Friday, May 06, 2011

Africa needs higher education, trade for global competitiveness

African economies would require more investments in higher education, trade development, and tourism as well as women entrepreneurship if they are to compete favourably with other players in the global economic market place.

A new report, The Africa Competitiveness Report 2011, launched yesterday at the opening of the 14th session of the World Economic Forum (WEF) in Cape Town, South Africa, which contains detailed competitiveness profiles of the 54 countries in the continent, noted that improving the region's economic prospects on a global scale would be difficult without taking care of these key factors.

Though the report jointly produced by the World Bank, African Development Bank (ADB) and the WEF, noted that African economies have recorded significant strides towards the improvement of their economic environment in recent years, despite the scourge of the global economic crisis, they still require to do more to sustain the momentum of growth.

"African governments must better harness the region's resources through stronger integration into international trade and finance, improved education systems, enhanced entrepreneurial opportunities for women and developing of their tourism sectors," chief economist and ADB Vice President, Mthuli Ncube, said at the launch of the report.

Policies and strategies

"Africa must focus on policies and strategies that are key for the sustained economic recovery and inclusive growth of the continent, such as higher education for skilled manpower and entrepreneurship development and financial instruments that will support vibrant private sector development and regional integration and trade," Mr Ncube added.

Highlights of the report included the need for African countries to diversify exports as well as open up regional trade links, in view of the ability of trade to raise income through specialization, increased competition and exploitation of economies of scale, as well as increased prospects of variety of products and services in the market and promotion of technological innovation.

Despite improvements in trade in recent decade, founder and WEF executive chairman, Klaus Schwab noted that Africa's share in global trade has remained low, with concentration only on natural resources, while intra-African trade is particularly limited.

He identified inadequate integration of African economies into the mainstream of the global economic market as a challenge that would continue to present a major hindrance to the continent's economic development, pointing out that regional integration can help African countries become more competitive and resilient to external shocks, particularly during times of global economic crisis.

Investing in science and technology

On the need to upgrade managerial skills and higher education, World Bank's chief economist, Africa region, Shantayanan Devarajan, noted that though most African countries spend relatively huge proportions of their national resources on education, higher education enrolment remains extremely low by international standards, with students focus more on courses that are outside the fields of science, engineering technology and the humanities.

"For the continent to be able to compete effectively in the modern global economy, there must be increased investment in science and technology. Without a strong higher education sector, there is no doubt that Africa cannot be competitive and attain the level of development they desire. There must be collaboration between government and the private sector. Both have to see that competitiveness as a big issue to be addressed by institutionalising discussions and strategies to improve the economic prospects of the continent," he noted.

Noting that higher education is a key pillar for sustainable economic growth and development, he bemoaned the dearth of the quality infrastructure and faculty for learning and teaching in schools respectively, pointing out that the World Bank is proposing a programme to mobilise Africans in the Diaspora to return home to participate in the training and development of education in their countries.

On tourism, director, lead economist and World Bank's head of Centre for Global Competitiveness and Performance, Jennifer Blanke, said Africa's rich natural and cultural resources represent a major unexploited endowment through travel and tourism, with the potential to generate significant employment, growth and poverty reduction.

She stressed the need for improved safety and security, upgrading of health and hygiene levels, developing infrastructure and access to African tourism sites as well as fostering of the region's human capital to help the continent reap from the enormous potential benefits.

Source: http://234next.com

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