My answer to this question:
The best article I’ve seen on this is http://www.changethis.com/38.03.EdInnovation, followed closely by another from the IEA arguing for the economic liberatlisation of education and removing it from Government control / state monopoly.
It certainly seems very true that innovation in education will come from countries like India and China who face the challenge of educating huge numbers. It is likely that the internet will play a large role in this so that the greatest teachers can teach hundreds of thousands of students. See http://news.bbc.co.uk/1/hi/programmes/click_online/4365350.stm for an example.
We also need more flexibility in WHAT we encourage learning in (note the change from passive ‘teach’ to active ‘learn’), since we at the moment we inculcate a struggle for the ‘top’, rather than contentment with a simpler life. (The ‘life and music’ animation http://www.souljerky.com/articles/south_park_zen_alan_watts_trey.html is a great demonstration of this problem).
Whilst I don’t entirely agree with complete liberalisation (since if the government is to be responsible for its citizens later on (social security), it should also be allowed to ensure they are capable of earning a living, so some for of regulation would be required.