Showing posts with label Incentive. Show all posts
Showing posts with label Incentive. Show all posts

Sunday, November 23, 2014

Redefining Education in Developing World: An Organic Way of Teaching (Part 2)

**Note: This is a continuation from the previous article. However, rather than relying on economics, I think for such an article, it is far better to incorporate personal observation and philosophy into it to make it feel a bit more alive, but at the same time, a bit unpragmatic here and there (if you think of it based on how developing countries function as of present days).


II. The Challenges

Since the developing world lacks in so many aspects, the adoption of western-style education without adapting it to the social, cultural and economic contexts of the local can lead to a major problem, the mismatch between reality surrounding the recipients of education and the theories or the information taught. In each developing country, how big the gap is can be determined by looking into the richness of knowledge provided in comparison to the lacking or the availability of tools or materials to demonstrate and solidify the knowledge or theories taught to students. 

This recurring trend is a motivation killer. I, myself, have experienced it. This is worsened by the fact that most educators are not able to explain and demonstrate the practicality, the purpose of the subjects being taught. There is little or no activity to increase students' understanding of particular scientific theories, and thus, they are not able to conceptualize the ideas being conveyed to them. Learning then becomes a chore as students see no purposes of learning beyond certain levels. Students are unable to perceive the milestones that they can reach each time a certain level of education is achieved. The academic world then becomes boring. Many students have become no better than parrots who only memorize the subjects being taught in short-term, to only fight to survive the exams, but cannot figure out the underlying concept, the intuitions, the rationale of what they have been studying on and on for so many years. Tedious and lack of appeal, the conventional and outdated western-style education has transformed students to be just like sailors who can't navigate their way through the ocean.


If possible, I would like us all to travel back in time and ask the high-school version of ourselves (Heck, even our current selves) what they think about, say, calculus and its practical purpose? Why study physics if you only want to be a car salesman? We need to answer these sorts of questions to fully feel the motivation and see the incentive in further pursuit of such fields of study, which, without doubt, are critical in building a capable workforce that is able to assist the industrialization process of a country.


It seems a structural reform is needed, but this would require a tremendous amount of resources. Furthermore, developing countries are already facing many challenges, all at the same time: income, health, security, natural disaster, political instability - just to name a few. Resource constraint has then become a big hurdle as countries possess very limited resources even with external aids. This means that allocating too much resource into one sector, like education, will suck away resources from the others, and most of the time, many sectors equally demand strong attentions and actions. Setting priority is, thus, a very challenging task for a small group of high-ranking people at the decision-making level. For instance, putting too much resource into the education sector might retard the growth of health and agricultural sector on which most developing nations are highly dependent. Of course, education sector might complement health sector, but that really depends on the ability of the government to effectively allocate resource into the right place and at the right time, to where it is most needed so we can avoid unnecessary waste of valuable inputs. Since that is the case most of the time, one simple question pops up when making decision regarding relocating resources towards education: "Is it worth the money and effort?"


III. Recommendations



Re-think Education
Image source: http://www.thesamhitaacademy.com/activities.html


The road to education is to invest in it and expect a change, a high return and a sustainable one. A great investment if you ask me. While resource constraint remains, developing nations need to set a clear budget plan for education and further mobilize funds from various international communities and organizations to meet the goal. Private and public sectors partnership also plays a significant role in allowing for quality and affordable education. For instance, banks can offer schools in its vicinity some sorts of educational services like allowing students to visit and learn about its operation or sending its staff to teach students, even a little bit, about banking, how it works and how it benefits students and their society. Government can, for example, provide free public transportation to students. If scholarship is too much of a burden on their pockets, the government can provide long-term-low-interest loan to aid students financially until they are able to join the workforce and earn to repay their debts. This is, in a sense, an investment that will also yield financial return on top of more capable citizens.

And how can we reshape education? 

Effective, impactful, and sustainable ways of educating people is through positive reinforcement, motivation and encouragement. In a nutshell, that means acknowledging and treating students as human, and not machine. Educational structure will need to be reformed slightly or drastically depending on the re-assessment of the current practice and re-adjust it accordingly to be aligned with the strengths and weaknesses of each country.

What does that mean? It means that a country, like Burma, will have to evaluate the current understanding of an average person in its country, see if they are strong in business sense and weak in judgmental capacity, or if they are strong in technological know-how but weak in punctuality and work ethics. Of course, each individual is unique, but it is not wrong to generalize if we do a rigorous study on one particular society because a group of people tend to have certain traits peculiar to them, which normally emerges due to the natural surrounding environment. 

