EDUCATION AND HUMAN CAPITAL

Objectives:
1. To determine the relationship between education and development.
2. To determine the development of human capital to the third world countries

Education- is a systematic process through which a child or an adult acquires

knowledge, experience and skills. It makes an individual civilized, refined, cultured and
educated. For a civilized and socialized society, education is the only means (John
Parankimalil ,2012)
The term education is derived from the Latin word ‘educate’ which means to ‘bring up’
or to ‘draw out’ the latent powers of child.
By education we intend to bring certain desirable changes in the students. Education is
a conscious effort and, as such, it has definite aims and objectives.

People have right to get educated as much as they want because there is no limitation
for education. No matter how old a person is, he / she can still take education during the
rest of their lives. Hence, there is no such thing as too late to get education.

What is the importance of education?

Education means a lot to everyone’s life as it facilitates our learning,

knowledge and skills. It completely changes our mind and personality and helps us to
attain the positive attitudes. Education makes us capable of interpreting things, among
other things.

The main role of education system is to produce well-prepared graduates

capable of succeeding in a rapidly-changing global village, of actively and meaningfully
participating in the labor force, and to contributing economy of the country.

Education is commonly divided formally into such stages as:

Preschool and primary school = prepares the base which helps throughout the life.
Secondary school = prepares the path for further study.
College = prepares the ultimate path of the future and whole life.

Various Ways of Education

Formal Education
Is a classroom based, provided by trained teacher.
Informal Education
Happen outside the classroom, in after-school programs, community-
based organizations, museums, libraries, or at home.
EDUCATIONAL SYSTEM
Generally refers to public schooling, not private schooling, and more commonly
to kindergarten through high school programs. The system consisting of different bodies
that provide education.
. In the world of education, the preferred form is actually "education system."

Educational System of the Philippines

K to 12

The K to 12 program covers kindergarten and 12 years of basic education ( Six

years of Primary Education, Four years of junior high school, and Two years of Senior
High School) to provide sufficient time for mastery of concepts and skills, develop
lifelong learners, and prepare graduates for tertiary education, employment, and
entrepreneurship.

Reasons why Philippines switch to K to 12 curriculum

1. Only country in Asia with 10 years of basic education – Before implementing K-

12, the Philippines was the last Asian country and one of only three nations in the world
with 10 years of basic education. The new system, which follows a global standard, will
put Filipino students at par with the rest of the world.

2. Poor quality of education – Students’ low scores in the National Achievement Test
(NAT) and Trends in International Math and Science Study (TIMMS) are a reflection of
the current quality of education in the country.

3. Too many non-practical subjects – Supported by the findings of the study

performed by SEAMEO INNOTECH, the country’s old curriculum was too congested
and lacked practical application. While students did not get enough instructional time to
learn, they also missed the chance to be prepared for actual professional work.

4. Not prepared for college education - Due to lack of practical application, past high
school grads (in the old curriculum) could not qualify to pursue higher education.

5. Too young for labor force – High school graduates of the old curriculum are
generally less than 18 years old and are too young to work after graduation. This young
age is deemed unripe for them to enter the workforce or enter into business contracts.

6. No global recognition – Filipino professionals who have finished a 10-year basic

education may not be acknowledged in many parts of the world. This is due to
education requirements set by some international accreditation agreements.
ISSUES AND PROBLEMS OF PHILIPPINE EDUCATION

According to 7 KEY ISSUES AND PROBLEMS OF PHILIPPINE EDUCATION, here

are some problems in education in the Philippines:

