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Jobs and Growth are being Undermined by Corporate Behaviour: the Great Tax Hoax

Thursday, December 29th, 2016

The Coalition government in Australia and the policy of the incoming President of the US Donald Trump propose substantial decreases in corporate tax rates and assert this will stimulate growth and jobs.

However, consideration of past decreases in tax rates reveals the recent behaviour of corporations and their executives and boards as an increasing trend to devote retained earnings to share buy backs and dividend distribution. Thus additional revenue flowing from further tax breaks is likely to contribute to further enrichment of the already super rich including many at the helm of large corporations, especially in the financial sector. Few companies are paying the marginal tax rate and many are avoiding tax altogether.

The campaigns by business to downsize government, reduce wage growth, limit union influence and reduce regulation have been self-defeating. The behaviour of the super-rich is the principal driver of the significant increase in inequality over the last 40 or so years, especially the Global Financial Crisis. This has led to a stalling of demand. In Australia, substantial investment has been directed to property, now a vehicle for financial enrichment at the expense of those wishing to find somewhere to live.

It is vitally important to recall that rising prosperity benefiting the population generally does not depend simply on economic growth: unending growth is a concept believed in only by the naive and many economists. The United Nations Development Program Report for 2009, Real Wealth of Nations: Pathways to Human Development points out that improvements around the world in education and health have been due principally to cross border transfer of ideas: there is little if any correlation with economic growth! Growth in incomes is not unimportant but it is not the main reason for improved prosperity.

In other words we can learn a great deal from other countries and other domains: seeking out those lessons is vitally important. Most particularly the notion that for any individual country the growth of population is critical is nonsense. Indeed, countries where the birth rate has slowed are generally more prosperous and a significant influence on that is education of women.

Governments have a fundamentally critical role in both encouraging transfer of ideas, in the provision of education for women and in encouraging responsible and sustainable population policy. Many developed economies lack any coherent population policy.

In Australia weakening of institutions, increasing inequality, primitive approaches to debt, especially for infrastructure development and to deficit budgeting, ongoing downsizing of government along with poor investment in education, health and science and a lack of understanding of innovation and what drives it is putting Australia’s future at risk. Isolation from the ideas emerging in other countries is a major feature of public policy!

Continue to Managerial Firms and Rentiers: How Corporate Behaviour is driving Inequality

A postscript to the associated essay notes the recently published book on Neoliberalism by George Monbiot  and also deals with the behaviour of banks and the involvement of US administration officials in failing to prosecute bank executives for their behaviour which led to the Global Financial Crisis.

Related post:

Government Policy and the Economic Environment at the turn of the Year, December 2016: Health, Education and Corporations

A postscript to the associated essay “Managerial Firms and Rentiers” notes the recently published book on Neoliberalism by George Monbiot  and also deals with the behaviour of banks and the involvement of US administration officials in failing to prosecute bank executives for their behaviour which led to the Global Financial Crisis.

Science and its Influence: Communication and the Proper Responsibility of Governments

Wednesday, December 28th, 2016

Many scientists ascribe the failure of governments to support science and the recommendations of scientific research to the failure of the scientific community generally to communicate the significance of science effectively.

The failures of government to adopt the science agenda is not due solely to poor communication. Governments fail to address the findings of high quality research in many areas including health, education, public transport, urban planning. Governments are mostly persuaded by their own ideological agenda and the lobbying of sectional interest groups and their funders. Politicians gain support for their policies from many in the community who privilege their own preconceived views and experience over analysis of available evidence.

Many western governments approaches to public policy are based in neoclassical economic beliefs which regards private enterprise as significant, small government as highly important, as more efficient than government and high taxes as inimical to personal freedom and business success. They are loath to address issues such as inequality, government funded health and education and see the private sector as having a major role in infrastructure development and in carrying out functions once considered part of government’s remit. Business practice is considered to be very valuable. That is hardly a view based on performance? Thus many of the conclusions from scientific research, if adopted, would undermine the agenda and interests of business groups, an agenda. Others are marginalised or opposed through embracing of fundamentalist beliefs.

