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There exists today a critical discourse on educational policy, as it has evolved alongside dominant notions of development and its critique. This dominant notion of development emerged following the Second World War. At that time, the global order was characterized by a cold war, with its bipolar division of a “First World” and a “Second World,” based on ideological grounds. There emerged simultaneously, a conglomerate of countries referred to as the “Third World,” sharing a common colonial past, located mostly in Asia, Africa, and Latin America, and viewed to be in need of development. Underdevelopment in these countries was a construct—understood as descriptive structural features of poverty, illiteracy, traditional orientation, among others. Economic growth and modernization were the prescribed measures for development—as if the “Third World” would progress by following the structural features of more “evolved” Western countries. Education was an important tool in this project, responsible for creating the appropriate civic attitudes both for modernization and for stimulating economic growth. The human capital theory was an economic variant of the ideas of modernization—it underscored the notion that investments in education were akin to physical capital; these would yield future benefits to society. There was an abundant desire amongst the political elites of these newly independent countries to provide for mass education as a way of liberation and progress. National education policies, and systems to implement them, were set up incorporating these ideas. Leading international organizations—such as the United Nations Educational, Scientific, and Cultural Organization (UNESCO), UN Development Programme (UNDP), later the World Bank, and now the Organization for Economic Co-operation and Development (OECD), helped translate these ideas into policy choices and influence agenda setting for educational policy. By the 1990s, there was abundant critique of modernization as development and of national systems of education as systems of power bereft of normative ideas about the intrinsic value of education. This gap was filled by the capabilities approach enunciated by Amartya Sen and Martha Nussbaum. The capabilities approach argues that the ends of development are not simply economic growth, but the expansion of opportunities and substantive freedoms. Education is intrinsic to the development of capabilities and for substantive freedoms. Since the 1990s, the capabilities approach and the human development paradigm have been guiding influences in development policy and education. Education policies influenced by the human development paradigm recognize the complex challenges poor people face and do not advance a fixed template of policy prescriptions in the name of development. Following the Education For All conference in 1990 and, a decade later, the adoption of Millennium Development Goals in 2000, there have been significant efforts, on a global scale, toward converging the educational policy ideas and actions of international agencies and national governments. Simultaneously, the expansion of globalization on an unprecedented scale now influences education policy in unanticipated ways, as the nation-state declines in importance. In an era of global governance, transnational policies on education that emphasize learning achievements, benchmarking, and testing are gaining currency. National education systems may no longer matter. Globalization, especially its alliance with neo-liberalism, also finds strong criticism from social movements and from scholars who question development, argue in favor of post-development, and call for respect and recognition of diversity of competing epistemes of learning.