When countries across the globe entered into a period of economic recovery during 2010, it became increasingly clear that emerging nations were bouncing back far quicker than their more established Organization for Economic Cooperation and Development (OECD) counterparts. For example, while the global recession of 2008 and 2009 left more than 15 million American citizens unemployed and homeowners nationwide facing the burden of negative equity, nations such as China, Korea, and India found that they were experiencing rapid growth as their respective gross domestic products (GDP) soared.
Top 3 Educational Systems in the World
It was generally accepted that this was because these developing nations were less damaged by the original financial crisis, as they were not encumbered with significant debt before the events of 2008. Not only this, but countries such as China and India did not officially enter a period of recession, and instead suffered solely from diminished economic growth. However, nations that experienced a quicker than expected economic recovery also performed outstandingly well in the World Education Rankings released in 2010, which suggests a correlation between prospering economies and financial sectors with strong teaching systems.
By mid-2018, the top three educational systems in the world were South Korea, Finland, and Japan. This is based on developmental levels including early childhood enrollment, test scores in math, reading and science in primary and secondary levels, completion rates, high school and college graduation, and adult literacy rates. Note that China remained in the top 10 at number 6, but India was no longer placed in the top 20 countries for education. See: How Education and Training Affect the Economy
The Bottom Line
The link between countries with outstanding educational systems and strong financial service sectors is becoming increasingly prominent, and the speed with which nations recovered from the effects of the global recession also showcased extraordinary robustness. In terms of defining why the educational systems employed by these nations have proven so consistently successful, it is interesting to note that each is extremely federated and flexible and far removed from the centralized model favored historically by developed nations.
In relation to how these systems have benefited each nation's financial service sector, the global educational rankings reveal that students in the top educational countries have showcased an exceptional and consistent understanding of core mathematic principles. This outstanding level of numeracy forms the foundation of any financial sector job or service, and when coupled with evolved higher educational programs and diverse vocational courses it helps to develop a wide portfolio of skills to suit private banking and lending organizations. This is certainly something from which nations like the U.S. and the U.K. can learn as they seek to establish long-term economic growth and stability.