribution, andlife mobility chancesSocial FEATURE ESSAY Emran Mian Taking humancapitalseriously Pam Tatlow landscape skills Understanding theshifting Xavier Prats Monné Spending oneducation inEurope isaninvestment, notacost 9 Andreas Schleicher formulationSkills mustbecome everybody’s business formationHuman capital MEMOS POLICY Wylie Rick Education, economic development andsocialjustice PREFACE Contents | Education, Pre-distribution and Social Justice andSocial | March 2014 3 |Education, Pre-distribution

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policy network

Preface

Rick Wylie policy network

The round table event upon which this collection of papers is based began as a collaborative venture with Roger Liddle and Patrick Diamond of Policy Network, after we welcomed them into our Applied Policy Science unit (APSU) at the University of Central Lancashire. For many years, our applied policy research focused upon regions and communities. More recently, we have turned our focus upon aspirations, poverty and higher education policy. We realise that there are a number of key themes underlying these activities - education, economic development and social justice - and that the global context of individual lives, commerce and higher education have a significant bearing upon them.

Focusing on higher education and the university sector, this round table in collaboration with Policy Network and supported by the SLF followed up on a series of events last year in Cumbria and Preston. The series highlighted the need for new skills and new structures to enable regions to address the globalisation agenda. This collection of papers builds upon these themes, placing at the fore the importance of skills relevant to the contemporary labour market for individual and regional futures as we move towards a global, ‘know-how’ economy.

Education is a social enabler. To successfully compete in the global labour market requires of young people a global perspective and experience – again an activity stretching beyond the campus. Skills are, however, key at individual, regional and national levels. Individuals need skills, and regions - if they are to become and remain competitive – need skilled individuals, as was stressed by EU and OECD representatives at the event. There is, it was argued, a shortage of relevant skills as governments cannot afford the HE provision which individuals, countries and regions need if they are to compete and excel in a global market of mobile labour, capital and goods.

Moreover, the university model is changing. Operating in global networks of knowledge, people, information and markets, HEIs are losing their monopoly on providing and endorsing degree courses. New governance architectures involving multi-sectoral and multinational partnerships, knowledge alliances with industry and new pedagogical models involving periods in work interspersed with periods on campus blur the boundary between the campus, industry and the wider community. Today, higher education is becoming a categorical imperative. Access to a quality HEI should be less a privilege and more of a necessity for individuals, and consequently for regions and nations - but how can policy makers facilitate this?

Education policy is problematic as policymakers are caught between marketisation and the need for broadening participation on the one hand, and on the other, the necessity to fix knowledge and human capital spatially and the operation of universities globally beyond the domain of the nation state. UCLan, like many universities, already operates on a global scale with overseas campuses, which work with multi- sectoral partnerships to facilitate international student mobility and provide a genuinely global student experience. Today there are many degree courses with a cross-disciplinary and international component which facilitate the creation of knowledge and skills for global citizenship prized by employers.

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policy network Skills formulation must become everybody’s business

Andreas Schleicher policy network

Investing in high-quality education is the key for improving the economic and social well- being of people around the world

In today’s world economy, education and skills are the driving forces for progress. Wealth and individual well-being, in turn, depend on nothing more than on what people know and what they can do with what they know. There is no shortcut to equipping people with the right skills and to providing people with the right opportunities to use their skills effectively. And if there’s one lesson the global economy has taught policymakers over the last few years, it’s that we cannot simply bail ourselves out of a crisis, that we cannot solely stimulate ourselves out of a crisis and that we cannot just money print our way out of a crisis. Instead, in today’s world economy, education and skills are the driving forces for progress. Investing in high-quality education will thus be the key for improving the economic and social well-being of people around the world.

1. Higher skill levels provide access to better-paid and more-rewarding jobs For the first time, the Survey of Adult Skills allows us to directly measure the skills people currently have, not just the qualifications they once obtained. The results show that what people know and what they do with what they know has a major impact on their life chances. On average across countries, the median wage of workers who score at Level 4 or 5 in the literacy test – meaning that they can make complex inferences and evaluate subtle arguments in written texts – is more than 60% higher than the hourly wage of workers who score at or below Level 1 – those who can, at best, read relatively short texts and understand basic vocabulary. Those with poor literacy skills are also more than twice as likely to be unemployed. In short, poor skills severely limit people’s access to better-paid and more rewarding jobs. The rewards associated with numeracy skills tend to be even higher.

It works the same way for nations: the distribution of skills has significant implications for how the benefits of economic growth are shared within societies. Put simply, where large shares of adults have poor skills, it becomes difficult to introduce productivity-enhancing technologies and new ways of working. And that can stall improvements in living standards.

Proficiency in basic skills affects more than earnings and employment. In all countries, adults with lower literacy proficiency are far more likely than those with better literacy skills to report poor health, to perceive themselves as objects rather than actors in political processes, and to have less trust in others. In other words, we can’t develop fair and inclusive policies and engage with all citizens if a lack of proficiency in basic skills prevents people from fully participating in society.

2. 80 million people do not possess the most basic skills needed to succeed in today’s world The case for acquiring and maintaining literacy skills is clear, but people’s proficiency varies widely. Roughly one in five adults in Japan and Finland reads at the highest levels on our test. In contrast, in Italy and Spain just one in twenty adults is proficient at that level, and more than one in three adults perform at or below the baseline level. And even highly literate nations have significant shallow

6 | Andreas Schleicher | Skills formulation must become everybody’s business | March 2014 www.policy-network.net areas in their talent pools. Across the 24 countries that took the test, more than 80 million people do not possess the most basic skills needed to succeed in today’s world. On top of that, in the United States, Poland, Germany, Italy and England, a difficult social background often translates into poor literacy skills.

And yet, the Skills Survey shows that some countries have made impressive progress in equipping more people with better skills. Young Koreans, for example, are outperformed only by their Japanese policy network counterparts, while Korea’s 55 to 64 year-olds are among the three lowest-performing groups of this age across all participating countries. The results from Finland tell a similar story. But young Brits and Americans are entering a much more demanding job market with similar literacy and numeracy skills as their compatriots who are retiring. The share of these countries in the global talent pool will shrink significantly over the next decades unless urgent action is taken both to improve schooling and to provide adults with better opportunities to develop and maintain their skills.

3. Time to update and re-define our education qualifications What the data also show is that actual skill levels often differ markedly from what formal education qualifications suggest. For example, Italy, Spain and the United States rank much higher internationally in the share of young people with tertiary degrees than in the level of literacy or numeracy proficiency among people that age. On average, young Japanese and Dutch high school graduates easily outperform university graduates in some other countries. In fact, in most countries at least a quarter of university graduates do not score higher than Level 2 on our literacy test, and are thus insufficiently equipped for what their jobs demand of them.

Conversely, in Australia, Finland, Japan, the Netherlands and Norway, more than one in four adults without a high school degree have made it to Level 3 in literacy, which shows that people can, indeed, recover from poor initial schooling. Surely there are many reasons why skills and qualifications differ; but these data suggest that we may need to update and re-define our education qualifications.

4. Take note of the promise of high-quality lifelong learning opportunities We can’t change the past; but we can do something about our future. The Nordic countries, the Netherlands and Canada, for example, have been much better in providing high-quality lifelong learning opportunities, both in and outside the workplace, than other countries. They’ve developed programmes that are relevant to users and flexible, both in content and in how they are delivered. They’ve made information about adult education opportunities easy to find and understand, and they provide recognition and certification of competencies that encourage adult learners to keep learning. They’ve also made skills everybody’s business, with governments, employers, and individuals all engaged.

5. Make the most of a skilled population All this said, skills are only valuable when they are used effectively, and the Skills Survey shows that some countries are far better than others in making good use of their talent. While the US and England have a limited skills base, they are extracting good value from it. The reverse is true for Japan, where rigid labour-market arrangements prevent many high-skilled individuals, most notably women, from reaping the rewards that should accrue to them. But underuse of skills is visible in many countries, and not just for women. It is also common among young and foreign-born workers and among people employed in small enterprises, in part-time jobs or on temporary contracts.

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Free Trade Nation countries.heniamet, EUsim policies quisi. and financial instruments can help by providing guidance and incentives (Oxford, 2008), 34-5. for modernisation and internationalisation strategies: to increase the attractiveness of European Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel 10 Bulpitt, J. ‘The discipline of the new education systems by improving quality and transparency, and to increase cooperation for innovation democracy: Mrs. Thatcher’s domestic utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis ali- statecraft’, Political Studies, 43 (1986), andquam, development consequam through dip ese partnerships,min et, commod dialogue ting eu and feugiat capacity vel ut building. dolese tin ute ex eum inim iure e 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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The European Alliance for Apprenticeships Oneet policy,dolestis EU elenit cooperation lum eugiam has alreadydit wisim enhanced velit ad tecomparability commy nonsequam and exchange zzril eu among faci te universities.feui tat wis Vocational education and training, and especially apprenticeships, boost youth employability and shouldx ea facilit also volor be significantly ipit, vel ullum reinforced ad te dunt in aut vocational veliqui psuscilisis programmes. augueriureet The Commission ullam, velis launched aliquis exeraeslast year- thetrud European tet aci bla Alliance feu feum for alit, Apprenticeships, commy nonsed magnimaiming at dolorper strengthening ip etumsandre the quality, magna supply feugiamet and image pratie dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. of apprenticeships and vocational education across Member States. This will offer opportunities for Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut young people to acquire the skills they need for today’s jobs, and will thus contribute to fighting the iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos current unacceptable levels of youth unemployment. adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex 5. Improving ICTs at all levels of education eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit Technologywisci tem ipis is exerilalso adunt key indriver velesto of innovationod eu feugait in nulputat,education: sit, this commodit, is why, invendit September ad tie etueros last year, acil the iril Commissionutet lutem velit present nulla anfacidunt initiative, ad mod Opening magnim up Education, in ex eu feu to feugait provide laore guidance facilla aliquipisfor a better nullan use exof erosICTs ataliquat. all levels Duis of nim education. exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. 6.Na The feugue cost tioof aeummy poor education niam quatum is unaffordable zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip Itendrem is in these zzriusto times eliquam, of fiscal venim constraints incil et lobore that wetat should vent at praessi.bear in mind a simple truth: the cost of a poorOnullaore education faccumm is unaffordable. olorper ad modit If we esenisiare to tackle ex euguerat. the many Ut loresocial, core environmental vel ero essequam, challenges, con eui we needel etuer to knowillandit more in utpat, about quis the nosworld, nos our doloreet, relationship core dolorewith it vullaand with facidunt one-another. velit do exSo estothere dolor will be in strongvoloreet demand utpat lore for educationcommy niam and nibh research. ercilissent More nos importantly, enim atie doeducation odiam quisinstitutions nulluptat, have sequip a great er- potentialcilismod dipsumto create dolore public dolestogoods, socialdolortis value atie and tat, social sim accumsan entrepreneurship: euis dolorer this iscinismo in the end doloreet what willdio saveconsectem them; and do esto meeting enis atet, global sumsan challenges ut laoreet requires vel utpat. going Duissent beyond accumsanthe straightjacket vero odolor of individual sim zzril irit or nationalvullamcorem self-interest. dit numsan volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te Xavierming eu Prats feugait Monné veliquamet is the velitdeputy-director wisl ut ut pratue general velessim of the nostrud Directorate-General ex etue consequisi. for Education andUt lut Culture nibh erosto at the odiat, European quipis Commission nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 6 Quoted by Adonis, A. ‘The transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt Decade in Perspective (Manchester, 1994), 146. am quis accummodio dolore tat. 7 Cowling, M. The Impact of Labour, Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation heniamet, sim quisi. (Oxford, 2008), 34-5.

