TRENDS IN EDUCATIONAL EXPENDITUREOv

TRENDS IN EDUCATIONAL EXPENDITURE
Over The Last fifteen years educational expenditure— as in the case of enrolments and demand— was marked by rapid increase up to the period 1970-1973 when it began to level off, initially due to a diminution in demand (in particular for capital expen-diture) and later due to budgetary constraints.
TRENDS UP TO THE EARLY 1970s
Trends in public educational expenditure' have been the subject of a recent study by the Secretariat. The conclusions of that study can be summarised as follows'. (see Table 47).
i) Public expenditure on education at current prices rose a good deal more rapidly than GDP: the elasticity on average is 1.4 (varying between I and 2). It averages 1.16 by reference to expenditure and income per capita.
ii) Around 1972 notable differences can be observed between countries in the public education share of GDP. These varied between 2 to 2.5 per cent in several of the Southern European countries and 7 to 8 per cent in a number of Northern European countries and in Canada. To some extent these differences reflect the varying weight of the private sector.
iii) "Some international uniformity exists, however, at the primary and second¬ary level, where most enrolment ratios (students as a percentage of the relevant age group) reach 90 per cent levels and where costs per student cluster surprisingly closely around a figure of some 20 per cent of per capita GDP. But the diversity is much greater for higher education. Enrol¬ment ratios go from lows of 12 to 15 per cent in Austria, Switzerland and the United Kingdom, to peaks of 45 per cent in North America. And costs per student vary from 40 to 120 per cent of per capita GDP.
iv) "Between the early 1960s and the early 1970s, the share of expenditure in GDP rose, on average, by about I percentage point, and did not fall in any Member country. The main features were:
• A relatively faster growth of prices in the educational sector which alone accounted for over 50 per cent of the increased share;
• A modest increase in expenditures on primary and secondary educa-tion reflecting both some increase in student numbers and a slight ten¬dency for 'real inputs' per student to rise faster than per capita GDP;
• A spectacular increase in higher education common to practically all countries, which reflected a near doubling in the number of students but was also accompanied by a 20 per cent fall, relative to the growth of GDP per capita, in real inputs per student'."
v) On average capital expenditure represents approximately 20 per cent of total expenditure on education and 1 per cent of GDP for the countries studied. During the period considered, capital outlays as a proportion of total education expenditure seem to have either levelled off or declined slightly in primary and secondary education and to have risen in higher education. This pattern reflects rates of enrolment at each of these levels.
vi) In summary, the Secretariat's study concluded that:
• primary and secondary education represented the bulk of education expenditure in the OECD area, largely on account of the number of pupils it covers; higher education is imparted to a much smaller proportion of the area's population (less than 1.5 per cent), but costs per student are perceptibly higher;
• through time the largest increase, in percentage terms, came from higher education, whose share in total expenditure rose from less than 15 per cent to some 20 per cent of the total',
• costs per student, relative to GDP per capita, rose moderately in primary and secondary education and fell in higher education;" real" inputs, however, either remained stable or fell sharply-,
• very broadly, of the 1 per cent increase in the share of GDP of educa¬tion here subdivided, 10 per cent is due to rising capital. inputs. The remainder can be attributed entirely to two factors whose weights are roughly equal— the increase in student numbers (especially at the higher level), and the rise in the relative price of education.
• RECENT TRENDS
From 1970 onwards the growth of public educational expenditure in relation to GDP has slowed down, as shown in Table 48. This would seem to be due to a fairly sharp fall in the growth rate of capital expenditure. Current expenditures in primary education and teacher training have tended to grow much more slowly. Moreover, particularly in the cases of the United States and of the United Kingdom, this trend has led to a very marked slowing down of unit costs (Table 51).