The ultimate course of public policy is determined by politics and alliance formation, by narratives which address the beliefs of those in power.  Logic and rationality are not central. Therefore support for a stronger role by scientific bodies and by allies is needed. The strong promotion of the achievements and significant public benefits deriving from science must continue at the same time. Above all advancement of any enterprise from small informal group to major corporation and government is significantly influenced by cohesive leadership with a clearly articulated and defensible policy. In many countries that is lacking.

For their part, government ministers need to recognise that they have a greater responsibility than mere satisfaction of their own narrow political agenda. Where governments ignore the considered findings of science the future of the community is at risk. For instance, it is not possible to claim a secure and prosperous future and at the same time continue with burning of fossil fuels unless one dismisses the majority conclusions of scientists engaged in the relevant science and the many other scientists.

There are too many examples of past errors today in respect of climate change, public health, education, infrastructure development and economics. The notion that small government and economic growth will solve everything has to be discarded.

A stronger role for science is essential and governments have to ensure that role is addressed. In the absence of perceived economic gain, usually over the short-term, the private sector will not.

The level of funding for scientific research is related both to government policy and to the involvement of the private sector. In the United States and a number of other countries in Europe and Asia, industry supports laboratories conducting applied and often basic research and maintains close ties with universities and government agencies.

In Australia, at both Commonwealth and State level, governments have reduced their involvement in scientific research substantially. Where State governments funded research in areas such as agriculture, mining, fisheries, nature conservation and many other areas, they now fund very little. At the Commonwealth level CSIRO has been through numerous reviews and its funding reduced significantly; as well layers of corporate activities have been added and goals related to industry given much more attention.

Numerous programs on radio, tv and many publications focus on science. Those opposing the proposition that human agency was the main contributor to carbon emissions and climate change for instance simply didn’t listen, watch or read such material. Even a cursory glance through readers’ responses to articles and programs about subjects ranging from health to education and the arts is sufficient to show that many people consider their own already held views to be a better guide to ‘truth’ than the views of ‘experts’.

There are some who consider the views of experts to be no longer relevant and even that universities are not either. Many such people regard the benefits of education to flow principally to the individual and therefore appropriately charged to the individual rather than the citizenry through government taxes. Similar views pervade the policies of many governments concerning health and social welfare.

Read more at The problem is that scientists are poor communicators. Really?

A related background document addresses some issues relevant to the main theme of this essay as they concern government policy, especially in Australia.

I nearly forgot: one of the main reasons for the disregard of science is that so much of the discussion, especially within academe, is simply an argument amongst the advocates for different branches of science in order to gain more funding or more graduate students or just more. Just like everywhere else.

And the other important point is that many charged with leadership of the scientific enterprise are not sufficiently aware of the characteristics of the most successful scientific enterprises and the features of leadership there. Why was the Cassini-Huygens mission to Saturn and its moons successful? And the Rosetta and Philae mission to the comet 67P. The discovery of Higgs Boson? Gravity waves?

What are the successful scientific laboratories – in terms of Nobel Prizes – and what goes on there?

Australia’s CSIRO continues to make very important contributions in many fields, despite ongoing reorganisations of doubtful utility and ongoing reductions in funding. Why is that?

Last, what has corporatisation and “monetisation” – the requirement that CSIRO devote its research to areas of significant economic development – contributed to success?

What are the key features of science leadership? Some other essays on this site deal with some of these issues. Robyn Williams on the Science Show has on several occasions dealt with these very issues.

The role of government seems often to be overlooked. This is a point taken up by Professor Robert Hill, Executive Dean, Faculty of Sciences at the University of Adelaide on the ABC RN Science Show for 3 December 2016. He says this, “Until Australian politicians understand and properly promote the exceptional quality of our best scientists and the obvious relevance of careers in science, we will continue to underachieve as a nation. University science faculties should also take their share of the responsibility for failing to demonstrate the wide variety of career choices available to graduates.”

 

The Myth of School Choice and the Distortion of Education Policy

Sunday, April 24th, 2016

 

At the Global Education and Skills Forum in Dubai in March Education Director for the OECD Andreas Schleicher criticised the Australian education system for falling behind global standards. He pointed to the very significant drop in the results of students at the top of the PISA test rankings in the past year. He said “[Australia] more or less defines teachers by the number of hours that [they] teach in front of students. That is part of the problem. We treat teachers as interchangeable widgets on the frontline – they are just there to implement prefabricated knowledge.” Schleicher said many countries were struggling to keep the best teachers in the profession because of curriculums that restrict creativity.

