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Table of Contents Chapter I: Introduction 2: Theoretical Framework Economic, Social, and Political Processes The Human Capital Process The Status Competition Process The Class Reprod

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In presenting this dissertation as a partial fulfillment of the requirements for an advanced degree from Emory University, I agree that the Library of the University shall make it available for inspection and circulation in accordance with its regulation, governing materials of this type I agree that permission to copy from, or to publish this dissertation may be granted by the professor under whose direction it was written, or, in his absence,

by the Dean of the Graduate School when such copying or publication is solely for

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Wo Math Mamamelela D Matlhako

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THE EFFECTS OF EDUCATION ON ECONOMIC GROWTH: THE CASE OF BOTSWANA AND SOUTH AFRICA (1970-1994)

By - Mamamelela D Matlhako Doctor of Philosophy

Department of Sociology

⁄4 YZ Ae Lan , RicHard Rubinson

Accepted:

Dean of the Graduate School

APR 5 209 Date

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THE EFFECTS OF EDUCATION ON ECONOMIC GROWTH: THE CASE OF BOTSWANA AND SOUTH AFRICA (1970-1994)

Mamamelela D Matlhako B.A., University of the North, 1985

M.A., Emory University, 1997

Advisor: Richard Rubinson, Ph.D

An abstract of

A dissertation submitted to the Faculty of the Graduate

School of Emory University in partial fulfillment

of the requirements for the degree of

Doctor of Philosophy

2002

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This study analyzes the effects of education on economic growth in the two

southern African countries of Botswana and South Africa In this study, educational expansion is defined in terms of primary, secondary, and tertiary education Derived

from the theories of the relationship between education and economic growth, the

approach presented argues that the positive relationship between education and the

economy is dependent on certain characteristics of the economic and educational

systems Where the human capital process operates, education will have a positive effect

on economic growth However, if education is structured in such a way as to reflect the

class structure, reflect status competition or institutional isomorphism, its effects will be blocked or limited

The empirical analyses of this study specify the conditions under which education increases national economic growth The research design for this study combins two types of data sources and methods: qualitative historical analyses and time series

regression analyses The historical analysis investigates the structure of the economic and educational systems and uses primary and secondary sources The quantitative

analysis examines the effects of primary, secondary, and tertiary education on four

sectors of the economy; agriculture, mining, manufacturing, and service The period of

analysis is 1970-1994 The study relies on time series analysis, using data on education

and economic growth The three central questions posed by the study are: What has been

the relationship between education and economic growth in Botswana and South Africa? Did education have an effect on economic growth? If so, under what conditions did

education increase or impede economic growth?

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The findings from this study provide broad support for the theoretical perspective that views human capital processes as conditional on the relation of education to the

economy The results of the study indicate that the structure and shape of education in both countries substantially dependends on class reproduction, status competition, and institutional isomorphism processes Despite country specific institutional phenomenon,

the expansion of education in both cases was determined largely by these processes Overall, the results of the study indicate that the myth of education influenced the

government, the population at large, status groups, and businesses to demand more

schooling

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encouragement and sharing your knowledge, and Stuart Hysom for your friendship

Many thanks also to the staff of the Sociology Department, Mrs Maggie Stephens, Mrs Cathy David, and Mrs Daphne Outlaw, for their assistance and friendship

Most of all, I would like to thank my family in South Africa and my adopted American family for their encouragement and support I am profoundly grateful to my good friends Kim Jackson and Catherine Smith-Jones, to my sisters Sheila and Dimakatso, to my niece Sekgametsi I also wish to thank Pauline and Harold Jackson who by opening their

house, provided a much appreciated home away from home as well as exuberant

friendship and hospitality Finally, I would like to thank my daughters, Mokgadi and Mokie, who by dint of fate had to share a house with this project for nearly a decade and kept me sane I’m grateful for Mokgadi’s quiet strength and Mokie’s great sense of humor You have always been an inspiration to me This dissertation is dedicated to the

memory my parents, Mokgadi waRibane and Matome Matlhako, whose love and

unconditional support gave me the courage to pursue my dreams.

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THE CASE OF THE EFFECTS OF EDUCATION ON ECONOMIC GROWTH:BOTSWANA AND SOUTH AFRICA (1970-1994)

Mamamelela D Matlhako B.A., University of the North, 1985 M.A., Emory University, 1997

Advisor: Richard Rubinson, Ph.D

A dissertation submitted to the Faculty of the Graduate

School of Emory University in partial fulfillment

of the requirements for the degree of

Doctor of Philosophy

2002

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Table of Contents

Chapter

I: Introduction

2: Theoretical Framework

Economic, Social, and Political Processes

The Human Capital Process

The Status Competition Process The Class Reproduction Process The World Institutional Process Baseline Model of Schooling and Economic Growth

The Relationship between Education and Economic Growth

Education and Economic Growth: What Processes

Stand in the Way of Success?

