11/26/2016
Final Reflection on OMDE 606/Cost and Economics in DE
My takeway from OMDE 606 is that I now have a better understanding of the following:
- The increase push to make education more accessible and the soaring costs of educational provision.
- The concept of 'Human Capital Theory', which is the key theory of economics of education.
- Identify the cost drivers in distance education systems and how they are measured.
- The role of overheads and the problem of cost attributionwhen putting together a course or program.
- Knowledge on how to treat capital costs/ annualization of costs.
- Handle a basic cost model and analyze scale economies.
- Analyze and compare the cost structure of media and handle a cost model for rapid cost appraisal of a selected media configuration.
- Apply costing methodology to net based learning and identify the cost-drivers specific to net based learning.
- The impact of net based learning on the cost-structure of distance education..
- Analyze the costs of online student support.
11/25/2016
Reflection
I personally find OMDE 606 very enlightening because it looks at all the elements associated with DE from a cost and economic perspective. Not only does the course outlined the cost involved in putting together a program from start to finish, but it also looks at what it takes to ensure the program fulfill its obligation to the students. I find that student support services remains key to student retention in DE. Therefore, when putting a program or course together, support services for students must be factored into the cost and is equally important as the course design, instruction and delivery.
Course OMDE 606 addresses the economic implications of DE by analyzing the advantages and disadvantages of investing in education. The topics discussed and reading materials provided in this course gives me a much clearer picture about investing in education. I will always support the idea of investing in education, however I think it should be done wisely because there is no guarantee of a positive return on one's investment.
My "Ah Ah" moment in OMDE 606 is getting the opportunity to complete a program cost analysis. The activities and assignments presented in the course gives me a better understanding of all the tasks involved in putting together a course or program. The weekly topic discussions, group assignment, and feedbacks from the instructor and writing coach help in increasing my knowledge and understanding of cost of distance education from both an education provider and learner perspective.
11/24/2016
The economic case for student retention in DE
Do you find the argument, that recruiting a new student is more costly than keeping an already enrolled one, convincing? Why is the drop-out rate still so high in distance teaching institutions?
What would you consider the most important learner support measures in the MDE?
I do believe recruiting new students is more costly than retaining already enrolled ones because of the greater tasks involved in terms of money and time invested to attract new students. As for the high drop out rates in distance teaching institutions, the responsibility for success lies on all stakeholders involved. Some students that are new to distance learning sometimes have unrealistic expectations due to the freedom and flexibility that comes with DE. Many face challenges of balancing career and family obligations with their study time. Others may be unprepared and unskilled to handle the rigorous tasks of distance learning.
Distance institutions find it very challenging to provide student support for a much broader student population with various academic needs. According to Bindley (1995), institutions have an underlying model of learner services that is clearly stated or implicitly assumed about the goals of education and how the services offered "support" these goals. However their practices are not based on theory and even then if there is no systematic evaluation carried out to test and continually refine the rationale for practice then such support services will fail. Therefore, their mission is not being applied consistently to effect any changes in the drop out rate.
Bindley, J. (1995). Learners and learner service: Key to future in DE. Retrieved from www.uni-oldenburg.de/zef/cde/support/readings/brind95c.pdf
11/04/2016
Personal Reflection
Assignment #2/Cost Analysis
Although this assignment was long and intense, it gives a clear understanding of the various elements and cost in developing a program or course in DE. It gives a clear picture of the theory economic of scale which is closely align to the benificial aspect of developing distance education program. It was also interesting to learn the various formulas for calculating the various cost that are associated with developing DE program. For example direct and inderect cost, fix and variable cost, and capital and operating cost. The mock assignment is a great idea as well because it lays out step-by-step instruction on how to complete the assignment. This was a huge help for me and so I was very confident about completeing the graded assignment and very pleased with my 96% grade :)
Assignment #1
Social Justice, Economics & Distance Education
Cordelia Hastings
University of Maryland University College
10/6/2016
Social Justice, Economics and Distance Education
Introduction
During the 1960s and 70s, government initiatives to provide funding for social services such as education, grew from government goals of modernization and its belief in human capital investment. As such distance education provisions by nation-state was seen as a means of providing increase educational access to those who could not afford the cost in order to fulfill those goals. From an egalitarian
perspective the government is responsible for improving the lives of its citizens through the provision of basic services including education (Rumble, 2007). A libertarian on the other hand strongly rejects the proposal of nation-state provision of social welfare and is more in favor of privatization of basic services such as education, health, and water. Libertarian thinking from an economic view point also supports the concept of the market-state where the government’s only obligation to its citizens is to increase available options.
