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Education, Pre-distribution and Social Justice

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.

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Contents PREFACE Education, economic development and social justice Rick Wylie

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POLICY MEMOS Human capital formation Skills formulation must become everybody’s business Andreas Schleicher

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Spending on education in Europe is an investment, not a cost 9 Xavier Prats Monné Understanding the shifting skills landscape Pam Tatlow

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Taking human capital seriously Emran Mian

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FEATURE ESSAY Social mobility and life chances Pre-distribution, education and human capital Patrick Diamond

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POLICY MEMOS Universities and economic growth World class universities and the public interest Ellen Hazelkorn

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Smart skills and tools for twenty first century citizens Bill Rammell

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Creating an environment for world class wealth creators and innovators Wendy Piatt

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Rick Wylie

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 multisectoral 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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Preface

institutions is changing as universities like UCLan become globalised institutions with wider participation. The model of a modern, civic university therefore extends beyond the campus, engaging all sectors of the community, and reaches beyond the nation state. The challenge facing policymakers, especially at the regional level, is how to optimise the ability of a university to embed their regions in the global economy, to become a ‘sticky place’ in which human and knowledge capital becomes entrenched in their region which can consequently become a hub within the global flows of information, knowledge, people and capital. From a social justice standpoint, universities are a key part of that set of institutions which help individuals realise their potential, offer opportunities for people to lead a fulfilling life and be active contributors to their community. From the standpoint of regions looking to become (or remain) nodes on the global network of flows of information, knowledge and capital, universities are key. Their presence greatly enhances the offer and capability of a region, and the optimisation of these linkages should be seen as a key part of a regional economic strategy for equipping individuals with the knowledge and skills required for global citizenship. Rick Wylie is principal of the Samuel Lindow Foundation and executive director of the UCLan Applied Policy Sciences Unit

5 Olaf Wylie Cramme & Renaud Thillaye | Europe in search of a new settlement | February 2013 5 || Rick | Preface | March 2014

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Furthermore, though HE policy is central to regional and national growth, the governance of these

Andreas Schleicher

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Skills formulation must become everybody’s business

Investing in high-quality education is the key for improving the economic and social wellbeing 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

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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

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areas in their talent pools. Across the 24 countries that took the test, more than 80 million people do

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.

7 | Andreas Schleicher | Skills formulation must become everybody’s business | March 2014

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Wisi bla faccum init ent prat. Ut at amconullutem quatin vel dolor ad minim zzrit adigna consed To do better, countries more coherent, easy-to-understand certifications that aren’tenim just about dolorer alit veliquip et need lum nostion henit luptatinisci blandit auguer augue dolorperos quisit degrees, but erillum also incorporate formal informal learning in life.sed Where people lackip skills, countries nis niam ing sandion hent ipit,and summod modolor eetuer tat am do duisl et irilissequip need better policies incentivise andnibh employers to invest in developing relevant skills. ea accum zzril eugaitthat lortie faccums employees andionsequis exercincil utpatio Countries alsoaci need bettertat. integrate world of learning and dipis the world of iriusci work. psustrud Work-based d tat lutatisis essittoaugue Im ad the magnit lumsandre dolore nulput tie learning allows people to develop hard skills modern andinsoft skills, as teamwork feugait lum diam vel utpat. 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Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut unless we all take more responsibility for our learning and make better use of learning opportunities. 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. None of that is easy, but global comparisons like the Survey of Adult Skills show everyone what’s Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex possible. They take away excuses from those who are complacent. And they help set meaningful eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit targets in ipis terms of measurable goals bynulputat, the world’s effective policies. wisci tem exeril dunt in velesto odachieved eu feugait sit, most 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 Andreas Schleicher is the deputy for education and skills, andvelit, special adviser on aliquat. Duis nim exer ad magna feui tatdirector lore vel ipsum iniamcorem zzril exer sim qui tem inismod education policy the OECD’s secretary-general olenisis nonse volortosusciduipis 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 ercilismod 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. 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Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliquam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

8 | The Andreas Future Schleicher of Economic | Skills Governance formulation in the must EUbecome | Xxxxxxxxx everybody’s xxxxxxxxx business | Mar |2012 March 2014

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Wisi bla faccum init ent prat. Ut at amconullutem quatin vel dolor ad minim zzrit adigna consed

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Xavier Prats Monné 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 Itdio is in these times fiscal constraints that we should bear in a simple truth: the cost of a diamcon sequisofaliquam, vel doloborper adit at iliquisim domind enibh etue tetumsa ndipsustrud poor education is unaffordable eugiametue magniamet ullaor The crisis should need tononsequam reform Europe’s eet dolestis elenit not lum distract eugiam us dit from wisimthe veliturgent ad te commy zzril eueducation faci te feuisystems. tat wis International trends in education show that globalisation and technology have no respect for x ea facilit volor ipit, vel ullum te duntincrease aut veliqui ullam, skilled velis aliquis exeraestraditions or reputation: the ad massive in psuscilisis the globalaugueriureet supply of highly people over trudpast tet aci bla feuand feummore alit, commy magnim ip etumsandre magna feugiamet pratie the decade, focusednonsed investment on dolorper quality and access to education by emerging dip et alismolobore doloborer suscipit economies, has put Europe to the test.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 accum quat bla faccum zzrit adit landiam do od dolor senit venibh euis nos 1. Spending on diat education is aniurerci investment in the future, not a cost adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. In the first years of the crisis, the education sector was largely spared from budget cuts – but more Hendre volorperit ipsumsa ndreet lute tetuero diamet lortissi etuero odo od ming exeriurem dui ex recent data from the Commission’s Eurydice network show that a significant number of EU countries eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit have reduced education expenditure. Yet effective education systems depend on appropriate wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril funding, and while it is indeed a challenge to consolidate public budgets and maintain investment utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros in growth-enhancing policies, the low or decreasing level of investment in education is a source of aliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod concern. olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. Na feugue tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip Of coursezzriusto the mission of education is not to feedtatthe labour market but to transform an empty mind endrem eliquam, venim incil et lobore vent at praessi. into an open one, to enhance active citizenship, and to help But an open Onullaore faccumm olorper ad modit esenisi ex euguerat. Ut personal lore coredevelopment. vel ero essequam, con eui mind does not need to be unemployed: againstcore thedolore backdrop slow economic growth and an el etuer illandit in utpat, quis nos nos doloreet, vullaoffacidunt velit do ex esto dolor in ageing and shrinking workforce, the most pressing challenge for Europe is to address the needs of voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip er-

the knowledge and focus on solutions levels of youth unemployment. cilismod dipsumeconomy dolore dolesto dolortis atie tat, to simextraordinary accumsan euis dolorer cinismo doloreet dio And in this respect, the potential contribution of education systems to Europe’s prosperity consectem do esto enis atet, sumsan ut laoreet vel utpat. Duissent accumsan vero odolor simremains zzril irit under-exploited. 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 We know that a knowledge-based economy needsvelessim high skills, and that it is the use and exchange of ming eu feugait veliquamet velit wisl ut ut pratue nostrud ex etue consequisi. technologies, not just their invention, that are now recognised as drivers of productivity and growth. Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim

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am quis accummodio dolore tat. 2. EUeu policies and od financial instruments can help vulluptat nulla commolessit, quiscil ing ea faci Gait facipsusto ea faccummy nullutat acidunt While theinit main fordolor education rests at national and regional level, these challenges tisis nim amresponsibility quipsum aci te suscinci eniamco nsecteNonulputpatie faccumsan voloreet and thelortisi ambitious reforms they require calleliquipismod for a strong response from both the EU and its Member luptat tionsed min vullaor percing elessi etum accum in ercidunt laortie con countries. EU policies and financial instruments can help by providing guidance and incentives heniamet, sim quisi.