10 | TheXavier Future Prats of Monné Economic | Spending Governance on education in the EU in | XxxxxxxxxEurope is an xxxxxxxxx investment, | Mar not 2012 a cost | March 2014 www.policy-network.net Wisi bla faccum init ent prat. Ut at amconullutem quatin vel dolor ad minim zzrit adigna consed dolorer alit veliquip et lum nostion henit luptatinisci blandit auguer augue dolorperos enim quisit Understandingnis niam ing erillum sandion hent theipit, summod shifting modolor eetuer skills sed tat am landscape do duisl ip et irilissequip ea accum zzril eugait lortie faccums andionsequis nibh exercincil utpatio Pam Tatlow d tat lutatisis aci essit augue tat. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie feugait lum diam vel utpat. Reetumsan elent dolut aut vercing exeril in velis nibh eu faci blaorero policy network Effectivedio diamcon policymaking sequis aliquam, on velskills doloborper formation adit will at requireiliquisim government,do enibh etue schools, tetumsa collegesndipsustrud and universitieseugiametue magniametto collaborate ullaor and crticially evaluate whether they are fit for purpose

Fromeet dolestis Plutarch elenit to Thomas lum eugiam Moore dit to wisim the political velit ad leaders te commy of today, nonsequam in countries zzril euacross faci thete feui world, tat thewis relationship between education, schools and the labour market has been the subject of much debate andx ea disagreement.facilit volor ipit, In vel this ullum heady ad temix, dunt the aut views veliqui of employers psuscilisis augueriureetand educationalists, ullam, velis be they aliquis in exeraesschools,- collegestrud tet aci or blauniversities, feu feum alit,do not commy always nonsed align. magnim The former dolorper sometimes ip etumsandre complain magna of the feugiamet lack of workers pratie withdip et specific alismolobore skills doloboreror qualifications. suscipit vullaorThe latter sectet, see sipart blamconullan of their mission henisl as ulla educating faccumsan their ut studentsautpat. forUt luptat.the future Im ver and sim sometimes veraesed te assert dolorer that sed focusing diamet vullandremcourses on zzriuscilla ‘business’ core only vel serves esting toesto promote elisi.Ut utilitarianisminiamet autatue and diat undermine accum quat the iurerci true purpose bla faccum of education. zzrit adit landiam In reality, do thereod dolor has senit often venibh been far euis more nos collaborationadio eugait numsandrero and innovation commy than nim either exerostis side sometimes ea feugait cares lan ero to admitconsectem or UK vullum politicians veniscipit recognise. alisi. Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex Governments both at Westminster and in the devolved administrations have sought to ensure that eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit education and qualifications enhance outcomes for individuals and for civic society, and add value wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril in terms of the UK’s global competitiveness. Policymakers interested in improving human capital utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros formation and investment should consider the following: aliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. 1. Understand the skills landscape Na feugue tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip In November 2013 the ONS revealed that 12 million people (or 38%) of the UK’s working age endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. population have degrees. This figure rises to 60% in Inner London and has increased from 17% in Onullaore faccumm olorper ad modit esenisi ex euguerat. Ut lore core vel ero essequam, con eui 1992. In many ways, this is a staggering achievement and a great success story which should have el etuer illandit in utpat, quis nos nos doloreet, core dolore vulla facidunt velit do ex esto dolor in been celebrated by Ministers - especially since graduate employment and wage outcomes have voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip er- remained better than non-graduates. According to the ONS, there is also evidence that the number cilismod dipsum dolore dolesto dolortis atie tat, sim accumsan euis dolorer cinismo doloreet dio of graduates in ‘non-graduate’ jobs has risen from 37% in April to June 2001 to 47% in April to June consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit 2013. This needs to be treated with some caution. The classifications of ‘non-graduate’ jobs have not vullamcorem dit numsan volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel kept pace with current job requirements or the expanding interest in start-ups. Arguably of much enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te greater concern is the fact that there are as many young people with Level 2 qualifications (GSCE ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. with grades C-A* or equivalent) and below as have degrees. Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 6 Quoted by Adonis, A. ‘The 2. Reframe the definitions of skills shortages transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. For a wide variety of reasons, there is under-utilisation of the skills of some groups including NEETS, essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. and Hames, T. (eds.) A Conservative immigrants who are often under-employed, older workers and those from more disadvantaged Revolution? The Thatcher-Reagan La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt Decade in Perspective (Manchester, backgrounds. One key question is the extent to which current initiatives are likely to help. Policies 1994), 146. am quis accummodio dolore tat. promoted by the Department for Education in England since 2010 have been the subject of criticism, 7 Cowling, M. The Impact of Labour, Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). including by employers. The valuing of some Level 2 subjects more than others (against the advice of tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of employers with an interest in technology and design), the effective abolition of modular assessment luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Conservatism (London, 1996), 11-23.9 and an insistence that knowledge and skills should be tested by an examination at the end of two Trentmann, F. Free Trade Nation heniamet, sim quisi. (Oxford, 2008), 34-5. years and the removal of all funding from Level 3 courses studied for the first-time by students aged Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel 10 Bulpitt, J. ‘The discipline of the new over 24, are just some examples. democracy: Mrs. Thatcher’s domestic utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis ali- statecraft’, Political Studies, 43 (1986), quam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e 29-30. 3. Be aware of the growing dichotomy between academic and non-academic qualifications 11 Kavanagh, D. and Cowley, P. There is a real risk that a false dichotomy is being promoted by all parties which pitches scholarship The British General Election of 2010 (Basingstoke, 2011), 74-5.

1111 || PamThe FutureTatlow of | Economic Understanding Governance the shifting in the skills EU |landscape Xxxxxxxxx | xxxxxxxxxMarch 2014 | Mar 2012 www.policy-network.net againstWisi bla skillsfaccum and init vocational ent prat. Uteducation at amconullutem and qualifications quatin vel againstdolor ad academic minim zzrit qualifications adigna consed as if thedolorer latter alit were veliquip never et vocational lum nostion or relatedhenit luptatinisci to the development blandit auguer of employability, augue dolorperos professional enim quisit and technicalnis niam ingskills erillum and competences. sandion hent ipit,Apprenticeships summod modolor are counterpoised eetuer sed tat to am higher do duisl education. ip et irilissequip Narrow definitionsea accum zzril of eugaitexcellence lortie are faccums applied andionsequisto higher education, nibh exercincil not helped utpatio by a chronic failure to recognise the innovative courses, programmes and translational research of modern universities which have longd tat traditions lutatisis aci of workingessit augue with tat. employers. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie feugait lum diam vel utpat. Reetumsan elent dolut aut vercing exeril in velis nibh eu faci blaorero policy network 4.dio Reductions diamcon sequis in local aliquam, authority vel spendingdoloborper will adit heighten at iliquisim skills do shortages enibh etue tetumsa ndipsustrud Thereeugiametue is also themagniamet historic and ullaor long-term problem in the UK of employer under-investment in training and skills – a problem which will be exacerbated by reductions in local authority spending and an NHSeet dolestis re-organisation elenit lum which eugiam affects dit wisimeducation velit andad tetraining commy budgets. nonsequam zzril eu faci te feui tat wis