Research Design and Methodology

Botswana: The State and the Ministry of Education

South Africa and Apartheid Education

Industrialization in Botswana

Post-Independence Economic Growth Policies

Industrialization in South Africa

Economic Growth Strategies Foreign Investment and Economic Growth

Changing Skill Requirements

Conditions for Economic Growth: 1970-1994

Botswana: Education and Economic Growth

Enrollments

Educational Quality

Curriculum Mass and Elite Tracks

Apartheid Education and Economic Growth

Enrollments Educational Quality Curriculum

Mass and Elite Tracks

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6: Results of the Analysis for Time Series

Regression Analysis: 1970-1994

South Africa: 1970-1993

The Effects of Primary Education on Economic Growth The Effects of Secondary Education on Economic Growth The Effects of Tertiary Education on Economic Growth 7: Discussion and Conclusions

Botswana: Education, Class Reproduction

and Status Competition

South Africa: Education, Class Reproduction

and Status Competition

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Ratios of Primary, Secondary, and Tertiary

Enrollments in Botswana (Selected Years)

Ratios of Primary Enrollments to the

Age-Eligible Population

Ratios Secondary Enrollments to Primary Enrollments

Ratios of Tertiary Enrollments to Secondary Enrollments

Hildreth-Lu Regression Estimates of the Primary, Secondary,

and Tertiary Education on the Total Output (GDP):

Botswana, 1970-1994

Hildreth-Lu Regression Estimates of the Effects of Primary

Enrollments on the Growth of Agriculture Mining,

Manufacturing, and Service Sectors: Botswana, 1970-1994

Expenditures on the Growth of Agriculture, Mining,

Manufacturing, and Service Sectors: Botswana 1970-1994

Education on the Growth of Agriculture, Mining,

Hildreth-Lu Regression Estimates of the Effects of Secondary

Enrollments on the Growth of Agriculture, Mining,

Expenditures on the Growth of Agriculture, Mining,

Education on the Growth of Agriculture, Mining,

Hildreth-Lu Regression Estimates of Tertiary Education on the

Growth of Agriculture, Mining, Manufacturing, and

Service Sector: Botswana, 1970-1994

Summary of Educational Effects: Botswana, 1970-1994

Education of Blacks, Coloureds, Indians, and Whites on

Total Output (GDP): South Africa, 1970-1993

Agicultural Output: South Africa, 1970-1993

Mining Output: South Africa, 1970-1993

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Manufacturing Output: South Africa, 1970-1993

Hildreth-Lu Regression Estimates of Primary Education of

Blacks, Coloureds, Indians, and Whites on Service Sector:

South Africa, 1970-1993

Summary for Primary Educational Effects for Blacks,

Coloureds, Indians, and Whites, on Agriculture, Mining,

Manufacturing, and Service Sectors: South Africa

Agricultural Output: South Africa, 1970-1993

Service Output: South Africa, 1970-1993

Summary for Secondary Educational Effects for Blacks,

Manufacturing, and Service Sectors: South Africa,

1970-1993

Hildreth-Lu Regression Estimates of the Effects of Tertiary

Agriculture Output: South Africa, 1970-1993

Service Output: South Africa, 1970-1993

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6.8e Summary for Tertiary Educational Effects for Blacks,

Manufacturing, and Service Sectors: South Africa,

6.8f£ Summary of Educational Effects for Blacks, Coloureds,

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CHAPTER ONE INTRODUCTION

Neoclassical economists, modernization advocates, and national leaders regard education as important and feel that it has a crucial role to play in achieving economic growth They assume that educational expansion increases the productivity of national economies by increasing the skill levels of the labor force This emphasis on the crucial role of education in economic growth has stimulated educational expansion in southern Africa since the 1960’s, often with the encouragement of the World Bank, United

Nations, and international and national aid programs In March 1966, the United

Nations, in association with the World Bank, launched yet another initiative on African Development in a desperate attempt to once again contribute in a bold way to solving Africa’s development crisis “The United Nations Systematic Special Initiative for

Africa was to invest $25 billion in the region to expand basic health care, promote peace, and better governance Thirty five percent of the target sum will be for education”

(World Bank 1996)

Despite rapid educational expansion, economic crisis and declining growth

continue as critical problems facing countries in southern Africa, dispelling previously held notions that educational expansion automatically increases economic growth

However, policy makers, national leaders, development organizations, and the world at large continue to value education as critical to national economic growth, leading us to the question of how best to structure education for economic growth In sociology, much

of the research has been skeptical of the relationship between education and economic growth Collins (1979) argues that the belief that the education is crucial in achieving

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South Africa

In order to ameliorate this situation through economic policy, education, or other initiatives, it is first necessary to understand the nature of the relationship between

education and economic growth and the conditions under which education can positively

contribute to economic growth Thus, an important goal of this research is to provide a deeper theoretical understanding of the conditions under which education increases or impedes economic growth

Botswana and South Africa offer a unique opportunity for comparative research

on the relationship between education and economic growth They are similar in terms of geographic location, but differ in terms of their class and ethnic structure, the structure

' For refutation of the myth that emphasis on, and attainment of, education established the unique pattern of economic success in Asian countries, see Baker and Holsinger 1996.