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 education systems by improving quality and transparency, and to increase cooperation for innovation utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliand development dialogue capacity building. quam, consequamthrough dip ese partnerships, min et, commod ting euand feugiat vel ut dolese tin ute ex eum inim iure e

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

9 | The Xavier Future PratsofMonné Economic | Spending Governance on education in the EU in| Xxxxxxxxx Europe is an xxxxxxxxx investment, | Mar not2012 a cost | March 2014

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Wisi bla faccum init enttraining, prat. Ut youth at amconullutem 3. Funding education, and sports quatin vel dolor ad minim zzrit adigna consed dolorer alit veliquip et lum nostion henit luptatiniscifor blandit auguer augue quisit On funding, Erasmus+, the new single programme EU cooperation and dolorperos mobility in enim education, nis niam ing erillum hent ipit, summod modolor eetuer sed tat am do duisl ip et training, youth and sandion sports for 2014-2020, demonstrates the Union’s commitment to irilissequip education ea accum zzril of eugait lortie faccums andionsequis nibh exercincil even in times overall budget constraints: the budget for the utpatio new programme will increase by approximately 40%, to €14,7 billion for the seven years. Our task will be to make sure that these d tat lutatisis aci essit augueand tat. this Im ad lumsandre dolore dipis nulput iriuscifor psustrud tie funds have systemic impact, willmagnit only happen if countries design a strategy education feugait lum diam vel utpat. Reetumsan elent dolut autfor vercing exeril in velis faci blaorero with clear, concrete and measurable targets, milestones each education levelnibh andeu age-group; and dio diamconfor sequis aliquam, velwith doloborper at iliquisim do enibh etue tetumsa ndipsustrud time-frames implementation, tools foradit monitoring progress. eugiametue magniamet ullaor 4. The European Alliance for Apprenticeships eet policy, dolestisEUelenit lum eugiam dit wisim velit ad te commy nonsequam zzril euamong faci teuniversities. feui tat wis On cooperation has already enhanced comparability and exchange Vocational education and training, and especially apprenticeships, boost youth employability and x ea facilit ipit, vel ullum ad te dunt veliqui psuscilisis augueriureet ullam, velis aliquis last exeraesshould alsovolor be significantly reinforced inaut vocational programmes. The Commission launched year trud tet aci bla feu feum alit, commy nonsed magnim dolorper ip etumsandre magna feugiamet pratie the European Alliance for Apprenticeships, aiming at strengthening the quality, supply and image 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 Technology also adunt key in driver of innovation in nulputat, education: is why, in September last year, wisci tem ipisis exeril velesto od eu feugait sit,this commodit, vendit ad tie etueros acilthe iril Commission present an initiative, Opening up Education, to provide guidance for a better use of ICTs utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros at all levels education. aliquat. Duisofnim 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. cost tio of aeummy poor education is unaffordable NaThe feugue niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip Itendrem is in these times of fiscal constraints that wetatshould in mind a simple truth: the cost of a zzriusto eliquam, venim incil et lobore vent atbear praessi. poor education is unaffordable. If we are to tackle the many environmental challenges, we Onullaore faccumm olorper ad modit esenisi ex euguerat. Utsocial, lore core vel ero essequam, con eui need to know more aboutquis the nos world, relationship with it vulla and with one-another. So esto theredolor will be el etuer illandit in utpat, nosour doloreet, core dolore facidunt velit do ex in strong demand for education andnibh research. Morenos importantly, education institutions have a great voloreet utpat lore commy niam ercilissent enim atie do odiam quis nulluptat, sequip erpotential to createdolore public dolesto goods, social value entrepreneurship: this iscinismo in the end what will cilismod dipsum dolortis atieand tat,social sim accumsan euis dolorer doloreet dio save them; and meeting global challenges requires goingDuissent beyond accumsan the straightjacket of individual or consectem do esto enis atet, sumsan ut laoreet vel utpat. vero odolor sim zzril irit national self-interest. 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 Xavier Monné is the velit deputy-director general of the Directorate-General for Education ming euPrats feugait veliquamet wisl ut ut pratue velessim nostrud ex etue consequisi. and Culture at theodiat, European Ut lut nibh erosto quipisCommission 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 dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con heniamet, sim quisi. Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliquam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

10 | The Xavier Future PratsofMonné Economic | Spending Governance on education in the EU in| Xxxxxxxxx Europe is an xxxxxxxxx investment, | Mar not2012 a cost | March 2014

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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

Understanding shifting skills nis niam ing erillum sandion hent the ipit, summod modolor eetuer sed tat amlandscape 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 Effective policymaking on skills formationadit willatrequire schools, and dio diamcon sequis aliquam, vel doloborper iliquisimgovernment, do enibh etue tetumsacolleges ndipsustrud universities to collaborate and crticially evaluate whether they are fit for purpose eugiametue magniamet ullaor From Plutarch to Thomas Mooredittowisim the political of today, in countries across world, eet dolestis elenit lum eugiam velit adleaders te commy nonsequam zzril eu faci the te feui tat the wis relationship between education, schools and the labour market has been the subject of much debate and heady mix, theaut views of employers and educationalists, be they in exeraesschools, x ea disagreement. facilit volor ipit,In velthis ullum ad te dunt veliqui psuscilisis augueriureet ullam, velis aliquis colleges or bla universities, do not always align.magnim The former sometimes complain of thefeugiamet lack of workers trud tet aci feu feum alit, commy nonsed dolorper ip etumsandre magna pratie dip etspecific alismolobore suscipit vullaor si blamconullan henisl ulla faccumsan autpat. with skills ordoloborer qualifications. The lattersectet, see part of their mission as educating theirut students Ut luptat. Im ver sim veraesed te dolorer sed diamet vullandrem zzriuscilla core vel esting esto elisi.Ut for the future and sometimes assert that focusing courses on ‘business’ only serves to promote iniamet autatue diat accum quat bla faccum zzrit adit landiam dothere od dolor euis nos utilitarianism and undermine theiurerci true purpose of education. In reality, hassenit oftenvenibh been far more adio eugait numsandrero commy nim exerostis ea feugait lan ero consectem vullum veniscipit alisi. collaboration and innovation than either side sometimes cares to admit or UK politicians recognise. 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 erremained 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 2. Reframe the definitions of skills shortages dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto 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. immigrants who are often under-employed, older workers and those from more disadvantaged La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt backgrounds. One key question is the extent to which current initiatives are likely to help. Policies am quis accummodio dolore tat. promoted by the Department for Education in England since 2010 have been the subject of criticism, Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci 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 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 and an insistence that knowledge and skills should be tested by an examination at the end of two heniamet, sim quisi. 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 over 24, are just some examples. utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliquam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e 3. Be aware of the growing dichotomy between academic and non-academic qualifications There is a real risk that a false dichotomy is being promoted by all parties which pitches scholarship

