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Flow of Ideas: articles - Human capital, the knowledge economy and business

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Chandos Book Publishing

Human capital, the knowledge economy and business


Glenn Rikowski, Faculty of Education, University of Central England, Birmingham

Original version: 29th March 2001


Preface

This appeared in Post-16 Educator, Issue 3, May-June 2001. However, it was a very poorly produced version that appeared there, and much of it was very feint and virtually unreadable. Hence, I have decided to reproduce it here for The Flow of Ideas

Glenn Rikowski – London, 1st February 2007


Introduction: Develop Your Human Capital!

New Labour’s Green Paper (DfEE, 2001) can be read as a blueprint for intensifying, expanding and legitimating the business take-over of schools. Rather than the Third Way, the Green Paper points to the Business Way. For New Labour "There's no business like schools' business!" – and the special business of schools is to produce human capital (or labour-power: the capacity to labour).

Human capital is at the foundation of New Labour’s education policy. The Green Paper argues that human capital development must proceed throughout our lifetimes – a kind of ‘learning unto death’ that includes everyone (para 4.1, p.42). Teachers are to develop their human capital to the max to ensure that children are as work-ready for the labour market as inhumanly possible (para 5.26, p.70).

It is not just human capital development for an unspecified form of economy that is required, but for New Labour's "knowledge economy", or (as it is known in the US) the "new economy". Thus: education is key to preparing the nation for "the emergence of the new economy and its increased demands for skills and human capital" (para 1.4, p.8).


New Labour’s Knowledge Economy

The "knowledge economy" is New Labour’s biggest idea. It has survived into the Green Paper despite huge fallout in dot.com share values. Unlike the nebulous Third Way, the knowledge economy has real social substance. Peter Mandelson promoted the knowledge economy as a leading idea for New Labour when he was at the Department of Trade and Industry (DTI). The most succinct definition of the knowledge economy is offered by TFPL:

“Knowledge economies are emerging in the western world where knowledge, expertise, and innovation are now the primary asset and key competitive advantage” (TFPL, 1999).

The Green Paper’s strategy for education is anchored in the knowledge economy (p.4). It is argued that a sense of urgency comes from the "imperative for public education to prove that it can respond to the challenges of the new economy" (para 1.2, p.8). It seems clear that "ICT is transforming business processes in every sector of the economy, both public and private" (para 1.29, p.16). On this basis, the Green Paper advocates that the education system for the 21st century must have a 'leading edge', and this will be provided by advanced specialist schools linked to developing the 'school of the future' (para 4.16, p.48). Advanced specialist schools will arise out of specialist schools that have indicated high-performance levels of output over a five-year period (ibid.). Secondly, the Green Paper states that there will be some Beacon schools with a mission for achieving "effectiveness in teaching the skills relevant to the emerging economy, including promoting creativity and the use of ICT" (para 4.17, p.48). Finally, to ensure that schools are sufficiently geared up to producing labour-power for the knowledge economy, they will receive broadband connections so that the "speed and quality of Internet working will be greatly enhanced" (para 6.27, p.84). A special £10 million Classroom of the Future pilot scheme will "enable schools in 12 areas to explore radically new and inspiring ways of delivering education" (ibid.).


Business into Schools Does Go

The previous points connect with the project of meeting the "needs of industry" that was kick-started by Prime Minister James Callaghan in 1976. But the Green Paper takes a dual track: it connects with the Callaghan project, but also argues for the consolidation and extension of the role of business in schools. The extent of proposed business involvement in schools is startling:

* Business take-over of 'failing' schools: external sponsors are to take responsibility for under-performing schools (Introduction, p.4).

* Learning from business: those in the education service will be encouraged to "learn from others, including business" (para 1.29, p.17).

* Consolidation of the role of the private sector in nursery education: (para 2.18, p.24).

* Public-Private Partnerships in nursery education: from September 2004, every 3-year-old whose parents want one will have a free nursery place. This provision "will be based on partnerships between the public, private and voluntary sectors" (para 2.21, p.25).

* New Specialist "Business Schools": "In addition to technology, languages, sport and the arts, we will offer schools three new specialist options: engineering; science; and business and enterprise. Business and enterprise schools will be expected to develop strong curriculum-business links and develop teaching strengths in business studies, financial literacy and enterprise-related vocational programmes" (para 4.15, p.47).

* Extension of the Private Finance Initiative (PFI): "Many schools are also benefiting from the Private Finance Initiative. Twenty-one deals have been signed so far, and funding for a further 33 has been agreed in principle, bringing benefits to around 640 schools. The scale of activity is increasing" (para 6.19, p.81).

* Business sponsorship and business mentoring: a significant extension of these (especially business mentoring for Head teachers) (para 6.34, p.85).

These proposals are set to open school doors to corporate capital on an expanding scale. They seek to break down barriers to trade within England's schools on an agenda that is consonant with the World Trade Organisation’s (WTO) mission to open them up to corporate capital. The Green Paper has purchased a neoliberal ticket for schools.


Local Education Authorities as Business Agents

Local Education Authorities (LEAs) have a specific and significant role to play. They must become the "business agents", the collective spivs, of school life. The Green Paper argues that for the crucial role of school improvement LEAs are simply inadequate. For: "The lack of professional standards for school improvement services and those who work within them is … a key weakness of the current arrangements, and one which could hold back the pace of reform" (para 6.57, p.89).

Under proposals set out in para 6.58 (p.90), LEAs will be charged with assisting the corporate invasion of schools. There will be progressive contracting out of school improvement work, though some regulation (for quality) is deemed necessary. There are hints that LEAs not embracing the new business culture or hamstringing business penetration of English schooling are liable to be taken over by private sector operators.


Conclusion

On the basis of the Green Paper's agenda, the spirit of business will haunt educators in schools. The key tasks are to struggle for a comprehensive education that has neither human capital development nor profit generation as foundation of its functioning - but is recast for collective human need and self-development. At every turn, the Green Paper defers to business values and outlooks, and the democratic impulse is suppressed or downplayed.


References

DfEE (2001) Schools – Building on Success, Department for Education and Employment, Cm 5050, Norwich: The Stationery Office Limited.

TFPL (1999) Skills for Knowledge Management: A briefing paper, presented at the ‘Skills for the Knowledge Economy’ one-day seminar, Royal Society of the Arts, London, 5th July.



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