The government should also look more into the current and projected demands of skills in the current and future market. Knowledge gained from such observation can be used to reshape the educational curriculum of that particular country to first include subjects teaching skills that are most needed (practical) in everyday life; second, include subjects that build a strong foundation of cognitive thinking and spiritual understanding which are both indispensable in promoting quality individual and social life and society; and third, advanced knowledge that fosters cutting edge development and innovation to further promote not just technological, economic and social improvements, but development in general.

Moreover, the world of education should take a simple economic concept into account, which is incentive. Incentive will bring motivation and purpose. For instance, incentive to be educators. Countries should be more willing to run on deficit and re-allocate more resources to education sector, to provide enough incentive and prestige for higher quality educators, not the smartest one in what they are doing, but the smartest one in explaining what they are doing and why they are so enthusiastic about it. These sorts of people are crucial in development, in ensuring a promising future, because a country's workforce is its people, and well-educated people will not just push return per unit of investment even higher, but also contribute to a strong foundation of social stability, order and peace, and last but not least, morality. Note that, this will be much more likely to come true with strong educators, visionaries that are bold enough, reckless enough, to defy the conventional viewpoints for the greater good of the whole society.

But formal education is not the only route, I dare say. Why? Because not everyone is good at studying in a classroom setting. There are people who can learn better and quicker in actual practice; there are people who are better at doing than thinking, and vice versa. Everyone is good at something, something that can help them sustain their own lives and ensure long-term satisfaction. Forcing them to study (by overvaluing formal education) is no different from forcing them towards one direction, stripping away their personal goal and value. They should study because they think it helps them achieving a better life for themselves and those around them. They should be explained about the true nature of education, that it is not a chore, but something they should enjoy to their fullest. 

Another reason why I strongly encourage countries to spend more and even borrow to spend on education is because spending and borrowing will only erode in value if they are used on something that yields no or low return. Since education will create a strong workforce in the long run, I believe that there will be strong and positive explicit and implicit returns, and the momentum will keep going when such a workforce has been created. Why? Because the next generation of those well-educated people will mostly be shaped in the same way by their predecessors. For this simple reason, developing nations should earmark their expenses for things revolving around education such as schools, training center for teachers, higher salary for teachers, better physical and soft infrastructure to shorten the distance between students and educators, and so forth. This sounds like too much spending all over again, but let me repeat: it is not the same. The purpose of spending, even though we are spending on the exact same thing, can make a huge difference in terms of outcomes, and I think I have talked about this enough from my previous articles and this article that there is no longer the need to reiterate.

I envision a course begins with an introduction to the practicality and purposes of it, as opposed to the rudiments of that particular subject. Students should be allowed the freedom to explore, to learn from practical points of view first before getting into the harder theoretical or abstract forms of ideas. How can we make this happen?
Non-formal education is the answer. It should be factored in and aligned with formal education. I would like to one day see a school where non-formal education is embraced. Students can have a full day during their normal weekdays to explore their interests. Work on a business idea, create amazing piece of artwork, compose beautiful music, listen to interesting history of the world of their choices, explore space in awe, read for pleasure, learn how to repair their own bikes, learn how to sew, learn how to saw, learn how to see the world the ways they want to the world to see them, learn about self-regulation, learn how to build strong sense of moral value, and my goodness, there are a lot more. This will only happen if we all are in consensus to forget just for even a day what we used to think, what we used to do, and re-think a better way to learn, to work and to live.


Creating such incentive and close the gap, non-formal (let's say "extra") education for students is of vital importance. Inclusive and organic approaches should be taken to actualize this form of education.


Of course, that does not mean that compulsory education is no longer needed, BUT it should be practiced in conjunction with various other forms of education such as cooking, music, computer, physical education, and many others. In other words, students should not only be tested on their ability to solve problems on paper, but also their ability to apply what they have learnt in the real world practice, to survive and be self-reliant, to be fit, to play healthy (music and sports, and heck, even moderate gaming), etc. 

This is not to say that quantity should be preferred over quality, but smart students should NOT just be book smart. A book is a compilation of one or a group of human thinkers, a record of some historical events, and by assuming we are all different and none of living and non-living beings, events, philosophy can be without flaw, being book smart is never enough, and I guess everyone can see that from their own experience.  