11 Tatlowof| Economic Understanding the shifting March 2014| Mar 2012 11 || Pam The Future Governance in theskills EU |landscape Xxxxxxxxx| xxxxxxxxx

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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against andinitvocational education and qualifications academic qualifications as if Wisi bla skills faccum ent prat. Ut at amconullutem quatin velagainst dolor ad minim zzrit adigna consed the latteralit were neveretvocational or related to the development of employability, professional and dolorer veliquip lum nostion henit luptatinisci blandit auguer augue dolorperos enim quisit technical skills and competences. Apprenticeships are counterpoised higher education. Narrow nis niam ing erillum sandion hent ipit, summod modolor eetuer sed tatto am do duisl ip et irilissequip definitions of excellence arefaccums applied to higher education, not helped by a chronic failure to recognise ea accum zzril eugait lortie andionsequis nibh exercincil utpatio the innovative courses, programmes and translational research of modern universities which have long of working withtat. employers. d tattraditions lutatisis aci essit augue 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 4. in local authority will heighten skills dioReductions diamcon sequis aliquam, vel spending doloborper adit at iliquisim doshortages enibh etue tetumsa ndipsustrud There is also the historic and long-term problem in the UK of employer under-investment in training eugiametue magniamet ullaor and skills – a problem which will be exacerbated by reductions in local authority spending and an eet dolestis elenit lum eugiam dit education wisim velitand ad training te commy nonsequam zzril eu faci te feui tat wis NHS re-organisation which affects budgets. x ea facilit volor ipit, ad te dunt autagenda veliqui psuscilisis augueriureet ullam, velis aliquis exeraes5. Collaboration is vel keyullum to a future skills trud tet aci bla feu feum alit, commy nonsed magnim dolorper etumsandre magna pratie Much has been said about the knowledge economy. Perhapsipwe should refocus onfeugiamet the know-how dip et alismolobore doloborer suscipit vullaor si blamconullan henislinulla faccumsan economy and concede that we have no ideasectet, what jobs will be required five, 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 attributes andexeril not circumscribed byod age. this the CBI’s recent emphasis on soft ad skills as important wisci tem ipis dunt in velesto euIn feugait nulputat, sit, commodit, vendit tieisetueros acil iril as the acquisition of subject utet lutem velit nulla faciduntknowledge. 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. Focusnonse on life-long skill acquisition olenisis volor susciduipis augait acipisi te minci blaoreet, corerat. Specific initiatives involving schools, universities, local authorities and if possible employers Na feugue tio eummy niam quatumcolleges, zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip should on eliquam, raising skill levels and tat beyond Level 2 with a recognition of the value of endremfocus zzriusto venim incilup et to lobore vent at praessi. communities of learners. Thisad means that the focus cannot beUtjust oncore the young. funding systems Onullaore faccumm olorper modit esenisi ex euguerat. lore vel ero All essequam, con eui including those in applied higher education need to dolore be fit for purpose – invelit other for the el etuer illandit utpat,to quis nos nos doloreet, core vulla facidunt do words ex estofitdolor in flexible lifestyles and the diversity of the student and adult profile and skills base. There would be voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip ermerit in revisiting the development of a 14-19 qualification. 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 7. Encourage dit employer in nonullamcon skills investment vullamcorem numsancollaboration volorper sed tis vel ulla feui endre modolorem dolorem vel The collaboration that already exists between colleges, lore universities employers in course design enibh et euissendre dolut ut loboreet lum velendiamet euguercand incinci duipis niscilit ipisisissi te and with the awarding bodies should be encouraged. Attempts to make some qualifications the ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. province of erosto a smallodiat, groupquipis of universities benum consigned to the books as a diversion. Ut lut nibh nonsectet,should velit ilis enibh esed exhistory ea autem duismolenim nim Since the of voluntarism proved spectacularly unsuccessful, weduip should consider velenit utpolicy nullummy nibh enisihas ea cor acing eum adionsequis am iliquis et ipisim quisaddressing adiam vel employer in skills and training to contribute training dolorer ilitunder-investment exercin ciduis ex etueraese min hendiowith ex errequirements sum zzril esendre doloremto quam, quisboards nosto and levies associated with specific sectors. We should consider whether enough is being done at essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. aLanational level to achieve equity in respect of digital access,dolendrerat address thewiscili significant disparities in faci euissi. It dolutem aute tionsendip et auguero eugiam sismodi gniscidunt regional investment and rationalise am quis accummodio dolore tat. and review the functions of the 39 Local Enterprise Partnership

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146.

Boards England which vary in size,nullutat fundingacidunt and governance. Gait euin facipsusto od ea faccummy vulluptat nulla commolessit, quiscil ing ea faci

7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971).

tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet 8. Don’t ignore the evidence luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con Countries heniamet,like simFinland quisi. outperform the UK on education, skills and innovation. The reasons are pretty

8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5.

straightforward. is irit lesspraese income andfacilit housing inequity,enim a different approach to early years Enim quatem velThere dolorer digna wis ercinibh iustio elis auguercidui ero et vel education, less fragmentation in the school system and the majority of research funding is devoted utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis alito translational research. quam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e Pam Tatlow is the chief executive of million+

12 Tatlowof| Economic Understanding the shifting March 2014| Mar 2012 12 || Pam The Future Governance in theskills EU |landscape Xxxxxxxxx| xxxxxxxxx

10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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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

