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46275 Public Disclosure Authorized DIRECTIONS IN DEVELOPMENT Public Disclosure Authorized Human Development Accelerating Catch-up Tertiary Education for Growth in Sub-Saharan Africa Public Disclosure Authorized Public Disclosure Authorized Accelerating Catch-up Accelerating Catch-up Tertiary Education for Growth in Sub-Saharan Africa © 2009 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved 1 2 3 4 11 10 09 08 This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN-13: 978-0-8213-7738-3 elSBN: 978-0-8213-7739-0 DOI: 10.1596/978-0-8213-7738-3 Library of Congress Cataloging-in-Publication Data Accelerating catch-up: tertiary education for growth in SSA / AFTHD (World Bank), DECRG (World Bank). p. cm. Includes bibliographical references and index. ISBN 978-0-8213-7738-3—ISBN 978-0-8213-7739-0 (e-book) 1. Education, Higher—Economic aspects—Africa, Sub-Saharan. 2. Economic development— Africa, Sub-Saharan—Effect of education on. I. World Bank. AFTHD. II. World Bank. DECRG. LC67.68.A357A23 2008 33S.4'337868—dc22 2008035536 Cover photo: © Wei Yan/Masterfile Cover design: Candace Roberts, Quantum Think, Philadelphia, PA, United States Contents Foreword ix Acknowledgments xi External Advisory Panel Members xiii Acronyms xv Executive Summary xix Chapter 1 Introduction and Context1 Context5 Notes 27 Chapter 2 The Education Imperative 37 The Demand for Higher-level Skills in Sub-Saharan Africa 42 The Mission of Tertiary Education in an Economic Growth Context 50 Notes 63 v vi Contents Chapter 3 Improving the Performance of Tertiary Education in Sub-Saharan Africa 69 Introducing National Innovation Systems 69 What Is the Current State of Play? 71 Tertiary Education 80 Concluding Observations: Tertiary Education for Competitiveness and Growth 103 Notes 110 Annex A 115 Annex B 119 Annex C 129 Annex D 133 References 135 Index 161 Figures 1.1 New Commitments for Education by Sub-Sector FY1990–20082 1.2 Savings and Investment, 1990–2006 13 1.3 Population Growth and Fertility Rates for Selected Countries, 1990 and 2005 18 1.4 Export Sophistication and Competitiveness (EXPY) and Level of Higher Education 23 1.5 Export Sophistication and Competitiveness (EXPY) Increase with Level of Secondary Education 24 1.6 Progress from Low-value Commodity to High- value Agricultural and Resources-based Processed Exports, 1985–2004 25 2.1 Changes in Education Profile in Korea and Ghana, 1960–2000 38 2.2 Secondary and Tertiary Gross Enrollment Rates for Case Study Countries, 1991 and 2005 38 2.3 Secondary Gross Enrollment in 2004 40 Contents vii 2.4 Tertiary Gross Enrollment in 2004 41 2.5 Population Growth Rates in Anglophone and Francophone Africa, 1990–2005 42 2.6 Projected Growth Rate of 20- to 24-year-old Population for Anglophone and Francophone Africa, 2010–50 43 2.7 GER Index by Level of Education, 1990–2005 44 2.8 Trends in SSA Tertiary GER, 2000–05 47 2.9 Total Public Agricultural Research Spending in Sub-Saharan Africa, 2000 57 2.10 Source of Technology for Firms in Sub-Saharan Africa 60 3.1 Tertiary Share of Education Budget by Region, 1975–2005 88 Tables 1.1 World Bank Financing for Education in Sub-Saharan Africa, FY1990–FY2008 4 1.2 Private Returns to Primary vs. Tertiary Education7 1.3 Growth and Sectoral Indicators9 1.4 Remittances and Foreign Assistance 11 1.5 Exports of Goods and Services 12 1.6 Share of Engineering, Food, and Garment Exports in Selected Countries, 2001–06 12 1.7 Competitiveness of SSA Countries 14 1.8 Export Diversification Trend Indicators in Africa 26 2.1 Average Math and Science Scores of Eighth-Grade Students in Selected Countries, 2003 39 2.2 Distribution of African University Graduates by Field of Study, 2005 48 2.3 Share of Tertiary Students Enrolled in Science and Technology Disciplines, by Country 49 2.4 Changes in Public Expenditures on Education in Low-income Countries, 1990–2003 52 2.5 Researchers per Million Persons 55 2.6 Research Outputs by Geographical Region 56 2.7 Science and Engineering Publications from Africa, 2005–06 56 3.1 Percentage Distribution of Tertiary Students by Program Type, 2004 76 viii Contents 3.2 Unit Cost in U.S. Dollars of Secondary, Technical, and Tertiary Education, Selected Countries, 2002 77 3.3 National Technical Training Levy