The OECD through its PISA program which explores literacy in 15 year olds in writing, math and science every three years has been criticised very heavily in some countries as driving the education agenda. Countries determine their own policies but unfortunately the ideology which underlies PISA – standardised testing, along with performance pay and independent schooling – has been adopted too vigorously by some countries. The important findings about effective school education policies and practices brought out in the comprehensive reports of PISA and Education at a Glance are ignored or even deliberately misinterpreted.

___________

In Australia parents are moving their kids in ever larger numbers to schools they perceive to be better based mainly on scores in standardised tests – NAPLAN – published on the MySchool website. What is happening is a drift of students from advantaged backgrounds away from public schools, which generally have large numbers of students from disadvantaged backgrounds, to independent schools. As a result learning gaps between children from different backgrounds are widening. Parents are responding to test scores and to other factors. That should have been anticipated by those deciding to privilege standardised testing and support extra funding for independent schools.

The Myth of School Choice: Government support for Independent Schools and Standardised Tests traverses the recent report from the Grattan Institute which illuminates important outcomes of the Howard Government’s support of independent schools and the reactions of parents to that. The focus on NAPLAN has problems drawn out in a report by Chris Bonner and Bernie Shepherd for the Centre for Policy Development and a study by David Zyngier of Monash University. That independent schools do not contribute to better educational achievement when socioeconomic background is taken into account is shown by a sophisticated report by researchers from the University of Queensland and colleagues. As it has been by many previous analyses!

Study after study has shown no significant educational gain by the much better resourced independent schools. The extra funds would have been better spent supporting those children with greatest needs, those from disadvantaged backgrounds having trouble with the learning program.

The Turnbull Coalition Government, like the Abbott Government before it, has refused to fund the last two years of the National Plan for School Improvement framed in response to the Gonski Panel’s recommendations: it maintains there are insufficient funds. However, there is substantial evidence to the effect that funds are available by addressing the substantial tax expenditures – tax concessions – introduced in recent years; Australia is a relatively low tax country and a major contribution to debt is private debt funding purchase of houses and apartments.

The response by the Turnbull Government to the States’ refusal to consider operating their own income tax systems has left unresolved the funding of schools (and hospitals) through agreements between the former government and the states, with the Prime Minister maintaining that the states have no grounds on which to ask the Commonwealth to raise taxes and claiming the previous agreements were made in “barely credible circumstances”. The Myth of School Choice: the Economics of Independent Schools and Australian Government Policy shows just how wrong this is and how billions of taxpayer funds have been wasted. A report by Lyndsay Connors and Jim McMorrow and detailed analysis by Trevor Cobbold illuminate the situation.

Proposals to have the Commonwealth fund independent schools and the States fund public schools were strongly criticised and are not supported by the Government’s own Green Paper on the Future of the Federation. In Victoria a review by former Premier Steve Bracks recommends policies reinforcing the Gonski reforms.

Despite adoption of policies in the US and UK based mainly on neoclassical economics which privilege private sector participation in generating public goods like education, favour competition and choice and deploy financial incentives to drive change, there are examples in those countries, as in Australia, of exciting outcomes from schools which do address the main features of effective learning in schools.

The Myth of School Choice: Genuine improvement happens when everyone collaborates for the benefit of the children summarises an important review by education historian Diane Ravitch of two very interesting books on schools in the United States.  It isn’t simply quality teachers or the administrative independence of school principals and it certainly isn’t standardised testing which make the difference! Kristina Rizga, author of Mission High: One School, How Experts Tried to Fail It, and the Students and Teachers Who Made It Triumph, about a high school in San Francisco with an enrolment of students from a wide cultural diversity, many from disadvantaged backgrounds, points out, “too many politicians, powerful bureaucrats, management and business experts, economists, and philanthropists are making decisions about the best solutions for schools. In short, the people in charge don’t know nearly as much about schooling as the students and teachers they are trying to “fix.””

Despite everything, at Mission High in San Francisco great gains were made by students through the intense enthusiasm of their teachers.