Taking human seriously nis niam ing erillum sandion hentcapital ipit, summod modolor 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 feugait lum diam vel private utpat. Reetumsan vercing exeril in velisplanning nibh eu faci Governments and investorselent are dolut now aut adept at long-term for blaorero capital dio diamconinsequis aliquam, vel doloborper adit at iliquisim do of enibh etuecapital tetumsa ndipsustrud investment physical infrastructure. By contrast, the future human investment is eugiametue magniamet ullaor highly uncertain eet dolestis elenit lum eugiam ditinwisim velit ad te commy nonsequam zzril eu faci te feui tat wis The Office for National Statistics the UK estimated the value of the country’s human capital in 2010. Since then, they have consulted on the methodology and recognise that the estimate can x eaimproved. facilit volorThe ipit,size velof ullum te duntisaut veliqui £17.12tn, psuscilisisor augueriureet ullam, velisthe aliquis exeraesbe the ad estimate startling: two and a half times value of the trud tet aci bla feu feum alit, commy nonsed magnim dolorper ip etumsandre magna feugiamet pratie country’s physical assets. Incidentally the revisions to the methodology will probably mean that 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 budget statement has earmarked new public money for capital investment. One acil of the wisci tem ipis exerilsince dunt then in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros iril objectives of the plan is to advertise for private investment the infrastructure projects in the pipeline. utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros The exhortation seems be working. Thevel latest version of the plan, released in December 2013, aliquat. Duis nim exer ad to magna feui tat lore ipsum iniamcorem zzril exer sim velit, qui tem inismod reported that insurers were putting aside £25bn for infrastructure investment in the UK. My question olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. is: we take the same approach forzzrilla human capital too? Nacan feugue tio eummy niam quatum ortiscillut nulluptate vullaor eetumsa ndiamcore mincip endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. The contextfaccumm for investment either form of capital is similar. The UK has very growth Onullaore olorperinad modit esenisi ex euguerat. Ut lore core vellow eroproductivity essequam, con eui even though it’sinrecovering deep recession. latest figures for Q2 indo 2013 suggest that el etuer illandit utpat, quisfrom nos anos doloreet, coreThe dolore vulla facidunt velit ex esto dolor in growth isutpat as low as commy 0.5%. Capital can increase of the sequip economy, voloreet lore niam investment nibh ercilissent nos enimthe atieproductive do odiampotential quis nulluptat, erwhether is bydolore allowing goods to travel faster one pointeuis to another case for investing cilismod that dipsum dolesto dolortis atie tat, from sim accumsan dolorer(the cinismo doloreet dio in physical do capital as roads or rail) or by vel increasing the output of each worker (the consectem esto such enis atet, sumsan ut laoreet utpat. Duissent accumsan vero odolor simcase zzril for irit investing in human capital). 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 There is afeugait role for government alwaysvelessim will be for goodsex where a significant proportion ming eu veliquamet velithere. wislThere ut ut pratue nostrud etue consequisi. of benefits areodiat, publicquipis rathernonsectet, than exclusively where investment without government Ut the lut nibh erosto velit ilis private, num enibh esed ex ea autem duismolenim nim intervention might nibh be sub-optimal, and where government secure coordination between velenit ut nullummy enisi ea cor acing eum adionsequis amcan iliquis duip et ipisim quis adiam vel private whose interests might not role has quam, a special context dolorer actors ilit exercin ciduis ex etueraese minotherwise hendio ex align. er sumGovernment’s zzril esendre dolorem quis nosto right now, when business investment as a whole is down 5% in 2013. The features of taking human essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. capital seriously might include: La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. 1. Establishing stable intentions Gait eu facipsusto od ealong-term faccummyinvestment nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci It’s UK Government has published “a pipeline of public investment in tisisstriking, nim initfor amexample, quipsumthat acithe te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet infrastructure worth over billion to 2020”. That’s five yearsetum further out than its plans for other luptat lortisi tionsed min £100 vullaor percing eliquipismod elessi accum in ercidunt laortie con public spending. Private investors adopt a similar, if not longer, horizon for such capital investment. heniamet, sim quisi. The UK Government has also suggested future public investment infrastructure in Enim quatem vel dolorer irit praese dignathat facilit wis ercinibh enim iustioinelis auguerciduiwill erorise et vel line GDP.veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliutat,with quisim quam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e By contrast, the future of human capital investment is highly uncertain. The schools budget is ring-fenced until 2015-16; we don’t know what happens next. Funding for adult skills is likely to

13 | The Emran Future Mianof| Economic Taking human Governance capital seriously in the EU | | March Xxxxxxxxx 2014xxxxxxxxx | Mar 2012

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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come under veryinit serious pressure it’s a component of the budget the business Wisi bla faccum ent prat. Ut atasamconullutem quatin vel unprotected dolor ad minim zzrit of adigna consed department. The outlook higherhenit education has improved at December’s Autumn enim Statement, dolorer alit veliquip et lumfor nostion luptatinisci blandit auguer augue dolorperos quisit with a new commitment toipit, there being no cap on eetuer student numbers. Butduisl numbers of mature nis niam ingpolicy erillum sandion hent summod modolor sed tat am do ip et irilissequip students decline andfaccums unlikely andionsequis to recover without remedial action. ea accumare zzrilineugait lortie nibh exercincil utpatioA 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 2. Providing incentives for Reetumsan investmentelent dolut aut vercing exeril in velis nibh eu faci blaorero feugait lum diam vel utpat. While UK business be duevel some criticism adit for its of investment in human capital, there is dio diamcon sequismay aliquam, doloborper atrecord iliquisim do enibh etue tetumsa ndipsustrud still very littlemagniamet systematic ullaor thought given to whether the incentives can be sharpened. eugiametue eetthe dolestis elenit we lumshould eugiamappreciate dit wisim that velit when ad te business commy nonsequam zzril eucapital, faci te the feui returns tat wis At very least, invests in human are uncertain. The person who benefits from the investment is not owned by the business in the x ea facilit volor ipit, velof ullum ad tecapital dunt aut ullam, velis aliquisAnd exeraesway that an element physical is veliqui ownedpsuscilisis and fullyaugueriureet under the investor’s control. yet, trud tet aci bla feu feum alit, commy nonsed magnim dolorper ip etumsandre magna feugiamet pratie while investment in physical and intellectual capital has been boosted in recent years by special dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. allowances and tax credits, there have not been equivalent moves to strength the case for human Ut luptat. 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 prioritises among recognises need tovendit take policy order wisci tem ipis exerilthem, dunt and in velesto od euwhere feugaitgovernment nulputat, sit,may commodit, ad tieaction etuerosinacil iril to get the projects moving. This can work to accelerate not only the projects where government is utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros providing thenim investment, but also investors the confidence to step aliquat. Duis exer ad magna feuito tatgive loreprivate vel ipsum iniamcorem zzril exer sim velit,in. qui tem inismod olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. In the realmtio of eummy human capital, the gains are likely to benulluptate similar. Forvullaor example, businesses often observe Na feugue niam quatum zzrilla ortiscillut eetumsa ndiamcore mincip that adult skills provision is marked complexity andatbureaucracy, public bodies some distance endrem zzriusto eliquam, venim incil by et lobore tat vent praessi. from the labour market are ad trying to esenisi define what skills would becore useful theessequam, workplace. What Onullaore faccumm olorper modit ex euguerat. Ut lore velinero con eui businesses wantinis utpat, greaterquis direction over the content skillsvulla programmes. for esto government el etuer illandit nos nos doloreet, core of dolore facidunt The velitrole do ex dolor in is to judge howlore to commy give thisniam to them retaining the wider public benefits. An annual human voloreet utpat nibhwhile ercilissent nos enim atie do odiam quis nulluptat, sequip ercapital would force dolesto that judgement made, updated year,cinismo and communicated cilismodplan dipsum dolore dolortis to atiebetat, sim then accumsan euiseach dolorer doloreet dio to the potential co-investors. 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 EmranetMian is director Sociallum Market Foundation enibh euissendre dolutofutthe loboreet 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 dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con heniamet, sim quisi. Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliquam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

14 | The Emran Future Mianof| Economic Taking human Governance capital seriously in the EU | | March Xxxxxxxxx 2014xxxxxxxxx | Mar 2012

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Pre-distribution, education and human capital Patrick Diamond

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FEATURE ESSAY

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

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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

Bringing mutualism William Davies

imperative of investing in the young.

