In this article, we will be exploring how the breakdown of education expenditure and attitudes towards education has changed in various countries over time. This article will focus on two of our four target countries — Singapore and Korea. In part II of this story, we will then focus on the United States and Finland.
GENERAL TRENDS
Countries’ Total Expenditure
In general, expenditure on education is rising across the majority of countries with time.
Generally, the greater the prosperity of a nation, the greater the expenditures per full-time-equivalent (FTE) student for elementary and secondary education in selected OECD countries, by gross domestic product (GDP) per capita.
The graph below shows the expenditures per full-time-equivalent (FTE) student for elementary and secondary education in selected OECD countries, by GDP per capita 2016:
While this graph below is for post-secondary education:
There is a linear relationship between spending and country wealth for 33 OECD countries reporting data (elementary/secondary). The r² values are 0.77 and 0.72 respectively, indicating quite a strong linear association between a country’s prosperity and education expenditure.
The trendline is an average expected increase in education expenditure as GDP increases, thus countries that lie above the line would mean that they spend more on education than expected. This is one indicator of how important education is in that country relative to other countries.
The gradient was much steeper in the case of post-secondary education, which was interesting but also a bit puzzling. Why would countries be willing to spend more as GDP per capita increases, for post-secondary education? Well, there are several hypotheses for this:
- Teachers are paid more at higher levels of education
- More technology in the classroom e.g. projectors, personal laptops
- More expensive materials for learning e.g. laboratory sessions = purchase equipment and chemicals
Here’s a visualization from Our World in Data, showing expenditure as a % of GDP over time.
There were quite a few missing data points here. Furthermore, from another data source, it shows that Singapore spent 3.64% of GDP on education in 2014. Well, one should never take data at face value, since while the % expenditure on education is decreasing, the absolute numbers might not be so.
Plotted GDP growth on a logarithmic graph, and wow, the GDP growth has been exponential for all countries! This means, despite a % drop in the graph earlier, the absolute numbers in education expenditure would have increased. Which is understandable, since education is fluid and the syllabus needs to be constantly revised to fit the needs of today’s society.
Countries’ Public vs Private Expenditure
From the graph, it seems that Singapore has one of the lowest spending on education compared to other countries, as a % of GDP. However, comparing the absolute value spent, our GDP in 2014 was 314.9 billion USD. And from the graph, the exact amount spent according to data.gov.sg, shows that the exact amount was $11598458000, or $1.16 billion, which calculating the actual %, correctly adds up to 3.68322%, about slightly higher from what we see on the green graph (note: unable to accurately tell since the axes had large major gridlines)
Singapore
About the Singapore Education system
The Singapore education system consists of 10 years of compulsory education, consisting of 6 years of Primary School (ages 7–12), followed by 4 years of Secondary School (ages 13–16). Students then either move on to 2 years of Junior College, or 3 years of Polytechnic (vocational school). Afterwards, students in JC will take the A-levels, a nationwide standardized exam which determines their entry into universities. Entry into universities used to be for only the very cream of the crop, because spaces were limited. However, Singapore now has a total of 34 universities, in which 6 are national. This Singaporean blog highlights the stigma still associated with graduating from private universities, and graduating from one of the big 6 is looked upon more favourably.
For most Singapore students, while they start formal education at the age of 7, their education already started much earlier on, in the form of enrichment classes before and also during formal schooling years.
As for the goals of education, here are some goals spelt out in the Singapore Teaching Practice, a model that makes explicit how effective teaching and learning is achieved in Singapore schools.
Expected outcomes of education (students):
[SG] Government expenditure
Government expenditure on education was a total of $13.09 billion Singapore dollars (2018).
This is split into various levels of education as follows:
This graph from Statista shows the percentage of government funding for each level of education. According to the latest MOF 2020 Budget, government spending on education has increased by over 70 per cent from $7.5 billion for 2007, to $13.09 billion for 2018.
And a further breakdown analysis of the various education levels and the government expenditure per student in 2018, according to data.gov.sg.