I want to see a world where everyone is able to, rather than memorize philosophy and events, analyse, select, adapt and synthesize the various elements of life they learn to suit their own taste and personal value, while at the same time, keeping in mind that a line should be draw, a boundary should be set to respect the values other people hold. This is to say play your game but don't ruin the others'. I want to see a world where people are able to contribute not just in terms of raw labour and brain power, but also qualities as human beings.

The sad truth is that this is a utopia that is probably not ever going to exist, but let's go as close to it as we can. 

Re-think education. Re-imagine the world. 

Sunday, September 14, 2014

Economy Up-Close: A Tale of Sok and His Friends

*Note: If you hate reading facts, then jump right into the interesting story. I have already marked it for you.
*Another Note: I, however, encourage you to read everything if you are not a Cambodian. Or Laotian or Thai who shares similar tradition, culture and religious belief. Still, whether or not you are one, do read it if you can. Very useful information provided.
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Never before have I been so fascinated by Economics. Writing this article is the only way I can think of to express my impression on an awesome story I had the opportunity to witness with my own four eyes. The story I am going to tell you is about the birth of a small market economy driven by the laws of supply and demand and other factors that could make it happen.

Let me start by giving you a bit of an overview of Cambodia and poverty within this country. Cambodia is one of the developing countries of the global south. We are, however, very fortunate to have such a resilient country which persists and thrives despite the really bumpy road. I am proud to be a Cambodian, but being proud should never be on the same line as being arrogant. There are still many challenges now and in many years ahead. I see the many flaws the country has and the improvements to be made.

Just throwing in some facts. According to the most recent data by Asian Development Bank (ADB), the total number of population in Cambodia is 14.7 million (2013), and about 25% of the entire population is living under the set poverty line of $1.25/day while the poorest 20% only share about 7.9% of the national income. The data from the UNDP also gives us a more inclusive indicator called "multidimensional poverty" which is complementary to the traditional poverty indicator that is solely based on income. This new indicator measures poverty based on three primary aspects: Income, Health and Education. The data shows us that 45.9% of the population is living in multidimensional poverty. That means they are not just poor in terms of having little money, but also in terms of poorer health and education. For more details, please consult google.

Not to take it too far because the whole point of mentioning those basic facts is just to give you an idea of the current state of Cambodia from the half-empty-glass point of view, so we can figure out ways of how to fill the empty part.

Poverty, to be specific, is what I have seen everyday after leaving home to go to work, having a cup of coffee with friends, going for a ride along the riverside, going to restaurant... I am not even talking about what I have witnessed in the rural areas yet. It has become so apparent to me simply because poverty and affluence are occurring along side each other. At night, on the same street, you can see a family in their luxurious and high-class Range Rover, and you can see another family sleeping helplessly on the side of the street struggling to survive each day while suffering from chronic hunger, meaning they wake up hungry, they feel hungry the whole day, and they go to sleep hungry. The scary thing is that such contrasting states of being has become so familiar to us, to the people here, that we have started to become oblivious of it while some have chosen to ignore it.

Enough of this. I will now take you along with me to Prek Ta Tun village, Ksach Kandal district, Kandal Province. We are going to a pagoda named "Botum Raengsey" to join with many people there on a special religious festival called Pchum Ben or Ancestors' Day, which lasts for 15 days, celebrated by Cambodians every year to pay respect and make in-kind offerings to the deceased relatives up to 7 generations.

During Pchum Ben, almost everyone brings food as an offering to their ancestors who are believed to be released, for a period of 15 days, from the underworld in search of their descendants who brought along food-offerings for the starving ghosts of their predecessors. It is believed that by doing so, it is also a kind of merit-offering that is able to release their ancestors from their agony in hell so they can have peace in heaven. What if we do not make any offering at all? We will be cursed! I hope not. I do not know the detail. The explanation has never been very clear to me.

What I want to point out is just that there is normally lots and lots of food in pagoda during Pchum Ben period. You see, I do not know if ghosts exist. If they do, I do not know if they eat physical food, but I know for sure, with absolute certainty, that actual living people do. So, many of the poor gather in pagoda during the 15-day festival hoping to get something to fill their stomach and get some money from people who have become more generous because of the festival effect with the final destiny, heaven, as their incentive.

It works most of the time for the poor. I mean that is why many poor, or less-fortunate, people, especially children, go to pagoda during this religious festival period. Sometimes, to get more than just food, they beg (for money). It works better than on a normal day, but still, they do not get much, and they are often ignored and shunned by the better-off people (or so they seem).

