Impact of Education on Sustainable Economic Development in Emerging Markets—The Case of Namibia’s Tertiary Education System and its Economy
Abstract
:1. Introduction
2. Literature Review
- (1)
- Well-trained and educated citizens.
- (2)
- Dynamic innovation system.
- (3)
- State-of-the-art information and communication technology (ICT) infrastructure.
- (4)
- Using knowledge to promote economic and social development.
2.1. Bidirectional Relation of Human Capital and Sustainable Economic Development
- (1)
- The Human Capital Theory, developed by Becker and Mincer in the 1960s, deals with human capital investments and life-long labor market earnings. According to this theory, more significant investments into education and training lead to a higher skill level and more significant efficient usage of existing technologies [9]. It enhances individuals’ productivity, directly increasing economic output [10].
- (2)
- Human capital builds the foundation of any economic system and simultaneously sharpens the nation’s economic identity. It is necessary to professionally manage, strengthen, and increase the performance of an economy. Foreign Direct Investments (FDI’s), for instance, are heavily influencing a nation’s economic performance. FDI is creating employment (business-) expansions and technology diffusions. A nation’s human capital determines if FDI employing high-skilled or low-skilled labor force is being attracted and concludes if these side-effects are beneficial [5].
- (3)
- In 1962, the communication theorist Rogers developed the Diffusion of Innovations Theory, strengthening this bidirectional relation. The theory links the economic capacity to its ability to create and adopt new technologies [11]. The process of adoption describes accomplishing aspects differently than before. This can be executed by purchasing new products based on its innovation and increases significantly through education. The usage of any state-of-the-art technologies/products positively affect an individual’s productivity and the overall economic output. This has been previously mentioned under (1) Human Capital Theory [5].
- (4)
- A further notable approach is the Knowledge Transfer Approach. This approach focuses on the essential aspect of spreading knowledge through education. Thus, the application of new ideas, products, and technologies is being simplified through education. Additionally, it simultaneously encourages innovation and boosts efficiency [13].
- (5)
- An adequate education system is a rudimentary pillar in the previously described knowledge transfer. To do so, the costs of education guarantee equalization, efficiency, and effectiveness in utilizing educational resources [5]. Additionally, access to educational inputs and institutions builds a direct link to a nation’s economic situation [14]. Once guaranteed, it supports the diminishment of poverty and political instability [5].
- (6)
- Educational Gender inequalities are leading to a societal disqualification of women in the long run. Limited females’ access to assets, education, employment, resources, and technology are seen as barriers to social and economic development [17]. These limitations strengthen endemic gender gaps [18] and lead to an overall decrease in income per capita of 3.4% [19]. Ozturk (2001) defines women’s education as the most significant investment for economies in transition. It positively impacts the birth and mortality rate and indicates advantageous effects on health and nutrition. A more precise explanation: “a nation which does not educate its women cannot progress” [2]. Further advantages of gender equalities support the decline of corruption and nepotism rates [4]. A gender-wide equal distribution and access to human capital are only feasible by increasing the education quality [20].
2.2. Labor Market Perspectives on Tertiary Education and Economies of Education
3. Materials and Methods
3.1. Namibia and Its Education System
- From 2007 to 2015, the percentage of governmental expenditures in education increased from 21.7% to 22.4%. In 2015, the Ministry of Innovation, Arts, and Culture allocated 88% of its budget to the three education levels. This increase indicated an affordability-limit of the upper-middle-income nation Namibia [24]. The latest data of Namibia’s fiscal year 2017/18 represented an amount of USD 1.02 billion being spent on education. However, only USD 208 million had been allocated to tertiary education [28].
- The Quality of the Human Development Index includes 14 indicators belonging to HDI’s three dimensions. Namibia’s quality of human development ranked the nation in the third middle section. This illustrates a substantial need to catch up in pupil-teacher ratio, school’s access to the internet, and its Programme for International Student Assessment (PISA) results in mathematics, reading, and science [29].
- Since national independence, Namibia has achieved an increasing average enrollment rate of 1.7% in primary education. However, Namibia’s learners-population is growing larger. Public Expenditure Review projects an annual growth rate of 0.9% in Namibia’s school-age population until 2050. Although the 2015’s male enrollment was more significant than their counterpart until grade six, female overtook male enrollment from seventh grade onwards. A similar trend applies to the current educational environment [24].
