| Author Name | AKAI Nobuo (Faculty Fellow, RIETI) /SUETOMI Kaori (Nihon University) /SENOH Wataru (National Institute for Educational Policy Research) /MIZUTA Kensuke (Tohoku University of Community Service and Science) |
|---|---|
| Creation Date/NO. | February 2014 14-J-009 |
| Research Project | Building a Governance System to Regulate Educational Finance from the Viewpoint of Integrated Fiscal Management (Optimal Allocation of Resources under Fiscal Constraints) |
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Abstract
Amid the decreasing labor force caused by the low birthrate and the aging population, Japan urgently needs to increase the knowledge and productivity levels of each citizen in order to maintain economic growth for the future as a mature society. Against this background, it has become crucial to accumulate human capital through education and effectively utilize the limited funds intended for this accumulation. To realize this, the most important point is to clarify the current and future flow of funds and design an effective, efficient, and fair educational finance system (optimal allocation of resources under fiscal constraint) under an educational governance system with accountability and transparency. It seems, however, that scarcely any previous research has been conducted on this subject from the viewpoints of analyzing educational finance focusing on the flow of funds and beyond educational levels. This research project focused on how the fiscal burden of public education for developing human capital that promotes economic growth should be designed, in the light of these two viewpoints. The following are the policy implications that resulted from the extensive research conducted in this project.
1. Educational investment remains an effective policy for achieving faster economic growth; also, it is recommended to focus investment on graduates of high school and those of higher education.
2. To ensure the implementation of our educational policy, it is important to clarify and prepare for the future fiscal burden associated with each school's characteristics. It is also important to take into consideration the regional differences across Japan.
3. Securing the school budget is important to improve educational outcomes.
4. Governance of educational finance which most greatly prioritizes human resources is important.