Bringing mutualism William Daviesxxxxxxxxxx x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx The nature of inequality In the debate about what determines economic inequality, various factors are invariably cited in a burgeoning literature. Rising is one driver. Declining rates ad of unionisation is another. Both Wisi bla faccum init ent prat.immigration Ut at amconullutem quatin vel dolor minim zzrit adigna consed are believed to have weakened the bargaining power of lower skilled workers, alongside the fall in the dolorer alit veliquip et lum nostion henit luptatinisci blandit auguer augue dolorperos enim relative value of ing the erillum national sandion minimumhent wage. Another factor is the growth international tradeipand quisit nis niam ipit, summod modolor eetuer of sed tat am do duisl et the globalisation of labour, and capital markets since the 1980s: as the balance of economic irilissequip ea accum zzrilproduct eugait lortie faccums andionsequis nibh exercincil utpatio advantage shifts to the east, many jobs in the west become uncompetitive or obsolete. Each of these explanations considerable from politicians is hardly d tat lutatisishas aci received essit augue tat. Im adattention magnit lumsandre doloreand dipispolicy-makers. nulput iriusciThis psustrud tie surprising since there evidence that theseelent factors have each contributed tovelis risingnibh inequality primary feugait lum diam velisutpat. Reetumsan dolut aut vercing exeril in eu faciofblaorero incomes in countries as thevel United States and theatUnited Kingdom. dio diamcon sequissuch aliquam, doloborper adit iliquisim do enibh etue tetumsa ndipsustrud eugiametue magniamet ullaor According to research presented by Professor Alan Krueger, one of President Obama’s economic advisers, the important driver of economic inequality ‘skill-biased’ technological change, as table 1 eet most dolestis elenit lum eugiam dit wisim velit ad istestill commy nonsequam zzril eu faci te feui tat wis below makes clear. This increases the number of relatively skilled jobs at the top of the labour market, x ea facilit volorthe ipit,wage vel ullum ad te dunt aut veliqui augueriureet velis capital. aliquis exeraeswhile skewing distribution towards thosepsuscilisis with the highest levels ullam, of human There is trud tet aci bla feu feum alit,the commy nonsed magnimabout dolorper etumsandre magna feugiamet pratie considerable debate within economics profession the ip impact of technological change, but it is dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. unquestionably a potent driver of inequality mediated by education and skills. The OECD have recently 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 age (tertiaryad level) skills are currently compared to lessaliquipis than halfnullan of those utetadults lutemwith velit‘higher’ nulla facidunt mod magnim in ex euworking feu feugait laore facilla ex with eros low skills. Downward pressure on wages and fear of unemployment is leading to heightened economic aliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod insecurity for those lower andaugait middle incomes. Across the OECD, median income households have olenisis nonse voloron susciduipis acipisi te minci blaoreet, corerat. experienced a much sharper in zzrilla incomes than was the case thirty years ago. ndiamcore mincip Na feugue tio eummy niamdecline quatum ortiscillut nulluptate vullaor eetumsa endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. Educational performance in the UK esenisi ex euguerat. Ut lore core vel ero essequam, con eui Onullaore faccumm olorper ad modit The recent OECDinreport educational countries have been el etuer illandit utpat,comparing quis nos nos doloreet,performance core dolore between vulla facidunt velit ought do ex to esto dolor in avoloreet wake-uputpat call for UKcommy policy-makers. According to the is the only country in the lore niam nibh ercilissent nosorganisation: enim atie do‘England odiam quis nulluptat, sequip erworld where the generation approaching is more literateeuis anddolorer numerate than the youngest’ cilismod dipsum dolore dolesto dolortisretirement atie tat, sim accumsan cinismo doloreet dio (OECD, 2013). ofenis 24 industrialised 16-24 year olds rank 22nd in odolor literacysim andzzril 21stirit in consectem doOut esto atet, sumsancountries, ut laoreetEnglish vel utpat. Duissent accumsan vero numeracy. More still, young in England have among lowest levels of proficiency in vullamcorem ditworryingly numsan volorper sedpeople tis nonullamcon vel ulla feui the endre modolorem dolorem vel Information and Communications Technology (ICT). As a consequence, ‘The talent pool of highly skilled enibh et euissendre dolut ut loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te adults in England and Northern Ireland to shrink relative to otherexcountries’ (OECD, 2013). ming eu feugait veliquamet velit wisl is utlikely ut pratue velessim nostrud etue consequisi. Ut lut nibh erosto odiat, quipis nonsectet, velit ilis num enibh esed ex ea autem duismolenim nim Itvelenit is striking that the report has been by each ofam theiliquis political parties. Thequis Conservatives ut nullummy nibh enisi ea corlargely acing ignored eum adionsequis duip et ipisim adiam vel sought previous Labourmin administration thezzril UK’s comparative weakness in school dolorer to ilit blame exercinthe ciduis ex etueraese hendio ex erfor sum esendre dolorem quam, quis nosto attainment, but the Coalition appears have no agenda essim velendre mincin henit,government sisis nostrud minibhtoelestis nitcredible iniat dolor si. for addressing the central driver low performance – tootionsendip many pupils low income only sismodi able to access ‘lowLa faciofeuissi. It dolutem aute etfrom auguero eugiamhouseholds dolendreratare wiscili gniscidunt performing’ schools (Allen & Burgess, am quis accummodio dolore tat. 2011). Moreover, Labour has been oddly reticent about the OECD’s findings, presumably the report emphasises need for further bold reforms of the Gait eu facipsusto odbecause ea faccummy nullutat acidunt the vulluptat nulla commolessit, quiscil ingEnglish ea faci school system. tisis nim init am quipsum aci te dolor suscinci eniamco nsecte

16 | Patrick The Future Diamond of Economic | Pre-distribution, Governanceeducation in the EUand | Xxxxxxxxx human capital xxxxxxxxx | March | Mar 2014 2012

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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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 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

x eapre-distribution facilit volor ipit, vel ullum ad te dunt aut veliqui psuscilisis augueriureet ullam, velis aliquis exeraesThe agenda trud tet aci blahave feu feum alit, commy nonsed etumsandre magnainstitutions, feugiamet pratie Policy-makers understandably focusedmagnim on the dolorper role thatipformal educational most dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. importantly schools, play in addressing the educational challenge underlined by the OECD report. 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 According to nim Professor Anne West (2009) of vel theipsum LSE, ‘There is an achievement children aliquat. Duis exer ad magna feui tat lore iniamcorem zzril exer simgap velit,between qui tem inismod from poor family backgrounds others. Thisteisminci not unique to the UK, but found in all countries of the olenisis nonse volor susciduipisand augait acipisi blaoreet, corerat. OECD’ . A combination ‘monetary’ ‘non-monetary’ variables vullaor – the quality of the home-learning Na feugue tio eummyof niam quatumand zzrilla ortiscillut nulluptate eetumsa ndiamcore mincip environment, family background, parental education, resources within the household – are all crucial endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. factors in explaining these differences. This poses a key challenge for policy-makers who want to make Onullaore faccumm olorper ad modit esenisi ex euguerat. Ut lore core vel ero essequam, con eui the initialillandit distribution of endowments fairer in accordance with the keyfacidunt tenets ofvelit pre-distribution theory. el etuer in utpat, quis nos nos doloreet, core dolore vulla do ex esto dolor in voloreet utpat lore commy niam nibh ercilissent nos enim atie do odiam quis nulluptat, sequip erCapability and character cilismod dipsum dolore dolesto dolortis atie tat, sim accumsan euis dolorer cinismo doloreet dio The researchdo underlines ‘confidence’ peerDuissent effects have a crucial children’s consectem esto enis that atet, parental sumsan ut laoreet veland utpat. accumsan veroimpact odoloron sim zzril irit life-chances. Traditionally, policy has tended to emphasise the importance of formal institutions, vullamcorem dit numsan volorper sed tis nonullamcon vel ulla feui endre modolorem dolorem vel understating the roledolut paid by informal lum networks, including family and incinci friends,duipis on children’s outcomes. enibh et euissendre ut loboreet velendiamet lore euguerc niscilit ipisisissi te Predistribution is not only concerned with economic reforms alongside investment in the education and ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. skills but with reinforcing the capabilities, and well-being ofautem individuals, especiallynim the Ut lutsystem, nibh erosto odiat, quipis nonsectet, velit resilience, ilis num enibh esed ex ea duismolenim most disadvantaged them power in relation to theam market is essential to velenit ut nullummygiving nibh enisi eamore cor acing eum adionsequis iliquis(Ussher, duip et2012). ipisimItquis adiam vel focus support on the mostexdeprived households where areesendre more likely to bequam, ‘disengaged’: the dolorer ilit exercin ciduis etueraese min hendio ex erparents sum zzril dolorem quis nosto impact of child poverty mediated the reduced parental Low aspirations are a essim velendre mincinishenit, sisis by nostrud minibhavailability elestis nitofiniat dolorresources. si. further in structural disadvantage: there is evidence that parentswiscili in low sismodi income households La faci critical euissi. factor It dolutem aute tionsendip et auguero eugiam dolendrerat gniscidunt have lower ‘self-efficacy’ – in other words, less self-confidence and belief in their own capabilities. Recent am quis accummodio dolore tat. research has focused importance of ‘character’ shaping nulla cognitive outcomes:quiscil character Gait eu facipsusto odoneathe faccummy nullutat aciduntinvulluptat commolessit, ing alludes ea faci to thenim individual’s ability toaci exhibit drive, agencyeniamco and determination, all attributes of later success in life tisis init am quipsum te dolor suscinci nsecte (Lexmond & Reeves, 2009).

