Human Capital Development: The Case of Education as a Vehicle for Africa's Economic Transformation.

Baah-Boateng, William (2013): Human Capital Development: The Case of Education as a Vehicle for Africa's Economic Transformation. Published in: Legon Journal of International Affairs and Diplomacy , Vol. 7, No. 1 (May 2013): pp. 1-24.

Abstract

The paper attempts to rekindle the debate of low human capital base as a bane of Africa’s economic transformation. It overviews human capital base in Africa and attempts to explain the reasons behind low human capital base in Africa and attributes developmental gap between Africa and the rest of the world to its relatively weak human capital base. Low public investment in education culminating in limited access to education, poorly motivated teachers and overstretched tools and facilities remain key challenges to Africa’s human capital development. The paper takes a walk through the theoretical consideration of economic transformation and the relevance of human capital development for economic transformation and sustainable development. A simple quantitative analysis to capture the relationship between economic transformation and human capital development suggests a significant correlation between education and structural transformation of an economy. The paper makes recommendation to the effect that Africa’s human capital base can be enhanced through improved public investment in education in the area of teacher motivation and provision of adequate teaching and learning materials. Measures to reduce pupil-teacher ratio and review of curricula to meet the development needs of countries are also essential in improving quality and relevance of education in Africa. It is also critical for Africa to encourage private sector participation in the provision of education, enhance effective collaboration between educational institutions and industry and adopt measures to reverse brain drain to enable Africa reap the benefit of education for development.

• Item Type: MPRA Paper
• Language: English
• Keywords: Human Capital, Education, Economic Transformation, Africa
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

References

Adams, Don Education and National Development: Priorities, Policies, and Planning, Asian Development Banks, Comparative Educational Research Centre and the University of Hong Kong, 2002

Amaknwah, R.K. and Anim-Sackey, C. (2003) Strategies for sustainable development of the small-scale gold and diamond mining industry of Ghana, Resources Policy, Vol. 29, pp. 131-138.

Barro Robert J. and Lee Jong-Wha A New Data Set of Educational Attainment in the World, Asian Development Bank and Korea University, 2010 www.barrolee.com/data

Becker, G.S. (1983) Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd ed.). Chicago: University of Chicago Press, 1983

Borensztein, E., DeGregorio, J, & Lee, J-W (1998) “How does foreign direct investment affect economic growth?” Journal of International Economics, Vol. 45, pp. 115-135.

Carrington, W. J., & Detragiache, E. (1998) “How big is the brain drain?” IMF Working paper, No. 102 Washington, DC: International Monetary Fund.

Chenery, H.B. and L. Taylor (1968) “Development patterns among countries and over time” Review of Economics and Statistics Vol. 50: pp. 391-416.

Chenery H.B. (1960) “Patterns of industrial growth” The American Economic Review Vol. 50, No. 4, pp. 624-654.

Dzvimbo, K.P. (2003). ‘The international migration of skilled human capital from developing countries,” Paper presented at a Regional Training Conference on Improving Tertiary Education in Sub-Saharan Africa: Things That Work! Accra, September 23-25.

Easterly B. W. and R. Levine (2003) “Tropics, germs, and crops: how endowments influence economic development”. Journal of Monetary Economics Vol. 50, No. 1, pp. 3-39.

Hirschman, A.O (1958) The Strategy of Economic Development New Haven, CT: Yale University Press.,

International Labour Organisation (2012) Key Indicators of the Labour Market 7th Edition,International Labour Office, 2012 www.ilo.org

IOM (2000) International Organization for Migration Migration in Africa and Globalization, Addis Ababa, Ethiopia

Johnston, D.G. and J. W. Mellor (1961), “The role of agriculture in economic development” American Economic Review Vol. 51, No. 4, pp. 566-593.

Kuznets, S. (1973) “Modern economic growth: Findings and reflections. Nobel Memorial Lecture” American Economic Review Vol. 63, No. 3, pp. 247–258.

Kuznets, S. (1966( Modern economic growth, New Haven, CT: Yale University Press

Kuznets, S. (1961( Capital in the American economy. National Bureau of Economic Research, New Yor.

Lucas, R. E. (1988). “On the Mechanics of Economic Development” Journal of Monetary Economics, Vol. 22: pp. 3-42

Miyamoto, K. (2003). ‘Human capital formation and foreign direct investment in developing countries”, OECD Working Paper No. 211, OECD Development Centre

Ndulu B. J (2004) “Human Capital Flight: Stratification, Globalization, and the Challenges to Tertiary Education in Africa”, JHEA/RESA Vol. 2, No. 1, pp. 57–91

Rodrik D., A. Subramanian, F. Trebbi. (2004). “Institutions rule: The primacy of institutions over geography and integration in economic development” Journal of Economic Growth Vol. 9, No. 2, pp. 131-165.

Romer, P. M (1990) “Endogenous technological Change”, Journal of Political Economy Vol. 98, No. 5; pp. 71-102

Romer, P.M (1986) “Increasing returns and long- Journal of Political Economy, Vol. 94, pp. 1002-1037.

Roux A. (1994) “Defence, Human Capital and Economic development in South Africa” African Defence Review, Issue No. 19, pp. 14-22

Rosenstein-Rodan P.N. (ed.) (1964) Capital formation and economic development Cambridge (MT): M.I.T. University Press, 1964.

Schultz T. W (1961) “Investing in Human Capita;” American Economic Review Vol. 51, No. 17, pp. 1-17

Stern N., J.-J. Dethier, and Rogers F.H. (2005) Growth and empowerment, making development happen. Munich Lecture in Economics, Cambridge, MA: MIT Press. 2005

Syrquin, M. (1988) “Patterns of structural change” in H. Chenery and T.N. Srinivasan (eds.). Handbook of development economics, Volume. 1. New York, NY: Elsevier.

UNDP (2007) Human Development Report 2007/08, United Nations Development Programme,

UNDP (2006) Human Development Report 2005/06, United Nations Development Programme.

UNESCO (1999) Global Education Digest, UNESCO, 2012 www.unesco.org World Bank, World Development Report 1998/99, World Bank, Washington D.C.

World Bank (2013), World Development Indicators 2012, World Bank, Washington D.C.

World Bank (2009) World Development Indicators 2008, World Bank, Washington D.C.

Yih-Chyi Chuang (1999) “The Role of Human Capital in Economic Development: Evidence from Taiwan”, Asian Economic Journal Vol. 13, No. 2, pp. 117-122

Zeleza, P. T. African labour and intellectual migrations to the north: Building new transatlantic bridges. Urbana Centre for the Studies of African Studies, University of Illinois at Urbana-Champaign, 1998