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and nature of economic development, the structure of their educational systems, and level

of development

The theoretical perspectives that have been used to explain the relationship

between education and economic growth are technical-functional (human capital), status conflict, and class reproduction theories Until thel970”s, human capital theory was dominant in the education and economic development literature Its main argument is that people who have more years of schooling have better jobs and higher pay than those with less years of schooling Then, if earnings’ differences reflect differences in people’s productivity, the more people with more education, the greater economic productivity at the aggregate level As a result, the national economy grows (Becker 1964; Inkeles and Smith 1974; Schultz 1961) An underlying premise of this approach is that economic factors such as technological changes, the demand for highly skilled workers, and

economic growth will drive educational expansion, which in turn will increase economic growth

Stratification theories have addressed the issue of the relationship between

educational expansion and economic growth, but have reached different conclusions Within the general framework of stratification models, theories differ on whether status

or class is considered the major dimension of allocation Status competition theory argues that education’s function is to allocate individuals to positions according to credentials The desire for higher statuses leads people to compete for better jobs,

lengthening their years of schooling The educational requirements for jobs reflect the interests of the status groups in organizations and professions that have the power to

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enact these requirements Thus, educational expansion may, but does not necessarily promote economic growth (Collins 1979; Rubinson and Ralph 1984)

Class reproduction theory argues that the primary function of education is to

reproduce the class structure and its inequalities The structure of education is

continually reorganized to correspond to the structure of work and politics These

structures socialize future workers to economic and political authority Consequently, the

expansion of schooling has no necessary connections to changes in technology or

upgrading of skills Thus, education may, but does not necessarily increase economic

growth or labor productivity (Bowles and Gintis 1976; Fuller 1991; Rubinson 1986)

World institutional theory argues that education will have little direct effect on economic growth According to this theory, national educational systems are driven by a process of institutional isomorphism based on a global cultural model of the nation-state and citizenship, rather by forces of technical change, status conflict or class domination

(Ramirez and Ventresca 1992)

However, these theories fail to explain the pattern of inconsistent educational effects on economic growth Although many empirical studies have found some

economic effects of education, these results have not been strong, uniform, or consistent For example, numerous cross-national studies show small positive effects of educational enrollments that are not uniform across levels of schooling and not consistent across time periods (Barro 1991; Benavot 1992; Meyer and Hannan 1979; Mankiv, Romer, and Weil 1992) In addition many case studies support these findings (Fuller, Edwards, and

Gorman 1986; Garnier, Hage, and Fuller 1989; Hage, Garnier, and Fuller 1988; Liu and

Armer 1993; Walters and Rubinson 1983).

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These studies challenge the assumption that the effects of education on economic growth are uniform Rather, the effects of education on the economy may differ greatly between nations, by level of development, educational level, time period, and even

between regions, and social groups Even nations that seemingly share present conditions

are divided by their histories, such as colonial experiences, and, thus, are divided by paths

of progression Empirical evidence reveals that the causal relationship between education and economic growth is more complex and diverse than education policies of the 1960’s and 1970’s anticipated

Fuller and Rubinson (1992) argue that a more fruitful way of thinking about these theories is to understand them as conditional rather than deterministic and recast them into the more rigorous question: “Under what conditions does education promote or impede economic growth?” They suggest that positive effects of educational expansion

on economic growth are dependent on certain characteristics of the economic and

educational system and in particular, on how closely the qualities and number of students enrolled in school are matched to the requirements of the economy Where human

capital processes operate to produce such a match, educational expansion contributes to economic growth

If, however, educational expansion takes place under the conditions where either

status competition or class reproduction processes operate, its contribution to economic growth will be weakened The processes of status competition and class reproduction weaken economic effects of education, because the organization of the school system is determined by factors other than the needs of the economy Such processes often result

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in small selective educational streams with curricula oriented to elite culture and to a

mismatch in enrollments to labor force requirements

Similarly, if educational expansion takes place under the conditions where

institutional isomorphism operates, its contribution to economic growth will be

weakened The institutional isomorphism process weakens economic effects of

education, because the structure of education develops in terms of a standard, uniform model, based on a worldwide picture of what national education systems should look like, and develop very similar curricula independently of the characteristics and needs of

their national economic systems (Meyer, Ramirez, Soysal 1992)