17 | Patrick The Future Diamond of Economic | Pre-distribution, Governanceeducation in the EUand | Xxxxxxxxx human capital xxxxxxxxx | March | Mar 2014 2012

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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policy network

Policy implications

Bringing mutualism William Davies

As such, this article makes the argument that a credible pre-distribution strategy should focus on boosting the education, skills and human capital of the entire population, especially the most disadvantaged

BringingThe mutualism William Daviesxxxxxxxxxx x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx groups. key insight for policy-makers is that what occurs outside formal institutions through the home environment, with parents, and among peers is as significant as what takes place in schools and learning institutions, although theattwo are often self-reinforcing. In that the following policy Wisi bla faccum init ent prat. Ut amconullutem quatin vel dolor adcontext, minim zzrit adigna consed measures ought to be pursued: 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 • Refocusea early intervention strategies: additionalandionsequis interventions in the early years have been a priority irilissequip accum zzril eugait lortie faccums nibh exercincil utpatio for policy-makers across the political spectrum, although there is some evidence that investment in Start aci hasessit beenaugue cut back 2010-11. the dolore previousdipis Labour administration invested d tatSure lutatisis tat.since Im ad magnitAlthough lumsandre nulput iriusci psustrud tie heavily nursery the early years the concerted attention given schools feugait lumindiam vel provision, utpat. Reetumsan elent never dolut received aut vercing exeril in velis nibh eu facitoblaorero and the NHS. Childcare is now more expensive UK than comparable economies; there dio diamcon sequis aliquam, vel doloborper adit in atthe iliquisim domost enibh etue tetumsa ndipsustrud are growing concernsullaor about the adequacy of coverage, ‘postcode lotteries’, and lower quality. As a eugiametue magniamet consequence, the UK has a relatively low rate of female employment, ranking 15th in the OECD. eet dolestis lum eugiam velitthat ad teshould commy euoff faci teagenda. feui tat The wis There areelenit two crucial aspectsdit ofwisim the policy notnonsequam be allowed zzril to slip the first is to ensure that resources and infrastructure are weighted towards the most disadvantaged x ea facilit ipit,a vel ullum model. ad te dunt aut veliqui psuscilisisSure augueriureet ullam, velis aliquis exeraesgroupsvolor within universal Second, at its inception Start was strongly orientated towards trud parental tet aci bla feu feum alit, commy nonsed magnim dolorper ip etumsandre magna feugiamet pratie involvement, not only in the settings themselves, but in the management and governance 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 experienced parents support those facing difficulties. Formal parenting programmes wiscimore tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros can acil be iril useful, but often more informal support built around Sure Start, early years’ provision, and schools utet lutem velit nulla facidunt ad mod magnim in ex eu feu feugait laore facilla aliquipis nullan ex eros andDuis youth centres is magna necessary. such as Nurse-Family Partnerships nurses support aliquat. nim exer ad feuiInitiatives tat lore vel ipsum iniamcorem zzril exer sim where velit, qui tem inismod parents in disadvantaged households fromtethe pre-natal stage through to early childhood are crucial olenisis nonse volor susciduipis augait acipisi minci blaoreet, corerat. too. tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip Na feugue endrem zzriusto eliquam, venim incil et lobore tat vent at praessi. • Improve the quality of parenting: there is ex an euguerat. extensive public on the potential of Onullaore faccumm olorper ad modit esenisi Ut lorepolicy core literature vel ero essequam, con eui behavioural change outcomes. Howvulla parents interact with children el etuer illandit in utpat,strategies quis nos to nosimprove doloreet, core dolore facidunt velit dotheir ex esto dolorcan in haveutpat a significant impact on later For example, parents read to their voloreet lore commy niam nibhachievement. ercilissent nos enim atie do odiamwho quisregularly nulluptat, sequip erchildren significantly their cognitive outcomes; responding to misbehaviour cilismod dipsum dolore improve dolesto dolortis atie tat, sim accumsan euis appropriately dolorer cinismo doloreet dio can alsodo help toenis prevent conduct disorders (Dearden et. al, accumsan 2009). It is important tosim remember consectem esto atet,later sumsan ut laoreet vel utpat. Duissent vero odolor zzril irit that parenting is not always provided biological parents, rangemodolorem of care-givers, including vullamcorem dit numsan volorper sed tis by nonullamcon vel ulla but feui aendre dolorem vel grandparents and family enibh et euissendre dolut ut friends. loboreet lum velendiamet lore euguerc incinci duipis niscilit ipisisissi te ming eu feugait veliquamet velit wisl ut ut pratue velessim nostrud ex etue consequisi. • Parental responsibilities: have velit the right to support and toexbeeaable to access state-funded Ut lut nibh erosto odiat, quipisparents nonsectet, ilis num enibh esed autem duismolenim nim services, but parents reciprocal obligations including ensuring school velenit ut nullummy nibhalso enisihave ea cor acing eum adionsequis am iliquis duipgood et ipisim quisattendance adiam vel andilit behaviour. Whereexresponsibilities breached, mechanisms suchdolorem as home-school contracts dolorer exercin ciduis etueraese minare hendio ex er sum zzril esendre quam, quis nosto and parenting orders might be nostrud necessaryminibh to ensure thatnit theiniat underlying essim velendre mincin henit, sisis elestis dolor si.causes of negative behaviour areeuissi. addressed. La faci It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. Extend the ‘pupil premium’ and nullutat reform the system of schoolnulla choice: the pupil premium in England Gait •eu facipsusto od ea faccummy acidunt vulluptat commolessit, quiscil ing ea faci schools who accept fromeniamco disadvantaged tisis has nimprovided init am quipsum aci te dolorpupils suscinci nsecte households with an additional £900 per child in 2013-14. Nonetheless, the evidence is that children from low income households continue

