The education economy relationship in south africa

The education-economy relationship in South Africa,

the education economy relationship in south africa

have a strong associative relationship with the growth of the South African economy. Section 5 of the report examines the reverse view of this education- growth. Tertiary education contributes to social and economic development through of a country: a weaker or no relationship was found for the developed economies. The economy of South Africa is the second largest in Africa, after Nigeria. It is the most "Education and Youth Unemployment in South Africa". .; ^ South African Institute for Race Relations, South Africa Survey /

Economy of South Africa - Wikipedia

Add to this disparity SA's politicking, corruption, local government mismanagement, service delivery failures and an inability to manage outcomes. The year has just begun and already there are reports about issues with textbooks in Limpopo, and stories about upset teachers who've had to dig into their own pocket to fork out for student stationery at government schools.

But at private and Model C schools, the learning year always begins well. And what about those kids that will be taught in mud schools or under trees? Or the people in poor rural communities that are forced to deal with overcrowded classrooms, untrained and unmotivated teachers, and serious infrastructure shortfalls? What can business do to change this? The first step is to make a policy decision that education is our most important goal — the one thing we need to re-gear. Everything else can follow.

There are hundreds of millions of rands sitting in corporates that are earmarked for social good. In my mind that money needs to go where it will make the biggest difference - to education initiatives that work.

But let me make the business case for this. SA is still an import economy is because we simply don't have the high skill levels required. Jeffrey Sachsprofessor of economics and leader in sustainable development pointed this out [again] when he was here last year. Sachs says that, to make globalisation work, the number one, two and three priorities for SA are education followed by quality of governance and public investment.

An increase in cognitive skills which would be the result of good quality education has a direct bearing on average annual growth rate in GDP per capita. Business and industry will provide employment for people with the right skills; but business needs to focus on education to make this happen.

It's in business' own self interest to do so, as only by improving overall skill levels can we move into a more diversified export base. Measuring education and its effects on the economy has been done by various agencies, and data needs to be interrogated over decades to see how spend impacts growth.

Thanks to organisations like the World Bank and independent university-based researchers, there is good data we can mine for long-term trends. This simple statistic begs the question: Fabrizio Carmignani, Professor at Griffith Business School, Griffith University, used historical data to interrogate the causal relationship, and found thatbeyond doubt, "countries that spent more on education as a proportion of GDP in experienced faster growth in the subsequent decade.

In general, he found that there was a positive effect from increased expenditure on education. But it's not a simple equation, of more investment in education automatically improving the GDP — in other words, we cannot simply throw more money at the problem.

An important criterion, and one that has been hard to measure, is quality of education. One study cited by Carmignani reports that an increase in cognitive skills which would be the result of good quality education has a direct bearing on average annual growth rate in GDP per capita. Sachs refers to results of the PISA test, an internationally comparable test that evaluates achievement in maths, literacy and science across several countries.

Unlike the WEF study, which merely asked business leaders for subjective evaluations, PISA tests a cross-section of students that represent a comprehensive sample group.

SA is also demonstrating sluggish growth.

the education economy relationship in south africa

Countries that score highly in terms of PISA scores and growth include Singapore, Taiwan, Korea and China, countries that focus on excellence in education. It can be argued that benchmarks are contested: And, at times, there are issues with bad research. The oft-quoted WEF rankings ofwhich placed SA as the worst of countries, is a good example of such poor research. But despite this it is clear that SA is in trouble — let's not argue about how to rearrange the deckchairs while the Titanic is shipping water.

Speaking to News24 following the matric results ofSpaull pointed out some depressing statistics. Of all South African learners who registered for Grade 1 inonly half made it to Grade 12 in The problem goes right down to the foundation phase.

The Department of Education acknowledges that "South African children are not able to read at expected levels, and are unable to execute tasks that demonstrate key skills associated with Literacy.

the education economy relationship in south africa

If learners are unable to 'read to learn', they are at a disadvantage going forward, a 'domino effect' that impacts on any type of study they may undertake in the future. Poor education feeds into unemployment, as more and more undereducated people enter the job market. Unemployment figures show that SA has a high unemployment rate among the undereducated. The Stats SA figures for youth in the employment market indicate that things are getting worse for youngsters entering the job market, and this is largely due to a lack of skills.

The South African government escalated the situation by sending in the police, ultimately resulting in hundreds of student deaths.

Quality Education Drives Economic Growth

In the years following the Soweto Uprising until the end of Apartheid ineducation quality, accountability, and credibility further declined in black schools Smuts, However, this proved to be far more difficult than anyone had realized. The newly elected government sought to discard all Apartheid-era institutions and systems, education being one of them.

the education economy relationship in south africa

The focus of OBE was on the student, not content, and everyone was encouraged to express an opinion rather than undertake rote learning. Teachers were actively discouraged from using textbooks as sources of knowledge, creating little incentive for students to learn how to read. As a result, many students graduated secondary school almost illiterate and were subsequently rejected by universities Rusznyak, The corrupt education bureaucracy in South Africa is largely to blame for further exacerbating problems facing the education system.

the education economy relationship in south africa

The study names three core binding constraints that undermine efforts to implement higher levels of accountability in the education system, which include weak institutional functionality, poor teacher content knowledge, and insufficient learning time for pupils.

