Equity in education finance policy

The modern era of globalization and the knowledge-based economy presents a challenge for
nation-state education finance policies. In an increasingly interconnected world, countries are
vying for competitiveness and are seeking to position themselves at the forefront of the global
stage. This necessitates focusing on developing a highly skilled and innovative workforce
capable of driving and sustaining economic growth and technological advancement. However,
the pursuit of increased competitiveness needs to be balanced with the need to maintain social
cohesiveness within diverse societies.
The method by which education is financed becomes a critical point of tension. Policymakers
strive to allocate resources in a way that promotes equal access to quality education while also
aiming for excellence and advancement. Achieving this delicate equilibrium is paramount for
nations seeking to navigate the challenges of a knowledge-based economy while maintaining
social cohesiveness and ensuring that all citizens can actively participate in and contribute to
their society’s progress and prosperity.
I contend that equitable education finance policies could be the basis for balancing between
the goals of cohesiveness and competitiveness. However, the current equitable policies are
solely designed to address social cohesion and do not meet this need. To this end, I will first
describe the challenges; then I will review the literature on current equitable education finance
policies and their historical evolution. In view of the increasing gaps in income and wealth, as
well as the growing social diversity (for example, owing to migration), states’ redistribution
mechanisms are often challenged. Finally, I will present an innovative middle-line model that
reconceptualizes this delicate balancing between the goals of competitiveness and cohesion.