- Primary school is free for all local students enrolled in MOE Primary Schools. ($72.1K)
- Most secondary schools in Singapore are government-funded. Fees range from $15–43/month for local students. ($62.1K)
- Junior Colleges are also government-funded. ($50.1K)
- Polytechnics are covered under the MOE Tuition grant ($49.2K)
- For university (tertiary education), all local students receive the MOE tuition grant. ($88.8K)
This is actually the opposite of the global trend, which spends more money on post-secondary education compared to primary education! Perhaps Singapore has a greater focus on primary education and give children a wide range of opportunities to spot talent at an early age.
So, where do these monies go?
Well, they are all spelt out nicely in our Singapore budget (link here). The bulk of it ($4.13 billion in 2018) goes to Expenditure on Manpower, including hiring of our staff. We were quite surprised by what we found, that teachers get paid quite a lot here in sunny Singapore!
- The Ministry of Education (MOE) actually monitors teacher salaries in relation to other professional salaries, and adjusts them accordingly to ensure that they are competitive. Including bonuses, the modal annual salary for teachers aged 25–29 was $43,563 in 2009, and the maximum salary was $77,693. This compares favorably to the OECD averages of $41,701 for a mid-career upper secondary teacher and a $51,317 maximum salary. On the other hand, professors, according to a quora post: Professor S$178,750 — S$270,875 and Associate Professor S$108,625 — S$204,875.
The next bulk of our spending would be Grants, Subventions & Capital Injections to Organisations ($3.76 billion n 2018) and Transfers ($3.74 billion in 2018). This includes the MOE tuition grant for universities, scholarships, and upgrading of other facilities.
Good education outcomes
As a percentage of GDP, our spending on education may be lower compared to other countries. However, we managed to achieve one of the best outcomes (at least, measured in terms of a standardized PISA test score). The reason is our strict adherence to principles of prudence and accountability which allows efficient outcomes without excessive spending.
[SG] Private expenditure / Attitudes towards education
The expenditure on private tuition in Singapore is sky-high! The industry is growing at a rapid rate, with its worth increasing almost 200% since 20 years ago.
The reason? There is a strong push to do well academically here, and education is seen as a social-leveller given our nature of meritocracy (which you can read more in my friend Linghui’s article here!) Not just that, the best students are those that are ‘all-rounders’, meaning good in multiple aspects (e.g. music, dance, sports, arts etc.) apart from studies. Hence, this results in parents sending their children for multiple tuition classes to aid with academics, as well as enrichment classes to boost their chances at Direct School Admissions (DSA) which is an alternative way to enter top schools without using grades. Could it be that parents don’t trust the Singapore education system enough? Well perhaps, but that is likely not the main reason. According to Nanyang Technological University economist Eus- ton Quah, “[High prevalence of tuition] could simply be the consequence of an increased climate of competition.”
Competitive? Check. Are we trying to make it less competitive? Check. But attitudes don’t change overnight. At least we are trying, look at the most recent revamp in Primary School Leaving Examination (PSLE) scores, and how it reduces the chase of every last score. Given that the PSLE is the first standardized exam, for students who are only 12 years old, it would make a lot of sense to reduce the importance of grades at this age. But it will not change how much parents push their kids to score the best possible score of 4 Achievement Levels (AL) anyway…
Some statistics: 7/10 parents send their children for tuition in Singapore. And this graph below shows the huge rise of tuition industry in Singapore, as parents who are more well-educated themselves, increasingly put more emphasis on education because they know the benefits of doing well (e.g. securing a better job).
Tuition centers remain a lucrative business due to a constant demand from students and parents, even in this time of the pandemic. However, not all are able to do so, especially those like dance or art classes which are close to impossible to conduct online, which I will elaborate more in a future article.
However, not all parents are able to afford such expensive tuition for their children, with its exorbitant rates as highlighted below:
A comparison of expenditure between a family living in landed properties versus Housing Development Board (HDB) 1–2 room flats (a type of public housing):
In 2017–2018, those living in landed properties spent a total of $1031 a month on educational services, compared to a mere $42 for those living in 1–2 room flats. This disproportionate amount of spending on tuition, together with the fact that though not always, low-income families tend to have more mouths to feed, show that the amount spent per child on tuition is far higher for richer families. While education is the best social leveller we can have in Singapore already, it still has its flaws, since not every child has equal access to enrichment classes which could boost their performance.
