Faculty of Economics HUMAN CAPITAL DEVELOPMENT Case Study on BENIN Health & Education Thesis presented for the degree of Doctor of Economics (Dr.rer.pol.) at the University of Bremen, Germany Presented by Godwill Moévi-Ames v. Hansburg z. Jagdburg Bremen, November 2016 First Director of Thesis: Professor Doctor Robert Kappel Second Director of Thesis: Professor Doktor Tobias Knedlik To understand the problems in Sub Saharan Africa, one should step out of its own country and travel through the world. It is not important to go far away, it is very important to keep your look at home. To keep it on the social, political, economic dynamic at home. Only then, as African and citizen, you can bring your experiences back home and try to help people according to your force. BUT! Don’t be a fool and hopeful, because at first, nobody will believe and trust you. But also, don’t give up trying until they understand and keep togeth- er! It may be possible that it will happen after you passed. The important thing is: WHATEVER; IT HAPPENS! ii Abstract This research is on Human Capital Building in Benin (West Africa). Recent literature on development in the least developing countries (LDCs) emphasizes the role of human capital in the process of economic growth and wealth. It seems to indicate that educational and health care/prevention expansion do effectively contribute to output growth and upgraded living standards. There is a well-founded argument to think that a healthy and well-nourished human capital has a substantial impact on industrial development through the im- provement of country’s capacity and capability to adopt new technologies and generate income. In fact, the link between education, labour, health and nutri- tion is the main support to build up a stock of human capital for industrializa- tion, technology adaptation/transfer and for the quality of living standard i.e. poverty reduction. This study will review the cases of the utility of early childhood enrolment, access to health care and nutrition and the return on education investment for labour, income, health and nutrition. Benin’s1 economic and social perfor- mances were analyzed mostly in the first decade of the Millennium. This anal- ysis concerns the demographic pressure, the stress on health and education sys- tem, earning and self-reliance. In other step2, this study will also estimate the relationship between income (out of labour), inequality and accessibility to education, nutrition and health. It establishes that there is an unequal access to basic education, decent nutrition and health care between the poor and non-poor. Household income is an im- portant determinant of access to basic education, nutrition and health. Increase in access to basic education, health care and nutrition can redistribute income faster than increase in lonely household income and might help in reducing income inequality. Later on, it indicates that income increases with the level of education. It also reviews the cases of income/portofolio sources diversification in the country. 1 See Benin in chapter I. 2 See Alabi Reuben Adeolu “Income distribution and accessibility to primary and secondary schools in Nigeria” Abstract, by Berichte aus dem Weltwirtschaftlichen Colloquium der Universität Bremen, Nr. 113, Juli 2008 ISSN 0948-3829, Abstract. At 11:00 AM, 15th No- vember 2016, under http://www.iwim.uni-bremen.de/publikationen/pdf/b114.pdf iii The empirical evidence of some districts in Benin indicates that nearby 30 to 40 % of the population, particularly those living in the North West of Benin, have less3 diversified portfolio and they are less provided in services. By nutri- tion, the exploitation of cash crops has put millions of people in danger. The available data indicates that agricultural production decreases progressively since the last two decades. Among the main reasons for food insecurity are economic deterioration, macroeconomic pressures; and price volatility. Due to the lack of technology, traditional methods of exploitation, gender discrimina- tion, inaccessibility of farmland and not at least excessive cash crops, produc- tion of food crops has dropped significantly, food prices have mounted up and malnutrition rates have increased. The focus of this study is to analyze also the distribution of education and health care in Benin. These lower enrolments and lower access to health care and nutrition are marked with regional inequalities, urban, rural, gender and income biases. The distributional analysis of school enrolment and access to health care and better nutrition in the country indicates that primary and sec- ondary school enrolment, use of health facilities and the consumption of bal- anced food are concentrated in the hand of rich households who are located in the urban areas. The study will conclude with recommendations. It will try to suggest program needs and policy directions that help the country alleviate the handicaps for building a healthy, well-educated and nourished Human Capital. 3 See “Bénin: Document de stratégie pour la réduction de la pauvreté”, IMF-Report Nr. 11/307, September 2011, IMF Washington/USA and, “Stratégie de Croissance pour la ré- duction de la pauvreté (SCRP 2011-2015)”, UNDP-Report, UNDP, December 2010, under http://www.bj.undp.org/content/benin/fr/home/library/poverty/publication_334.html. iv Contents Abstract .............................................................................................................. iii Contents .............................................................................................................. v List of Tables ..................................................................................................... xi List of Graphics ................................................................................................ xii List of Figures .................................................................................................. xiii List of Maps ..................................................................................................... xiii List of Abbreviations ....................................................................................... xiv Acknowledgments ........................................................................................... xix Chapter I: Introduction ....................................................................................... 1 1 Benin Overview ............................................................................................. 1 1.1 Geographical Facts ................................................................................. 1 1.1.1 Geographical Position ................................................................. 1 1.1.2 Vegetation ................................................................................... 1 1.1.3 Population Diversity and Culture ................................................ 1 1.2 The Historical Background .................................................................... 2 1.3 Administrative Map of Benin ................................................................. 3 1.4 Politic and Economic Brief Overview .................................................... 3 2 Research Problem .......................................................................................... 9 2.1 State of Social System in Benin ........................................................... 12 2.2 Education .............................................................................................. 14 2.3 Employment ......................................................................................... 17 2.4 Health ................................................................................................... 18 2.5 Poverty Reducing Strategy ................................................................... 19 3 The Research Objectives .............................................................................. 21 Chapter II: Hypotheses and Methods ............................................................... 24 1 Theories and Hypotheses ............................................................................. 24 2 Methodology ................................................................................................ 27 2.1 Motivation ............................................................................................ 27 2.2 Data Collection and Field Survey ........................................................ 28 3 Methods of Data Analysis ............................................................................ 31 4 Path of Research .......................................................................................... 34 5 Study Plan .................................................................................................... 35 Chapter III: A Brief Review of the Literature .................................................. 39 v 1 Introduction .................................................................................................. 40 2 Education, Health & Growth: An Overview of the Literature ..................... 45 3 Corruption in Education ............................................................................... 53 4 Conclusion ................................................................................................... 54 Chapter IV: Education for Human Capital Development................................. 55 1 Policies and Strategies ................................................................................