Education as Investment?
Education is likely one of the most complex and multidimensional concepts and activities in human history. It can be understood as merely a process of obtaining employment or a position within an organisation, improving social status, socialising values and culture, enhancing human quality, preserving progress, transforming knowledge and culture, or an act of liberation. There is no single perspective that can fully describe what education is. The diverse perspectives that exist are primarily attempts to explain and enrich how education is understood more comprehensively.
In contemporary discourse, education is more often understood as an investment practice—a process of individual and societal transaction through the allocation of resources to improve human quality in the future, which is believed will become a source of financial gain. People engage in educational activities (schooling/learning) with the goal of improving welfare in the future. The perspective of education as investment is associated with the Human Capital Theory (Drucker: 1964). This instrumental perspective dominates decision-making, fund allocation priorities, and even understanding of the aims of the learning process.
Related to the productivity generated, education as investment practice is also associated with the term “knowledge economy,” where knowledge and information are believed to be the primary drivers of economic growth through increased productivity, wealth creation and competition for advancement.
The understanding of education as investment is often compared or contrasted with the perspective of education as consumption practice—an activity to obtain direct utility and personal satisfaction. Still within the context of human capital, education in this perspective relates to the intrinsic value of education itself. Thus, people decide to engage in educational activity not aiming for financial gain in the future, but for other purposes, such as enjoyment in making new discoveries, satisfaction in mastering new skills, and the experience of social interaction within educational institutions. This process results in the availability of diverse life choices and freedom believed to increase wellbeing (Schultz: 1961).
The two perspectives above are not necessarily dichotomous. In reality, those who believe that education as consumption practice—understood as freedom and direct satisfaction in mastering new knowledge and skills—can become the source of increased productivity in the future and thus can be considered as a profitable investment. Conversely, investment in ensuring the availability of good employment and career opportunities enables a person to freely seek knowledge and skills they desire for the job and career of their dreams.
One observation on the perspective of education as investment—which is a reduction of education as a purely economic tool—is that it diminishes the true meaning and what can be achieved with education. Education needs to be viewed as more than merely investment for the future. It needs to be considered as a process of social transformation and a series of efforts to develop human capacity and quality for a more meaningful life.
Therefore, the perspective of education as investment needs to be balanced with the aspect of understanding humanity in education. When education is viewed as purely investment—the ability to increase productivity, enlarge competitive advantage, and financial gain in the future—it risks failing to appreciate its meaning as a means and experience for growth, intellectual engagement, liberating energy from oppression, and social progress (Saltman: 2007).
Borrowing Dewey’s term (1893), considering education as life itself, the opportunity to recognise the learning process—the development of curiosity, critical thinking, and various experiences of mastering new knowledge and skills—is an intrinsic value that does not depend on market value and financial gain alone. Thus, those interested in studying art, language, philosophy, or history cannot be considered as losing their opportunities and advantages in the future, because the intellectual and emotional enrichment they gain while learning is also valuable.
Furthermore, the perspective of education as investment that requires economic productivity tends to obscure the important role of education in creating democratic citizenship and social cohesion. When a person receives good education, they have the opportunity to develop a critical thinking attitude, understand various different perspectives, and have the courage to engage in complex social relations and ideas—various knowledge and skills needed in democratic life.
The democratic aspect and function of education constitute the most vital contribution to society that cannot be measured with financial economic parameters such as individual income. Because democracy cannot function without educated citizens with full awareness to engage in various public issues (Gough: 2007).
Another perspective that needs to be considered is education as an act of liberation (Paolo Freire: 1970; Bell Hooks: 1994). The perspective of education as an act of liberation remains relevant today, especially as education becomes increasingly commodified as a commodity for sale. As an act of liberation, education is viewed as being political (never neutral but supporting the status quo or opposing it), a process of humanising people, and transformative in nature (possessing the power to break the vicious cycle of poverty).