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CHAPTER , THE LONG-TERM OVERALL EDUCATIONAL PLANNING--FROM THE VIEWPOINT OF EDUCATIONAL INVESTMENT

Highest priority must be given to estimation. of the total amount of the future educational investment and the relationship of educational expenses to the general economy -national income or total public expenditures.

In the effort to achieve a well balanced social and economic development and to promote the nation's welfare, the balance between investment and consumption should be considered; and in the investment balance should be maintained between physical investment and manpower investment or between productive capital and indirect social capital.

On the basis of such well balanced distribution, the contents of manpower investment and of the investment of indirect social capital should be examined. As such investment is mostly made in terms of the government expenditures, it can be examined as the problem of the distribution of total public expenditures spent for various administrative fields. The public or government expenditure has a tendency to increase in an effort to develop well balanced economy and to promote the nation's welfare. And the tendency is strengthened, being supported by the payment of increased taxes. Such tendency deserves attention as a proof of the forwarding steps now being taken by every country.

The following is the comparison of the increase in the ratio of the taxes paid in major countries.

the ratio of the taxes paid in major countries.

The level of total governmental expenditures increases as the level of socio-economic objectives of a country is raised. In turn, the resultant increase in national wealth and income leads to further increases in governmental costs. This is evidenced by trends observed in socially and economically advanced countries.

Table 41. Percentage Increase in Governmental Expenditure of Japan, the U.S.A., the United Kingdom and the German Federal Republic, 1955-1960

Table 41 shows for Japan, the U.S.A. the United Kingdom (England and Wales) and the German Federal Republic the percentage increase in total governmental expenditures and in expenditures for social welfare and education from 1955 to 1960. As noted, educational expenditures increased much more markedly than did total expenditures or social welfare expenditures in all of these countries except Japan.

Recently, in this country, criticism has been made of the excessive rate of investment in industrial plant and equipment as compared with the relatively low rate of investment in such indirect social capital as the investment in public equipment and facilities, in scientific research, in training of technicians, etc. It is widely believed that the imbalance in tlae investment has become deterrent to economic growth. This belief is supported by the foregoing figures. This situation requires attention and improvement, in view of the demonstrated contribution made by the educational investment to the economy of the country and to the welfare of the society.

In international comparison, it has been shown that in Japan the percentage of the national income expended for education increased from 2 percent in 1900 to 5 per cent in 1960, while in most of the advanced nations - particularly in those with high per capita income, the percentage of income spent for education exceeds 5 per cent. It is apparent that the further socio-economic development of Japan is at least, partially dependent upon an increase in its investment in education relative to its total income. It appears probable that the ratio of the educational investment will continue to increase. The countries of the OECD are planning to double the amount of spending on education during the period ending in 1970, while the recent Conference of Education Ministers of the Unesco Member States in Latin America and Asia decided to elevate the ratio of educational expenses to national income to a minimum of 5 per cent. The current trend in Japan merits reexamination in the light of this trend.