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Understanding the role of education in economic development: Ghana’s educational reform patterns and reflections

Hans Awude (PhD) Opinion Jul - 26 - 2024 , 13:42

The concept of development, often referenced within the framework of “Fordism,” is seen as an effort to achieve a planned economy.

Antonio Gramsci, in "Americanism and Fordism," (a section from his “Prison Notes”) posits that development involves organizing a nation's life around production and creating a stable, skilled, and reliable workforce.

Gramsci’s insights, derived from state interventions during the Great Depression of the 1930s, prompt a reflection on how Ghana can draw from this literature to shape its developmental policies.

Gramsci argued that the necessity to develop a disciplined workforce was key to maintaining economic stability and growth.

The state's role in orchestrating economic activities through interventions can offer valuable lessons for Ghana as it seeks to implement long-term development policies.

Amartya Sen, in "Development as Freedom" (2000), expands this view by arguing that development requires the removal of various “un-freedoms,” such as poverty, tyranny, poor economic opportunities, and neglect of public facilities.

According to Sen, development is fundamentally about expanding the real freedoms that people enjoy.

This article, however, limits itself to examining the interrelations between education and the economy within this broader context of development.

Education, aligned with the United Nations Sustainable Development Goal 4, is fundamental to development and forms the ethical and developmental backbone of society.

Formal education serves various purposes, from self-fulfilment and societal contribution to securing employment. However, linking education to economic and national development should transcend political propaganda, focusing instead on vocational, occupational, and technical skills that facilitate smooth transitions into the formal labour market.

Mark Levine (2013) highlights the misconceptions about workforce adaptability during economic downturns, citing Paul Krugman’s observations on the Great Depression. Initially described as unadaptable, workers were later employed during World War II, suggesting that the perceived "skill gap" was more a function of economic conditions than worker capability.

This perspective is critical in understanding how educational policies should adapt to economic realities, rather than being scapegoated for broader systemic issues.

Economy and Structural Transformation Constraints

Ghana's economy has been predominantly informal, with limited success in structural transformation. In "Strong Democracy, Weak State: The Political Economy of Ghana’s Stalled Structural Transformation," Resnick (2019) notes that despite political pluralism and respect for human rights, Ghana has struggled with trust in government and effective long-term economic strategies.

This has resulted in a weak state capacity, influencing economic policies and development trajectories. Resnick argues that constrained relationships between successive governments and the domestic business community have impeded long-term strategising on priorities for growth and development. Consequently, Ghana is strongly democratic but plagued by weak state capacity, and these politico-institutional characteristics have shaped the economic policies pursued, including in the agricultural sector, and the resultant development trajectory (Resnick, 2019, p. 51).

Chang (2014) argues that no single economic theory can fully explain a country's economic success. For instance, Singapore combines free market principles with significant state ownership and provision of housing, while South Korea has pursued import substitution policies.

Chang points out that Singapore’s government owns almost all the land, supplies 85% of housing through the Housing Development Board, and state-owned enterprises produce 22% of national output.

In contrast, South Korea’s approach involved protecting and nurturing its industries through strategic trade policies and significant government intervention in the economy.

Theories about Education and Work

The “Human Capital” theory suggests that education enhances productivity and, consequently, earnings. However, there are criticisms regarding the measurement of educational capital and its returns.

Some studies view education as a proxy for trainability or a means of social inclusion. Randall Collins (1979, 2013) argues that the expansion of education has very little to do with the requirements of work but is rather driven by the inability of labour markets to absorb labour.

The concept of the "Global Auction" explains how the liberalisation of markets for skilled labour has driven down wages, as ‘knowledge’ workers in poorer countries are employed at lower costs than their counterparts in wealthier nations.

This phenomenon highlights the complexities of the global labour market and challenges the simplistic notion that more education automatically leads to better economic outcomes.

Beliefs and Illusions

While education is often seen as vital for development, some literature downplays its role. For instance, William Easterly (2007) and Joseph Stiglitz (2006) emphasize education’s importance in promoting development, while Paul Collier (2007) prioritizes infrastructure as more fundamental. Levine (2013) notes that in the United States, the "skills gap" narrative is sometimes used to shift blame for unemployment from systemic economic issues to worker deficiencies.

This is echoed in Ghana, where the education system is often criticised for not meeting the needs of the labour market, despite broader economic challenges that also play a significant role.

Enrolment Analysis of Ghana’s Educational System

Using the 2017/2018 academic year - the onset of the introduction of the Free Senior High School (SHS) policy - as a baseline, Ghana’s Senior High Schools enrolled 1,013,005 students, representing 45% of qualified students from basic education.

In contrast, Technical and Vocational Education and Training (TVET) institutions enrolled only 3% of students at this level, highlighting a disparity in educational pathways. Public TVET institutions enrolled 90% of TVET students, indicating significant government involvement in managing and investing in this sector.

However, the low participation in tertiary TVET suggests challenges in providing advanced skills needed by industry.
Technical Universities and Polytechnics, all public, constituted 10% of tertiary institutions.