Furthermore, successful coupling of education to the changing needs of the

economy requires either market forces or state actions to accurately reflect economic

needs vis-a-vis the schools (Fuller and Rubinson 1992) Given these factors, the role of

the state becomes crucial In fact, strong states can insist on this coupling and thereby generate a greater payoff from investment in human capital, whereas weak states may allow schooling to be shaped by class interests or popular demand for higher credentials

(Hage et al 1988)

The questions this research seeks to answer are: What has been the relationship

between education and economic growth in Botswana and South Africa? Did education

have an effect on economic growth? If so, under what conditions did education increase

or impede economic growth? It is hoped that by making systematic comparisons of the conditions that existed in Botswana and South Africa, it will be possible to understand

the conditions under which education is likely to contribute to economic growth Finally,

it is hoped that the results of this study will have theoretical relevance that extends

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beyond the cases of Botswana and South Africa to the question of the relationship

between education and economic growth in Africa, and as such provide fertile ground for subsequent theoretical and empirical inquiry

Botswana and South Africa offer an interesting comparative case study in

understanding education’s contribution to economic growth Botswana is landlocked and mineral dependent (diamonds) with a population of 1.5 million people For most of the past thirty years, Botswana has been surrounded by wars of independence and civil unrest in Angola, Mozambique, Namibia, Zimbabwe, and South Africa

Botswana is renowned for its dramatic economic growth in the post-colonial period At independence, in 1966, Botswana was one of the world’s poorest economies, predominately agrarian, dependent on cattle and dryland agriculture, with labor migration

to the South African mines (Valentine 1993) In 1966 over 30% of males aged 20-40 were working in the South African mines (Valentino 1993; World Bank 1991)

By the 1970’s Botswana emerged as one of the few countries experiencing rapid economic growth, paralleled only by those of oil exporting countries By the 1980’s Botswana was the second largest producer of diamonds in the world after the Russian Federation Between 1980 and 1990 its annual economic growth averaged 13%

(Valentino 1993; World Bank 1991) The record of growth and change by 1990 was spectacular, leading many scholars and development workers to refer to Botswana as Africa’s economic miracle

South Africa is the most populous country in southern Africa, with a population

of 40.3 million (Urban Foundation 1996), and it is a powerful economic force in the region Prior to the expansion of the manufacturing sector in the 1960’s, mining and

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agriculture were dominant in the South African economy, which was dependent on cheap

coerced black labor Only in the early 1970’s, with the expansion of manufacturing did

South Africa’s economy shift to technology-intensive production From 1960 to 1970 the average annual growth was 6% (SAIRR 1975) However, the rate has consistently

declined in every five-year year period since 1970 and the average annual growth was 1% between 1970 and 1994 (SAIRR 1975; 1980; 1985; 1990; 1995

In the course of industrial expansion, both Botswana and South Africa rapidly expanded their educational systems At independence, prior to its economic take-off,

primary enrollments represented a very small percentage of the school-aged population in

Botswana There were 251 primary schools and nine secondary schools It is estimated that only 40 people had university degrees By 1982 there were 168,000 primary school

students, 18,000 secondary school students, and more than 1,000 university students

(Republic of Botswana 1985)

As in Botswana, education expanded rapidly in South Africa However,

education in South Africa was racially differentiated and manifestly unequal Not only were there racially separate state education departments, but also state-supported access

to schooling was racially differentiated White children were provided with twelve years

of free and compulsory education, while blacks had none of these provisions

There have been many studies about Botswana’s “exceptionality.” Some scholars and local politicians claim that this development of education contributed significantly to rapid economic growth However, many other determinants have also been suggested Democracy, good governance, and an independent civil service have been suggested as having contributed to rapid economic growth Studies of South Africa have focused on

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the relationship between economic development and the apartheid system At one

extreme are those who argued that economic growth, by creating a demand for skilled

labor, generated inexorable pressures on apartheid institutions, leading to the expansion

of schooling for blacks which in turn increased economic growth (O’ Dowd 1985) At the

other extreme are those who argued that economic growth did not generate educational

expansion for blacks since apartheid prevented the education and training of workers, thus causing skill shortages (Lipton 1986)

Although there is much circumstantial evidence and speculation about the

relationship between education and economic growth in both countries, direct empirical analysis of education’s contribution to economic growth at the aggregate level is lacking The question remains whether educational expansion actually increased economic output

in Botswana and South Africa; and if so under what conditions?

