For years, a major gap has been evident in the country’s educational policymaking—a gap that has weakened public education, higher education, and teacher training alike. This missing link is the economics of education: the knowledge and skill set that should serve as a bridge between school quality, managerial decision‑making, resource allocation, educational equity, and the financial and professional future of teachers.
The reality is that public education and higher education in Iran operate on two separate tracks. Farhangian University follows its own path, the Ministry of Science follows another, and schools continue to struggle with limited resources, imprecise decision‑making, and the absence of an economic perspective. As a result, teachers and school principals enter the system without the ability to analyze costs, manage resources, plan financially, or assess the efficiency of school‑level activities.
Why Is the Economics of Education Important in Teacher Training?
When we speak of the economics of education, we do not mean money alone. It includes:
• optimal decision‑making in resource distribution
• opportunity cost of implementing programs in schools
• analysis of learning outcomes and returns
• distributive justice in education
• designing efficient school models
• and preparing teachers who can elevate schools beyond being mere consumers of resources
In many countries—such as Finland, Singapore, South Korea, and Canada—teacher‑training students complete extensive coursework in school data analysis, financial planning, resource management, economics of education, and educational entrepreneurship. The goal is for teachers not to be simple transmitters of knowledge, but learning designers, micro‑managers of resources, and value‑creating agents within their schools.
In Iran, however, economics of education is almost absent from teacher‑training programs. The result is that although graduates are academically competent, they often lack managerial and economic capacity.
Consequences of Ignoring the Economics of Education in Schools
Without economic literacy among teachers and principals, several problems quickly emerge:
• inefficient use of limited school resources
• implementation of programs without cost‑effectiveness analysis
• educational equity reduced to slogans rather than practice
• school principals lacking financial analysis skills
• teachers missing opportunities in educational entrepreneurship
• long‑term planning replaced by short-term actions
This means that even if schools receive additional funding, the improvements remain limited because economic knowledge is missing.
Economics of Education Worldwide: Why Successful Countries Emphasize It?
In advanced educational systems, teachers do more than teach—they build learning ecosystems. For example:
• In South Korea, teacher‑training students study school economics, efficient school modeling, and cost analysis of learning.
• In Singapore, teachers participate in educational entrepreneurship programs and develop school‑based projects and learning products.
• In Finland, a central part of teacher preparation involves school performance data analysis and resource allocation based on actual student needs.
These countries recognize that educational quality arises not only from subject expertise but from professional management of education.
The Absence of Educational Economics at Farhangian University: A Structural Issue
Over the years, Farhangian University has focused primarily on pedagogical skills and curriculum content, giving less attention to preparing future teachers to:
• analyze the costs and benefits of educational activities
• manage school resources effectively
• understand educational equity from an economic perspective
• identify opportunities for educational entrepreneurship
• guide schools toward innovation and improvement
This gap has resulted in teachers who may be academically strong but lack the capacity for school management, educational entrepreneurship, or designing innovative learning frameworks.
Entrepreneurship in Teacher Training: The Second Missing Link
As education shifts globally from a traditional service to an innovative and value‑creating sector, the teacher’s role expands far beyond knowledge delivery. Educational entrepreneurship includes:
• content creation
• design of skill‑based courses
• development of learning packages
• launching school‑based educational ventures
• implementing revenue‑generating social and cultural projects
In Iran, however, teacher‑training programs have little connection to these fields. Graduates often leave university without knowing how to transform an educational idea into value. The result is a system deprived of educational entrepreneurship and teachers deprived of opportunities for professional and financial growth.
Practical Recommendations for Filling the Gap
• introducing applied courses in the economics of education within teacher‑training programs
• training Farhangian students in school financial analysis and resource management
• strengthening educational entrepreneurship skills
• using successful international models to design specialized courses
• coordination between the Ministry of Science, the Ministry of Education, and Farhangian University to create an integrated training model
• preparing school leaders with analytical and economic competencies
• transforming schools into hubs of learning and innovation rather than mere budget consumers
Conclusion: Quality Education Will Not Stabilize Until the Economics of Education Is Taken Seriously
If the goal is to elevate public education in Iran, teachers and school principals must possess economic understanding. Teacher training without the economics of education is like constructing a building without a blueprint. Farhangian University must move beyond purely pedagogical training and prepare teachers who can manage schools, optimize resources, and implement effective learning strategies. The sustainability of school quality, educational equity, and the future of the teaching profession all depend on addressing this essential foundation.
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