Education, globalization and economic development

This paper critically examines two trajectories for economic development under the new global economic competition: the neo‐Fordist route of the New Right and the post‐Fordist route of centre‐left Modernizers. It is argued that both positions are unlikely to achieve economic prosperity and equality of opportunity for all, although there are elements in the Modernizers’ programme that are desirable. The Modernizers emphasize the idea of a ‘high skill, high wage economy’ in which the upgrading of educational standards is seen as central to the delivery of social justice and economic growth. However, their characterization of the relationship between national and global economies is seriously flawed. Their explanation for the economic and social polarization of these societies in terms of the global demand for skill rests on commonly held but inadequate neo‐classical economic assumptions. This leads to a paradox in the Modernizers’ position. They place education at the heart of their strategy while being unable to explain or address the problem of polarization. Yet, a polarized society will not create high standards of educational achievement for all. This paper seeks to resolve the paradox by providing a more adequate explanation for polarization and, in doing so, establishes a framework for reconciling the aims of equality of opportunity with economic prosperity under the present global economic conditions.