In the article Grenville Rumble expresses his support of a nation-state concept holding that the provision of services; education in particular, is a significant human right. He further added that education along with other basic social services help in defining what is considered a “good life”. In support of his argument, Rumble drew on the works of Canadian-born political and moral philosopher Ted Honderich. According to Honderich, libertarian thinking which supports a market-state ideology has negatively affected the lives of people living “bad lives”. To effectively ensure the lifelong educational needs of all people, state must implement a redistributive tax system rather than moving towards a market-state concept (Rumble, 2007).
Rumble’s position as stated in the article seeks to highlight his humanitarian mission of distance education; a rejection of the privatization of distance education; a refusal of cost-sharing measures which would place additional burden on those who cannot afford the cost of education; and a push to keep the cost of distance education down in order to meet the lifelong needs of about 9.4 million people by the year 2050.
From social welfare provision to neoliberal market
The incorporation of mass-media technology in distance education grew in the 1950’s because of its potential of economics of scale and a means of providing distance education to a much broader audience. As a result distance education became a point of interest for government and development agencies because it meets the criteria of its human capital investment and modernization objectives. Government saw this strategy as a way of increasing educational opportunities for those who could not attend a traditional face-to-face learning institution and those who cannot afford the cost of education. It was also the consensus that nation-state provision of increase access to education could result in national economic growth and a more egalitarian society (Rumble, 2007).
Although the idea of a government funded distance education program seemed like an ideal human capital investment, it was often accompanied by many challenges. There were restrictions on the number of students who could enroll in the program; students’ application being rejected or placed on long waiting list; and the implementation of libertarian cost reduction policies which often led to the underfunding of programs.
Many people who supported the idea of neoliberalism or libertarianism view government funding of distance education and other social services as an impediment to open market and free competition. The push from libertarian to reduce government spending while providing increase consumer options, led to the privatization of education and cost-sharing measures. This change of course only benefitted the rich and widened the disparity in educational access. The assumption that there is no direct connection between education and a nation’s national economic growth and the realization that rapid economic growth stimulates the need for increase educational opportunities and not education encouraging economic growth (as originally thought by economist) also led to the gradual transfer of education from public to the private sector (Wolf, 2002).
Libertarianism and distance education
Both nation-state and market-state analyze its economic achievements and misfortune by society’s use of better goods and services. However, in contrast to the nation-state, the market-state was built on the foundation of competitive individualism which supports the idea of limited government intervention in the provision of goods and services while increasing the options available to the wealthy. In support of such belief, libertarians argue that acquiring education beyond the basic level should be the responsibility of individual and not the state. Rumble in the article view such libertarian stands as vicious and immoral because it does not help to address the educational needs of the poor or those living “bad lives”. The problem with libertarian rejection of nation-state welfare provisions according to Honderich, is that its allows a so called “just society” to deny the poor and less fortunate access to basic human rights such as education, healthcare, and food (Rumble, 2007).