 Deteriorating quality of education- There are multiple factors which have led to
low educational standards. Studies and fact-finding commissions have shown
that the deteriorating quality of education is due to the low government budget for
education; poor quality of teachers; poor management of schools; poor school
facilities such as laboratory and library facilities; poor learning environment; the
content of the curriculum; inadequate books and science equipment; the poor
method of instruction; shortages of classrooms; and others.
 Colonial, feudal, imperial, commercial, and elitist and orientation in
Philippine Education- A rather sweeping indictment is that the Philippine
educational system has been and still is basically American in orientation and
objectives. Even now, despite years of independence, our educational system
has not succeeded in eliminating the chronic colonial mentality which abounds
like a mental blight within or without the academe. At present, quality education is
financial-capacity based, making higher education more of a privilege rather than
a right.
 Shortage of school buildings, textbooks and equipment- Since 1960,
elementary enrolment has been expanding at the rapid rate of 4% a year owing
to increase in the number of children and in the enrolment ratio.
The shortages of classrooms and textbooks are particularly severe. The
nationwide classroom shortage is estimated to be 40,000 and the DECS (now
DepEd) operates two shifts in many schools. The textbook problem is even more
serious. A survey done in preparation for a World Bank education loan found that
the pupil-textbook ration in the public elementary schools is 10:1 and 79% of the
textbooks are more than 5 years old.
 Overworked and underpaid teaching staff- Teaching has often been referred
to as the “most notable of all professions.” To many teachers, however, the noble
image of their profession has been transformed into an illusion. Over the last
three decades, we have come to think of the Filipino teachers as overworked and
underpaid professionals. The fact that teachers are paid subsistence wages is
only half of their sad story. Their daily bout with dilapidated classrooms,
overcrowded classes, and lack of teaching materials, among others, make the
teachers hardly rewarded work even more difficult. Aside from classroom
instructions, teachers perform a host of backbreaking and time-consuming jobs
unrelated to the teaching function.
 Mismatch- The major problem of the tertiary level is the large proportion of the
so called “mismatch” between training and actual jobs, as well as the existence
 of a large group of educated unemployed or underemployed. The literature points
out that this could be the result of a rational response to a dual labor market
where one sector is import-substituting and highly-protected with low wages.
Graduates may choose to “wait it out” until a job opportunity in the high paying
sector comes. To address this problem, it is suggested that leaders in business
and industry should be actively involved in higher education. Furthermore, a
selective admission policy should be carried out; that is, mechanisms should be
installed to reduce enrolment in oversubscribed programs and promote
enrolment in undersubscribed ones.
 Graft And Corruption- According to (Ayala,2015), he cited Evelyn Chua’s book
entitled "robbed" by Philippine center for investigative journalism (PCIJ) telling
how the corruption is getting worse in the department of education (DepEd). He
said that leeway for corruption in the agency are through books and teachers'
salaries. The books, he pointed out, also has a lot of problems such as wrong
information and typographical errors. "The back problem is corruption. Even the
salaries of the teachers are being corrupted".
This situation has persisted for many years. Other teaching tools, such as
science materials, teaching devices and audio-visual aids, are also in short
supply. Perennial graft and corruption in the acquisition of books and in the
construction of school buildings has often been reported. This situation
handicaps the teaching staff in their work.
 Tuition And Other Fees Increase- According to Ayala (2015), he pointed out
that there is a problem on the commercialization of education through the
continuing increase of tuition and education becoming more expensive. He
concedes that private school raising their fees is justifiable but the question lies
now on the justification and appropriation of the fees collected.
 Bullying- According to Ayala (2015), student right violations, however, depend
on the strictness of a schools division of the student affairs, how tight they are in
screening and composing a student organization. The problem on bullying, for
him, also lies on the implementation of the law in schools. "If schools can't
implement it, there is something wrong with the schools, he said".
 Government Budget - The Philippine Constitution has mandated the
government to allocate the highest proportion of its budget to education.
However, the Philippines still has one of the lowest budget allocations to
education among the ASEAN countries.(Lagon,2010)
SOLUTIONS:

 Implementing K-12
[REPUBLIC ACT NO. 10533] - “Enhanced Basic Education Act of 2013”
An act enhancing the Philippine basic education system by strengthening its
curriculum and increasing the number of years for basic education, appropriating
funds therefor and for other purposes. (GOVPH, 2013)
 Subsidizing Students' Education
REPUBLIC ACT No. 10931-"Universal Access to Quality Tertiary Education Act"
An act promoting universal access to quality tertiary education by providing for
free tuition and other school fees in state universities and colleges, local
universities and colleges and state-run technical-vocational institutions,
establishing the tertiary education subsidy and student loan program,
strengthening the unified student financial assistance system for tertiary
education, and appropriating fund therefor. (LawPhil,n.d)
 Increase teachers’ salaries scale/ benefits
REPUBLIC ACT NO. 4670-"Magna Carta for Public School Teachers"
It is hereby declared to be the policy of this Act to promote and improve the
social and economic status of public school teachers, their living and working
conditions, their terms of employment and career prospects in order that they
may compare favorably with existing opportunities in other walks of life, attract
and retain in the teaching profession more people with the proper qualifications, it
being recognized that advance in education depends on the qualifications and
ability of the teaching staff and that education is an essential factor in the
economic growth of the nation as a productive investment of vital
importance.(LawaPhil,n.d)
 DOLE Programs
According to an evaluation by DOLE, mining, business process outsourcing
(BPO), and agriculture are the industries that offer a lot of job opportunities. To
address the problem, DOLE launched “Project Jobs Fit,” back in October 2009 in
hopes of figuring out which skills are needed by the industries. A career guide
was developed together with the Department of Education. Also, 3rd year and
4th year high school students all over the country participated in career guidance
counselling. (Joson, 2011)
 No to bullying
RA 10627: The Anti- Bullying Act-aims to protect children enrolled in
kindergarten, elementary, and secondary schools and learning centers
(collectively, “Schools”) from being bullied. It requires Schools to adopt policies to
address the existence of bullying in their respective institutions. (Disini Law
Office, 2015)
 Help from National Program Support for Basic Education (NPSBE)
 The National Program Support for Basic Education (NPSBE) played an important
catalytic role in implementing the government’s Basic Education Reform Agenda
(BESRA) over a six-year period (2006-2012). The project was the first Bank
operation in the country that adopted a national program support approach which
built the foundation for policy and system-wide reforms. This resulted in the more
effective use of resources that focused on implementing targeted reforms. The
project supported strategic elements and key reform thrusts of BESRA that
included school-based management, teacher standards and quality assurance.
The project likewise facilitated reforms that promoted decentralization and
rationalization of the basic education system that in turn improved equity, quality,
governance and financing of services. It also helped government better
coordinate donor assistance and mobilize resources from the private sector. An
innovation of the project was that it was implemented by the government itself
through the Department of Education’s regular staff and used the country’s
procurement and financial management systems.(World Bank,2014)