This trend towards a slowdown in the growth of public expenditure on educa¬tion has been confirmed since 1975. It is inseparably linked with the fiscal policy choices imposed in order to reduce inflationary tensions. In 1976 and 1977 the effects of GDP have been about neutral or very limited'. The United States represents the one case where public expenditure was expected to rise during 1977, whereas in other countries current restrictive trends will tend to be more pronounced, particularly in the United Kingdom, where strongly restrictive measures introduced in 1976 -will be maintained. in 1978, however, there was a discernable change in this trend: in Ger¬many and Japan, for example, public expenditure actually increased and in the United K ingdom a less restricted policy was adopted. But in 1979 another slowdown is to be expected in most of the larger Member countries.
These budgetary considerations have had various effects on public expenditure on education. In spite of yearly fluctuations and changes in the internal distribution of funds according to the nature or level of studies, a certain stabilization of the share of educational expenditure, both in the public budget and in GDP can be observed in most Member countries since 1975. In Germany in 1975 and 1976, for example, an increase of this expenditure was slower than that of total public expenditure, but their share of the GDP is growing slightly. In the United Kingdom, the figure (at constant prices) has remained largely unchanged since 1974 and accounts for a smaller share of the national budget. In other countries (France, the Netherlands, Sweden) these ex¬penditures continued to increase in 1976 and 1977, but at a rate not very different from that of the overall national figure.
Public expenditure, wether on the current or the capital accounts covers only be¬tween 50 and 80 per cent of the total sum spent on education, not excluding private ex¬penditure, the cost of adult education, indirect costs and, in particular, foregone earn¬ings. It is frequently very difficult to assess aggregate expenditures on education. The relevant data tend to be approximate and do not lend themselves easily to comparisons between countries. Thus, for 1970, in France, Japan and the United Kingdom, current public expenditure, including public subsidies to private institutions, accounted for 3.1 per cent, 2.9 per cent and 4.8 per cent of the gross national product respectively. If in¬direct costs were included (accommodation and foregone earnings), plus the cost of adult education, these proportions would rise to 7 per cent, 6,2 per cent and 7.7 per cent, that is, to almost twice the amount incurred by current expenditure alone. It is to be noted that according to these figures, expenditure on adult education amounted to 7 per cent in France, 14 per cent inJ apan and almost 50 per cent in the United Kingdom of normal current expenditure on education',
During the seventies the total expenditure on vocational training rose rapidly, absorbing an increasing proportion of the gross national product, particularly in Austria, France, Germany, Italy, Sweden and the United Kingdom. Increased expen¬diture on training and retraining was initiated as part of manpower policies adopted early in the recession with a view to increasing job opportunities for the unemployed. These expenditures are made available either to public and private training institutions or to enterprises in proportions which vary greatly among the different countries. (As A general rule, they are lowest in countries where vocational training is provided at the enterprise level). Enterprises have been persuaded to" internalise" certain costs of the vocational training of their employees and to increase, in response to fiscal encourage¬ment, the sums spent on training, In France, between 1972 and 1976, legislation designed to extend vocational training obliged firms employing more than 10 persons to divert 1 per cent of total salary expenditure for training purposes, thereby increasing the total expenditure on training from 2.8 billion francs to 6.2 billion, while the State contribution for the same period increased from 1.7 million to 3.1 million francs.
Developments in the functions of education and changing political priorities should tend to modify the internal distribution of existing or foreseen resources, along with methods of financing (although this matter is more controversial). During recent years, a number of transfers of funds have taken place within the education system:
i) from general education to vocational training;
ii) from the budgets of ministries of education to the budgets of employment services;
iii) finally, where the vocational training of actively employed or of un-employed personnel is concerned, the expenditure of business enterprises has been in part supplemented by public subsidies. This development reflects the importance attached to vocational training and to preparation for working life, the quality of which must be improved in periods of' high unemployment.