Rizga says, “What matters in quality education – critical thinking, intrinsic motivation, resilience, self-management, resourcefulness, and relationship skills – exist in realms that can’t be easily measured by statistical measures and computer algorithms, but can be detected by teachers using human judgment. America’s business-inspired obsession with prioritizing “metrics” in a complex world that deals with the development of individual minds has become the primary cause of mediocrity in American schools.

Diane Ravitch points out “grand ideas cannot be imposed on people without their assent. Money and power are not sufficient to improve schools. Genuine improvement happens when students, teachers, principals, parents, and the local community collaborate for the benefit of the children.”

And education does not by itself fix poverty.

Indigenous Peoples: Closing the Gap in the Face of Resilience, Courage and Humour

Saturday, February 14th, 2015

The following post was first published on the website of Civil Liberties Australia under the title, Aborigines: resilience, courage and humour. The post is a response to the Report by the Productivity Commission,  Overcoming Indigenous Disadvantage  published 19 Nov 2014. It is also cross posted on my blog.

As the lights go down at the Belvoir Theatre, an elderly man with a wonderful white beard leads other actors in a recalled presentation to a Royal Commission.

In 1874 the Victorian government moved to close an economically successful enterprise at Coranderrk, near Healesville. Nearby farmers protested the land was too valuable for Aboriginal people. The people resisted. But anyway the area was closed in 1924 despite protests from Wurundjeri men, returned soldiers from the Great War: people were moved to Lake Tyers. There are scores of similar stories, hardly known.

Uncle Jack Charles, now 72, was taken from his mother at Cummeragunja mission as a one year old and raised in a boys’ home at suburban Box Hill. He was the only Aboriginal child there: they ”thrashed the living bejesus out of me’’, and worse. Jack was in and out of jail for minor crime and substance abuse. Reunited with some family at age 17, it was two more years before that included his mother. Jack is considered a founder of black theatre: he now helps young Aboriginal people.

As I watch Uncle Jack Charles perform, I perceive the resilience, courage and humour permeating every performance, comprising cultural achievement in spite of a life lived against the odds. (The play Beautiful One Day, also performed at Belvoir, has the same characteristics.)

Indigenous people are still here, teaching us cultural lessons, as we who are not indigenous have passed from hideous assimilation to integration through policies based on arrogance and now ignorance.

Denial, exploitation, removal of children, murder and rape, suppression of language. Refusal to acknowledge the past. Refusal to acknowledge a unique relationship with land with all its meanings, and managing the land through ice-age and desert periods. Refusal of equal rights despite judgements of the High Court, despite legislation, despite Royal Commissions, despite so many statements from elders white and black, despite increasing achievements in every field, not only music, painting and literature.

Disadvantage: Closing the Gap?

The extraordinarily comprehensive and, in some places, terribly disturbing Productivity Commission Report of late 2014 reveals trends that are a disgrace of international proportion against global standards. The report is comprehensive and detailed: every aspect of Indigenous disadvantage explored. It contains numerous examples of “Things that Work”. And it received about as much media attention as the chime on a time clock.

Horrendous statistics overshadow small gains and losses. Health, education and housing, which characterise Indigenous peoples’ problems worldwide, remain major issues. Australia is worse than anywhere: 78% of Aboriginal and Torres Strait Islander households lack acceptable access to water, sewerage and electricity service, but that figure is 5 points down from 2008…so overcrowding declined!

There is no progress in employment (likely affected by changes in the Community Employment Program), or in disability and chronic disease at 1.7 times the incidence for non-Indigenous people.

ClosingTheGap-childCPO

 

An increase in the non-Indigenous rate of family and community violence means the Indigenous rate remains 2.2 times the non-Indigenous rate. Over the nine years to 2012-13 the rate of Aboriginal and Torres Strait Islander children on care and protection orders increased almost five times from 11 to 49 per 1000 children; for non-Indigenous children the rate was between 3 and 6 per 1000 children.

Adult Indigenous jailing increased by 57% in the past 14 years. Youth imprisonment increased sharply to 2008 and has since remained at about 24 times the non-Indigenous rate. Repeat offending is 1.5 times the rate of 55% for non-Indigenous prisoners, as in 2000.

ClosingTheGap-AdultPrison

 

The over-representation of indigenous people in prison in Australia is 10 times that of the USA!