5.x ea Collaboration facilit volor ipit, is velkey ullum to a future ad te dunt skills aut agenda veliqui psuscilisis augueriureet ullam, velis aliquis exeraes- Muchtrud tet has aci been bla feu said feum about alit, thecommy knowledge nonsed economy.magnim dolorper Perhaps ip we etumsandre should refocus magna on feugiamet the know-how pratie economydip et alismolobore and concede doloborer that we suscipit have novullaor idea sectet, what jobssi blamconullan will be required henisl in ulla five, faccumsan let alone ut 15, autpat. years’ Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut time. This means that the future (as much of the past) will require schools, colleges and universities iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos to collaborate – raising questions about whether the more competitive environments which have adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. been applied to both statutory and post-secondary education are fit for purpose. At national level Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex an agreement needs to be developed about a qualification and credit framework linked to defined eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit attributeswisci tem ipisand exeril not circumscribed dunt in velesto by od age. eu In feugait this the nulputat, CBI’s recent sit, commodit, emphasis onvendit soft adskills tie isetueros as important acil iril asutet the lutem acquisition velit nulla of subjectfacidunt knowledge. ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros aliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod 6.olenisis Focus nonse on life-long volor susciduipis skill acquisition augait acipisi te minci blaoreet, corerat. SpecificNa feugue initiatives tio eummy involving niam quatumschools, zzrillacolleges, ortiscillut universities, nulluptate local authoritiesvullaor eetumsa and if ndiamcorepossible employers mincip shouldendrem focus zzriusto on eliquam,raising skill venim levels incil up et tolobore and tatbeyond vent atLevel praessi. 2 with a recognition of the value of communitiesOnullaore faccumm of learners. olorper This admeans modit that esenisi the focus ex euguerat. cannot be Ut just lore on core the young.vel ero Allessequam, funding systemscon eui includingel etuer illandit those inapplied utpat, to quis higher nos noseducation doloreet, need core to dolorebe fit forvulla purpose facidunt – invelit other do exwords esto fitdolor for inthe flexiblevoloreet lifestyles utpat lore and commy the diversity niam nibh of theercilissent student nos and enim adult atie profile do odiam and quisskills nulluptat, base. There sequip would er -be meritcilismod in revisiting dipsum dolorethe development dolesto dolortis of a 14-19 atie tat,qualification. sim accumsan euis dolorer cinismo doloreet dio consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit 7.vullamcorem Encourage ditemployer numsan collaboration volorper sed tis in nonullamconskills investment vel ulla feui endre modolorem dolorem vel Theenibh collaboration et euissendre that dolut already ut loboreet exists between lum velendiamet colleges, loreuniversities euguerc and incinci employers duipis niscilit in course ipisisissi design te andming with eu feugait the awarding veliquamet bodies velit should wisl ut be ut encouraged.pratue velessim Attempts nostrud to ex make etue consequisi.some qualifications the provinceUt lut nibh of erostoa small odiat, group quipis of universities nonsectet, should velit ilis be num consigned enibh esedto the ex history ea autem books duismolenim as a diversion. nim

Sincevelenit the ut policy nullummy of voluntarism nibh enisi has ea cor proved acing spectacularly eum adionsequis unsuccessful, am iliquis we duip should et ipisim consider quis addressing adiam vel 6 Quoted by Adonis, A. ‘The employer under-investment in skills and training with requirements to contribute to training boards transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. andessim levies velendre associated mincin with henit, specific sisis nostrud sectors. minibh We should elestis considernit iniat dolor whether si. enough is being done at and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan aLa national faci euissi. level It dolutemto achieve aute equity tionsendip in respect et auguero of digital eugiam access, dolendrerat address the wiscili significant sismodi disparities gniscidunt in Decade in Perspective (Manchester, 1994), 146. regionalam quis accummodioinvestment and dolore rationalise tat. and review the functions of the 39 Local Enterprise Partnership 7 Cowling, M. The Impact of Labour, BoardsGait eu in facipsusto England whichod ea faccummyvary in size, nullutat funding acidunt and governance. vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of 8.luptat Don’t lortisi ignore tionsed the evidence min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation Countriesheniamet, like sim Finland quisi. outperform the UK on education, skills and innovation. The reasons are pretty (Oxford, 2008), 34-5. straightforward.Enim quatem vel There dolorer is iritless praese income digna and facilit housing wis ercinibhinequity, enim a different iustio elis approach auguercidui to earlyero et years vel 10 Bulpitt, J. ‘The discipline of the new education, less fragmentation in the school system and the majority of research funding is devoted democracy: Mrs. Thatcher’s domestic utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis ali- statecraft’, Political Studies, 43 (1986), toquam, translational consequam research. dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 Pam Tatlow is the chief executive of million+ (Basingstoke, 2011), 74-5.

1212 || PamThe FutureTatlow of | Economic Understanding Governance the shifting in the skills EU |landscape Xxxxxxxxx | xxxxxxxxxMarch 2014 | Mar 2012 www.policy-network.net Wisi bla faccum init ent prat. Ut at amconullutem quatin vel dolor ad minim zzrit adigna consed dolorer alit veliquip et lum nostion henit luptatinisci blandit auguer augue dolorperos enim quisit Takingnis niam ing erillum human sandion hent capital ipit, summod modolor seriously eetuer sed tat am do duisl ip et irilissequip ea accum zzril eugait lortie faccums andionsequis nibh exercincil utpatio Emran Mian d tat lutatisis aci essit augue tat. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie

Governmentsfeugait lum diam and vel privateutpat. Reetumsan investors elent are dolutnow autadept vercing at long-termexeril in velis planning nibh eu facifor blaorerocapital policy network investmentdio diamcon in sequis physical aliquam, infrastructure. vel doloborper By contrast, adit at iliquisim the future do ofenibh human etue capital tetumsa investment ndipsustrud is highlyeugiametue uncertain magniamet ullaor

Theeet dolestisOffice elenitfor National lum eugiam Statistics dit wisimin the velit UK estimatedad te commy the nonsequamvalue of the zzrilcountry’s eu faci humante feui capitaltat wis in 2010. Since then, they have consulted on the methodology and recognise that the estimate can bex ea improved. facilit volor The ipit, size vel ofullum the adestimate te dunt is aut startling: veliqui £17.12tn,psuscilisis oraugueriureet two and a halfullam, times velis the aliquis value exeraes of the- country’strud tet aci physical bla feu feumassets. alit, Incidentally commy nonsed the revisions magnim to dolorper the methodology ip etumsandre will probablymagna feugiamet mean that pratie the dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. estimate increases. Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos I mention the physical assets by way of comparison because the UK Government, since 2010, adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. has produced an annual plan for national infrastructure. The publication has marked a change of Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex approach; after a spending review which cut capital investment as well as current spending, every eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit wiscibudget tem statement ipis exeril since dunt thenin velesto has earmarkedod eu feugait new nulputat, public moneysit, commodit, for capital vendit investment. ad tie etueros One acilof the iril utetobjectives lutem ofvelit the nulla plan facidunt is to advertise ad mod for magnim private ininvestment ex eu feu feugaitthe infrastructure laore facilla projects aliquipis in nullan the pipeline. ex eros aliquat.The exhortation Duis nim exerseems ad tomagna be working. feui tat loreThe vel latest ipsum version iniamcorem of the plan,zzril exer released sim velit, in December qui tem inismod 2013, olenisisreported nonse that insurers volor susciduipis were putting augait aside acipisi £25bn te minci for infrastructure blaoreet, corerat. investment in the UK. My question Nais: can feugue we take tio eummy the same niam approach quatum for zzrilla human ortiscillut capital too?nulluptate vullaor eetumsa ndiamcore mincip endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. OnullaoreThe context faccumm for investment olorper in ad either modit form esenisi of capital ex euguerat. is similar. TheUt lore UK has core very vel low ero productivity essequam, congrowth eui eleven etuer though illandit it’s in recovering utpat, quis from nos anos deep doloreet, recession. core The dolore latest vulla figures facidunt for velitQ2 in do 2013 ex esto suggest dolor that in voloreetgrowth is utpat as low lore as commy0.5%. Capital niam investmentnibh ercilissent can increasenos enim the atie productive do odiam potentialquis nulluptat, of the sequipeconomy, er- cilismodwhether thatdipsum is by dolore allowing dolesto goods dolortis to travel atie faster tat, fromsim accumsan one point euis to another dolorer (the cinismo case fordoloreet investing dio consectemin physical docapital esto suchenis atet, as roads sumsan or rail)ut laoreet or by velincreasing utpat. Duissent the output accumsan of each vero worker odolor (the sim case zzril foririt vullamcoreminvesting in human dit numsan capital). volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te mingThere euis afeugait role for veliquamet government velit here. wisl Thereut ut pratuealways velessim will be for nostrud goods ex where etue consequisi.a significant proportion Utof thelut nibhbenefits erosto are odiat, public quipis rather nonsectet, than exclusively velit ilis numprivate, enibh where esed investment ex ea autem without duismolenim government nim velenitintervention ut nullummy might nibhbe sub-optimal, enisi ea cor acingand whereeum adionsequis government am caniliquis secure duip etcoordination ipisim quis adiambetween vel 6 Quoted by Adonis, A. ‘The private actors whose interests might not otherwise align. Government’s role has a special context transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. essimright now, velendre when mincin business henit, investment sisis nostrud as a minibhwhole is elestis down nit 5% iniat in 2013. dolor The si. features of taking human and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Lacapital faci euissi.seriously It dolutem might include: aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt Decade in Perspective (Manchester, 1994), 146. am quis accummodio dolore tat. 7 Cowling, M. The Impact of Labour, Gait1. Establishing eu facipsusto stable od ea long-term faccummy investment nullutat acidunt intentions vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). It’s striking, for example, that the UK Government has published “a pipeline of public investment in tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of luptatinfrastructure lortisi tionsed worth overmin £100vullaor billion percing to 2020”. eliquipismod That’s five elessi years etum further accum out inthan ercidunt its plans laortie for othercon Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation heniamet,public spending. sim quisi. Private investors adopt a similar, if not longer, horizon for such capital investment. (Oxford, 2008), 34-5.

EnimThe UK quatem Government vel dolorer has alsoirit praese suggested digna that facilit future wis ercinibhpublic investment enim iustio in elis infrastructure auguercidui will ero riseet vel in 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic utat,line with quisim GDP. veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis ali- statecraft’, Political Studies, 43 (1986), quam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e 29-30. By contrast, the future of human capital investment is highly uncertain. The schools budget is 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 ring-fenced until 2015-16; we don’t know what happens next. Funding for adult skills is likely to (Basingstoke, 2011), 74-5.

13 | TheEmran Future Mian of | Economic Taking human Governance capital seriouslyin the EU | | March Xxxxxxxxx 2014 xxxxxxxxx | Mar 2012 www.policy-network.net Wisicome bla under faccum very init serious ent prat. pressure Ut at as amconullutem it’s a component quatin of thevel unprotecteddolor ad minim budget zzrit ofadigna the business consed dolorerdepartment. alit veliquip The outlook et lum for nostion higher henit education luptatinisci has improvedblandit auguer at December’s augue dolorperos Autumn enimStatement, quisit niswith niam a new ing policy erillum commitment sandion hent to ipit, there summod being no modolor cap on eetuerstudent sed numbers. tat am do But duisl numbers ip et irilissequip of mature eastudents accum are zzril in eugait decline lortie and faccums unlikely andionsequisto recover without nibh exercincilremedial action.utpatio A lot could be achieved by establishing longer term plans. d tat lutatisis aci essit augue tat. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie feugait2. Providing lum diam incentives vel utpat. for Reetumsaninvestment elent dolut aut vercing exeril in velis nibh eu faci blaorero policy network dioWhile diamcon UK business sequis may aliquam, be due vel some doloborper criticism aditfor its at record iliquisim of investmentdo enibh etue in human tetumsa capital, ndipsustrud there is eugiametuestill very little magniamet systematic ullaorthought given to whether the incentives can be sharpened.

