High Literacy Doesn’t Require High Spending

Some countries made strong improvements since the last OECD survey.
High Literacy Doesn’t Require High Spending
12/8/2010
Updated:
10/1/2015

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Reading literacy rates are best in Korea and Finland, according to a survey conducted by the Organization for Economic Cooperation and Development (OECD), published this week. The Program for International Student Assessment (PISA) every three years measures reading, mathematics, and science skills of 15-year-olds in OECD member states. Hong Kong, Singapore, and Canada were the next three countries in overall performance, while the United States placed 17th out of 65.

Some countries made strong improvements since the last survey. Chile, Israel, and Korea advanced most in reading, while Italy, Norway, and the United States all posted better results for science.

Another report published by OECD in September, “Education at a Glance 2010” compared data from member countries between 1995 and 2007 looking at a variety of factors, particularly education financing.

The report found that overall there was a marked increase in education spending during the 12-year period. On average, among 31 member countries surveyed, the portion of GDP spent on education increased by 49 percent to 6.2 percent. The United States was the biggest spender at 7.6 percent of GDP, or $1.1 trillion, in 2007. The Slovak Republic was lowest, spending only 4.0 percent, or $4.5 billion the same year.

Countries are wise, according to the OECD, to invest heavily in education because of its capacity to contribute to the nation’s wealth. “Better educational outcomes are a strong predictor for future economic growth,” said Angel Gurria, OECD secretary-general in the study’s press release.

However, high spending on education does not necessarily correlate to high academic performance. The PISA student performance survey shows that although countries may have similar levels of wealth, their scores might be miles apart.

“Education at a Glance 2010” compares annual expenditure per student by educational institutions at all levels, on all services. The highest annually spending was in the United States at $14,269, but it only ranked 17th in performance. The average amount spent was $9,195 per student. Finland ($8,440) and Korea ($7,325) spent below that, but still performed the best in the PISA test.

“This shows that an image of a world divided neatly into rich and well-educated countries and poor and badly-educated countries is now out of date,” said Gurria in the statement.

However, Brazil spent the lowest, at a little over $2,000, but also posted a poor PISA ranking, coming in 53rd out of 65 participating economies.

The PISA report looked at a variety of indicators to assess the best way to spend education dollars to get the best results. “Students perform better in those countries that pay teachers more, relative to national income,” states the report.

In Finland, for example, teachers earn a little less than the average university graduate according to “Education at a Glance 2010.” This is quite high compared to the United States where teachers earn less than 60 percent of what the average university grad earns.

But even this is not a perfect correlation since Spanish teachers earn substantially more than other university graduates, but its 15-year-olds placed only 33rd in the PISA ranking.

The PISA survey found that that there was not a strong relationship between small class sizes and better performance, as might be expected.

“Most OECD countries opt to devote their resources to maintaining relatively small classes,” the PISA report states. However some of the top scoring countries like Korea and Singapore keep large class sizes and pay teachers high salaries, the report found.


Country

Score in PISA reading scale (PISA ranking)

Annual total expenditure per student on education, $US

Actual expenditure in 2007, $US

Expenditure on educational institutions as a percentage of GDP

Korea

2

$7,325

$91 billion

7.0

Finland

3

$8,440

$10.9 billion

5.6

Hong Kong

4

 

 

 

Singapore

5

 

 

 

Canada

6

 

 

 

New Zealand

7

$6,226

$6.8 billion

5.9

United States

17

$14,269

$1.1 trillion

7.6

Chile

44

$3,088

$14.4 million

6.4

Mexico

48

$2,598

$912 billion

5.7

Brazil

53

$2,080

$4.5 billion

5.2

 

Sources: OECE  “Program for International Student Assessment;” “Education at a Glance 2010;” CIA website for GDP figures.