A gloomy article it may seem, a cynical author you may say. However, starting from this point on, we will experience together how Economics can help make even a small change that can improve life quality for the poor, during Pchum Ben day at least.
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The story goes like this... (It is a true story, and this is where it gets interesting)

A woman praying to the Buddha statue


Welcome! This is​ a typical scene inside any Buddhist temples, at least here in Cambodia. You can see a woman praying to the Buddha statue in the picture. Well, there were many more people at the food hall (because it was lunch time!). Did I mentioned that the food hall is also a holy place in pagoda? Pretty much everywhere, except the restrooms.


Here we are, the Food Hall. Told you so! It was crowded!
There were many village children coming to Pagoda looking for something to eat and to bring home. Money is top in the list. What could those small children do to earn money? They begged. A typical scene all over Cambodia (but definitely not what the picture to your right is about).

Anyway, I am pleased to introduce you to our protagonist and his friends today (see the below picture and its caption). Let us call him Sok, a very typical Cambodian name. Of course, that is not his real name. I was stupid enough to forget asking him for his name. Still, this picture below is enough because a picture is worth a thousand words. Not to say his real name is that long. I hope he is not going to sue me in the future for posting it here. I did ask for his consent to take and post the picture... but without his signature. I doubt he understands what I meant when I said "May I post this on the Internet later on?". He will soon learn, I do hope.

Meet Sok (Red shirt on the left) and his friends! Sok said "Hello" to you too!
Just like any other kids walking around in the premise of the pagoda, Sok was at first begging for money. People did not welcome him, and he did not earn that much from begging either. It is sad, but aside from writing about his hardship, I can only do very little.

For some unknown reason, about an hour later, Sok seemed to have realized something, or maybe he was simply tired of walking around begging for money from people, with little success. His action caught my attention because he suddenly sat down at the entrance of the food hall in which the monk were chanting before having lunch offered to them by the people. Of course, everyone had to get into the food hall to listen to the unintelligible Sutta (in Pali language).

So what was he doing sitting at the entrance like that? Was he too tired of standing and walking? and just decided to sit and beg instead? Not really.

You see, for Buddhists, when going into a sacred place, we take off our shoes to show our utmost reverence for the Buddha and the monks.

This creates a problem. Poverty, Shoes. Povery, Shoes. Poverty, Shoes... Poverty, free Shoes... you got that?

Ain't nobody has the time to keep their eyes on their shoes. Most of the time, they are too busy concentrating on the chanting, whether or not they understand any of that. So shoes are there at the entrance for anyone brave enough to grab a few of them to sell and earn some bucks or riels (Cambodia's currency). Just a side note, since Cambodia is a partially dollarized country, we use both riels and dollars. Anyway, you see the problem. You go in, you lose your shoes, and worst of all, they don't go to your ancestors. Win-lose situation. Nobody likes it.

Sok somehow realized this problem that people were facing. Like many economists said, in an economy, the scarcest resources of all are knowledge and insight. Two working as one. Those with the right knowledge and insight at the right time and the right place, with the courage to initiate and the strong will to persist, will prevail regardless of who they are. This is what happens most of the time. A poor farm boy can even become the richest man of great sophistication because of his employment of his own knowledge and insight.

Tired of begging (probably), Sok might have at first done it out of his goodwill. He saw the problem, and he tried to solve it. He set up a spot where he would just sit and watch over people's shoes. As you have seen in the picture above, He and the other kids did not realize, at first, that this simple problem-solving service will not just help the people but the sole supplier of the service, Sok.

By the way, Sok was the only one who did the job at first. His friends (the three kids in the picture) just joined in for the photo shot.

I was very interested in Sok's initiation. So, I took a picture hoping to see something interesting happened. I wanted to turn it into something that could change his day. I waited and observed what would happen next. Suddenly, a woman walked out of the food hall and handed Sok 500 riels (about a dime). That is my friend, an incentive! Every business needs incentive to continue its operation. Where there are demand and supply, incentive will be made visible through the transaction.

At first, the other kids were just running around, playing, and begging for money from the passers-by from time to time like they usually do. That gave me an idea! I then kept walking in and out several times. Each time, I kept repeating the same act. I handed the shoes to Sok when I entered. When I left, I took the shoes back and gave him 500 riels as a thank for his service. By my 3rd or 4th trip, this act of passing benefit to Sok, the service provider, caught the other kids' attention.

About half an hour later after the fact, this was what happened.
Wait wait wait... they are not Soks! There cannot be more than one Sok. They are 2 other kids offering the same service.

4 more inside of the food hall? 5? So about 7 in total doing the same thing as Sok does.





