This study is organized as follows: Chapter Two develops a theoretical

explanation of the conditions under which education will increase economic growth Chapter Three presents the methodological strategies, data sources, and variables of this study Chapter Four analyzes the characteristics of the economy and economic growth strategies in each country Chapter Five examines the broad effects of the economy on education and the effects of political, social, and institutional factors on education

Chapter Six presents findings from the time series analyses of the effects of education on economic growth Chapter Seven presents the conclusions drawn from this study

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CHAPTER TWO THEORETICAL FRAMEWORK

The objective of this research is to contribute to an understanding of the

conditions under which education has contributed to economic growth in Botswana and South Africa Human capital theory, class reproduction theory, status competition

theory, and institutional theory have been used to explain the relationship between

education and economic growth Human capital theory implies that education has

positive effects on economic growth, while status competition class reproduction, and world institutional theories suggest that education effects are more often neutral or

However, many sociologists have criticized human capital theory They argue that schools do not necessarily create the skills that increase economic productivity or match what is needed in the labor market; because people with more years of schooling and those with less years of schooling do not necessarily differ in productivity in the same job; and that the increase in education does not reflect an increase in demand for

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HH

higher level skills because the modern economy is likely to lead to deskilling as much as

the upgrading of skills

As an alternative to the human capital approach, stratification theories view

schools as allocating people to jobs on the basis of their educational credentials, apart from anything else they may have learned in school Stratification theories such as status competition and social reproduction differ on whether status or class is the major

dimension of allocation, however, both theories challenge human capital theory

Status competition views education as a social institution whose major function is

to allocate people to jobs according to their credentials This theory argues that education

is primarily a mark of membership in particular status groups, not an indicator of job skills or competence The educational requirements for jobs reflect the interests of status groups in organizations and professions that have the power to enact these requirements Within organizations, status groups compete for occupational advantage, and one of the major mechanisms of this competition is to restrict access to their occupation to members

of their own status group The main activity of schools is to certify students to particular occupations, not technical job skills Educational credentials are essentially a “status currency” that allows individuals to buy their way into occupational position (Collins 1979) Therefore, educational expansion does not necessarily reflect the economic

demands for skills but rather competition among status groups

Class reproduction theory although polemically opposed to human capital theory, views schooling as driven by economic demands, though not the demands of job skills and labor productivity, but the coercive labor demands of capitalism This theory stresses the qualification function of schools, as well as its legitimation function Education

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12

legitimizes the existing balance of power within society and allocation systems that

assign groups to distinct social positions The primary function of education is to

reproduce the class structure and inequalities Consequently, the expansion of schooling has no necessary connection to changes in technology, and education does not necessarily increase economic growth or labor productivity (Bowles and Gintis 1976; Rubinson 1986)

World institutional theory relates growth in schooling to the legitimacy of

education as a functional necessity, a social imperative for both individuals and national development, and argues that schooling has become a worldwide phenomenon States and individuals now “believe” in the power of schooling to teach skills, to increase

economic growth, to support the class system, and to legitimate the state These

ideological beliefs and organizational structures constitute education as an institution a set of “taken-for-granted” assumptions that make schooling a necessary component of modern social structures (Boli 1992; Meyer 1992; Ramirez and Vantresca 1992)

Therefore, the processes that expand schooling occur within this context of expanded authority As a consequence of these “taken for granted” assumptions, we see non- economic based processes having an effect on educational expansion

As Rubinson and Fuller (1992) note, a problem with all four theories is that they are formulated in a manner that implies the existence of an absolute relationship Each theory expects that education does or does not increase economic growth Therefore, none of these theories can account for the inconsistent pattern of effects found in the empirical research Furthermore, Rubinson and Fuller suggest that a more fruitful way

of thinking about these theories is to recast them as separate social processes and

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conditional, rather than universal and deterministic into distinct social processes: a human

capital process, a status competition process, a class reproduction process, and an

institutional process This strategy allows for conceptualizing these theories not as

competing but as operative under different institutional conditions

The rationale for this approach is based on the assumption that economic factors influence and shape the development of education A further underlying assumption is that social and political factors also shape and influence the structure and development of education If these assumptions are true, then educational expansion is likely to be

determined by many factors such as human capital process, status competition process, class reproduction process, and institutional isomorphism Since social and political factors are likely to shape the development of education, it is less likely the expansion of education will have an effect on economic growth, if the expansion of education is

structured to reproduce the class structure, reflects status competition, or institutional isomorphism If the expansion of education reflects the needs for skills required by the economy, then education will have an effect on economic growth

Economic, Social, and Political Processes

In this section, I will first analyze economic, social, and political factors that influence the expansion of education and then I will analyze the effects of education on economic growth, interpreting those effects in terms of the processes that lead to

educational expansion Prior research indicates that processes of human capital, status competition, class reproduction, and world institutionalism are relevant to explaining educational expansion (Rubinson and Fuller 1992; Rubinson and Browne 1994)

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14

The Human Capital Process

An important implication of human capital theory is that schools necessarily create the skills required by the economy and that these skills increase national economic growth Human capital theory assumes, but does not question that schooling creates

economic skills among students or that the economy can utilize these skills Empirical studies have shown that economic effects on economic growth are conditional on the correspondence between levels of schooling and the skill levels demanded in particular sectors of the economy (Fuller, Edwards, and Gorman 1986; Garnier and Hage 1990;