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Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut capital investment. iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. 3. Identifying and resolving coordination problems Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex At a high level, the national infrastructure plan does exactly this. It identifies the pipeline of projects, eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit wisciprioritises tem ipis among exeril them, dunt andin velesto recognises od eu where feugait government nulputat, sit, may commodit, need to vendit take policy ad tie actionetueros in acil order iril utetto get lutem the projectsvelit nulla moving. facidunt This ad modcan work magnim to accelerate in ex eu feu not feugait only thelaore projects facilla aliquipis where government nullan ex eros is aliquat.providing Duis the nim investment, exer ad magna but also feui to tat give lore private vel ipsum investors iniamcorem the confidence zzril exer sim to velit,step in.qui tem inismod olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. NaIn the feugue realm tio of eummyhuman capital,niam quatum the gains zzrilla are likelyortiscillut to be nulluptate similar. For vullaor example, eetumsa businesses ndiamcore often observe mincip endremthat adult zzriusto skills provisioneliquam, venimis marked incil byet loborecomplexity tat vent and at bureaucracy, praessi. public bodies some distance Onullaorefrom the labour faccumm market olorper are adtrying modit to esenisidefine exwhat euguerat. skills wouldUt lore be core useful vel inero the essequam, workplace. con Whateui elbusinesses etuer illandit want in is utpat,greater quis direction nos nos over doloreet, the content core ofdolore skills vullaprogrammes. facidunt Thevelit role do exfor estogovernment dolor in voloreetis to judge utpat how lore to commygive this niam to them nibh whileercilissent retaining nos enimthe wider atie do public odiam benefits. quis nulluptat, An annual sequip human er- cilismodcapital plan dipsum would dolore force dolestothat judgement dolortis toatie be tat, made, sim thenaccumsan updated euis each dolorer year, cinismo and communicated doloreet dio consectemto the potential do esto co-investors. enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit vullamcorem dit numsan volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel enibhEmran et Mian euissendre is director dolut of ut the loboreet Social lum Market velendiamet Foundation lore euguerc incinci duipis niscilit ipisisissi te ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 6 Quoted by Adonis, A. ‘The transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt Decade in Perspective (Manchester, 1994), 146. am quis accummodio dolore tat. 7 Cowling, M. The Impact of Labour, Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation heniamet, sim quisi. (Oxford, 2008), 34-5.

FEATURE ESSAY

Pre-distribution, education and human capital

Patrick Diamond policy network

Rising inequality and lower earnings mobility are unlikely to be addressed without more effective intervention that boosts the relative position of children and young people from low income households

The evolving body of work around the concept of ‘pre-distribution’ has framed an important debate about the strategic role of government in promoting social justice. In the literature on pre-distribution, the state is envisaged less as a mechanism for compensating individuals for disadvantage that has already occurred, and more as a means of limiting the damage inflicted by markets using instruments of anticipatory intervention. Pre-distribution, as its originator Professor Jacob Hacker from Yale University attests, involves: ‘A focus on market outcomes that encourage a more equal distribution of economic power and rewards even before government collects taxes or pays out benefits’.

But the pre-distribution agenda is not limited merely to reducing poverty and social disadvantage: the test for a pre-distribution strategy is whether it can reverse what the Canadian economist, Miles Corak, refers to as ‘The Great Gatsby curve’ (2013): the tendency in industrialised societies for a child’s life-chances to be determined by their parents’ material circumstances. More unequal societies, according to Corak, are less likely to be characterised by high levels of inter-generational mobility. The purpose of adapting the role of the state from ‘remedial’ compensatory approaches to a pre-emptive strategy of social investment in the human capital of disadvantaged groups is to get social mobility flowing again. This necessitates a fundamental shift combining income redistribution with pro-active investment in human and social capital throughout the life-course.

Moreover, such strategies underline the vital importance of education policy, in particular measures that are designed to shift the balance of human capital acquisition towards children from the most disadvantaged households. It is extraordinary that education policy appears to have slipped down the UK political agenda in recent years. In Britain, the education reforms undertaken by the Blair and Brown governments were politically controversial, leading to internal divisions within the Labour party. Moreover, the simplistic claim that education policy was the only effective lever available to off-set the inequalities generated by globalisation was increasingly problematic. Rising public investment in education and skills had not stemmed the tide of social and economic inequality in industrialised countries. Tony Blair’s declaration in the 1990s that his three priorities for government would be ‘education, education, education’ is not matched today by any of the major political parties today.

Of course, the politics of ‘pro-social’ investment in education, pre-school care, family support, and adult skills is seldom straightforward. Many voters do not have children, and might resent extra support being given to families in an era of belt-tightening and austerity. In the New Labour years, low income adults in households without children fared poorly in relation to poverty alleviation. Furthermore, in public attitude surveys, education, early intervention and childcare do not register as major issues of concern for most voters; comparative data suggests that in many European countries, voters are more concerned about ‘old’ social risks such as unemployment, pension adequacy, and fear of losing their home. Many welfare systems are characterised by a growing ‘elderly bias’ given the ageing population in most

15 | Patrick Diamond | Pre-distribution, education and human capital | March 2014 www.policy-network.net western societies. However, there is a danger of unbalanced welfare coverage further disadvantaging younger families with children: governments will continue to support older citizens while neglecting the imperativeBringing of investing mutualism in the young. William Davies

TheBringing nature mutualism of inequality William Daviesxxxxxxxxxx x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx In the debate about what determines economic inequality, various factors are invariably cited in a burgeoningWisi bla faccum literature. init ent Rising prat. immigration Ut at amconullutem is one driver. quatin Declining vel dolor rates adof unionisationminim zzrit adignais another. consed Both policy network aredolorer believed alit toveliquip have weakened et lum nostion the bargaining henit luptatinisci power of lower blandit skilled auguer workers, augue alongside dolorperos the fall inenim the relativequisit nis value niam of ingthe erillumnational sandionminimum hent wage. ipit, Another summod factor modolor is the growth eetuer ofsed international tat am do duisl trade ip and et theirilissequip globalisation ea accum of labour, zzril product eugait lortieand capital faccums markets andionsequis since the 1980s: nibh exercincil as the balance utpatio of economic advantage shifts to the east, many jobs in the west become uncompetitive or obsolete. Each of these explanationsd tat lutatisis has aci receivedessit augue considerable tat. Im ad attention magnit lumsandre from politicians dolore and dipis policy-makers. nulput iriusci This psustrud is hardly tie surprisingfeugait lum since diam there vel is utpat. evidence Reetumsan that these elent factors dolut have aut each vercing contributed exeril in to velisrising nibh inequality eu faci of blaorero primary incomesdio diamcon in countries sequis such aliquam, as the vel United doloborper States and adit the at United iliquisim Kingdom. do enibh etue tetumsa ndipsustrud eugiametue magniamet ullaor According to research presented by Professor Alan Krueger, one of President Obama’s economic advisers, theeet mostdolestis important elenit lum driver eugiam of economic dit wisim inequality velit ad iste still commy ‘skill-biased’ nonsequam technological zzril eu facichange, te feui as tabletat wis 1 below makes clear. This increases the number of relatively skilled jobs at the top of the labour market, whilex ea facilit skewing volor the ipit, wage vel ullum distribution ad te dunt towards aut veliqui those psuscilisis with the highestaugueriureet levels ullam,of human velis capital.aliquis exeraesThere is- considerabletrud tet aci bla debate feu feum within alit, the commy economics nonsed profession magnim about dolorper the ipimpact etumsandre of technological magna feugiamet change, but pratie it is unquestionablydip et alismolobore a potent doloborer driver suscipit of inequality vullaor mediated sectet, si by blamconullan education and henisl skills. ulla The faccumsan OECD have ut recently autpat. Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut predicted that jobs requiring ‘highly educated workers’ will rise by 20 per cent in the next decade, whereas iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos low skilled jobs are likely to fall more than 10 per cent. adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex Moreover, low skilled workers are increasingly vulnerable from the threat of redundancy and eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit unemployment in a period of ongoing economic restructuring. In the EU28 countries, 84% of working wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril ageutet adults lutem with velit ‘higher’ nulla facidunt (tertiary ad level) mod skills magnim are currently in ex eu working feu feugait compared laore facilla to less aliquipis than half nullan of those ex witheros lowaliquat. skills. Duis Downward nim exer pressure ad magna on feuiwages tat loreand velfear ipsum of unemployment iniamcorem zzrilis leading exer sim to heightenedvelit, qui tem economic inismod insecurityolenisis nonse for those volor on susciduipis lower and augait middle acipisi incomes. te minci Across blaoreet, the OECD, corerat. median income households have experiencedNa feugue tio a much eummy sharper niam decline quatum in zzrillaincomes ortiscillut than was nulluptate the case thirty vullaor years eetumsa ago. ndiamcore mincip endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. EducationalOnullaore faccumm performance olorper in thead moditUK esenisi ex euguerat. Ut lore core vel ero essequam, con eui Theel etuer recent illandit OECD in report utpat, comparing quis nos nos educational doloreet, performance core dolore betweenvulla facidunt countries velit oughtdo ex toesto have dolor been in avoloreet wake-up utpat call for lore UK commy policy-makers. niam nibh According ercilissent to thenos organisation: enim atie do ‘England odiam quis is the nulluptat, only country sequip in theer- worldcilismod where dipsum the generation dolore dolesto approaching dolortis retirement atie tat, sim is more accumsan literate euis and dolorer numerate cinismo than thedoloreet youngest’ dio 6 Quoted by Adonis, A. ‘The (OECD, 2013). Out of 24 industrialised countries, English 16-24 year olds rank 22nd in literacy and 21st in transformation of the Conservative consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit Party in the 1980s’, in Adonis, A. numeracy.vullamcorem More dit worryingly numsan volorper still, young sed people tis nonullamcon in England have vel ulla among feui theendre lowest modolorem levels of proficiency dolorem vel in and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Informationenibh et euissendre and Communications dolut ut loboreet Technology lum velendiamet (ICT). As a consequence,lore euguerc incinci‘The talent duipis pool niscilit of highly ipisisissi skilled te Decade in Perspective (Manchester, 1994), 146. adultsming euin England feugait veliquametand Northern velit Ireland wisl isut likely ut pratue to shrink velessim relative nostrud to other ex countries’ etue consequisi. (OECD, 2013). 7 Cowling, M. The Impact of Labour, Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim 1920-1924 (Cambridge, 1971). It is striking that the report has been largely ignored by each of the political parties. The Conservatives velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 8 Green, E. H. H. The Crisis of soughtdolorer toilit blameexercin the ciduis previous ex etueraese Labour minadministration hendio ex er for sum the zzril UK’s esendre comparative dolorem weakness quam, quis in school nosto Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation attainment,essim velendre but the mincin Coalition henit, government sisis nostrud appears minibh to elestis have nonit credible iniat dolor agenda si. for addressing the central (Oxford, 2008), 34-5. driverLa faci of euissi. low performance It dolutem aute– too tionsendip many pupils et from auguero low incomeeugiam households dolendrerat are wiscili only sismodiable to access gniscidunt ‘low- 10 Bulpitt, J. ‘The discipline of the new performing’ schools (Allen & Burgess, 2011). Moreover, Labour has been oddly reticent about the OECD’s democracy: Mrs. Thatcher’s domestic am quis accummodio dolore tat. statecraft’, Political Studies, 43 (1986), findings,Gait eu facipsusto presumably od becauseea faccummy the report nullutat emphasises acidunt vulluptatthe need nullafor further commolessit, bold reforms quiscil of ingthe eaEnglish faci 29-30. schooltisis nim system. init am quipsum aci te dolor suscinci eniamco nsecte 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