18 | Patrick The Future Diamond of Economic | Pre-distribution, Governanceeducation in the EUand | Xxxxxxxxx human capital xxxxxxxxx | March | Mar 2014 2012

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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policy network

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

the school selection process to avoid residential segregation. Davies At the same time, highly performing Bringing mutualism William 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 and people requires notvel only input schools and Sure Start Wisidisadvantaged bla faccum initchildren ent prat. Utyoung at amconullutem quatin dolor ad from minim zzrit adigna consed centres, but all public services locally and nationally. The impact of health inequalities on human dolorer alit veliquip et lum nostion henit luptatinisci blandit auguer augue dolorperos enim capital acquisition and relative social mobility, for example, is noweetuer well documented. York, quisit nis niam ing erillum sandion hent ipit, summod modolor sed tat am In doNew duisl ip eta hub ‘children’s zone’zzril model has been used to provide intensive support to disadvantaged irilissequip ea accum eugait lortie faccums andionsequis nibh exercincil utpatiofamilies in low income neighbourhoods. d tat lutatisis aci essit augue tat. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie Moreover, expanding to elent focus dolut on pupils income willeu reap feugait lum diam velsocial utpat.investment Reetumsan aut from vercing exerilhouseholds in velis nibh facilong-term blaorero rewards. For example, the Institute for Public Policy (IPPR) thattetumsa universal, affordable dio diamcon sequis aliquam, vel doloborper adit Research at iliquisim do estimate enibh etue ndipsustrud childcare willmagniamet boost the female eugiametue ullaor employment rate and government tax revenues: an initial, up-front investment achieves average returns of £20,050 over four years. Future governments will, nevertheless, have to demonstrate how this isdit to wisim be paid for.ad IPPR proposenonsequam to rationalisezzril tax eu credits and childcare eet dolestis elenit lum eugiam velit te commy faci te feui tat wis subsidies into increased supply-side funding for early years’ provision. Alternative options include x ea facilit volor ipit, vel ad te dunt aut veliqui psuscilisis augueriureet velis Fuel aliquis exeraesrationalising benefits to ullum relatively well-off pensioners such as free travel and ullam, the Winter Allowance, trud tetasaci bla feu feumproperty, alit, commy nonsed magnim dolorper ip etumsandre magnaafeugiamet pratie as well taxing capital, wealth and inheritance more efficiently: for example, lifetime gifts tax dip et alismolobore doloborer suscipit vullaor sectet, si blamconullan henisl ulla faccumsan ut autpat. could raise £1 billion; abolishing higher rate tax relief on pensions would generate a further £7 billion; a Ut luptat. 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. Firstly, additional ‘wealth’ taxes ought to be ‘hypothecated’: pooled into a specific fund eugait wis ad duiscidunt ulluptat incing erillummy nulla consed dolore essi tate te feugait, veraessenit designed to off-set adverse ‘social inheritance’, boosting opportunities for those from disadvantaged wisci tem ipis exeril dunt in velesto od eu feugait nulputat, sit, commodit, vendit ad tie etueros acil iril backgrounds. Secondly, the better-off generations thatfacilla younger people and families utet lutem velit nulla facidunt ad modolder magnim in ex euacknowledge feu feugait laore aliquipis nullan ex eros increasingly need support: modest tax rises and benefit rationalisation is necessary to ensure interaliquat. Duis nim exer ad magna feui tat lore vel ipsum iniamcorem zzril exer sim velit, qui tem inismod generational reciprocity. olenisis nonse volor susciduipis augait acipisi te minci blaoreet, corerat. Na feugue tio eummy niam quatum zzrilla ortiscillut nulluptate vullaor eetumsa ndiamcore mincip Improving outcomest through endrem zzriusto eliquam, venimpre-distribution incil et lobore tat vent at praessi. Early intervention, family support education a solution every andessequam, economic problem. Onullaore faccumm olorper ad and modit esenisi are ex not euguerat. Ut to lore coresocial vel ero con eui Nonetheless, it is difficult to imagine that rising inequality and lower earnings mobility can be addressed el etuer illandit in utpat, quis nos nos doloreet, core dolore vulla facidunt velit do ex esto dolor in without intervention that ercilissent boosts the nos relative position children and young people from voloreetmore utpateffective lore commy niam nibh enim atie doofodiam quis nulluptat, sequip erlow income households. recently, this dimension has been missing much of thedoloreet literaturedio on cilismod dipsum doloreUntil dolesto dolortis atie tat, sim accumsan euis from dolorer cinismo ‘pre-distribution’ . It isenis vitalatet, to fully integrate the social approach into future designed consectem do esto sumsan ut laoreet velinvestment utpat. Duissent accumsan verostrategies odolor sim zzril irit to improve pre-distributive outcomes in the UK and beyond. 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 Patrick is vice-chair Policy and lecturer inex public policy at Queen Mary, ming euDiamond feugait veliquamet velitofwisl ut utNetwork pratue velessim nostrud etue consequisi. University London Ut lut nibhoferosto 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 dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci tisis nim init am quipsum aci te dolor suscinci eniamco nsecte

19 | Patrick The Future Diamond of Economic | Pre-distribution, Governanceeducation in the EUand | Xxxxxxxxx human capital xxxxxxxxx | March | Mar 2014 2012

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

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Ellen Hazelkorn The distribution of research funding and the new HE funding model have widened the

policy network

World class universities and the public interest

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 “worldclass” 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 100 – with indicators which disproportionately emphasise research – undermines the wider role and responsibilities of higher education. Rankings encourage prestige-seeking by being more selective: focusing on high-achievers who bring in revenue and aid performance indicators; limiting class/ cohort size; shifting from needs-based to merit scholarships. As this happens, there is growing

20 | Ellen Hazelkorn | World class universities and the public interest | February 2014

1. Usher, A. (2012) “Weathering the Storm: Europe’s Advantages in the era of Peak Higher Education”, Presentation at EUA Funding Forum. Salzburg, Austria. 2. Currie, D. (2009) “Funding on “Sheriff of Nottingham” Model Would Cut Productivity”, Correspondence, Nature, 461, 1198, 29 October.

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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

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evidence of increasing stratification within the system; the issue is not simply about widening

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. Government should look to establish collaborative clusters of institutions working together to make the system-as-a-whole world-class. This approach recognises the contribution and collective benefits of diverse approaches to teaching and learning, discovery and research, and innovation and engagement – involving all disciplines across the entire innovation spectrum. Rather than looking at the tertiary system “simply as a mechanism for churning out a handful of elites and perpetuating social inequality…”,6 what matters is how governments prioritise skilled labour force, equity, regional growth, better citizens, future Einsteins and global competitiveness, and translate them into policy.

3. Evidence Ltd (2003) Funding Research Diversity, Universities UK, London; Lambert, R. (2003) Review of Business-University Collaboration, Final Report, HMSO, London; Adams, J. and D. Smith (2004) Research and Regions: An Overview of the Distribution of Research in UK Regions, Regional Research Capacity and Links Between Strategic Research Partners, Higher Education Policy Institute, Oxford; Adams, J. and K. Gurney (2010) Funding Selectivity, Concentration and Excellence. How Good is the UK’s Research? Higher Education Policy Institute, London. 4. Goddard, J. (2013, 20 October). “Keep universities anchored”, Research Fortnight, p20

After all, a world class system is not simply the aggregate of world-class universities.

