In this article, we will be taking a look at the 20 Countries that Spend the Most on Education. You can also take a detailed look at the 5 Countries that Spend the Most on Education.
Education plays a fundamental role in shaping the economic landscape of nations by influencing the skill levels, productivity, and innovation capacity of their workforces. Education serves as a catalyst for innovation and technological advancement, driving growth in industries such as information technology, biotechnology, and renewable energy.
Countries with well-educated populations tend to have higher levels of research and development (R&D) expenditure, patent filings, and technological innovation. For example, Finland, renowned for its high-quality education system, has fostered a vibrant technology sector, with companies like Nokia and Rovio Entertainment achieving global prominence. Data from the World Bank reveals that countries with higher levels of education attainment tend to have higher levels of innovation output, with patents per capita and research publications being key metrics.
In knowledge-intensive service industries, such as finance and consulting, highly educated workers are essential for delivering specialized services, analyzing complex data, and solving intricate problems. For example, Switzerland, with its high-quality education system and emphasis on vocational training, has developed a thriving financial services industry centered around Zurich and Geneva. Data from the World Bank and IMF shows that countries with higher levels of education attainment tend to have more dynamic and diverse service sectors, contributing to their overall economic resilience and competitiveness.
The data from the OECD also highlights that in OECD countries, the probability of having a higher income increases than the median with a higher educational attainment. The report further states that the correlation is even stronger for workers that are earning more than twice the median income value.
Besides that, according to UNESCO, during the COVID-19 pandemic, approximately 1.6 billion learners worldwide were affected by school closures, which led to the rise in Edtech platforms. These provided a solution, with online learning becoming the primary mode of education for many. Data shows that in 2020, the global e-learning market size was estimated to be $399 billion in 2022 and the forecast is that it’ll grow by a CAGR of 14% between 2023 and 2032.
However, it is important to note the landscape of education is changing with time with the introduction of various education-technology platforms that aim to provide online learning material for various subjects. One such example is the 2U, Inc. (NASDAQ: TWOU). 2U, Inc. (NASDAQ: TWOU) is an educational technology company that partners with colleges and universities to offer online degree programs and short courses. It is known for providing a cloud-based platform for delivering online education, including course content, and student support services. 2U’s clients include prestigious institutions such as Harvard University, UC Berkeley and University of London, which adds to the credibility of their platform.
Similarly, another such popular platform is Chegg, Inc. (NYSE: CHGG). Chegg, Inc. (NYSE: CHGG) is a technology company that specializes in online textbook rentals, homework help, tutoring, and other student services, which are known to be very useful. The company’s services include Chegg Study, Chegg Writing, Chegg Math Solver, and Chegg Tutors, among others. Chegg, Inc. (NYSE: CHGG)’s platform aims to support students throughout their academic journey, providing resources to help them succeed in their studies. It is important to note that despite such platforms many countries still continue to follow the traditional schooling methods and use such platforms to complement their existing systems.
Methodology
To shortlist the 20 Countries that Spend the Most on Education, we consulted the data from OECD and other sources to gain information on countries that spend the most on education and to learn about the expenditure per student. The list of the 20 Countries that Spend the Most on Education has been ranked in ascending order – from countries with lesser spending in USD to countries that spend the most.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years. Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders – check details here.
20. Slovenia
Expenditure per Student: $10,000
Slovenia’s education system is characterized by its emphasis on equal access to education and student-centered learning. With an expenditure per student of $10,000, Slovenia invests in providing inclusive and high-quality education for its population. Slovenia spent 5.7% of its GDP on education in 2021. Slovenia’s education system also values multilingualism, with instruction in Slovenian and other minority languages.
19. Portugal
Expenditure per Student: $10,400
Portugal’s education system is focused on improving educational outcomes and reducing disparities among students. At the primary and secondary levels, Portugal offers a comprehensive education system that includes both academic and vocational pathways. Students can choose between general education (ensino geral) and vocational education and training (ensino profissional), depending on their interests, abilities, and career aspirations. This diversity of educational pathways allows students to pursue the route that best suits their needs and goals.
18. Czech Republic
Expenditure per Student: $10,700
The Czech Republic’s education system emphasizes academic achievement and lifelong learning. With an expenditure per student of $10,700, the Czech Republic invests in providing comprehensive education accessible to all students. Education represented 5.1% of the country’s GDP in 2021. The Czech Republic places importance on science, technology, engineering, and mathematics (STEM) education, aiming to prepare students for the demands of the modern workforce.