The suicide rate in the five years to 2012 was almost twice the rate for non-Indigenous Australians. The hospitalisation rate for intentional self-harm increased by almost 50% to more than 400 per 100,000 in the past eight years; for other Australians it remained relatively stable.

In education, the figures are also far worse than for Indigenous people in other countries. In New Zealand, 85% of Maori have post-school qualifications and in the US it is about 65% of Native Americans: in Australia less than 20% have such qualifications.

Decades of continuing discrimination

Gough Whitlam, on election as Prime Minister of Australia in 1972, directed one of his first two major initiatives at Aboriginal people: no more grants of leases on Aboriginal reserves in the Northern Territory, appointment of Justice Woodward to commence an inquiry into land rights, and establishment of special schools.

Before and since Whitlam, any moves to advantage Indigenous peoples have been opposed by special interests in pastoral and mining activities and by state governments, except South Australia. In Western Australia discrimination continues as Premier Colin Barnett does his best to remove Indigenous people from remote areas, refusing allocation of mining royalties to support them and maintains mandatory sentencing for minor crime.

In 2006 Prime Minister Howard and Minister Mal Brough established the Northern Territory Intervention or National Emergency Response (NTER) to address alleged high levels of child abuse and neglect, with some allegations later found to be fraudulent and invented by an employee in the Minister’s office. The army was sent in, social security payments were managed, the Racial Discrimination Act was suspended. Contrary to recommendations from a government-commissioned report, action was centralised.

Delivering the 2007 Vincent Lingiari lecture, Reconciliation Australia co-chair Fred Chaney expressed shock: the Intervention was contemptuous of Aboriginal property rights and the principles of non-discrimination, authorised micro management of lives, forced people into towns with devastating social consequences likely returning people to dependence, crushing the engagement essential to progress.

The Intervention has produced no gains. In the five years to 2011 Indigenous hospitalisation rates increased by 14%, income support recipients by 20%, reported child abuse by 56% and school attendance declined by 2 percentage points according to emeritus Professor Jon Altman.

Professor Larissa Behrendt says trying to change behaviour through welfare quarantining in an already dysfunctional situation likely exacerbates the stress on households. Improved attendance would be better achieved by breakfast and lunch programs, bringing the Aboriginal community, especially elders, into schools; teacher’s aides and Aboriginal teachers; a curriculum engaging for Aboriginal children which blends development self-esteem and confidence through engaging with culture as well as academic excellence.

A failure of policy: What could have been

Dr Christine Nicholls, now at Flinders University, was principal of Lajamanu School in Yuendumu for almost a decade. In Quarterly Essay 36 (2009), she points out that the issues of housing, health and employment need to be equal, simultaneous and concurrent foci of government and private attention before education can bring about real and lasting change.

People visited from government agencies out of town but nothing happened! The kids have otitis media (a disease of the Third World!) and can’t hear properly: if you can’t hear, you muck up in school, and don’t learn. It is ignored.

Few ESL teachers are employed, the value of teaching in language is denied, housing construction is appalling (and successive governments have done nothing about it). There is nowhere at home to do homework, overcrowding (with its attendant problems of potential child abuse), compromised health and hygiene. Lack of work for parents. Successive governments come to power wanting to be the one that fixes “the problem”. None do, small successes are not built on.

Many programs to advance Indigenous people are supported by private donations, corporate philanthropy, some together with government. Several help young people particularly. What on earth persuaded the Howard and Abbott governments to force on to Indigenous people wholly ineffectual policies that simply repeat all the mistakes of the past, are based on colonial and assimilative policies and in the end waste money and destroy people’s lives?

Governments could have decided to be far more engaged in ensuring proper housing, education and health programs. They could have ensured a substantial funding component of every initiative went to training Indigenous people. They could have stopped trying to justify policy by lying! And the federal government could have rejected the sometimes racist and backward looking objections of many provincial governments. Almost none have the courage to face down critics wanting to solve it all through rational economic solutions like private ownership and put everything in the “they need to adapt to our society” basket.

The majority of Indigenous people live in New South Wales and Victoria. The situations revealed in the Aboriginal-directed and -produced, award-winning TV dramas Redfern Now are situations of all people in towns and cities on the margin: difficulties of employment and daily living: health issues flowing from bad diet, cheap fast food, substance and alcohol abuse, poor housing.