Jeong 1988; Liu and Armer 1993) Furthermore, Rubinson and Fuller (1992) note that

three conditions are necessary for the human capital process to operate First, education

must create the skills required by the economy Second, the economy must be able to absorb the skills created by schooling Third, there must be a close coupling between the

educational and economic systems so that the people with appropriate skills are allocated

to jobs that can utilize those skills However, these three conditions do not always occur

For example, class and status processes can prevent schooling from creating the

necessary skills, and some sectors of the economy may not be able to absorb the skills created by schooling resulting in a mismatch between skills produced by schools and skills required by the economy Thus, the human capital process will increase economic output to the extent that the expansion of education reflects the needs for skills required

by the economy and the economy utilizes those skills

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15 The Status Competition Process

In contrast to human capital theory, stratification theories take social structure into

consideration Status competition theory argues that education makes no necessary

economic contribution because the primary function of schooling is to allocate people to jobs, whether or not they have the relevant technical skills What generates educational expansion is not economic needs, but the desire by individuals and groups to increase

their status As educational systems expand, more people obtain the same level of

education, and so it becomes necessary for those who wish to obtain or maintain higher status to attain more education Since school expansion is driven by each group’s

demand for the greater status that education can buy, rather than by economic needs, there should be no necessary economic effects of increased schooling

For example, case studies from the United States show that school enrollments increase economic growth, but that these effects are weakened to the extent that status competition is salient in the growth of educational enrollments (Rubinson and Ralph

1984; Walters and Rubinson 1983) As Rubinson and Fuller (1992) note, educational

systems in which status competition processes are salient tend to be mass systems in which the supply of schooling is not restricted by political regulations The United States

is the classic case These systems tend to be mass systems, rather than elite or class-

structured systems Rubinson and Fuller (1992) argue that educational systems with a

high degree of status competition may weaken the effects of education on economic growth in two ways First, the expansion of schooling responds more to competition over status rather than to economic factors Second, the pressures in such systems lead to focus on increased promotion through grade levels and corresponding weakening of both

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16

the quality of education and the content of the curriculum However, not all educational

systems are organized in a way that fosters status competition process Therefore, to the extent that the expansion of schooling reflects status competition, the economic benefits

of schooling will be weakened

The Class Reproduction Process

The basic point of class reproduction theory is that education’s primary function

is to reproduce the class structure (Bowles and Gintis 1976; Carnoy and Levine 1985)

Schools are organized and structured to reproduce the class structure of a capitalist

society by producing graduates trained and socialized for work in capitalist enterprises and insuring that children inherit their parent’s class positions That is, students who come from working class backgrounds are more streamed into vocational tracks, while middle-class students are streamed into academic tracks

Rubinson and Fuller (1992) note that educational systems structured to produce

class divisions may weaken economic effects of education in three ways: through the content of the curriculum, through restrictions of enrollments, and through linkage to the civil service First, in upper and middle-class schools, the curriculum typically reflects high culture as opposed to technical, scientific, or vocational training This curriculum is typically built around class relevant cultural capital instead of economically relevant skills Second, in both the upper-class and working-class schools, regulations

determining the size of school enrollments reflect class reproduction pressures rather than labor markets demands Third, the tight coupling of schools for the middle-class to the

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highly class structured system, show similar effects: working-class effects, but not

middle-class effects (Garnier and Hage 1990), implying that the expansion of working- class schooling took place under the condition where human capital process operated, while the expansion of middle-class schooling took place under the condition where the operation of human capital processes was absent These findings suggest that a system of class reproduction limits the economic effects of education because of the structure of schooling Therefore, to the extent that schooling is organized to reproduce the class structure, its contribution to economic growth will be weakened.'

The World Institutional Process

World institutional theory argues that education contributes to economic growth through the legitimation of categories of economic activities or through the legitimation

of the mass of the population as competent economic actors (Meyer 1992) What

generates educational expansion is the incorporation and legitimization of a wide range of groups into the polity and economy rather than skill enhancement

' Actually, there is a possibility that maybe structural organization of schools into different curricula may help the economy in some sectors For example, a curriculum that emphasizes gardening might be

beneficial to small farmers or the agricultural sector in a country where the economy depends on

agriculture, while an academic track might not benefit the economy.