17. Japan
Expenditure per Student: $10,700
Japan’s education system is renowned for its rigor and emphasis on discipline and academic achievement. With an expenditure per student of $10,700,it ranks 17th on the list of countries spending the highest on education. The country’s education system focuses on fostering a strong work ethic, respect for authority, and a sense of responsibility among students. Japan also values traditional values and cultural heritage, integrating them into its educational practices. The country spent 3.3% of its GDP on education in 2021, but don’t let the numbers fool you, Japan is the third biggest economy in the World, with 125 million population as of 2022.
16. Italy
Expenditure per Student: $10,800
Italy’s education system is characterized by its diversity and regional variations. With an expenditure per student of $12,200, Italy invests in providing inclusive education and support services for students with diverse needs. The country emphasizes a holistic approach to education, incorporating arts, humanities, and sciences into its curriculum. Italy also values experiential learning and encourages students to participate in extracurricular activities and community service. Italy spent 4.1% of its GDP on education in 2021.
15. France
Expenditure per Student: $12,200
France’s education system is known for its strong emphasis on academic excellence and centralization. With an expenditure per student of $12,800, France invests in providing high-quality education accessible to all students. Education accounts for approximately 5.2% of France’s GDP. It ranks 15th on our list.
14. Canada
Expenditure per Student: $12,800
Canada’s education system is renowned for its inclusivity and emphasis on diversity and multiculturalism. With an expenditure per student of $12,800, Canada invests in providing accessible and high-quality education for all students. Education comprised 4.1% of the country’s GDP in 2022. Canada also values indigenous perspectives and incorporates them into its educational practices.
13. Denmark
Expenditure per Student: $13,200
Denmark’s education system is characterized by its emphasis on student-centered learning and innovation. With an expenditure per student of $13,200, Denmark invests in providing inclusive and holistic education for its population. Education accounts for approximately 6% of Denmark’s GDP.
12. United Kingdom
Expenditure per Student: $13,300
The United Kingdom’s education system is diverse, encompassing a range of educational institutions and approaches. With an expenditure per student of $13,300, the UK invests in providing accessible and high-quality education for all students. Education represents around 5.3% of the UK’s GDP in 2021. The government has implemented various reforms, including changes to the curriculum, assessment, and accountability measures, to raise standards and improve educational outcomes.
11. The Netherlands
Expenditure per Student: $13,600
Education spending comprised 5.1% of the Netherlands’ GDP in 2021. One notable aspect of the Dutch education system is its ECEC programs, which are designed to provide a strong foundation for children’s development. These programs prioritise play-based learning and social interaction, fostering children’s cognitive, emotional, and social skills from an early age.
10. Germany
Expenditure per Student: $13,700
Germany is renowned for its strong emphasis on vocational education and training (VET) alongside traditional academic pathways. The country invests significantly in its education system, allocating $13,700 per student. Germany’s dual education system combines classroom instruction with practical training, allowing students to gain valuable work experience. 4.5% of Germany’s GDP was allocated to education in 2021, as per the World Bank.
9. Sweden
Expenditure per Student: $13,800
Sweden boasts a progressive education system characterized by a high level of autonomy for schools and teachers. With an expenditure per student of $13,800, Sweden places importance on individualized learning and student-centered approaches. Education spending comprised 6.7% of Sweden’s GDP in 2021. The country emphasises creativity, critical thinking, and innovation in its curriculum, aiming to prepare students for the challenges of a rapidly evolving world.
8. Australia
Expenditure per Student: $14,100
Australia’s education system is known for its diversity and inclusivity, catering to students from various cultural backgrounds and abilities. With an expenditure per student of $14,100, Australia invests in providing quality education accessible to all, making it one of the best countries for educational outcomes.
7. Belgium
Expenditure per Student: $14,400
Belgium’s education system is characterized by its complex structure, divided along linguistic lines between Dutch-speaking Flanders and French-speaking Wallonia. Despite this division, Belgium maintains high standards of education, investing $14,400 per student.
6. Iceland
Expenditure per Student: $15,200
Iceland prioritizes education as a key driver of social and economic development. With an expenditure per student of $15,200, Iceland invests in small class sizes and personalized learning experiences. The country values creativity, environmental sustainability, and social responsibility in its educational philosophy. Iceland spent 7.7% of its GDP on education in 2021
Click to continue reading and see the 5 Countries that Spend the Most on Education.
Suggested Articles:
- 11 Best Education Stocks To Buy In 2024
- 25 Countries with Education Problems
- 25 Countries with Best Education System in the World
Disclosure: none. 20 Countries that Spend the Most on Education is originally published on Insider Monkey.
