Education and Crisis.docVIP

Theoretical and Applied Economics Volume XIX (2012), No. 5(570), pp. 145-156 Education and Crisis 145 Education and Crisis Marius-Cristian PAN? Bucharest Academy of Economic Studies panamarius@ Abstract. The actual economic crisis reveals the problems within the public educational system. The malfunctions of this sector are augmented by the special significance of education for society and economic system. The modern theories of human capital emphasize the state’s important role in financing education. On this basis, education seems to be the best solution in solving society and economy’s different problems. That’s why I consider that economic crisis is also the crisis of education. This paper aims to emphasize this argument underlying also the need for structural reform within the public educational systems. Keywords: education; externalities; economic crisis; over- accumulation; institutions. JEL Codes: B52, D62, I22. REL Codes: 4C, 4D.  146 Marius-Cristian Pan? Economic crisis reveals the actual problems of the social state in all its fields of action, including education. The real or intentionally overrated significance of education in society and economy emphasize the challenges within the public educational systems. The limited financial resources due to the economic crisis represent a serious budgetary constraint for the public education. This may seem like a situation motivated by the current economic meltdown, but contradictions may result after addressing the implications of education on society and economy. Education is provided mainly by the public sector. The arguments stress the importance of functional social relations within some generally accepted frames which are validated by the political system. One can argue, both empirically and logically, the fact that the social results of the public education a