NOTE:
Please refer na lang sad sa video na among gipresent kay basi magkuha sad si
ma'am didto kay nagpaquiz man gud siya about ato dati. Salamat!

RECOMMENDATIONS
1. Invest on upgrading and monitoring educational quality toward achieving
better learning outcomes. Upgrading teacher quality is a key to improving learning
outcomes. We need well-trained and qualified teachers who are able to help
students develop cognitive and non-cognitive competencies. Teachers should be well-
equipped to engage students in classroom discussions, develop critical thinking, and
effectively handle weak learners. Periodic assessment of teachers’ capacity and student
performance could help promote accountability among teachers toward addressing
quality challenge. Strengthening school leadership and management in facilitating
periodic assessments could help improve teacher quality. Aside from traditional
monitoring and assessment channels, use of information and communication
technology (ICT) can also be considered. With a transparent standard of recruitment
and deployment system, long-term investment in teachers’ continuous professional
development is necessary for building a quality teaching force.
2. Broaden access to quality education and skills development across gender,
regions and social groups to narrow disparities in school attainment and
outcomes. Government must provide quality education to all learners through equitably
deploying trained teachers across regions and communities to reduce income gaps.
Use of ICT tools to facilitate classroom and distance learning is also a promising
mechanism for tackling geographical disparities in the quality of education and skills
learning. Education scholarships and stipends for students from socially or economically
disadvantaged families could also help reduce educational gaps across social groups.
Empowering local governments and rural communities to demand and support better
learning outcomes using their resources can contribute to reducing geographical
disparities. Promoting adult education and alternative learning experiences can
especially help mothers and students in communities where learning outcomes and
school participation are particularly low.
3. Improve secondary and tertiary education to match changing skill demand.
Secondary and tertiary schools are increasingly in demand to yield graduates with skills
that are relevant to labor markets, and on par with industry standards. Encouraging
greater partnership between educators and employers to facilitate the joint development
of curriculum standards, internship, workforce exchange, as well as financing, is a
promising way toward narrowing the gap between the skill supply and demand.
Promoting the integration of internship programs and other practical learning
experiences in secondary and tertiary curriculum could also ease greater production of
graduates with employable skills.

DEVELOPMENT - a process that creates growth, progress, positive change or the

addition of physical, economic, environmental, social and demographic components
(Meidan, 2018).

DIFFERENCE BETWEEN DEVELOPMENT AND GROWTH

Development overall is a more general and envelop term than growth.

Development includes growth, but also includes other aspects of improvement. The
main difference between them is that growth is usually quantitative,
whereas development is usually qualitative.

Ex. We all grow as children, but then we reach a certain age and stop growing.
However, we don't stop developing just because we have stopped growing--we go back
to school, we learn a new trade or hobby, we go new places, make new friends.

THE RELATIONSHIP BETWEEN EDUCATION AND DEVELOPMENT

The human capitalist theory and to a certain extent the modernization theory constitute
the framework for building cases to show that education enhances development.
  Human Capital Theory

According to the human capital theory, the most efficient path to national development
lies in the improvement of a country’s population. Education is an investment in human
capital that pays off in terms of higher productivity.

 Modernization Theory

Alex Inkeles and his colleagues think that to modernize is to develop. Society cannot
develop unless its population holds modern attitudes and values. Education has a
modernizing influence on values, beliefs and behaviors which make human beings more
development-oriented.