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For example, large-scale, cross-national studies show that education has some effects on increasing economic growth However, the effects are neither very large nor consistent or uniform, but vary across levels of schooling, time periods, and levels of development (Benavot 1989; Ramirez and Lee 1990) Rubinson and Fuller (1992) note that a standard, uniform model of schooling is increasingly important in shaping the structure of schooling in most countries National educational systems increase their enrollments and develop very similar curricula, independent of the characteristics of their national economic systems Thus, to the extent that the structure and content of

education reflects this process of institutional isomorphism there will be little

relationship between education and the economy

Therefore, all four processes, human capital, status competition, class

reproduction, and institutional isomorphism can play a role in expanding education Below, [ outline a baseline model of schooling and economic growth

Baseline Model of Schooling and Economic Growth

The basic premise is that there are several other processes at work that drive education other than those posited by the human capital process The conditions under which education contributes to economic growth are a function of the extent to which each of these processes is operating Since these processes are dependent on the

organization of education and the economy, education’s effect will neither be uniform nor consistent, but highly variable by country, level of schooling, and time period If education expands because of economic demands, then the human capital process will be the most likely explanation If, however, educational expansion takes place under the

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conditions where class reproduction or status competition or institutional isomorphism

processes are salient, its effects will be weakened and there may be no effects of

education on economic growth

To understand the effects of education on economic growth, it is helpful to begin with a baseline model of the human capital model which postulates that education will contribute to economic growth if education creates the skills required by the economy, the economy is able to absorb the skills created by schooling, and that there is a close coupling between the education and economic systems so that people with skills are

allocated to jobs that can utilize those skills

Five components of the baseline model pertinent to maximizing the effects of education on economic growth are: the supply of schooling, the quality of education, the

curriculum, characteristics of the economy, and feedback mechanisms (Rubinson and Fuller 1992)

The supply of schooling refers to the number of students enrolled in school at each level of schooling to meet the requirements of the economy It is important to

consider school enrollments because there might be too many or too few students

enrolled at each level to meet the requirements of the economy Quality of education concerns school characteristics such as teacher qualification, student-teacher ratio, and availability of resources Curriculum refers to the content of what is taught in school and its relevance to the requirements of the economy Characteristics of the economy

concern the ability of the economic system to utilize the skills produced from schooling

to increase economic growth Thus, characteristics of the economic system determine what kinds of skills are needed by different sectors of the economy Finally, feedback

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mechanisms refer to the processes in which the economy signals its requirements to the educational system Feedback processes are important because only if there is a set of such feedback processes, signaling to the schools what kinds of skills the economy needs, and the schools produces those skills, then it will be possible to reproduce the conditions under which the schools contribute to economic growth

Fuller and Rubinson (1992) note that school enrollments, quality of education, and curriculum are important in shaping the character of the educational system Thus, the effects of education on economic growth may be conditional on the close coupling of the educational and economic systems, whereby the economic system signals its needs to the educational system and the educational system produces the skills needed by the economy

Research in this area indicates that a close coupling of the educational and

economic systems is important in fostering economic growth (Hage et al 1988; Jeong 1988: Liu and Armer 1993) This research shows that states can insist on a close

coupling between the education and economic systems generating a maximization of the human capital process such as in France, Korea and Taiwan The role of the state is crucial because the state is a key actor in the regulation and growth of education within national boundaries, through direct control, funding, and influence Not only can states provide this coupling, but they can also allow schooling to be shaped by class interests and popular demands for higher credentials that limit the effect of education on economic growth.

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2I

The Relationship Between Education and Economic Growth

In this section, I discuss the relevant empirical evidence from a variety of research studies, looking at the effects of education on economic growth Studies in the United States from 1890 to 1970 found that primary school enrollments contributed to economic output in the period 1900-1928, but had no effects in the period 1933-1969 Secondary school enrollments made no contribution to economic output during earlier period but had significant effects during later period Tertiary enrollments had no effect during either period (Walters and Rubinson 1983) Another study of the United States during the same period found that the expansion of primary and secondary enrollments from 1890-1970 was driven by the dynamics of technical change and status competition

During the period 1900-1928, primary school enrollments increased due to the demands

of technical change and status competition, secondary enrollments increased due to status competition with no effects of technical change During the later period, 1933-1970 the pattern of effects was different, with primary school enrollments increasing due to status competition with no effects of technical change Secondary enrollments increased due to both technical change and status competition (Rubinson and Ralph 1984)

Rubinson and Fuller (1992) suggest that taken together these findings from the United States imply that greater enrollments do increase economic output, but this effect

is weaker to the extent that the increase in enrollments reflect pressures of status

competition and this effect is stronger to the extent that the increase in enrollments reflect technical demands of the economy Furthermore, Rubinson and Fuller (1992) suggest that these findings imply that the size of enrollments may need to reach a certain

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threshold before they increase economic output, since the effects on economic growth took place when both primary and secondary education were becoming mass institutions They argue that this may explain the lack of effects of enrollments in tertiary education during this period

A study of the effects of secondary schooling on economic growth in France found that the effects of enrollments varied by type of schooling and by period During the period 1825-1875 secondary school enrollments had no effect on economic output, but had significant effects during the period 1875-1938, but only for enrollments in

working-class, not middle-class schools The same pattern of effects was observed in the later period, 1950-1975 (Hage et al 1988) These findings suggest that a system of class

reproduction, as in France weakens the effects of education on economic output because

the effects are found only in the working-class stream Furthermore, Rubinson and Fuller

(1992) imply that this finding reflects the effect of size, since the enrollments in the

working-class schools were large and relatively small in middle-class schools They also imply that the differential effects may also reflect the difference between the classical curriculum of the middle-class schools and the modern curriculum of the working-class schools

Garnier and Hage (1990), in their study of Germany found similar effects During the period 1850-1928 secondary enrollments increased economic growth, but these effects were specific to the mass working-class schools, not elite middle-class school From 1950 to 1975 these effects of mass secondary schooling disappear, but during the same period there are large effects of higher technical, university, and elite secondary

enrollments, corresponding to significant growth in each of these levels of education.

