Rates of return to education
Higher education and economic growth in Africa
The impact of tertiary education on economic growth and poverty reduction in sub-Saharan Africa
Authors:
D. Bloom; D. Canning; K. Chan
Publisher:
World Bank, 2005
For several decades, African countries and the donor institutions they work with have placed great emphasis on primary and, more recently, secondary education. But they have neglected tertiary education as an added means to improve economic growth and mitigate poverty.
This paper challenges the long-held belief in the international development community that tertiary education has little role in promoting economic growth. It reviews evidence about the impact that tertiary education can have on economic growth and poverty reduction, with a focus on the countries of sub-Saharan Africa. The paper highlights the lack of emphasis on higher education in sub-Saharan Africa; presents a conceptual framework showing how tertiary education could relate to economic growth; and evaluates the evidence linking higher education to growth, by applying an economic model to some data.
The paper's findings include that:
- enrolment rates for higher education in sub-Saharan Africa, at around 5 per cent, are by far the lowest in the world
- because of a longstanding belief that primary and secondary schooling are more important for economic development, the international development community has encouraged African governments to neglect higher education
- the benefits of higher education for individuals include better employment prospects, higher salaries, and a greater ability to save and invest
- higher education may enhance economic development through helping countries to gain ground on more technologically advanced societies, as graduates are likely to be more aware of and better able to use new technologies.
The paper notes that some donors have recently conceded that tertiary education may have a positive impact on economic development, and there are some signs of progress in sub-Saharan Africa. But it argues that this progress is limited compared to other world regions, and concludes that more investment in higher education may be justified.