In a number of countries it is thought that the existing distribution of' resources within (tic education system works to the unfair advantage of certain social or racial groups. A more equitable distribution and a more equitable balance are being sought, notably for the benefit of underprivileged groups who fall victim to school failure and are at greater risk of being unem

Hasil (Bahasa Indonesia) 1:

TRENDS IN EDUCATIONAL EXPENDITUREOver The Last fifteen years educational expenditure— as in the case of enrolments and demand— was marked by rapid increase up to the period 1970-1973 when it began to level off, initially due to a diminution in demand (in particular for capital expen-diture) and later due to budgetary constraints.TRENDS UP TO THE EARLY 1970sTrends in public educational expenditure' have been the subject of a recent study by the Secretariat. The conclusions of that study can be summarised as follows'. (see Table 47).i) Public expenditure on education at current prices rose a good deal more rapidly than GDP: the elasticity on average is 1.4 (varying between I and 2). It averages 1.16 by reference to expenditure and income per capita.ii) Around 1972 notable differences can be observed between countries in the public education share of GDP. These varied between 2 to 2.5 per cent in several of the Southern European countries and 7 to 8 per cent in a number of Northern European countries and in Canada. To some extent these differences reflect the varying weight of the private sector.iii) "Some international uniformity exists, however, at the primary and second¬ary level, where most enrolment ratios (students as a percentage of the relevant age group) reach 90 per cent levels and where costs per student cluster surprisingly closely around a figure of some 20 per cent of per capita GDP. But the diversity is much greater for higher education. Enrol¬ment ratios go from lows of 12 to 15 per cent in Austria, Switzerland and the United Kingdom, to peaks of 45 per cent in North America. And costs per student vary from 40 to 120 per cent of per capita GDP.iv) "Between the early 1960s and the early 1970s, the share of expenditure in GDP rose, on average, by about I percentage point, and did not fall in any Member country. The main features were:• A relatively faster growth of prices in the educational sector which alone accounted for over 50 per cent of the increased share;• A modest increase in expenditures on primary and secondary educa-tion reflecting both some increase in student numbers and a slight ten¬dency for 'real inputs' per student to rise faster than per capita GDP;• A spectacular increase in higher education common to practically all countries, which reflected a near doubling in the number of students but was also accompanied by a 20 per cent fall, relative to the growth of GDP per capita, in real inputs per student'."v) On average capital expenditure represents approximately 20 per cent of total expenditure on education and 1 per cent of GDP for the countries studied. During the period considered, capital outlays as a proportion of total education expenditure seem to have either levelled off or declined slightly in primary and secondary education and to have risen in higher education. This pattern reflects rates of enrolment at each of these levels.vi) In summary, the Secretariat's study concluded that:• primary and secondary education represented the bulk of education expenditure in the OECD area, largely on account of the number of pupils it covers; higher education is imparted to a much smaller proportion of the area's population (less than 1.5 per cent), but costs per student are perceptibly higher;• through time the largest increase, in percentage terms, came from higher education, whose share in total expenditure rose from less than 15 per cent to some 20 per cent of the total',• costs per student, relative to GDP per capita, rose moderately in primary and secondary education and fell in higher education;" real" inputs, however, either remained stable or fell sharply-,• very broadly, of the 1 per cent increase in the share of GDP of educa¬tion here subdivided, 10 per cent is due to rising capital. inputs. The remainder can be attributed entirely to two factors whose weights are roughly equal— the increase in student numbers (especially at the higher level), and the rise in the relative price of education.