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These findings again suggest that a structure of class reproduction limits the effects of

education on economic output because it limits the size of the elite streams

Studies that analyze the effects of quality found that these effects were more consistent than the effects of quantity as measured by school enrollments A study of Mexico found consistent effects of quality on economic output (Fuller, Edwards, and

Gorman 1986) These effects were stronger on economic output in the manufacturing than in the agricultural sector, indicating that school quality does have an effect on

economic growth Hage et el (1988) found that the quality of working-class schooling

had an effect on economic output, in addition to the significant effect of the expansion of working-class enrollment But no effect was found of the quality of middle-class

schooling In addition, a study of Germany found that quality did have a positive effect

in the lower elite secondary stream (Garnier and Hage 1990) These studies suggest that

school quality does have important effects on increasing national economic growth

However, these effects are mediated by the presence of a system of class reproduction

In particular, the effects of quality are dependent on the size of enrollments Quality had

a positive effect only in large working-class tracks, and no effect in the much smaller middle-class track Furthermore, the negative effect of quality at the very small tertiary level suggests that a small enrollment of high quality may actually have negative effects

on economic growth (Rubinson and Fuller 1992)

The same studies of France and Germany also analyzed the effects of the

curriculum on economic growth Both of these found that the content of the curriculum does matter, although in each study it is hard to separate the effects of curriculum from other characteristics of schooling In France, the effects of working-class secondary

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Studies that specify the effects of education by economic sector, as well as by level and type of schooling, show that the effects of education on economic growth are a function of the way in which the state links the supply of schooling to skill level needs in different economic sectors A study of South Korea from 1955 to 1985 found that

primary school enrollments have positive effects on economic output, but the effects were specific to manufacturing and mining sectors, not the agricultural or service sectors Secondary enrollments had an effect on output, but only in the agricultural sector and negative effects in the manufacturing and service sectors Tertiary education had positive effects on agriculture, no effects on manufacturing, and negative effects on service sector output (Jeong 1988) This pattern could be explained by an industrial policy

emphasizing labor-intensive industries using low-skilled, low-wage labor in

manufacturing and high productivity skills with reduced employment in manufacturing This industrial policy explains the positive effects of primary (basic skill) education on manufacturing and mining, and negative effect of secondary (higher skill) education These pressures created a demand for advanced agricultural techniques, improved seeds, fertilizers, and irrigation systems So the agricultural sector required personnel with the

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higher skills and knowledge that secondary schools creates, while manufacturing required the lower-level skills of primary schooling

A study of Taiwan from 1953 to 1985 found that the positive effects of mass

lower secondary schooling on economic growth, and lack of effects of higher secondary and tertiary education, could be explained by an industrial policy organized around labor- intensive techniques in both manufacturing and agriculture (Liu and Armer 1993) A study of Mexico reviewed earlier found that over the period 1888-1940 primary school quality increased output in manufacturing but not in agriculture (Fuller et al.1986)

These findings can be explained in terms of the correspondence between levels of

schooling and the different skills required by these economic sectors During this period Mexican agriculture saw little technological innovation and required very low skill levels, while manufacturing required some literacy and basic skills

Finally, Garnier and Hage (1990), in their study of Germany also found that the

effects of education on economic growth are stronger where schooling is closely coupled

to the demands of the economy From 1850 to 1928, enrollments in higher technical

education, but not university, increased economic output This was because technical

higher education was linked to jobs in industry and commerce, while university education was linked to jobs in civil service and university employment These studies show that the economic effects of education are conditional on a correspondence between the levels

of schooling and the skill levels demanded in particular sectors of the economy Thus, the correspondence between the educational and economic systems plays a major role in

explaining the relationship between education and economic growth.

Tiêu đề	The Effects of Education on Economic Growth: The Case of Botswana and South Africa (1970-1994)
Tác giả	Mamamelela D. Matlhako
Người hướng dẫn	Richard Rubinson, Ph.D.
Trường học	Emory University
Chuyên ngành	Sociology
Thể loại	dissertation
Năm xuất bản	2002
Thành phố	Atlanta

Định dạng
Số trang	168
Dung lượng	6,31 MB