The case for higher education
The Middle East and North Africa region – and the Gulf Cooperation Council in particular – has set ambitious goals for growth and development to withstand challenging economic conditions that are being witnessed across the globe.
These goals are in line with diversification plans that have been made while the region continues to witness a number of geo-political, societal and economic changes which are also leading to lasting, long-term impact on the area.
In order to move forward, ensure true progress and promote economic growth and innovation in the Arab world, it is essential that leaders from both the public and private sectors refocus efforts on areas that will provide the tools necessary for implementing ambitious targets. Higher education is essential to achieving these goals and, despite there being a clear priority by many governments to fund education, research and development, there is room for further growth and improvement in this sector.
Regionally, there is a lack of literature about educational investment and its longterm impact on economic progress, but globally there are a number of examples of how it can lead to high returns for countries that embrace it – even if the results take a while to materialise.
One example in the United Kingdom is the Centre of Materials Discovery, based in the University of Liverpool. The centre focuses on knowledge transfer to the industry and the academic community on throughput materials discovery. It has provided a number of economic benefits to the Merseyside region, such as creating 245 net jobs, assisting 27 small and medium-sized enterprises and ultimately providing £5.85m net value added to the region in 2010.
In the United States, there is clear historical evidence of how investments in research have had profound economical outcomes. For instance, investments in the National Science Foundation (NSF) resulted in the creation of Google, and major breakthroughs in vital sectors such as advanced electronics, computing, digital communications, clean energy, nanotechnology, and other areas.
Overall, the NSF received a 2016 appropriation of nearly $7.bn, of which more than $6bn is directly for research and related projects. Investments in the Defense Advanced Research Projects Agency, which amounted to nearly $3bn in 2012, benefited the whole world with products such as the internet, GPS and Siri.
These examples, and many more, were included in the approval by President Obama of $152bn in funding for the 2017 federal research budget – a 4 per cent increase from 2016.
There is a clear link between investing in higher education and R&D, and achieving long-term economic benefits. Increased R&D sets off a domino-effect, creating new technologies and innovations that will raise efficiencies and methods of conducting work in the business world. This in turn expands business scope for companies, thereby creating new jobs, reducing unemployment, and ultimately benefiting the overall economy.
If we look at Europe’s 2020 Strategy, we see that five main targets are highlighted. Research, development and education have been set among these top priorities for the continent in the coming years, confirming their widespread importance.
Within the MENA region, significant investments in higher education are already being made. Expenditure in this sector, according to a recent study published by Al Masah Capital, currently stands at $128bn. It is expected to almost double by 2020 to $237bn.