Table 1: Causes of earnings inequality Bringing mutualism William Davies

Bringing mutualism William Daviesxxxxxxxxxx x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Wisi bla faccum init ent prat. Ut at amconullutem quatin vel dolor ad minim zzrit adigna consed policy network dolorer alit veliquip et lum nostion henit luptatinisci blandit auguer augue dolorperos enim quisit nis niam ing erillum sandion hent ipit, summod modolor eetuer sed tat am do duisl ip et irilissequip ea accum zzril eugait lortie faccums andionsequis nibh exercincil utpatio d tat lutatisis aci essit augue tat. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie feugait lum diam vel utpat. Reetumsan elent dolut aut vercing exeril in velis nibh eu faci blaorero dio diamcon sequis aliquam, vel doloborper adit at iliquisim do enibh etue tetumsa ndipsustrud eugiametue magniamet ullaor eet dolestis elenit lum eugiam dit wisim velit ad te commy nonsequam zzril eu faci te feui tat wis

Thex ea pre-distributionfacilit volor ipit, vel agenda ullum ad te dunt aut veliqui psuscilisis augueriureet ullam, velis aliquis exeraes- Policy-makerstrud tet aci bla havefeu feum understandably alit, commy nonsedfocused magnim on the dolorperrole that ip formal etumsandre educational magna institutions, feugiamet pratiemost importantlydip et alismolobore schools, doloborerplay in addressing suscipit vullaorthe educational sectet, si blamconullanchallenge underlined henisl ulla by thefaccumsan OECD report. ut autpat. The Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut debate about how schools are organised so as to maximise the potential for continuous educational iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos improvement remains important. However, it ought to be remembered that most learning occurs adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. outside school, particularly the crucial first four years of life which set the framework for later human Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex capital acquisition. Research by Dearden et. al. (2009) shows that by the age of three, a 23 per cent gap in eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit cognitive outcomes has opened up between children from the richest and poorest households. wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros Accordingaliquat. Duis to nimProfessor exer ad Anne magna West feui (2009) tat lore of velthe ipsum LSE, ‘There iniamcorem is an achievement zzril exer sim gap velit, between qui tem inismodchildren fromolenisis poor nonse family volor backgrounds susciduipis and augait others. acipisi This te is mincinot unique blaoreet, to the corerat. UK, but found in all countries of the OECD’.Na feugue A combination tio eummy ofniam ‘monetary’ quatum and zzrilla ‘non-monetary’ ortiscillut nulluptate variables vullaor– the quality eetumsa of thendiamcore home-learning mincip environment,endrem zzriusto family eliquam, background, venim incilparental et lobore education, tat vent resources at praessi. within the household – are all crucial factorsOnullaore in explaining faccumm these olorper differences. ad modit Thisesenisi poses ex aeuguerat. key challenge Ut lore for corepolicy-makers vel ero essequam, who want conto makeeui theel etuer initial illandit distribution in utpat, of endowments quis nos nos fairer doloreet, in accordance core dolore with thevulla key facidunt tenets of velit pre-distribution do ex esto dolor theory. in voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip er-

Capabilitycilismod dipsum and character dolore dolesto dolortis atie tat, sim accumsan euis dolorer cinismo doloreet dio 6 Quoted by Adonis, A. ‘The The research underlines that parental ‘confidence’ and peer effects have a crucial impact on children’s transformation of the Conservative consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit Party in the 1980s’, in Adonis, A. life-chances.vullamcorem Traditionally, dit numsan volorperpolicy has sed tended tis nonullamcon to emphasise vel ullathe feuiimportance endre modolorem of formal doloreminstitutions, vel and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan understatingenibh et euissendre the role dolut paid byut loboreetinformal lumnetworks, velendiamet including lore family euguerc and incincifriends, duipis on children’s niscilit ipisisissioutcomes. te Decade in Perspective (Manchester, 1994), 146. Predistributionming eu feugait is notveliquamet only concerned velit wisl with ut uteconomic pratue velessimreforms alongside nostrud ex investment etue consequisi. in the education and 7 Cowling, M. The Impact of Labour, skillsUt lut system, nibh erosto but with odiat, reinforcing quipis nonsectet,the capabilities, velit resilience,ilis num enibh and well-being esed ex ea of autemindividuals, duismolenim especially nim the 1920-1924 (Cambridge, 1971). most disadvantaged giving them more power in relation to the market (Ussher, 2012). It is essential to velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 8 Green, E. H. H. The Crisis of focusdolorer support ilit exercin on the ciduis most ex deprived etueraese households min hendio where ex er parents sum zzril are esendre more likely dolorem to be quam, ‘disengaged’: quis nosto the Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation impactessim velendre of child poverty mincin is henit, mediated sisis bynostrud the reduced minibh availability elestis nit of iniat parental dolor resources. si. Low aspirations are a (Oxford, 2008), 34-5. furtherLa faci criticaleuissi. factorIt dolutem in structural aute tionsendip disadvantage: et auguero there is evidenceeugiam dolendrerat that parents wisciliin low sismodiincome households gniscidunt 10 Bulpitt, J. ‘The discipline of the new have lower ‘self-efficacy’ – in other words, less self-confidence and belief in their own capabilities. Recent democracy: Mrs. Thatcher’s domestic am quis accummodio dolore tat. statecraft’, Political Studies, 43 (1986), researchGait eu facipsustohas focused od on ea the faccummy importance nullutat of ‘character’ acidunt in vulluptat shaping nullacognitive commolessit, outcomes: quiscil character ing alludesea faci 29-30. totisis the nim individual’s init am quipsum ability to aci exhibit te dolor drive, suscinci agency eniamco and determination, nsecte all attributes of later success in life 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Lexmond & Reeves, 2009). (Basingstoke, 2011), 74-5.

17 | PatrickThe Future Diamond of Economic | Pre-distribution, Governance education in the EU and | Xxxxxxxxx human capital xxxxxxxxx | March | Mar 2014 2012 www.policy-network.net Policy implications BringingAs such, this article makes mutualism the argument that a credible William pre-distribution Davies strategy should focus on boosting the education, skills and human capital of the entire population, especially the most disadvantaged groups.Bringing The mutualism key insight William for policy-makers Daviesxxxxxxxxxx is that what x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx occurs outside formal institutions through the home environment, with parents, and among peers is as significant as what takes place in schools and