- In 2017, Namibia’s tertiary education system monitored a clear majority of female students, as manifested in the example of domestic’s leading universities: IUM, NUST, and UNAM. The study recorded that 60% of the almost 46,000 student body were females. This particular tendency extends through almost all fields of studies and academic staff [25].
- The latest data of 2015 monitored 28% of Namibian 6-year-old children not attending any form of education. This holds even more true for impoverished and remote families [24].
- The learner positively influences the teacher’s timer per student and the teaching quality to teacher ratio comparing class sizes to the number of teachers in primary education [30].
- In 2015, Namibia’s primary education institutions’ ratio ranged from 5:1 up to 100:1 [24]. The institution’s majority obtained a ratio of 25-30:1, indicating equivalent results when comparing it to average fundamental education ratios of OECD nations: 21:1 in the primary and 23:1 secondary education [30].
- Based on the given data of 1000 pupils attending Namibia’s primary education system, 78 dropouts, 126 repeats one grade, 113 repeats two grades, and 459 learners eventually pass. These numbers result in an input-output ratio of 2:1. The male students are more often affected by dropout or repetition than female ones [24].
- UNDP’s Gender Development Index (GDI) consists of the three HDI dimensions separated by gender: Health, education, and command over economic resources. In 2018, Namibia’s women achieved an HDI value of 0.647; in contrast, men had a value of 0.641. Females exceed males in all dimensions except for the GNI per capita.
- GDI values close to 1.0 represent gender parity, while values close to 5.0 indicate extreme gender inequalities. Namibia’s value of 1.009 places the nation in group one outlining conditions close to gender parity [29].
- Although education got included in Namibia’s constitution, its NDP’s, and the nation’s Vision 2030, its education system suffers from inconsistent policies, nonexistent reforms, and unequal regional enforcement [24]. The learners and the education quality are affected, while Namibia’s economy must grabble with the fallout [27].
- The scarce allocation of Learning Support Materials (LSM’s) within Namibia represents an obstacle for learners and the output-quality [30]. Endemic composite classes share little amounts of LSM’s, whereby textbooks need to stay in school and are handed over from one generation to another [31]. The establishment of 2008’s Textbook Policy to achieve a textbook-to-learner ratio of 1:1 tries to improve the domestic situation [32].
- Inferior graduates and a domestic education system not complying with the labor market’s demand negatively affect Namibia’s unemployment rate [33]. Therefore, numerous students choose to study abroad, enjoying superb educational quality and superior employment chances [5]. For instance, foreign institutions, the Millennium Challenge Corporation USA (MCC), are making efforts to improve quality. This is carried out by increasing educational activities and the supply and access to textbooks [5].
- Namibia’s HEI’s ensconce high tuition fees have resulted in affordability [28]. The percentage of 5.5% represents the average household’s spending on tertiary education, which is similar to transport (7.2%) or healthcare spending (6.6%) [24]. Fees have increased over the past and averagely account for around USD 1650 per year [34]. Tertiary education students can apply for student loans from state or private funds. Unfortunately, these funds have also been downsized over the years [27]. Barriers to higher education participation are predetermined and lead to increased enrollment rates of wealthier students [34]. A closer examination of the leading universities’ tuition fees will be expanded later on, including the enrollment differences in higher education per region.
- Due to Namibia’s colossal landmass and its small population, most educational institutions are located in larger cities, e.g., the capital city of Windhoek. Educational accessibility contains a barrier to citizens of rural and remote areas. An endemic unequal regional and system-wide allocation of educational resources worsens the situation [27]. The findings [35] revealed a dependence between the development of e-learning for sustainable development and the upward trend in education’s economic efficiency. The active private capital enables partial reduction of government spending, optimization and improvement of education management, and higher salaries.
- (1)
- Which main factors of Namibia’s tertiary education system do influence its economic development?
- (2)
- How did the preselected educational factors develop in the case of Namibia since its national independence?
