Tag Archives: World Economic Forum

Blackstone Group’s Stephen Schwarzman Says More Money Won’t Improve Public Education

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Blackstone Group CEO Stephen A. Schwarzman speaks at the “Business Backs Education” event at the World Economic Forum in Davos, Switzerland, on Jan. 23, 2015. David Sirota/International Business Times

DAVOS, Switzerland — Private equity investor Stephen Schwarzmann is generally a believer in the power of money, a trait that has netted him billions of dollars worth of that useful commodity. But when it comes to education, Schwarzman says more money is not necessarily a fix for ailing American public schools.

Speaking Friday at a World Economic Forum event called “Business Backs Education,” the Blackstone Group CEO was asked by International Business Times if he supports raising more money for education through President Barack Obama’s new proposal to increase capital gains taxes or through other proposals to end special “carried interest” tax exemptions for Wall Street financiers.

He declined to answer that question and instead suggested that a focus on resources is misguided.

“In the Catholic schools they spend much less money than the public schools, and they get amazing results. Private schools spend much more money than the public schools and they get remarkable results,” said Schwarzman, who was once rumored to have likened tax increases to Hitler invading Poland.

>>> Read more International Business Times.

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Rich Kids In Low-Income Countries Get Most Of The Public Education Money: UN

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A worker sets up logos of the World Economic Forum (WEF) at the congress center in the Swiss mountain resort of Davos Jan. 20, 2015. Reuters/Ruben Sprich

DAVOS, Switzerland — A new United Nations report finds that almost half of public education resources spent in low-income countries of the developing world goes to benefit just 10 percent of the best-educated students, who tend to come from affluent families. The report from the United Nations Children’s Fund, also known as Unicef, was released Thursday at a press conference with former U.K. Prime Minister Gordon Brown and Unicef allies at the World Economic Forum.

“We need to radically revise current practices by providing more resources and allocating them more equitably,” Yoka Brandt, Unicef deputy executive director, said.

The trend documented by the report shows poor, developing-world countries mimicking a trend in the United States, which stands out as one of the only industrialized countries that devotes less public money to educating students from low-income families than on educating students from high-income families.

According to a recent analysis by the Organization for Economic Cooperation and Development, it is one of the few economically developed nations that tends to spend more public resources to educate wealthy students than to educate low-income students. A 2011 U.S. Department of Education report found that in the United States “many high-poverty schools receive less than their fair share of state and local funding, leaving students in high-poverty schools with fewer resources than schools attended by their wealthier peers.”

On the question of solutions, Unicef is calling on wealthy countries and corporations to devote more international aid to education initiatives that will more fairly distribute resources. Addressing the assembled audience of wealthy corporate executives in Davos, musician Angelique Kidjo said of the Unicef report: “If the CEOs of this world want to continue being rich, want to save capitalism from chaos, they have to invest in education (and) they have to help every organization and lobby with us with the government” for more education funding that is more equitably distributed.

>>> Read more International Business Times

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A delegate is silhouetted as she passes by a sign for WEF in Davosimage

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