The Stellenbosch study found that in many schools, less than half of the official curriculum was being covered by the end of the school year and fewer than half of the officially scheduled lessons were being taught.

The DOE has attempted to remedy the situation by introducing various initiatives, all of which have been subsequently rejected by Sadtu.

Sadtu has refused to negotiate and has demanded improved pay, benefits, and conditions of work. Sadtu, on the other hand, have little reason to trust in the competency of the DOE, as corruption has been ingrained within the department in the two decades following the end of Apartheid. Pass rates for the National Senior Certificate NSCthe exam that determines whether a student completes his or her secondary education, have steadily risen since despite the rampant failings within the education system.

Inthe most recent election year, the NSC pass rate was This fact hides two critical failures of the system.

Quality Education Drives Economic Growth | HuffPost South Africa

First, pass rates are calculated with only those Grade 12 students who actually took the exams. Due to the fact that schools are graded based on their NSC pass rates, under-performing schools have every incentive to discourage weaker students from taking the exam so as to not negatively impact the statistic.

the education economy relationship in south africa

The system is setting the bar low enough to push students through, yet not preparing them for higher education or careers in technical fields.

There have been some initiatives to improve the quality of education in South Africa. Affordable private schools, also known as low-fee schools or low-cost private schools, may provide a large part of the answer.

These schools are owned and operated by non-state players and provide access to high-quality schooling for low- and middle-income families who have grown frustrated with state education. Since parents contribute financially towards tuition, affordable schools are directly accountable to parents.

If parents are not happy with the education their children are receiving or if they feel that the schools are not delivering the value for the money, they can transfer their children to cheaper government alternatives. This dynamic increases teacher attendance and performance and reduces administration corruption. Most importantly, there is less widespread unionization in affordable schools and stricter management practices Smuts, First, they are focused on addressing the underlying causes of problems in Africa, which they believe is a lack of leadership across all sectors.

Two, they believe in the power of one, where a single leader can be the catalyst for massive societal positive change. Four, they recognize the need for Pan-African cooperation, which will be the catalyst for growth and development across the continent. Five, they believe that entrepreneurship is fundamental to growth, and teach the young African leaders not to rely on existing government institutions.

South Africa has a wealth of talent, and the purpose of an education system is to develop and nurture that talent. However, it will take the development of strong leadership in schools like the ALA to align the competing interests in the education system so that South Africa can realize its economic potential.

As a result, the South African government has had to increase spending on various supply-side and demand-side initiatives aimed at reducing unemployment, especially among young workers. Lack of Education as a Cause of Structural Unemployment The severe inequalities in primary and secondary schooling between rich and poor areas of South Africa limit the returns to education.

Whereas access to education has increased following the end of Apartheid, students often leave secondary school without the necessary skills to transition into university. Education can only have an effect on income once a person becomes employed and the lack of employment opportunities has limited the returns on skills. Roughly one-third of to year-olds are not in employment, education, or training.

Of those who do have financial support, many young workers have unrealistically high reservation wages, or the wages being offered that would induce the unemployed to move to employment. Such unrealistic expectations are likely the result of the lack of real-world work experience and internship opportunities for many young people. Supply-Side Policies Targeting Youth Unemployment One method the South African government has used to reduce youth unemployment is to set up a number of skills and training programs to fund technical and vocational education and training TVET institutions, the goal of which is to facilitate entry into the labour market.

However, these institutions have been unable to meet student capacity and meet the types of training required by employers. For example, TVET institutions are not easily accessible in terms of location or financing for many young people without financial support from friends and family.

They also do not provide training in non-vocational skills that both employees and employers require. Another method used by the government to increase the supply of labour was through public sector employment opportunities.

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This programme targeted the poorest communities in the country and served as a complement to the social grant system. Each community determined the types of work created through the programme by deciding what activities would benefit them most.

However, the CWP did little to reduce youth unemployment due to the menial nature of the work, such as repairing school infrastructure, creating food gardens, or home-based care.

Role of Education in Economic Development

Demand-Side Policies Targeting Youth Unemployment The South African National Treasury has suggested that the high youth unemployment rate is a result of insufficient demand in the labour market to absorb the increasing number of job seekers each year.

To counteract this trend, the National Treasury has proposed a youth employment subsidy, which would indirectly incentivize employers to hire more first-time workers. An employment subsidy is more efficient than the supply-side options since it operates through the tax system and is easily scalable.