- (3)
- Whether and how do Namibians perceive the bidirectional relation of Namibia’s tertiary education system and its economic development?
3.2. Quantitative Research
3.3. Qualitative Research
- According to Miles and Huberman, data reduction refers to the process of selecting, simplifying, and transforming transcribed data [43]. Therefore, interview transcripts have been examined several times, allowing possible key-sections and crucial information to be marked. Highlighted data were implemented into Microsoft Excel, which again was utilized as an additional program. Particular emphasis was put on coding, which enabled drawing connections between specific topics.
- The visual step of displaying data allows the researcher to be creative in drawing lines of similar coded topics or areas [43]. Given answers have been categorized and coded in three steps: The main category, followed by a sub-category, and the given interviewees’ statement. Every statement was equipped with a number drawing a line to the interview participant. The categorization and coding process enabled a subject-specific amalgamation of the data. This represented an elementary step in data research and resulted in logical correlations.
- The last step of this deductive content analysis represents drawing and verifying conclusions. This includes recommendations of certain aspects gained from the data analyzation process [44].
4. Results
4.1. Quantitative Research
4.1.1. Educational Factors’ Development in Namibia
- Higher Education Accessibility. Access to higher education represents the first category consisting of the following four factors:
- Tertiary Gross Enrollment Ratio including an Allocation by Gender. This ratio is defined by the number of students enrolled in tertiary education compared to the nation’s population group aged 16 to 21 [45]. The data indicate a steep upwards trend in domestic’s tertiary enrollment ratio from 2008 onwards. However, this includes a growing difference between male and female students’ enrollment. While males’ enrollment ratio settles at around 15%, females’ ratios have increased to more than 30% in 2017 [45,46].
- Higher Education Enrollment by Region. This factor includes Namibia’s 14 regions, its 2015 higher enrollment rates, and its 2011 regional population census. This provides an enhancement in the comparability process [47,48]. Data express the highest enrollment rates in higher education and the most inhabitants in Namibia’s Khomas region. The reason behind this outlier is the capital city of Windhoek, located in this particular region, domiciling Namibia’s largest and most popular universities: UNAM, NUST, and IUM [45,46]. The regions that are located either in the far north or south indicate the lowest enrollment rates in higher education, for instance, Kunene (0.6%) or Karas (1.5%) [47,48].
- Registration Fees of Namibia’s leading Universities. This factor indicates registration fees of undergraduate tertiary education programs of Namibia’s most prominent universities located in Windhoek: UNAM, NUST, and IUM. The conglomerate of all three universities’ registration fees indicates an increasing trend over the past years. Since 2015, UNAM’s registration fees have been almost stable, while NUST and IUM have been steadily increasing. Data produced in 2020 indicate that UNAM has the lowest registration fees (NAD 1.575/USD 106), followed by IUM (NAD 1900/USD 128). NUST exhibits the highest registration fees (NAD 2100/USD 141) and represents the most expensive university within this triplet [6].
- Share of Population with completed Tertiary Education. The last category provides information about the share of Namibians aged 15 years and above, holding an HEI degree. Comparative numbers of Namibia’s neighboring nations Botswana and South Africa have also been implemented into the statistical analysis. Since national independence in 1990, Namibia’s share of HEI degree holders slightly decreased from 1.29% to 0.76% in 2010 [48,49,50,51]. The Patriot—a local newspaper—and World Bank’s book ‘Financing Higher Education in Africa’ presume increasing tuition fees and higher dropout rates as a reason for this tendency [34,48]. In comparison, Botswana has recorded an upwards trend from 1.52% to 2.02% (1990–2010), while SA briefly managed to increase its numbers of graduates in the years 1995–2000, followed by a 2010 fallback below the initial level of 1990. During the same period of Botswana’s increasing tertiary educated citizens (2000–2010), Namibia registered a comparative downwards trend. These results correspond to the literature presented by Rosa and Ortis (2020). The researchers’ findings elucidate that developing nations achieve results below 1% and developed nations, e.g., Ireland or South Korea, record around 30% of HEI degree holders [49].
- Higher Education Quality. The second category represents the quality of Namibia’s higher education and consists of the following three factors:
- Human Development Index
- Qualification of Academic Staff
- Global Ranking of Namibia’s Universities
- 3.