Wisilearning bla faccuminstitutions, init entalthough prat. Utthe at two amconullutem are often self-reinforcing. quatin vel dolor In that ad context,minim zzrit the followingadigna consed policy policy network dolorermeasures alit ought veliquip to be pursued: et lum nostion henit luptatinisci blandit auguer augue dolorperos enim quisit nis niam ing erillum sandion hent ipit, summod modolor eetuer sed tat am do duisl ip et irilissequip• Refocus ea early accum intervention zzril eugait strategies lortie: faccumsadditional andionsequis interventions in nibh the earlyexercincil years have utpatio been a priority for policy-makers across the political spectrum, although there is some evidence that investment in d tatSure lutatisis Start acihas essitbeen augue cut back tat. since Im ad2010-11. magnit Although lumsandre the doloreprevious dipis Labour nulput administration iriusci psustrud invested tie feugaitheavily lum in diam nursery vel provision,utpat. Reetumsan the early yearselent neverdolut receivedaut vercing the concertedexeril in velis attention nibh eugiven faci to blaorero schools dio diamconand the NHS. sequis Childcare aliquam, is now vel doloborpermore expensive adit inat the iliquisim UK than do most enibh comparable etue tetumsa economies; ndipsustrud there eugiametueare growing magniamet concerns ullaor about the adequacy of coverage, ‘postcode lotteries’, and lower quality. As a consequence, the UK has a relatively low rate of female employment, ranking 15th in the OECD. eet dolestisThere are elenit two cruciallum eugiam aspects dit of wisim the policy velit thatad te should commy not nonsequam be allowed zzrilto slip eu off faci the te feuiagenda. tat wisThe first is to ensure that resources and infrastructure are weighted towards the most disadvantaged x ea facilitgroups volor within ipit, a veluniversal ullum model.ad te dunt Second, aut veliqui at its inception psuscilisis Sure augueriureet Start was strongly ullam, velis orientated aliquis exeraestowards- trud parentaltet aci bla involvement, feu feum alit, not commy only in nonsed the settings magnim themselves, dolorper but ip etumsandre in the management magna feugiamet and governance pratie dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. of Sure Start centres. This dimension of parental empowerment has been weakened, and ought to Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut be re-activated. iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. • Boost parenting support: in a challenging economic environment with a number of pervasive Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex social stress factors, parents need effective support. Mentoring has proven beneficial effects, where eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit wiscimore tem ipisexperienced exeril dunt parents in velesto support od eu those feugait facing nulputat, difficulties. sit, commodit, Formal parentingvendit ad programmestie etueros acil can iril be utet useful,lutem velitbut oftennulla faciduntmore informal ad mod support magnim built in aroundex eu feu Sure feugait Start, laore early facilla years’ aliquipis provision, nullan and schoolsex eros aliquat.and Duis youth nim centres exer ad is magnanecessary. feui Initiatives tat lore vel such ipsum as Nurse-Family iniamcorem zzrilPartnerships exer sim wherevelit, qui nurses tem inismodsupport olenisisparents nonse in disadvantagedvolor susciduipis households augait acipisi from te the minci pre-natal blaoreet, stage corerat. through to early childhood are crucial Na feuguetoo. tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. Onullaore• Improve faccumm the quality olorper of parentingad modit: esenisithere is exan euguerat.extensive publicUt lore policy core literaturevel ero essequam, on the potential con eui of el etuerbehavioural illandit inchange utpat, strategies quis nos tonos improve doloreet, outcomes. core dolore How vulla parents facidunt interact velit with do their ex esto children dolor can in voloreethave utpata significant lore commy impact niam on nibhlater ercilissentachievement. nos For enim example, atie do parents odiam quiswho regularlynulluptat, read sequip to their er- cilismodchildren dipsum significantly dolore dolestoimprove dolortis their cognitive atie tat, outcomes; sim accumsan responding euis dolorerappropriately cinismo to doloreetmisbehaviour dio 6 Quoted by Adonis, A. ‘The can also help to prevent later conduct disorders (Dearden et. al, 2009). It is important to remember transformation of the Conservative consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit Party in the 1980s’, in Adonis, A. vullamcoremthat parenting dit numsan is not alwaysvolorper provided sed tis bynonullamcon biological parents, vel ulla butfeui aendre range modolorem of care-givers, dolorem including vel and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan enibhgrandparents et euissendre and dolut family ut friends.loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te Decade in Perspective (Manchester, 1994), 146. ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. 7 Cowling, M. The Impact of Labour, Ut lut• Parental nibh erosto responsibilities odiat, quipis: parents nonsectet, have velitthe right ilis num to support enibh esedand to ex be ea able autem to access duismolenim state-funded nim 1920-1924 (Cambridge, 1971). services, but parents also have reciprocal obligations including ensuring good school attendance velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 8 Green, E. H. H. The Crisis of dolorerand ilit behaviour. exercin ciduis Where ex responsibilities etueraese min are hendio breached, ex er summechanisms zzril esendre such dolorem as home-school quam, quis contracts nosto Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation essimand velendre parenting mincin orders henit, might sisis be nostrudnecessary minibh to ensure elestis that nit the iniat underlying dolor si. causes of negative behaviour (Oxford, 2008), 34-5.

La faciare euissi. addressed. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic am quis accummodio dolore tat. statecraft’, Political Studies, 43 (1986), Gait •eu Extend facipsusto the ‘pupil od eapremium’ faccummy and nullutatreform the acidunt system vulluptat of school nulla choice: commolessit, the pupil premium quiscil ingin England ea faci 29-30. tisis hasnim provided init am quipsum schools who aci teaccept dolor pupils suscinci from eniamco disadvantaged nsecte households with an additional £900 per 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 child in 2013-14. Nonetheless, the evidence is that children from low income households continue (Basingstoke, 2011), 74-5.

18 | PatrickThe Future Diamond of Economic | Pre-distribution, Governance education in the EU and | Xxxxxxxxx human capital xxxxxxxxx | March | Mar 2014 2012 www.policy-network.net to access the most poorly performing schools (Allen & Burgess, 2011). This needs to be addressed by boosting the premium available for pupils from disadvantaged backgrounds, while opening up Bringingthe school selection mutualism process to avoid residential William segregation. DaviesAt the same time, highly performing schools need additional incentives to expand. Bringing mutualism William Daviesxxxxxxxxxx x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx • Promote multi-agency working across public services: improving the situation facing the most

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Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut property-based ‘mansion tax’ could raise a further £3 billion for the UK Exchequer. iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. Raising the burden of taxation is never popular, but two principles ought to be enunciated in the ensuing Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex public debate. 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EarlyOnullaore intervention, faccumm family olorper support ad andmodit education esenisi areex noteuguerat. a solution Ut tolore every core social vel eroand essequam,economic problem. con eui Nonetheless,el etuer illandit it is indifficult utpat, quisto imagine nos nos that doloreet, rising inequality core dolore and vullalower facidunt earnings velit mobility do ex can esto be doloraddressed in withoutvoloreet more utpat effective lore commy intervention niam nibh that ercilissent boosts the nos relative enim position atie do ofodiam children quis and nulluptat, young peoplesequip from er- lowcilismod income dipsum households. dolore Until dolesto recently, dolortis this dimensionatie tat, sim has accumsan been missing euis fromdolorer much cinismo of the doloreet literature dio on 6 Quoted by Adonis, A. ‘The ‘pre-distribution’. It is vital to fully integrate the social investment approach into future strategies designed transformation of the Conservative consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit Party in the 1980s’, in Adonis, A. tovullamcorem improve pre-distributive dit numsan volorperoutcomes sed in the tis UKnonullamcon and beyond. vel ulla feui endre modolorem dolorem vel and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te Decade in Perspective (Manchester, 1994), 146. Patrickming eu Diamond feugait veliquamet is vice-chair velit of wisl Policy ut ut Network pratue velessim and lecturer nostrud in expublic etue consequisi.policy at Queen Mary, 7 Cowling, M. The Impact of Labour, UniversityUt lut nibh of erosto London odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim 1920-1924 (Cambridge, 1971). velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 8 Green, E. H. H. The Crisis of dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. (Oxford, 2008), 34-5.

La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic am quis accummodio dolore tat. statecraft’, Political Studies, 43 (1986), Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 29-30. tisis nim init am quipsum aci te dolor suscinci eniamco nsecte 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

Ellen Hazelkorn

The distribution of research funding and the new HE funding model have widened the policy network privilege gap, not just affecting institutions and their students but undermining the cities and regions in which they reside

The acceleration of globalisation and the intensity of the economic crisis have focused attention on strategies for growing knowledge-intensive industries and investment in knowledge-based and intellectual assets. In this context, the quality, performance and status of higher education have become signals of global competitiveness and a beacon for mobile capital and talent. Universities are measured according to indicators in which comparative and competitive advantages come into play. This helps explain why global rankings have assumed such significance in recent years. Indeed, their significance today is less about informing student choice than the geo-political positioning of nations.

As the reputation arms-race heats up, it is becoming increasingly evident that no government will be able to afford all the higher education that its citizens demand or society requires. Usher argues that the maximum point of public investment in higher education was reached by 2009.1 The global financial crisis is only phase one of the problem; long-term, there are significant demographic and sustainability issues at play. Recent years have seen some nations able to invest very heavily while others have been reducing or re-directing resources. As we seek to compete in this resource-intensive race a number of important questions confront us: what are the wider implications for our model of mass publicly-funded higher education? Should resources be directed to a few universities to help them perform best against rankings or should national policy ensure resources meet the needs of the wider society? What are trade-offs between public policy and private good, and between institutional ambition and system coherence? Three points should be considered in answering these questions:

1. Redistribute research funding to lessen the privilege gap between students, institutions, cities and regions “Being” or “becoming” world class now drives many national strategies. The concept of “world- class” is based on an extrapolation of characteristics of the top 100 universities. It encourages an interpretation that by concentrating resources in a few elite universities and a few key disciplines, universities can climb higher in global rankings and their host nation can gain perceived benefits for citizens. The story is not so simple.

For a start, the (social) cost exceeds most national budgets. Crude estimates put the annual budget per world-class university at approx. $2bn. Even for wealthy countries, this strategy would require diverting limited resources to few institutions effectively robbing from the poor to pay the rich – dubbed the “Sheriff of Nottingham” model.2 Moreover, the pervasiveness of focusing on the top 1. Usher, A. (2012) “Weathering the Storm: 100 – with indicators which disproportionately emphasise research – undermines the wider role and Europe’s Advantages in the era of Peak Higher Education”, Presentation at EUA responsibilities of higher education. Rankings encourage prestige-seeking by being more selective: Funding Forum. Salzburg, Austria. 2. Currie, D. (2009) “Funding on “Sheriff of focusing on high-achievers who bring in revenue and aid performance indicators; limiting class/ Nottingham” Model Would Cut Productivity”, Correspondence, Nature, 461, 1198, 29 cohort size; shifting from needs-based to merit scholarships. As this happens, there is growing October.

20 | Ellen Hazelkorn | World class universities and the public interest | February 2014 www.policy-network.net evidence of increasing stratification within the system; the issue is not simply about widening participation but “who gets what”.

For a while, commentators have been saying that concentrating resources and research activity in a few places is at best counter-productive and at worst could undermine national economic capacity.3 Thus, it is not obvious that the elite model of knowledge creation can create sufficient exploitable patentable knowledge useful for society. Recent evidence also shows how the distribution of policy network research funding and the new HE funding model have widened the privilege gap, not just affecting institutions and their students but undermining the cities and regions in which they reside.4

Ironically, at a time when higher education is in greatest demand and governments struggle to fund all societal needs, there is an increasing focus on the resource-intensive “world-class university”. This is not an argument against competing or participating in world science. However, we seem, perhaps unwittingly, to be acclaiming a model of university disconnected from the nation-state or committed to its region as it concentrates on diversifying and privatizing its funding base, recruiting talent internationally and engaging globally.