Sample Study

In a study conducted by Sianesi and Van Reenen [2000]. They noticed that in the case
of the primary school, a 1% growth in the schooling rate determines an increase of 2%
of GDP per habitant and an increase of 1% of the enrollment rate in the secondary
school would determine a raise of 2.5 - 3% of GDP per habitant.
HUMAN CAPITAL

Human Capital is a measure of the skills, education, capacity and attributes of

labor which influence their productive capacity and earning potential (Pettinger, 2017).

(In simple terms, Human Capital are the attributes embodied in individuals or groups of
individuals acquired during their life and used to produce goods, services and ideas)

Human capital is a quantification of the economic value of a worker's skill

set. This measure builds on the basic production input of labor measure where all labor
is thought to be equal. (The concept of human capital recognizes that not all labor is
equal and that the quality of employees can be improved by investing in them; the
education, experience and abilities of employees have economic value for employers
and for the economy as a whole)

Economist Theodore Schultz invented the term "human capital" in the 1960s to
reflect the value of human capacities. He believed human capital was like any other
type of capital; it could be invested in through education, training and enhanced benefits
that lead to an improvement in the quality and level of production.

Calculating Human Capital

Since human capital is based on investing in the skills and knowledge of employees
through education, these investments in human capital can be easily calculated. The
managers who oversee human capital (i.e., the HR department) can calculate the total
profits before and after any investments are made. Any return on investment (ROI) of
human capital can be calculated by dividing the company’s total profits by its overall
investments in human capital. ( For example, if Company X invests $2 million into its
human capital and has a total profit of $15 million, managers can compare the ROI of its
human capital year-over-year (YOY) in order to track how profit is improving and
whether it has a relationship to the human capital investments.)

(It should be noted relying on potential earnings is a limited view of human capital.
Earnings don’t necessarily reflect accurately all aspects of human capital. The OECD or
Organization of Economic Co-operation and Development consider different ways to
measure human capital taking a range of indicators)

Factors that determine human capital

1. Skills and qualifications

2. Education levels
 3. Work experience
4. Social skills – communication
5. Intelligence
6. Emotional intelligence
7. Judgement
8. Personality – hard working, harmonious in an office
9. Habits and personality traits
10. Creativity. Ability to innovate new working practices/products.
11. Fame and brand image of an individual. e.g. celebrities paid to endorse a
product.
12. Geography – Social peer pressure of local environment can affect expectations
and attitudes.

Human capital in primary and secondary sector

In agriculture and manufacturing, human capital was easier to measure. The

human capital of an assembly line worker could be measured in simple terms of
productivity – e.g. the number of widgets produced per hour. In mining, human capital
may be strongly related to physical strength and quantity of coal produced per day.

Human capital in tertiary sector/knowledge economy

The tertiary/service sector has a greater variety of jobs, which require different
skills. These skills and qualities are often more difficult to measure regarding output. For
example, the human capital of a teacher, cannot be measured by university degree and
A-Levels. The best academics may lack some teaching skills – like empathy, the ability
to inspire and command a class.

In a job, such as management, important characteristics will be factors such as

interpersonal skills, ability to work in a team and the creativity to problem solve.

In other words, as the economy has developed the concept of human capital has
also broadened to include a greater variety of skills and traits of capital.

PROGRAMS

Health

1. Preventive and promoted Health Program

A. Health Human Resource Program- Deployment of Human Resources for
Health (HRH) Program deploys doctors, nurses, midwives, dentists and other
health professionals as a strategy in support to the attainment of Universal
Health Care.
B. Early Childhood Care and Development Program
 C. National Immunization Diseases Program.
D. Other Infectious Diseases Program was established to ensure that
infants/children and mothers have access to routinely recommended
infant/childhood vaccines.
E. Tuberculosis Control Program- To reduce TB burden (TB incidence and TB
mortality),To achieve catastrophic cost of TB-affected households, To
responsively deliver TB service
2. Health Facilities Enhancement Program
3. National Health Insurance Program- the National Health Insurance Program was
established to provide health insurance coverage and ensure affordable,
acceptable, available and accessible health care services for all citizens of the
Philippines.

Education

1. Student Financial Assistance Program- CHED provide poor and deserving

Filipinos opportunities to quality higher education as articulated in its Long Term
Development Plan provisions for “Access and Equity” with the establishment and
maintenance of scholarship, grants-in-aid and loan programs
2. Higher Education Support Program
3. K to 12 Transition Program

Conditional Cash Transfer (CCT) program locally known as Pantawid Pamilya Pilipino
Program, or 4Ps, is a government program that provides conditional cash grants to the
poorest of the poor in the Philippines. The program aims to break the cycle of poverty
by keeping children aged 0-18 healthy and in school, so they can have a better future.