ABSTRACT
Since the end of the Cold War a new consensus seems to have emerged among Western governments that education provides the key to growth and competitiveness. The idea is that since labour is a major factor of production, better labour will be more productive, and what makes for better labour is education and training. Just as a better screwdriver enables you to be more productive (if your job involves screwdrivers), so more skilled workers will make the economy more productive. A pamphlet produced by the British Labour Party just before it won the 1997 election expresses the idea well:
This is called the human capital theory approach; the imperative is developing a strong and competitive economy, and the means is educating children to be productive workers. This benefits everyone; we all gain from higher Gross Domestic Product, and children gain from the fact that they are more able to operate well in the workplace.
