The private sector stake in education reform

Universidade Federal do Paraná (UFPR, Federal University of Parana). The oldest university in Brazil. Founded in 1912.

It is no secret that education systems all over the world are having trouble adapting to the changing needs of domestic labor markets. Fewer public sector jobs are available and university graduates often lack the needed skills for landing a gig in the private sector. Lost in this refrain, however, is the role that the private sector can play in education reform.

As global competitiveness takes center stage, business associations are beginning to see that they are no longer backseat observers, but key stakeholders in education reform. In some places, firms have already begun reaching out with incentives to steer students towards specialized programs that will provide a larger pool of skilled labor. If the recent uprisings in Tunisia and Egypt prove that legions of unemployed youth dissipating idly can no longer be overlooked, then the disparity between post-secondary education and the needs of the private sector also has ramifications for emerging market economies loath to stall momentum in growth and innovation.

In Brazil—a country whose education system is being challenged to meet the demand of its thriving industries—the private sector has gone to the source: universities. Seeing hiring shortages on the horizon, major Brazilian firms and Brazil-based operations of multi-nationals have approached students directly, offering half-tuition and job placement if they switch their major to engineering. In a recent Economist Intelligence Unit survey, 72 percent of business leaders characterized their cooperation with local university/academic institutions as “positive” or “very positive.”

Unfortunately, smaller firms—engines of job-creation—don’t always have the capital or muscle to compete with larger corporations and offer similar programs to students. They do, however, share the same need for a qualified labor force with technical skills. This communication gap is where business associations can play a role. By uniting SMEs behind shared interests, private sector organizations can speak with a louder voice.

That is exactly what the American Chamber of Commerce is doing in Kyrgyzstan. A survey conducted by AmCham and CIPE in Kyrgyzstan showed that, as in many countries, there is a large disconnect between what students learn in the classroom and what is expected of them in order to compete in the job market. Following one of the survey recommendations, members of the business community are now engaging with economics schools to create a “Trustees Council” in order to review curriculums and establish a working partnership between employers and the young cadre of future employees.

Another option business associations have is to increase internship opportunities for undergraduate students, offering aspiring employees the chance to experience corporate culture and gain a better understanding of what a private sector job might entail. Business association members can also provide mentoring services to students in order to make them better prepared for the real business world.

Make no mistake: education reform is a complex, drawn-out process mediated by myriad vested interests competing for dwindling resources. What’s more, education ministries tend to be skeptical of outsiders intervening in curriculum development or broader education reforms. By focusing on shared interests, through associations the private sector has both the resources and constituency to play a constructive role in shaping the next generation of minds.

Published Date: February 02, 2011