2. Encourage collaboration between institutions to establish a world-class system As the distribution of economic activity has gone global, city-regions now compete on a global terrain. Competitive advantage is built through developing clusters of activity which are able to build capacity beyond individual capability. Innovation derives from interdisciplinary, collaborative solutions and interactions between networks of different actors. This requires a greater diversity of educational and research opportunities and perspectives – and people to work in jobs we don’t yet know about.5 This also necessitates people who can think outside-the-box, and whose contribution to creating, applying and sharing knowledge ill-fits the type of metrics promulgated by global rankings. It also challenges the inflated importance of the single world-class or flagship-university as the “entrepreneurial” engine of a national or regional economy.

In this context, higher education must rethink its own role and responsibilities. It should commit to making a multifaceted contribution to society and the economy, by engaging in learning beyond the campus walls, discovery which is useful beyond the academic community, and service that directly benefits the public. This involves individual institutions achieving some form of unique leadership based upon their particular mission and expertise. The concept of the “Civic University” describes mutually beneficial engagement that promotes and embeds partnerships with the community, industry and government, in the co-production of knowledge, because complex problems require collaborative solutions.

3. Evidence Ltd (2003) Funding Research Diversity, Universities UK, London; Lambert, Government should look to establish collaborative clusters of institutions working together to R. (2003) Review of Business-University Collaboration, Final Report, HMSO, London; Adams, J. and D. Smith (2004) Research and make the system-as-a-whole world-class. This approach recognises the contribution and collective Regions: An Overview of the Distribution of Research in UK Regions, Regional Research benefits of diverse approaches to teaching and learning, discovery and research, and innovation and Capacity and Links Between Strategic Research Partners, Higher Education Policy Institute, Oxford; Adams, J. and K. Gurney engagement – involving all disciplines across the entire innovation spectrum. Rather than looking (2010) Funding Selectivity, Concentration and Excellence. How Good is the UK’s at the tertiary system “simply as a mechanism for churning out a handful of elites and perpetuating Research? Higher Education Policy Institute, London. 6 social inequality…”, what matters is how governments prioritise skilled labour force, equity, regional 4. Goddard, J. (2013, 20 October). “Keep universities anchored”, Research Fortnight, growth, better citizens, future Einsteins and global competitiveness, and translate them into policy. p20 5. Porter, M. E. (2003) “The Competitive After all, a world class system is not simply the aggregate of world-class universities. Advantage of Regions”, Presentation at the Indiana Leadership Summit. Indianapolis, Indiana. 6. Ederer, P., P. Schuller and S. Willms (2008) 3. Don’t let the global reputation race be the driving purpose University Systems Ranking: Citizens and Society in the Age of the Knowledge, Lisbon During 1980s, Ronald Reagan, then US President, promulgated a strategy for economic growth Council, Brussels, p2.

21 | Ellen Hazelkorn | World class universities and the public interest | February 2014 www.policy-network.net Wisibased bla on faccum cutting init the ent top prat. tax bracket Ut at amconullutem from 70% to 50% quatin and vel then dolor to 28%.ad minim “Trickle zzrit down” adigna economics consed doloreror “Reaganomics” alit veliquip argued et lum that nostion putting henit more luptatinisci money in blanditthe hands auguer of the augue elite woulddolorperos create enim more quisit jobs nisand niam lessen ing inequality. erillum sandion International hent ipit, evidence, summod however, modolor shows eetuer the sed results tat am have do duislbeen ipthe et opposite irilissequip of eathe accum one predicted. zzril eugait Is therelortie afaccums lesson for andionsequis us today? nibh exercincil utpatio dHigher tat lutatisis education aci essit is part augue of widertat. Im geo-political ad magnit lumsandrestruggle in dolore which dipis nations nulput struggle iriusci for psustrud a greater tie feugaitshare of lum the diamglobal vel market. utpat. ManyReetumsan of the elentreforms dolut being aut pursued vercing exerilare necessary in velis nibhand inevitableeu faci blaorero – and policy network dioarguably diamcon late insequis coming. aliquam, However, vel doloborperat a time of growingadit at iliquisim demand doby society:enibh etue Is higher tetumsa education ndipsustrud being eugiametuetransformed magniametinto a private ullaor self-serving entity less engaged or committed to its nation/region as it pursues its world-class position? Has the public’s interest become confused with private interest? eet dolestis elenit lum eugiam dit wisim velit ad te commy nonsequam zzril eu faci te feui tat wis Ellen Hazelkorn is director of the Higher Education Policy Research Unit, Dublin Institute of Technology,x ea facilit volor and ipit, policy vel ullum advisor ad te to dunt the aut Higher veliqui Education psuscilisis Authority, augueriureet Ireland ullam, velis aliquis exeraes- trud tet aci bla feu feum alit, commy nonsed magnim dolorper ip etumsandre magna feugiamet pratie dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros aliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. Na feugue tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. Onullaore faccumm olorper ad modit esenisi ex euguerat. Ut lore core vel ero essequam, con eui el etuer illandit in utpat, quis nos nos doloreet, core dolore vulla facidunt velit do ex esto dolor in voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip er- cilismod dipsum dolore dolesto dolortis atie tat, sim accumsan euis dolorer cinismo doloreet dio consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit vullamcorem dit numsan volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 6 Quoted by Adonis, A. ‘The transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt Decade in Perspective (Manchester, 1994), 146. am quis accummodio dolore tat. 7 Cowling, M. The Impact of Labour, Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation heniamet, sim quisi. (Oxford, 2008), 34-5.

Bill Rammell

Universities are a great civic force. They must be at the forefront of developing smart skills policy network for the next generation of global citizens - a mix of psychology, general intellectual capital, cultural understanding and analytical know-how

The great actors of UK public life – the press, churches, political parties and Parliament – have all faced their moments of crisis over recent years. A loss of trust, a reticence to reform, a failure to be relevant and reflect modern society, and a commonalty in looking much the same at the turn of the twentieth century as they did at the turn of the nineteenth century.

As another great civic force, universities face similar challenges. Yet we are one of the few actors that makes a difference, and has connections, across all sectors. We are economic powers, we are intellectual institutions, and we find a place between state, scholar and society. We must build on these strengths, but recognise that we need to do more, with a renewed focus on the value and experience of students whilst they are with us.

1. Smart skills for global citizens The main challenge for vice chancellors – and for universities as a whole – is huge, yet simple. There must be no doubt in our students’ minds that the time they spend with us is the best, the only, route to grow as a citizen. It is that time with us that gives them the advantage in gaining the smart skills and tools needed to make the maximum contribution to society.

Our new fees and funding dynamic is a factor in this emphasis. However it mustn’t be a simple customer-product relationship. The student fee is the entry requirement for joining a community. By becoming a full partner in that community, the student should share an experience that enriches, stretches and develops them in a way that no other experience can.That ‘social contract’ must nurture a democratic citizenship, academic capacity and contribution to society. It is these values, and the skills that underpin them, that will ensure that our main contribution to society – our graduates – remain relevant to meeting national and global challenges.

And it’s not just their academic discipline. As Tyler Cowen (George Mason University and Marginal Revolution) states, it’s the ability to manipulate, analyse and use information, intelligence and data that will set apart the workers of the future. Universities must be the crucible for developing these smart skills. The ability to be enterprising - formed by being able to understand human behaviour, have confidence in analysing and using information, and a recognition and understanding of different cultures, markets and motivations.

These smart skills - a mix of psychology, general intellectual capital, cultural understanding and analytical know-how – are the tools for twenty first century citizens.

It’s one of the reasons that I’ve prioritised outward mobility as part of the student experience at Bedfordshire. This summer for the first time, 150 of our ‘home’ students visited China for a Summer School, which will develop into the largest such UK-China university cultural exchange.

23 | Bill Rammell | Smart skills and tools for twenty first century citizens | March 2014 www.policy-network.net 2. Time for student number deregulation We have become accustomed in recent years to describing the higher education environment in England as “competitive” and a “market”. However, the only aspect of the student “market” that is deregulated and open to full competition is those students that achieve ABB and above at A Level or equivalent. policy network

This artificial limit contributes to the unfortunate impression that it’s only universities which exclusively recruit at ABB or above that matter, further polarising the sector and the choices made by students at both sixteen, and then again when applying for university. Let alone the skills challenge that the UK faces.

The Employment and Skills Commission says that over half of new jobs will be in occupations that require degree level qualifications. Across the world, particularly in the BRIC countries, we are seeing an explosion in demand for higher education.

And we won’t stay with the leading pack, or take our place at the front, if we focus solely on ABB students – quite apart from the fact that A Levels are not a definitive indicator of degree potential.

At modern universities such as Bedfordshire, we do recruit students at ABB and equivalent – and at Bedfordshire we recruited more than ever this year - but we also excel through innovative education and research at unlocking students’ potential whatever A Level grades they start with.

But restricting the liberalisation of student numbers to ABB and above runs counter to recognising the national importance of diverse student communities and their future contribution to the workforce.

Therefore, the logical conclusion is that full-time student numbers should be completely liberalised. The onus would then be on us as universities to compete on areas such as teaching quality; contact hours; extra and co-curricular offers which enhance employability and entrepreneurial skills; and the development of students as global citizens through opportunities such as overseas summer schools.

From my time in Government, and equally for David Willetts and Vince Cable, I know that the Treasury will have concerns on predictability and affordability. But we know and are able to predict the number of A Level and equivalent students each year – in fact the number of AAB students in England last year fell below predictions.

3. Technology and the use of time and space The UK enjoys an established global reputation for the quality and consistency of our higher education offer. However, the consistency in our teaching and delivery methods runs the risk of being analogue in a digital world.

For many the answer is the MOOC (massive open online courses). They have their place, but if we just replicate the current lecture hall experience, but do so remotely, then we will have missed a trick.