There are three fundamental requirements: Self Determination, Financial Security, and support of Women/Early Childhood and Parenting

Self Determination

The right to self-determination must be embraced completely. Sovereignty matters! The Harvard Project on American Indian Economic Development has run hundreds of research studies over more than two decades in Native American communities. When Native Americans make their own decisions about what development approaches to take, they consistently out-perform external decision makers on matters as diverse as governmental forms, natural resource management, economic development, health care and social service provision.

Self-determination is a constant theme in every speech by Indigenous people. It is an expression of control over one’s own life. Many, non-Indigenous and Indigenous, have pointed out that redressing disadvantage in the longer term depends upon people having the power to make decisions that affect them, to be responsible for the programs designed to meet their needs, and accountable for the successes and failures that follow.

Michael Dockery of Curtin University has found these same outcomes for Indigenous people in Australia. But no notice is taken. What is axiomatic for white groups in society is seen as a threat if given to black groups! Capable institutions of governance, adoption of stable decision rules, establishment of fair and independent mechanisms of dispute resolution and leaders who introduce new knowledge and experiences, challenge assumptions, and propose change are recognised as essential by Harvard.

Financial security

Second is equitable funding as the bottom line, and more beyond that as success builds. Under-funding has typified programs for more than 100 years. Except for the Whitlam government, almost every federal government has strenuously failed to adequately fund Indigenous programs. Wages and social security payments have been withheld and compensation ignored. The funding must acknowledge the right to determine the nature of projects directed to community improvement.

Under the government of Prime Minister for Indigenous Affairs, Tony Abbott:

Recently Prof Altman has pointed to the success of the Community Development Employment Projects (CDEP) scheme which began in the 1970s: it increased earnings, provided more time for ceremonial activities, and crime decreased. Howard cancelled the increasingly demonised scheme because it wasn’t “real work”. In December 2014 the Abbott government announced a work for the dole scheme for remote Australia. Utterly pointless!

Early childhood and parenting

Australian and international understanding of early childhood, mother–child relationships, cognitive development and the impact on later life has increased significantly. These relationships are critical. The stimulation and warmth of the relationship contributes to a successful later life. Young children learn how to behave, and about human relationships and self-control which is a greater predictor of later “success” than any other indicator. And they learn self-confidence which helps manage the stress of later life better.

Recalled experiences in early childhood carry over to later parenting situations. So a potential cycle is developed. Therefore maximum support must be given to women and young families. Preschool staffed by qualified teachers and before that maximum effective support. Later, while Indigenous parents may not be clear about what school has to do with education, because of their background, that does not mean they have no interest in education. On the other hand intervening at school age will not likely undo the damage of early life. And availability of jobs after schooling is completed is essential.

Conclusion

The Productivity Commission and many people working and studying in the area have identified successes. But generally governments have not addressed the causes of problems, they have not co-ordinated the policies across significant areas and have not recognised the obligations to First Peoples whose right to the land was denied for 200 years. The invidious comparisons with the Indigenous peoples of other countries testifies to that.

There is a crisis of intellectual laziness combined with arrogance. In particular, the critical importance of cultural issues have not been attended to, nor has the impact of removal from land and of forced removal of children from families, which continues. Nothing has been learned from elsewhere.

The paternalistic approach which denies people any sense of control over their own lives leaves them more than marginalised. A friend points to the fact that many Aboriginal people have little understanding of white institutions and the implications of such things as court judgements.

But they know very well what denial of liberty means. Anything approaching racial profiling, failure to deliver in the judicial and police arena, criminalising minor crimes, mandatory sentencing and imprisonment produces more destructive behaviour and undermines progress elsewhere. It should be stopped immediately. Everything should be geared to developing a sense of self-worth grounded in a unique culture so that Indigenous identity is genuinely valued by the whole Australian community. Surprising as it may seem, many Aboriginal people regard all white people as of greater value than any Aboriginal person.

David Gulpilil won best lead actor for his role in Rolf de Heer’s film Charlie’s Country at the annual Australian Academy of Cinema and Television Arts (AACTA) event in January 2015.  There are lessons in that if we only think about them.

Christopher Pyne’s education: not politically correct!