• RECENT TRENDSFrom 1970 onwards the growth of public educational expenditure in relation to GDP has slowed down, as shown in Table 48. This would seem to be due to a fairly sharp fall in the growth rate of capital expenditure. Current expenditures in primary education and teacher training have tended to grow much more slowly. Moreover, particularly in the cases of the United States and of the United Kingdom, this trend has led to a very marked slowing down of unit costs (Table 51).This trend towards a slowdown in the growth of public expenditure on educa¬tion has been confirmed since 1975. It is inseparably linked with the fiscal policy choices imposed in order to reduce inflationary tensions. In 1976 and 1977 the effects of GDP have been about neutral or very limited'. The United States represents the one case where public expenditure was expected to rise during 1977, whereas in other countries current restrictive trends will tend to be more pronounced, particularly in the United Kingdom, where strongly restrictive measures introduced in 1976 -will be maintained. in 1978, however, there was a discernable change in this trend: in Ger¬many and Japan, for example, public expenditure actually increased and in the United K ingdom a less restricted policy was adopted. But in 1979 another slowdown is to be expected in most of the larger Member countries.Pertimbangan-pertimbangan anggaran ini memiliki berbagai efek pada pengeluaran publik untuk pendidikan. Meskipun fluktuasi tahunan dan perubahan dalam distribusi internal dana menurut sifat atau tingkat studi, stabilisasi tertentu saham pendidikan pengeluaran, baik dalam anggaran publik dan PDB dapat diamati di sebagian besar negara anggota sejak tahun 1975. Di Jerman pada tahun 1975 dan 1976, sebagai contoh, peningkatan pengeluaran ini adalah lebih lambat daripada total pengeluaran publik, tetapi mereka pangsa PDB tumbuh sedikit. Di Inggris, angka (harga konstan) tetap sebagian besar tidak berubah sejak tahun 1974 dan account untuk saham yang lebih kecil dari anggaran nasional. Di negara lain (Perancis, Belanda, Swedia) ex¬penditures ini terus meningkat pada 1976 dan 1977, tetapi pada tingkat yang tidak sangat berbeda dari angka nasional secara keseluruhan.Public expenditure, wether on the current or the capital accounts covers only be¬tween 50 and 80 per cent of the total sum spent on education, not excluding private ex¬penditure, the cost of adult education, indirect costs and, in particular, foregone earn¬ings. It is frequently very difficult to assess aggregate expenditures on education. The relevant data tend to be approximate and do not lend themselves easily to comparisons between countries. Thus, for 1970, in France, Japan and the United Kingdom, current public expenditure, including public subsidies to private institutions, accounted for 3.1 per cent, 2.9 per cent and 4.8 per cent of the gross national product respectively. If in¬direct costs were included (accommodation and foregone earnings), plus the cost of adult education, these proportions would rise to 7 per cent, 6,2 per cent and 7.7 per cent, that is, to almost twice the amount incurred by current expenditure alone. It is to be noted that according to these figures, expenditure on adult education amounted to 7 per cent in France, 14 per cent inJ apan and almost 50 per cent in the United Kingdom of normal current expenditure on education',During the seventies the total expenditure on vocational training rose rapidly, absorbing an increasing proportion of the gross national product, particularly in Austria, France, Germany, Italy, Sweden and the United Kingdom. Increased expen¬diture on training and retraining was initiated as part of manpower policies adopted early in the recession with a view to increasing job opportunities for the unemployed. These expenditures are made available either to public and private training institutions or to enterprises in proportions which vary greatly among the different countries. (As A general rule, they are lowest in countries where vocational training is provided at the enterprise level). Enterprises have been persuaded to" internalise" certain costs of the vocational training of their employees and to increase, in response to fiscal encourage¬ment, the sums spent on training, In France, between 1972 and 1976, legislation designed to extend vocational training obliged firms employing more than 10 persons to divert 1 per cent of total salary expenditure for training purposes, thereby increasing the total expenditure on training from 2.8 billion francs to 6.2 billion, while the State contribution for the same period increased from 1.7 million to 3.1 million francs.Developments in the functions of education and changing political priorities should tend to modify the internal distribution of existing or foreseen resources, along with methods of financing (although this matter is more controversial). During recent years, a number of transfers of funds have taken place within the education system:i) from general education to vocational training;ii) from the budgets of ministries of education to the budgets of employment services;iii) finally, where the vocational training of actively employed or of un-employed personnel is concerned, the expenditure of business enterprises has been in part supplemented by public subsidies. This development reflects the importance attached to vocational training and to preparation for working life, the quality of which must be improved in periods of' high unemployment.In a number of countries it is thought that the existing distribution of' resources within (tic education system works to the unfair advantage of certain social or racial groups. A more equitable distribution and a more equitable balance are being sought, notably for the benefit of underprivileged groups who fall victim to school failure and are at greater risk of being unem