Their share of enrolment in the 2017/2018 academic year was 7.7% of total enrolments in tertiary institutions (Ghana Education Service, 2018). The low percentage of TVET participation in tertiary institutions and the labour market suggests a probable lack of vital advanced knowledge and skills available to industry and probable challenges in the educational pathways for technical students.

Ghana’s Educational Reforms and Reflections

Ghana's educational reforms have been influenced by historical context and labour market needs, focusing on both structure and content.

The evolution of the educational structure reflects the country's attempts to create a system that meets its socio-economic requirements.

Curriculum content, qualification systems, labour market arrangements, and information advice systems aim to ensure education contributes to national development.

However, a paradox exists within Ghanaian education, where vocational and agricultural training is emphasized in policy documents but remains underdeveloped in practice (Foster & Halsey, 1977).

Ghana’s educational reforms date back to the colonial era. Achimota School is a notable example of educational transfer, where the British adopted the Hampton-Tuskegee model from the United States, initially developed for African Americans.

This vocational approach was seen by some as empowering, while critics argued it had racist underpinnings (Steiner-Khams & Quist, 2000). The concept of vocationalization in Ghanaian education likely originated from this period and continues to influence educational debates.

Significant reforms include the Accelerated Development Plan of 1957 and the Education Act of 1961, which aimed to expand educational access rapidly. The Dzobo Report of 1974 focused on vocational education, replacing Middle School Grammar with Junior Secondary School (JSS) and Senior Secondary School (SSS).

The 1987 reform, led by Evans-Anfom, made basic education free and compulsory, reducing the duration of schooling from 17 years to 12 years (Donkoh et al., 2016). In 2016, the Free Senior High School policy was introduced to provide free secondary education, starting with day students (UNESCO, 2016). Assessments of these reforms highlight both successes and ongoing challenges in the Ghanaian education system.

Is the Ghana Government Free Senior High School Policy the priority in fixing the educational and economic needs of Ghanaians?

The Free Senior High School (SHS) policy in Ghana aims to provide equitable access to secondary education, particularly benefiting children from lower socio-economic backgrounds. The policy is intended to break the cycle of poverty by ensuring these children have the opportunity to achieve better-paid jobs and higher social status than their parents. This aligns with the arguments presented in "A Bermuda Triangle of Policy? ‘Bad Jobs’, Skills Policy, and Incentives to Learn at the Bottom End of the Labour Market" (Keep & James, 2012), which suggests that improving access to education can enhance social mobility and employment prospects.

However, after eight years of implementation, the policy's outcomes are mixed. While it has increased enrolment and allowed more students to enrolled in secondary education, it has also led to rising youth unemployment and credential inflation.

These issues indicate a disconnect between the education system and the labour market, where the skills and qualifications obtained do not necessarily match employers' demands.

Addressing these challenges requires ensuring that the SHS curriculum aligns with labour market needs, creating job opportunities, and maintaining the quality of education. By doing so, the Free SHS policy can better meet the multifaceted expectations and needs of Ghanaian citizens, serving as a more effective tool for social and economic advancement.

Policy Implications for Ghana

Education policy in Ghana should balance social, economic, and human rights considerations. Reforms should focus on developing a knowledge and skills economy, avoiding the pitfalls of excessive politicisation. Comparative studies, such as Bejakovic's analysis of Bolivia and Indonesia, highlight the benefits of prioritising primary education and targeting rural areas. South Korea’s targeted educational investments have also driven significant economic growth.

Grubb and Lazerson (2004) argue that when education is positioned as the solution to economic problems, it is often blamed when these problems persist. Reforms should therefore focus on creating a comprehensive educational system that integrates academic and vocational training, ensuring that basic education provides a solid foundation for social and economic outcomes. This approach aligns with the concept of a "knowledge economy" combined with a "skills economy," aiming to create a productive economy.

Recommendations

Depoliticize Education Policy: Educational reforms should be debated in parliament to avoid external influences and partisan agendas.
Integrate Education with Economic Planning: Align educational reforms with economic development plans, focusing on emerging sectors and skills requirements.
Monitor Skills and Employment Trends: Regularly assess industry needs, particularly in sectors like oil and gas, to ensure the education system meets labour market demands.
Prioritise Education Funding: Balance social and economic outcomes in funding decisions, emphasizing primary/basic education for broader societal benefits.

Bejakovic's comparative study of Bolivia and Indonesia demonstrates the impact of prioritising primary education over secondary and tertiary education in terms of achieving better overall development outcomes. Similarly, South Korea’s investment in education has driven substantial economic growth through well-targeted and coordinated reforms.

Conclusion

Despite multiple educational reforms, Ghana’s economic structure remains unchanged, leading to high youth unemployment and credential inflation. The perception of a "skills gap" often obscures systemic economic issues, suggesting that further educational reforms are needed to address the underlying economic challenges. The Ghanaian context shows that while educational reforms have aimed to improve the system, the persistent structural issues within the economy have limited their effectiveness. Therefore, a holistic approach to integrating education with broader economic policies is essential for sustainable development.

The writer is a researcher/consultant
Research Centre for Economic, Labour Policy and Skills