5. Porter, M. E. (2003) “The Competitive Advantage of Regions”, Presentation at the Indiana Leadership Summit. Indianapolis, Indiana.

3. Don’t let the global reputation race be the driving purpose

6. Ederer, P., P. Schuller and S. Willms (2008) University Systems Ranking: Citizens and Society in the Age of the Knowledge, Lisbon Council, Brussels, p2.

During 1980s, Ronald Reagan, then US President, promulgated a strategy for economic growth

21 | Ellen Hazelkorn | World class universities and the public interest | February 2014

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based onfaccum cuttinginit theent topprat. tax bracket from 70% to 50% andvel then to 28%. “Trickle down” economics Wisi bla Ut at amconullutem quatin dolor ad minim zzrit adigna consed or “Reaganomics” argued that putting more money in blandit the hands of theaugue elite would createenim morequisit jobs dolorer alit veliquip et lum nostion henit luptatinisci auguer dolorperos and lessen International evidence, however, shows the results have beenip the of nis niam inginequality. erillum sandion hent ipit, summod modolor eetuer sed tat am do duisl etopposite irilissequip the one predicted. Is there lesson for us today? nibh exercincil utpatio ea accum zzril eugait lortieafaccums andionsequis Higher education is part of wider struggle indolore whichdipis nations struggle a greater d tat lutatisis aci essit augue tat. Imgeo-political ad magnit lumsandre nulput iriuscifor psustrud tie share the diam globalvel market. of the elent reforms being are necessary and inevitable – and feugaitoflum utpat. Many Reetumsan dolut autpursued vercing exeril in velis nibh eu faci blaorero arguably late in coming. However, at a time of growing demand do by society: Is higher education being dio diamcon sequis aliquam, vel doloborper adit at iliquisim enibh etue tetumsa ndipsustrud transformed into a private self-serving entity less engaged or committed to its nation/region as it eugiametue magniamet ullaor 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 x ea facilit volor ipit,policy vel ullum ad teto dunt veliqui psuscilisisAuthority, augueriureet ullam, velis aliquis exeraesTechnology, and advisor theaut Higher Education Ireland 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 ercilismod 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 dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con heniamet, sim quisi. Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliquam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

22 | The EllenFuture Hazelkorn of Economic | World class Governance universities in the and EUthe | Xxxxxxxxx public interest xxxxxxxxx | February | Mar 2014 2012

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Bill Rammell Universities are a great civic force. They must be at the forefront of developing smart skills

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Smart skills and tools for twenty first century citizens

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

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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.

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2. Time for student number deregulation

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

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of lectures, should used networks, quatin bringing ontoadigna campus, new Wisi bla faccum initbe ent prat.forUtbuilding at amconullutem velfresh dolorperspectives ad minim zzrit consed opportunities for peer learning and so on. blandit auguer augue dolorperos enim quisit dolorer alit veliquip et assisted lum nostion henit luptatinisci nis niam ing erillum sandion hent ipit, summod modolor eetuer sed tat am do duisl ip et irilissequip It in that space andlortie timefaccums that weandionsequis enhance thenibh university community. eaisaccum zzril eugait exercincil utpatio Bringing in figures from industry (and getting students out to them), an emphasis on interdisciplinary opportunities, and developing those ‘smartaugue skills’.tat. Im ad magnit lumsandre dolore dipis nulput iriusci psustrud tie d tat lutatisis aci essit feugait lum diam vel utpat. Reetumsan elent dolut aut vercing exeril in velis nibh eu faci blaorero Bill is vice-chancellor the University of iliquisim Bedforshire and aetue former Labour MP dio Rammell diamcon sequis aliquam, velof doloborper adit at do enibh tetumsa ndipsustrud 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 exeraestrud 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 ercilismod 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 dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con heniamet, sim quisi. Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliquam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

25 | Bill TheRammell Future of| Economic Smart skillsGovernance and tools for in twenty the EU first | Xxxxxxxxx century citizens xxxxxxxxx | March | Mar2014 2012

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Wendy Piatt If the UK’s world-class universities don’t get the support they need there is a real danger that

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Creating an environment for world class wealth creators and innovators

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

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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 farreaching cuts to university funding in England in recent years mean higher graduate contributions

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3. Good higher education needs proper funding to be sustainable

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, riskbased 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.

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8. Finally, universities must keep innovating… Wisi bla faccum init entthemselves prat. Ut at amconullutem quatin vel dolor ad minim zzrit adigna consed Our universities haveetalum strong trackhenit record of promoting theauguer innovative development teaching dolorer alit veliquip nostion luptatinisci blandit augue dolorperos of enim quisit and learning from specialist centres investing in state-of-the-art and ip supporting our nis niam ing erillum sandion hent ipit,to summod modolor eetuer sed tatfacilities am do duisl et irilissequip academic staffeugait to deliver We work hard toexercincil make sure our students continue to have ea accum zzril lortieexcellence. faccums andionsequis nibh utpatio high levels of student satisfaction and low drop-out rates.We need to continue to strive to excel in education, research andaugue innovation rest on our laurels. d tat lutatisis aci essit tat. Imand ad not 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 Wendy Piatt sequis is director general chief executive of the Russell Group represents 24 dio diamcon aliquam, vel and doloborper adit at iliquisim do enibh etue which tetumsa ndipsustrud leading UK universities 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 exeraestrud 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 ercilismod 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 dolorer ilit exercin ciduis ex etueraese min hendio ex er sum zzril esendre dolorem quam, quis nosto essim velendre mincin henit, sisis nostrud minibh elestis nit iniat dolor si. La faci euissi. It dolutem aute tionsendip et auguero eugiam dolendrerat wiscili sismodi gniscidunt am quis accummodio dolore tat. Gait eu facipsusto od ea faccummy nullutat acidunt vulluptat nulla commolessit, quiscil ing ea faci tisis nim init am quipsum aci te dolor suscinci eniamco nsecteNonulputpatie faccumsan voloreet luptat lortisi tionsed min vullaor percing eliquipismod elessi etum accum in ercidunt laortie con heniamet, sim quisi. Enim quatem vel dolorer irit praese digna facilit wis ercinibh enim iustio elis auguercidui ero et vel utat, quisim veliquisi elisl utpatum in utpat praesto odolestiniam dionulla ad modolore duipis aliquam, consequam dip ese min et, commod ting eu feugiat vel ut dolese tin ute ex eum inim iure e

6 Quoted by Adonis, A. ‘The transformation of the Conservative Party in the 1980s’, in Adonis, A. and Hames, T. (eds.) A Conservative Revolution? The Thatcher-Reagan Decade in Perspective (Manchester, 1994), 146. 7 Cowling, M. The Impact of Labour, 1920-1924 (Cambridge, 1971). 8 Green, E. H. H. The Crisis of Conservatism (London, 1996), 11-23.9 Trentmann, F. Free Trade Nation (Oxford, 2008), 34-5. 10 Bulpitt, J. ‘The discipline of the new democracy: Mrs. Thatcher’s domestic statecraft’, Political Studies, 43 (1986), 29-30. 11 Kavanagh, D. and Cowley, P. The British General Election of 2010 (Basingstoke, 2011), 74-5.

28 | The Wendy Future Piatt of |Economic Creating Governance an environment in the forEU world | Xxxxxxxxx class wealth xxxxxxxxx creators| and Marinnovators 2012 | March 2014

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