Social justice, liberalism and the avoidance of “bad lives”
Rumble acknowledges that there are strong arguments supporting some form of welfare provision that could ultimately reduce inequalities. In support of his views on social justice, liberalism and the avoidance of “bad lives”, Rumble refer to the works of moral and political philosopher and the author of “A Theory of Justice” John Rawls. Although Rawls’ argument does not emphasize the elimination of socio-economic inequalities he strongly supports the equalizing educational opportunities for those with similar interest. Honderich however, took a much forceful stance in his rejection of libertarianism and liberalism thinking by proposing “to try to save people from bad lives”. This principle he added should be used to construct policies to assist the “badly off” but still protect the well-being of the “better off”. If such policies are not effective, Honderich suggests redistribution by creating policies that transfer means from the “better-off” that has significant effect on their well-being (Honderich, 2002, p. 54). Honderich is not advocating complete equality in his statements; however, he strongly believes it’s a moral obligation to prevent “bad lives”.
Other than the creation of huge disparities in wealth and income among the rich and poor in society, there are other reasons why it’s important to reduce the gap that exist between those living “good lives” and those that are not. Economic research has shown that countries with major inequality problems tend to have extended periods of low economic growth (Rumble, 2007). In the U.S., there is a huge disparity gap in the resources that are put towards education. In areas throughout where there are significant concentrations of poor people, the average education achievement is lower in comparison to countries with an equal class system (Wolff, 2003). The result of such low human capital investment is often reflected in the county’s economic growth rate.
The United States when compared with other European countries have a less progressive tax system; resulting in the wealthy holding on to large portions of their riches (Wolff, 2003). Such inequality only worsens the support for low level income provided by social service programs. From a humanitarian prospective, the increase of disparities between those living “good lives” and those living “bad lives”; a disappearing middle class; and the ineffectiveness of liberal welfare policies in many of the world’s wealthiest countries could ultimately incite more violence and even terrorism (Rumble, 2007).
Distance education policy
With the expectation of the world’s population growth to reach 9.4 billion by 2050, the education business is poised to be more profitable than what it is currently (Rumble, 2007). There will be a significant increase in the number of children and young people in need of education as well as older adults seeking higher and lifelong learning. Today there are millions of people across the world that are living “bad lives” where the only solution for economic prosperity and better healthcare is increased access to education and other welfare services. However, there is major concern over the cost and source of funding. Rumble in the article argued that there is a moral obligation to challenge libertarian thinking and to implement policies that will increase distance education opportunities while keeping the cost down. To address this issue it will require a redistributive tax system with education provisions through the government. A failure to challenge a grossly immoral system in preventing further growth in the number of uneducated, poverty ridden, “bad lives” he added, is a disgrace to humanity.
Conclusion
In the article Rumble clearly outlined his position on the humanitarian need of distance education opportunities for those living “bad lives”; the rejection of libertarian thinking which led to ineffective welfare policies; opposing the privatization of education and cost-sharing measures; and efforts to drive the cost of education down. Rumble supports his argument against libertarian policies which he considers vicious and immoral by drawing on the works of philosophers Ted Honderich. Honderich in his writings not only highlights what constitutes a “bad life” but strongly criticized the status quo that allows such conditions to exist. Rumble, like Honderich and Rawls is not seeking total equality but is advocating for increase government funded educational opportunities in order to make ‘bad lives” better which will ultimately reduce the disparity gap between the rich and the poor.
References
Honderich, T. (2002). After the terror. Edinburgh: Edinburgh University Press
Rumble, G. (2007). Social justice, economics and distance education: Journal of Open and Distance Learning, 22, 167-176. doi: 10.1080/02680510701306715
Wolf, A. (2002). Does education matter? Myth about education and economic growth. London: Penguin Books Ltd.
Wolff, E. (2003). The wealth divide: The growing gap in the United States between the rich and the rest. The Multinational Monitor, 24 (5). Retrieved from http://multinationalmonitor.org/mm2003/03may/may03interviewswolff.html
This assignment was based on the analysis of Rumble, G. (2007). Social justice, economics and distance education
Reflection
10/16/2016
Module 1 Unit 4
Human Capital Theory vs. Screening Theory
You may consider the following questions: (i) which theory seems more convincing to you, HCT or ST? (ii) What aspect both theories have in common? (iii) It is argued that the difference between the two theories is important because they may lead to different policies. Can you imagine in which way?