Yes, a bunch of other kids started to imitate Sok and opened up their own shoes-keeping business, in hope to gain or surpass Sok in terms of profit! They have now become Sok's competitors!

"Where did they come from? They are taking away my customers!" Sok thought (I made this up). 


                                                                                                                                                              Sok was not very happy about this (See his face? ha!). But sorry kid, this is free market, and for this particular type of competition, we can call it a perfect competition in which businesses offer identical products or services with no barrier to entry and exit. As Sok realized his profit, he could not hide it from the eyes of the other kids who were also profit-seeking individuals. Sok could not monopolize the business because the demand was too much for him to handle alone, and there was no rules or regulations stating that only Sok can provide the service. Plus, he could only watch over limited number of pairs of shoes if he did not hire other kids to work under him (and he did not). As the shoes-keeping business, which existed on the same timeline and place, offered greater incentive than standing around beeing, begging now incurred a huge opportunity cost (a huge loss of money that could have been made by entering into the tiny shoes-keeping industry). Consequently, several other kids ended up in the same business.

Before the shoes-keeping business took off! Lots of shoes in
risk of being stolen! We need Sok!
The problem arising from having to take off your shoes and the risk of losing them had given Sok a great idea to begin this little business of his. His insight, despite how young he still is and difficult conditions he is in, gave him the edge against the other kids and probably adults as well as allowing him to help solve the existing problem people had on that day. Thus, we can see that demand has created supply or in this case, it can be also said that supply has created demand because people might not have realized that they even needed this kind of service at first. However, after Sok started his little business, people welcomed him at the entrance. They smiled at him and thanked him while at the same time compensated him for his time and energy with some money. This is exactly what incentive is. Once profit had been realized, other kids with profit-seeking behavior became more and more interested. Eventually, at the entrance, we had our little shoes-keeping service industry with perfect competition operated under the free market system. The only thing that did not happen as expected based on the economic theory I have learned is that as more kids supplied the same service as Sok did, price did not fall. There were people who actually gave 2,000 riels and such. This is why development economics can be a little bit difference from the fierce business competition stated the orthodox economics. It factors in "Generosity" of the people. This is what drove up price offered by the demanders of the service, and thus, a greater satisfaction to them and a greater benefit to the suppliers.

Lucky him that Sok started all this.
So, were the kids better off? Surely they were. About 2 hours later, before I left the pagoda, I asked them about the amount they made (and still, I forgot to ask for their names... regret that!). Sok made 15,000 riels and another kid made 5,000 riels. I do not know about the rest. Well, early bird gets more worms, I guess. The initiator benefited more due to the smaller competition and more customers of his own while the followers also benefit greatly but to a lesser extent. Still, they were all much better-off that day!

Moreover, to attract more customers, they had also thought of ways to provide better quality services. Sok and the other kids neatly arranged the shoes in order, and for my patronage, Sok even put my shoes (the biggest black pairs on the right of the pink shoes) at the front (He told me that). What a nice kid! Due to this privilege he gave me, I was also more inclined to further use his service. What a great entrepreneur Sok is!

Is this the end of the money circulation in that small economy? Not really. So where will the money go next? Probably to the ice-cream seller in the right picture.

See the street vendor in the middle of the picture?
As ice-cream is really sweet and makes people feel thirsty, it is a complimentary product to drinking water products. So the next person to benefit might be the street vendor selling drinking water and beverage in the pagoda that day (The street vendor was in the picture far back).

This is just a small economy that has been improved to an extent thanks to one kid with a great entrepreneurial spirit. I salute you, kid.

I consider myself very lucky to be able to witness such an improvement in people's income, even if for a day. This shows us that the law of economics, the law of supply and demand, applies to every level of our society. I, thus, urge the development workers to start thinking economics and employ solutions to poverty that consist of 5 elements:

- Relevance
- Effectiveness
- Efficiency
- Impact
- Sustainability

The use of economics to improve life quality can meet the 5 conditions while being much less costly than the traditional solutions which do not factor in much of economic thinking.

Once again, this article could not be made possible without Sok and his friend. I still am fascinated by what I have observed, and this particular experience has reassured me of the crucial role economics plays in development and life in general.

Thank you for spending time reading this article, and I will see you again next time with an even more amazing piece of economics!

All the best.



Sources used:
http://www.kh.undp.org/content/cambodia/en/home/countryinfo/
http://www.adb.org/sites/default/files/pub/2014/basic-statistics-2014.pdf
http://en.wikipedia.org/wiki/Pchum_Ben