Tuesday, January 27th, 2015

The school education policies of the Abbott government enunciated by Minister Christopher Pyne focus on several important features. These are a uniform curriculum, standardised testing of students, a didactic approach to teaching including “Direct Instruction”, school choice linked to support for private or independent schools based on the implication that government or public schools are failing and, implicitly, teacher accountability which can mean student test scores being the measure of teacher effectiveness. Pyne has said that those who oppose his policies are simply being politically correct.

The policies are unsupported by any evidence whatsoever. They largely follow the highly prescriptive conservative push which has typified the approach of the United States based on accountability and uniformity across schools. The policies are strongly advocated by the Institute for Public Affairs and the Centre for Independent Studies, the former a particular influence on the Abbott government. Conservative individuals and groups in the US also have substantial influence on school education policies there. The policies are not ones followed by those countries which are successful in international student assessments. Those who have studied the approach to schooling in countries such as Finland point that out in respect of the US.

Two major issues are at stake and are the subject of major conflict: the relative importance of student inequality and influence of the school relative to other influences such as the home, peers and out-of-school activities. All impact on teaching and learning and on creativity.

The Pyne policy sidelines or even denies inequality as an issue. Rather, the view is that public schools are ineffective and the only way to achieve improvement is by encouraging independent schools. This is a policy pursued relentlessly in the US through charter schools and in the UK through Academies but not in European or Asian countries though the relative attention to inequality may vary. An essential correlate of the judgement about relative effectiveness of school is the emphasis on standardised tests and on uniform curriculum. Teachers are considered the key to effective learning, effective teachers should be rewarded financially and that many of the people employed as teachers are not suitable and should be dismissed. A high degree of autonomy for schools in respect of financial management and teacher recruitment is advocated. (These are issues which have been addressed elsewhere on this site.)

Early childhood intervention is a major contributor to student educational achievement. That is significantly influenced by the social and economic advantage of the family. Recognising that, most countries whose school students achieve high test scores support universal preschool: that brings greatest gains for less advantaged children. They also support government funded paid parental leave allowing parents to spend more time with the very young child during a critical period of life. The early years’ learning experiences influence the development of self-control which has a greater effect than any other influence on later life, as shown by Angela Duckworth and Martin Seligman of the University of Pennsylvania in 2005.

Over 50 per cent of the contribution to school student achievement is contributed by what the child brings to school and a further proportion is contributed by out of school influences. In other words, most of the factors which influence student achievement are outside the control of the school. And, as John Hattie points out it is the school, not the teacher which has most influence. Almost all children are taught by many different teachers: to single out one teacher, as is done when teacher effectiveness is assessed on the basis of students’ test scores, is nonsense.

The Howard government from 1997 through 2006 had financially supported independent schools leading to a significant drift of students from public to independent schools. Writing in Quarterly Essay 36 (2009) writer Jane Caro quotes researcher Barbara Preston’s statement that by 2006 there were 16 low-income students to every 10 high-income students in high school playgrounds, compared with 13 students from low-income families 10 years earlier. The Rudd and Gillard governments continued support for independent schools by acknowledging, when the review of funding of education was announced, by undertaking that no school would lose money in any government policy flowing from the review.

The Gonski panel strongly supported special funding to address inequality. The Gillard government also sought substantial improvement in teacher training: though initially teacher progression and promotion was linked to student test scores, that was dropped in favour of linking teacher pay to individual teacher attainment of progression through an agreed professional performance framework.

The National Plan for School Improvement, the legislation implementing the Gonski recommendations, provided for increases in funding targeted at disadvantage and committed States to direct their funding to complement the Plan. Pyne removed those provisions in respect of Queensland, Western Australia and the Northern Territory which had not signed up to the National Plan before the September 2013 election. He was loudly opposed by every member of the Gonski Panel and large sections of the community for these decisions.

Pursuit of Pyne’s policies will waste money and take Australian school education policy back decades. The accompanying policies of early childhood education introduced by the Gillard government have stalled amid claims that increases in salaries for teachers are a sop to unions.

The essays accompanying this post summarises a number of recent reports and studies bearing on the fundamentals of Pyne’s policies for schools. These include, in the first essay dealing with learning, creativity and early childhood

And in the second essay on teaching and school performance

Continue to Learning, Creativity and Early Childhood