We need to use make more use of technology, but in a way that it gives us more space and time to enhance the learning experience. The time that is no longer set aside for a nineteenth century model

24 | Bill Rammell | Smart skills and tools for twenty first century citizens | March 2014 www.policy-network.net Wisiof lectures, bla faccum should init be ent used prat. for Ut building at amconullutem networks, quatinbringing vel fresh dolor perspectives ad minim zzrit onto adigna campus, consed new doloreropportunities alit veliquip for peer et assistedlum nostion learning henit and luptatinisci so on. blandit auguer augue dolorperos enim quisit nis niam ing erillum sandion hent ipit, summod modolor eetuer sed tat am do duisl ip et irilissequip eaIt is accum in that zzril space eugait and lortie time faccums that we andionsequis enhance the nibh university exercincil community. utpatio Bringing in figures from industry (and getting students out to them), an emphasis on interdisciplinary opportunities, and ddeveloping tat lutatisis those aci essit‘smart augue skills’. tat. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie feugait lum diam vel utpat. Reetumsan elent dolut aut vercing exeril in velis nibh eu faci blaorero policy network dioBill Rammelldiamcon sequisis vice-chancellor aliquam, vel of doloborper the University adit atof iliquisimBedforshire do enibh and a etueformer tetumsa Labour ndipsustrud MP eugiametue magniamet ullaor eet dolestis elenit lum eugiam dit wisim velit ad te commy nonsequam zzril eu faci te feui tat wis x ea facilit volor ipit, vel ullum ad te dunt aut veliqui psuscilisis augueriureet ullam, velis aliquis exeraes- trud tet aci bla feu feum alit, commy nonsed magnim dolorper ip etumsandre magna feugiamet pratie dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros aliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. Na feugue tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. Onullaore faccumm olorper ad modit esenisi ex euguerat. Ut lore core vel ero essequam, con eui el etuer illandit in utpat, quis nos nos doloreet, core dolore vulla facidunt velit do ex esto dolor in voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip er- cilismod dipsum dolore dolesto dolortis atie tat, sim accumsan euis dolorer cinismo doloreet dio consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit vullamcorem dit numsan volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 6 Quoted by Adonis, A. ‘The transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt Decade in Perspective (Manchester, 1994), 146. am quis accummodio dolore tat. 7 Cowling, M. The Impact of Labour, Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation heniamet, sim quisi. (Oxford, 2008), 34-5.

25 | BillThe Rammell Future of | EconomicSmart skills Governance and tools for in twentythe EU first| Xxxxxxxxx century xxxxxxxxxcitizens | |March Mar 20122014 www.policy-network.net Creating an environment for world class wealth creators and innovators

Wendy Piatt

If the UK’s world-class universities don’t get the support they need there is a real danger that policy network overseas universities will step into the funding void

The role of education in ensuring the UK remains globally competitive is vitally important and the UK’s leading universities are among the best in the world on most indicators. UK universities do crucial work educating the citizens of the future by instilling in them the skills they need to be the wealth creators and innovators of tomorrow. They are engine rooms for inventions and innovations which impact hugely on the economy and wider society, and are a place where crucial links are made with business and the private sector.

Universities are no ivory towers but rather work hand in glove with businesses; they contribute £30 billion a year to the UK economy, are responsible for supporting 270,000 jobs UK-wide and are a major UK export industry, with overseas earnings of around £3.5 billion a year.

University research does not only benefit the economy – however important that may be at the current time. Research, in its many guises, can transform our lives and reach areas we may never have thought of. The combination of teaching and research excellence in our universities creates the ideal learning environment. Our students work with their field’s leading experts, have access to first-rate libraries and facilities, are part of a highly motivated and talented peer group and often engage in research processes.

So how can universities help the UK remain competitive and stimulate economic growth? What is the environment that will allow them to flourish?

1. World-class universities need support Our global competitors are pumping billions into higher education and snapping at our heels. In the US, East Asia and Europe, money is being poured into higher education - and money really matters. The UK already spends a lower proportion of GDP on higher education than our rivals and our universities are already doing more with less. If our world-class universities don’t get the support they need there is a real danger that overseas universities will not only equal us but will overtake us.

2. It is important that in these straitened times the Government does not make cuts or spread limited funds too thinly Our competitors are concentrating funding on their leading universities rather than spreading funds too thinly across too many institutions. As a result, they are seeing the benefits in performance. Our world-class universities, with their heavy concentration of brainpower, established excellence, and the sheer numbers and facilities to achieve global impact, are best placed to attract investment by leading global companies and they have the critical mass of talent, resources and infrastructure. It clearly is not sustainable for any government to fund all universities at the same level.– Moreover, diversity within a higher education sector is a strength. We need a range of higher education institutions to suit the many and varied skills and needs of students.

26 | Wendy Piatt | Creating an environment for world class wealth creators and innovators | March 2014 www.policy-network.net 3. Good higher education needs proper funding to be sustainable Given the benefits most graduates gain from their degrees it is fair for them, as well as the taxpayer, to contribute towards the costs, when they can afford to do so. Public investment in student loans, and grants for students from poorer families, ensures that the benefits of higher education are available to those with the greatest potential to benefit from it, regardless of their background. The far- reaching cuts to university funding in England in recent years mean higher graduate contributions policy network are the fairest and only viable way forward. But at a time of severely constrained public funding the total number of undergraduate places should not be maintained or increased at the expense of quality in higher education. Government investment must be used wisely - high-cost subjects like sciences and engineering are vitally important to the economy and are already under-funded.

4. The Government must make sure that the immigration rules deter the fraudsters but still welcome the brightest and the best Russell Group universities are global businesses competing for staff and students with the best in the world. Excellent international students are indispensable for world-class universities and a thriving society, culture and economy. Exceptionally talented scientists and researchers make a vital contribution to our academic and economic life. Today’s junior researchers could be tomorrow’s Nobel prize-winners like Andre Geim or Konstantin Novoselov.

5. Autonomy is crucial – and the UK would benefit from introducing a much lighter-touch, risk- based regulatory regime As the World Bank observed in 2009, autonomy is a characteristic of world-class universities. It is no accident that the most successful countries for higher education, the US and UK, are those that give their universities the greatest freedom. Autonomy in governance, recruitment, academic and financial affairs enables good universities to manage their resources more effectively and efficiently. Regulation of universities should be lighter-touch and more targeted and strategic so that it focuses more on the institutions which pose the greatest risks.

6. Postgraduate students are essential to a successful knowledge economy and the future academic workforce Postgraduates are economically important and postgraduate research students should be of concern to everybody. They are vital to the UK economy, to driving growth and innovation and tackling major business challenges. The UK’s ability to provide enough people skilled to this high level is an important factor in attracting global investors to locate high-value businesses here.

7. The Government should focus on the root cause of the under-representation of students from disadvantaged backgrounds to help universities in their attempts to find the best candidates from all backgrounds We fully recognise poorer students are not as well-represented as their middle-class peers within our universities. But the key reason why too few students from disadvantaged backgrounds even apply to leading universities is that they are not achieving the right grades in the right subjects at school. Universities can and do help. We actively seek to persuade bright but disadvantaged candidates to apply. Many of our members sponsor academies, they run summer schools and taster sessions as well as a range of other outreach activities and direct work with schools such as visits for pupils and free conferences for teachers. But we simply can’t solve these problems alone.

27 | Wendy Piatt | Creating an environment for world class wealth creators and innovators | March 2014 www.policy-network.net Wisi8. Finally, bla faccum universities init ent themselves prat. Ut at amconullutemmust keep innovating… quatin vel dolor ad minim zzrit adigna consed dolorerOur universities alit veliquip have et a lum strong nostion track henit record luptatinisci of promoting blandit the auguer innovative augue development dolorperos ofenim teaching quisit nisand niam learning ing erillum from specialist sandion hentcentres ipit, tosummod investing modolor in state-of-the-art eetuer sed tat facilities am do duisland ipsupporting et irilissequip our eaacademic accum zzrilstaff eugait to deliver lortie faccumsexcellence. andionsequis We work hard nibh to exercincil make sure utpatio our students continue to have high levels of student satisfaction and low drop-out rates.We need to continue to strive to excel in deducation, tat lutatisis research aci essit and augue innovation tat. Im and ad notmagnit rest onlumsandre our laurels. dolore dipis nulput iriusci psustrud tie feugait lum diam vel utpat. Reetumsan elent dolut aut vercing exeril in velis nibh eu faci blaorero policy network dioWendy diamcon Piatt sequisis director aliquam, general vel anddoloborper chief executive adit at iliquisim of the Russelldo enibh Group etue whichtetumsa represents ndipsustrud 24 eugiametueleading UK universitiesmagniamet ullaor eet dolestis elenit lum eugiam dit wisim velit ad te commy nonsequam zzril eu faci te feui tat wis x ea facilit volor ipit, vel ullum ad te dunt aut veliqui psuscilisis augueriureet ullam, velis aliquis exeraes- trud tet aci bla feu feum alit, commy nonsed magnim dolorper ip etumsandre magna feugiamet pratie dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut iniamet autatue diat accum quat iurerci bla faccum zzrit adit landiam do od dolor senit venibh euis nos adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros aliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. Na feugue tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. Onullaore faccumm olorper ad modit esenisi ex euguerat. Ut lore core vel ero essequam, con eui el etuer illandit in utpat, quis nos nos doloreet, core dolore vulla facidunt velit do ex esto dolor in voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip er- cilismod dipsum dolore dolesto dolortis atie tat, sim accumsan euis dolorer cinismo doloreet dio consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor sim zzril irit vullamcorem dit numsan volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim velenit ut nullummy nibh enisi ea cor acing eum adionsequis am iliquis duip et ipisim quis adiam vel 6 Quoted by Adonis, A. ‘The transformation of the Conservative dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto Party in the 1980s’, in Adonis, A. essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt Decade in Perspective (Manchester, 1994), 146. am quis accummodio dolore tat. 7 Cowling, M. The Impact of Labour, Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 1920-1924 (Cambridge, 1971). tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8 Green, E. H. H. The Crisis of luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation heniamet, sim quisi. (Oxford, 2008), 34-5.