International evidence is clear: Human capital is the main engine of development. Represents about two thirds of global wealth. That is, education and accumulation of competencies are the factors more directly associated with productivity and sustained growth.
Education as a development engine. Education is not just a right: it is the most powerful factor to improve income, productivity and social mobility. On average, in the OECD countries, a worker with tertiary education earns 54% more than one that only finished high school. In Argentina, that gap reaches 63%.
World Bank studies and other institutions have analyzed returns to invest in education. A year increase in the average higher education in the population can raise the growth rate of GDP per capita by 0.24 percentage points. In addition, not only do the years of education matter but above all the educational quality (for example, the results in tests). Some investigations show, for example, that A 1% increase in learning quality can be translated by up to 2.8% more annual growth.
Despite this, the public debate and the political agenda in Argentina continue to ignore the true elephant in the room.
The deterioration of education in Argentina. Education in Argentina is in decline years ago. Although the coverage is high, many indicators, especially of educational quality, expose deep deficiencies at each stage of the educational tour:
Initial education. The participation of children from 3 to 5 years in early education rose from 73% to 77% in the last decade, but remains below the OECD average (85%). This implies a disadvantage from starting, since initial education is the most decisive stage for the development of cognitive, emotional and social abilities.
Primary education While registration is high, learning are bad. According to the regional evidence of 2023, 83% of 6th grade students do not reach the minimum level of learning in mathematics, and 65.5% do not succeed in language. These figures reflect another early lag that compromises future learning.
Secondary education School abandonment is still high: 26% of young people aged 25 to 34 did not complete high schooldouble that in OECD countries (13%). In addition, the accumulated lag in primary is consolidated. In the international tests of 2022, 7 out of 10 teenagers were below the basic level in mathematicsand more than half in reading and science.
Tertiary education While 48% of young people aged 25 to 34 in the OECD have tertiary or university studies, in Argentina it only reaches 19%. To this is added an inefficient assignment of spending: in our country it is invested more in primary and secondary than in higher education, vice versa than in most developed countries, where the tertiary student is destined for more resources. To this is added a mismatch in graduate profiles: Only 16% of graduates come from Stem races (Science, Technology, Engineering and Mathematics), compared to 25% in the OECD, which limits the supply of technical and scientific human capital, crucial for growth.
Together, these shortcomings configure an educational gap that then translates into an employability gap. The cost is very high, both at the individual level and for the country. And it helps to explain, for example, why Labor productivity in Argentina remains stagnant at levels similar to those of the mid -1990s.
What should Argentina do. Lithium, cow death or agriculture can be growth engines, but by themselves they don’t reach. Its benefits also guarantee a fair distribution. For these wealth to translate in real and shared development, the country needs a prepared workforce. That implies a concrete strategy to strengthen human capital, focused on:
-ReForir Initial and Basic Educationguaranteeing universal coverage from the first years and ensuring effective learning in literacy and mathematics. Without a solid base, everything else wobbles.
-Reduce school abandonment and improve high school qualitystrengthening the link between school and the world of work, and focusing learning in the areas with greater weaknesses, according to the results of the evaluations. For that, it is key to take better advantage of the available data and guide teaching based on evidence.
-Expand and diversify tertiary educationwith focus on Stem races and a greater articulation with the productive sectors. As in high school, it is essential to align what is studied with what the market needs. Continuous training must also be promoted, indispensable in a context of accelerated technological change.
In short, Argentina must stop thinking that salvation will come from a particular strategic sector and recognize that The true development potential is in its human capital.
*Jorge Colina is Idesa’s economy
By Jorge Colina