Schemes in Selected SSA Countries 78 3.4 Average Staff/Student Ratios for SSA Universities 89 3.5 Public Expenditure on Education as a Percentage of GDP, 2004 91 3.6 Differentiation Profiles for Selected African Tertiary Systems 95 Foreword The revival of economic growth across Sub-Saharan African (SSA) since the beginning of the millennium is a heartening development. Sustaining it over the indefinite future is both a necessity and a challenge of the first order. It is a necessity because this is the only way that poverty can be steadily reduced and progress made toward achieving the Millennium Development Goals (MDGs). It is a challenge because many African countries are some distance from meeting the preconditions for stable growth and are faced with tightening constraints on growth arising from higher prices for energy and food, climate change, and stiff entry barriers to the global markets for manufactures. The challenge can—and in fact must—be met because a weakening economic performance that threat- ens a return to the economic conditions of the 1990s would be a great human tragedy. But maintaining the current momentum, and accelerat- ing growth wherever possible, requires measures that will substantially enhance economic competitiveness and nurture expansion of new trad- able activities. To realize these objectives, countries in SSA must harness both more capital and more knowledge. The two are complements. SSA needs to invest heavily in physical infrastructure and productive capacity. However, maximizing productivity and achieving competitiveness will depend upon success in augmenting human capital and raising its quality. ix x Foreword The key to economic success in a globalized world lies increasingly in how effectively a country can assimilate the available knowledge and build comparative advantage in selected areas with good growth prospects, and in how it can enlarge the comparative advantage by pushing the frontiers of technology through innovation. Capital is a necessary handmaiden, but the arbiter of economic success—even survival—in the world today is the capacity to mobilize knowledge and to use it to the fullest. African countries have gone far in achieving high levels of literacy and raising primary enrollments, and they are increasingly seeking to improve learning outcomes as well. This progress is providing a foundation for future development. Now it is necessary to move quickly to acquire the higher- order skills and expertise that will allow African countries to add value to existing economic activities and enter new industries and services. This volume lucidly spells out the case for more knowledge-intensive growth, which demands increasing attention to secondary and, most impor- tant, postsecondary education. Despite rising enrollment in tertiary-level institutions, the numbers of students graduating are pitifully small. And despite reform efforts, the quality remains well below par. However, change for the better is in the air, and improved economic prospects pro- vide both the resources and the opportunity to forge ahead. The need for urgency, the pathways to skills-based development, and the policies that African countries can marshal in order to generate tertiary-level skills are all given their due in this thoughtful and timely book. My hope is that publication of this volume will help engage all relevant stakeholders—at the national and regional levels in Africa, and between African countries and their development partners—in purposeful dialogue about the need for, and challenge of, reform as well as for investments in education so that countries can acquire the higher-order skills and exper- tise they will need for successful competition in today’s global economy. As with any transformation, country conditions will matter in the design of the reform package, and the process will often involve difficult changes and trade-offs and sustained efforts to achieve results. Supporting African coun- tries in this process is an important task for the development community, one in which collaboration across agencies, and alignment with country strategies that are informed by global good practice and are led by national authorities, can contribute to Africa’s economic and social development in the coming years.