It is somewhat difficult to separate the two theories because both imply a positive outcome of education on earnings. In other words, the more education one has the higher the earnings (not necessarily true). Both HTC and ST could be seen as a filtering to separate the qualified candidate from the ones that are not.
HCT in my opinion is more closely linked to productivity because of skills and education acquire through formal education or training beyond a high level. ST however has no direct link to increase productivity.
Because HCT and CT claim a positive return on education, both could impact policy on public funding for education. However, there is a difference in terms of policy if one's beliefs leans towards ST; then there would reluctance to invest in education (as government). The focus would then to be to explore the possibly of cheaper options for revealing talent other than schooling.
Resources:
Groot, W., Hartog, J. (1995). Screening models and education. In M. Carnoy (Ed.), International encyclopedia of economics of education. Oxford: Pergamon.
Schultz, T. W. (1961). Investment in Human Capital. American Economic Review, 51, 1-17.
Reflection
Human Capital Theory (HCT)
09/22/2016
Is it acceptable/correct to refer to human beings as ‘capital’? The first part of the paper discusses this issue (notice the names J.S. Mill, Adam Smith and H.von Thünen; you may check in wikipedia for quick references); what is your position?
As stated in Schultz article, people are crucial to the growth and wealth of a nation. However, referring to human beings as capital is attached to the stigma of slavery where people were seen as goods, property or material elements used to acquire wealth.
When used in the context of economics and economics of education, I think it is acceptable to use the term human capital. Acquiring knowledge, skills, and other human contributions are valuable economically. Philosopher-economist Adam Smith and H. Von Thunen view human capital as advantageous to the growth and wealth of a country. Therefore, concept should not be seen as degrading or an impediment to ones freedom and dignity.
Resource: Schultz, T. W. (1961). Investment in Human Capital. American Economic Review, 51, 1-17.
Reflection
09/19/2016
Module 1 Unit 2. The Expansion of Education
After World-War II there were three major developments that occurred:
- A massive expansion of education through the last 50 or 60 years.
- The birth of the “Economics of Education” in relation to the “Human Capital Theory” research program.
- The emergence of distance education which expanded well beyond Correspondence schools.
There were also other factors that contributed to the massive expansion of education. These include; Cold World-War rivalry between the two political powers (United States and Europe). The West felt the investment in education ensures economic and military strength and that the investment in education was not merely a class reproduction (like it was in many European countries) but an increase access to higher education was a hope for upward social mobility. The economic pressure for more skilled workers due to economic boom as well post-World-War II demographic growth were also contributing factors.
Resources:
Coombs, P. H. (1985). The world crisis in education: the view from the eighties. New York Oxford: Oxford University Press.
Papadopoulos, G. S. (1994). Education 1960 - 1990: The OECD perspective. Paris: OECD.
September 16, 2016
Personal Reflection
In week 1 discussion the class started out with a debate topic “Education: Elixir or Snake Oil? Which refers to the opening chapter of Wolf (2002) The class was divided into two those for and those against education. My initial thoughts was, "who would be against getting an education? As the debate went further with all inputs from classmates, the analysis of the debate topic became clear. For me this debate helped me in taking a step back and re-evaluating my own education journey. Will having a Master degree in Intelligence Management and a second in Online Teaching & Technology pay off some time in the near future or if this investment in time and money really worth it?. The debate was definitely a teachable moment because the society we live in places a high value on obtaining an education. However, the question is “is the value of obtaining an education over exaggerated?” The debate topic chosen was truly a good read. Although this debate was a eye opener, I still think everyone should have some form of education
Resource:
Wolf, A. (2202). Elixir or Snake Oil? Can education really deliver growth? In A. Wolf (Ed.), Does education matter? Myths about education and economic growth (pp. 13-55). London: Penguin Books