However, the government has tried its best to reduce this gap between the haves and have-nots, by ensuring a well-rounded school curriculum within schools themselves. Cohort-wide activities like dance, archery, and technology classes in Primary Schools help enrich student’s curriculum. Furthermore, for lower-income families, there is the Financial Assistance Scheme (FAS) for students from low-income families, where FAS students receive extra help in the form of meal vouchers, subsidies for educational materials etc. This helps to level the playing field for all, at least to some extent.
Korea
We found that like Singapore, Korea students also spend a lot, if not more, time and money into education.
What is the Korean education system like?
The Korean public education structure is divided into three parts: six years of primary school (1st-6th grade), followed by three years of middle school (7th-9th grade) and then three years of high school (10th-12th grade). From 9th-11th grade, students take the National Assessment of Educational Achievement (NAEA) in which the results are averaged and used to provide additional support to schools. Then, after 11th grade, all students take the College Scholastic Ability Test (CSAT), in which they have to do very well in to enter university.
[KR] Government Expenditure
However, as can be seen in the graph below, although the education expenditure by the government is generally increasing, there has been several dips, We speculate that the government would hence be willing to drop expenditure on education when the economy of Korea is not doing well, such as during the 1997 and 2008 Asian financial crisis, as they know that education will not take a backseat for their citizens.
[KR] Private expenditure/Attitudes
Like Singapore, Korea spend huge amounts on private tutoring as well. These come in the form of after-class prep schools, called hagwons. An average children would spend 16 or more hours a day studying, which shows their dedication towards studying and doing well, the longest hours among OECD countries.
A survey by South Korea’s statistics agency and the education ministry show that households spent a monthly average of 384,000 won (US$359.38) per child on private tutoring in 2017, up from 288,000 won in 2007.
The country is well known for its obsession with education, which has come to be called “education fever”. And why is this? Higher education is an overwhelmingly serious issue in South Korean society, and is regarded as a high priority for South Korean families. This is because success in education is necessary for improving one’s socioeconomic position in South Korean society. The end goal of all students is to get into one of the country’s top universities, as university name branding is very important in Korea, and affects one’s social and work standing for the rest of his/her life.
However, over-obsession with doing well takes a toll on the students in the form of sleep deprivation, low fertility rates and high suicide rates. Nearly 53% of high school students do not get enough sleep because they studied late into the night, and 90% of respondents had less than two hours of spare time on weekdays, according to a 2014 survey by Korea’s National Youth Policy Institute. Furthermore, suicide is the leading cause of death among teens in Korea, which has the highest suicide rate overall in the entire OECD, and the chart below shows the % change in suicide rates from 2000 to 2011.
According to the OECD report,
Suicide is often used as a proxy indicator of the mental health status of a population. It can play an important role in better understanding the weaknesses of the mental health system, in particular surrounding access to services and combating stigma. While care should be taken in drawing too many inferences from suicide rates, Korea’s very high suicide rate should be seen as a call for action around mental ill-health.
Reducing stress
How can we reduce stress and increase self-exploration in a Korean student’s academic life? Well, primary school curriculum focuses on learning through play, while in lower secondary, students have an “Exam-Free Semester.” This means extra time each day to study either a non-traditional course or to design their own independent study course. During this semester, there are no traditional paper examinations even for regular classes so as not to distract from the non-traditional activities. We can draw parallels to classes we are taking in the University Scholars Programme (USP) in National University of Singapore (NUS)! While not entirely exam-free, continuous assessment throughout the course allows for a more fair assessment of consistent work. It also has multi-disciplinary modules that brings us across many different facets of education, and adds value that is not just restricted to our majors in university.
This will thus reduce the stress for mugging for final exams, which is the purpose that hagwons or ‘cram schools’ serve.
Mental health can really take a toll on students’ grades, and perhaps, in reducing exam stress, we can reduce the negative impacts faced by Korean students!
Closing Remarks
To conclude, this article touched on aspects of Singapore and Korean education system. In part II of our article, we will focus on the key differences between Asian and Western education, and deep dive into the United States and Finland.
