Creating a Culture of Aspiration: Higher Education, Human Capital and Social Change

Abstract In the United States, developing human capital for both economic and social benefits is an idea as old as the nation itself and led to the world's first mass higher education system. Now most other nations are racing to expand access to universities and colleges and to expand their role in society. Higher education will grow markedly in its importance for building a culture of aspiration and, in turn, the formation of human capital, the promotion of social economic mobility, and for determining national economic competitiveness. This essay briefly discusses the vital role of human capital for national economies, past and future. It also examines the public and private benefits of higher education, the effort of nation-states, and region, to build a culture of aspiration, and the convergence of approaches towards building a “Structured Opportunity Market” in higher education. Increasingly institutions and developed and developing nations, and, in some cases, supranational entities such as the European Union, will move to most if not all of the components of the Structure Opportunity Market; those that don’t will be compelled to offer in both domestic and international forums a rational reason why they are not adopting some aspects of the model. The paper concludes with a few observations on the emerging and growing higher education system in China. It is probably not too much of an exaggeration to say that the both the social and economic future of nations and regions will depend heavily on the educational attainment of their population, and, as a corollary, both the size and quality of their higher education institutions and systems. In postmodern economies, and increasingly in developing economies, there will be growing dependency on supported and expanding “knowledge accumulation” that will be vital for greater national productivity and global competitiveness. As the first nation to pioneer the idea of mass higher education, the United States has essentially provided the proving ground for the simple idea that the talent, training, and creativity of its citizens is as important a factor for generating economic prosperity as a nation's natural resources, or its strategic geographic location, or its military, political, or cultural influence. How do economists and historians explain long-term economic growth of nations, and their comparable competitive position? A consensus has emerged: one major factor is vibrancy and the maturity of their public and private higher education institutions. In the United States, and throughout the world, hard working people are not enough to produce prosperity and vibrant society. There is also the culture of aspiration-the sense that the individual has the freedom and the means to better themselves, to advance their knowledge, skills, and position in society. This essay discusses the vital role of human capital in national economies, and provides a brief look at the convergence of approaches by national and supranational governments towards a “structured opportunity market,” offering a comparative look at the US, the EU, and others parts of the world.