- Governmental Expenditures—Unemployment. The third category deals with Namibia’s governmental expenditures and the nation’s unemployment rate, consisting of the following two factors:
- Governments Expenditures on Tertiary Education as a % share of:
- ○
- Total Governmental Expenditures: Namibia’s tertiary education received the lowest allocated budget (2.46%) in 2008, which increased to the highest budget (6.03%) in 2010. The latest available data of 2014 represent a decrease to 3.87% [46].
- ○
- Expenditures on Tertiary Education as % Share of Expenditures on Education: The nation’s tertiary education system received its lowest share (8.66%) in 2002. This did increase to its maximum percentage of 50.6% in 2014 [45].
- ○
- GDP: From 2000 to 2008, tertiary education expenditures as a % share of GDP ranged between 0.84% and 0.64%. A more considerable increase can be found in 2010 (1.93%), followed by a slight drop until 2016 (1.58%) [47].
- Unemployment Rate of Advanced Educated Citizens. Category three’s last factor outlines unemployed Namibians with completed advanced education as a share of the whole labor force within the last decade. Completed advanced education refers to graduates of secondary school and above [43]. Data cover an increasing trend of unemployed Namibians with a completed advanced educational degree. In 2012, there was a minimum of 3.67%, while the latest data of 2018 refer to a maximum of 12.18%. The period from 2012 to 2014 recorded an increase from 3.67% to 5.97%. This is followed by a significant rise in 2016 (11.08%) and 2018 (12.18%), downgrading the situation of advanced educated Namibians [45].
4.1.2. Development of Namibia’s Economic Factors
4.2. Qualitative Research
4.2.1. Category 1—Education
- Importance of Education
- Perception of Educations’ Importance from different Ethnicities, Regions, and Social Class
- Remote Areas
- Social Classes
- Registration Fees of Higher Educational Institutions
- Governmental Financial Resources
- Regional Issue
- Education System
- Quality of Tertiary Education
- Higher Educational Institutions’ Resources
- Gender allocated Higher Education Institutions’ Enrollment Rates.
- Preference or Discrimination of Students according to their gender
- Gender-Specific Drop-out Rates in HEI’s
- Gender-Specific Graduation Rate at HEI’s
- Job Finding Process for Graduates
- Reasons behind increasing Unemployment Rates of Higher Educated Namibians
- Perceived Connection of Namibia’s Tertiary Education System and its Economic Development
4.2.2. Category 2—Economy
- Namibia’s Economic Performance 1990–2020
- Aspects affecting Namibia’s Economic Development
4.2.3. Category 3—Scaling Questions: Impact of predefined Educational Factors on Namibia’s Economic Development
- Government’s Tertiary Education Expenditures impacting Economic Development
- HEI’s Registration Fees impacting Economic Development
- Tertiary Education Enrollment Rates impacting Economic Development
- Share of Population with completed Tertiary Education impacting Economic Development
- Unemployment Rate of Advanced Educated Citizens impacting Economic Development
4.3. Interpretation of Gathered Data
- Perception of the Importance of Education
- Ethnicities perception of education
- Interdependency of Namibia’s Gross Enrollment Ratio, Human Development Index, Government Expenditures on Tertiary Education, and national GDP
- -
- From 2006 onwards, a parallel upward trend is visible in Namibia’s tertiary gross enrollment ratio—most notably the female enrollment—and the nation’s HDI. This favorable development represents a glimmer of hope in the future reduction of female discrimination in Namibia’s educational context, initially described by literature [16]. This would also prevent the associated forecast in a declining income per capita in the long run [18].
- -
- In almost the same period (2002–2012), Namibia’s economic output nearly rose fourfold. Concurrent to its economic upswing, the nation registered increasing governmental expenditures on tertiary education as a percentage share of education expenditures.
- Increasing Registration Fees as Access Barrier versus Increasing Enrollment Rates
- Increasing Enrollment Rate versus Decreasing Academic Graduates
- Interdependency of Educational Quality, Governmental Expenditures, and domestic’s Economic Output (GDP)
- Interdependency of Namibia’s Number of Graduates and domestic’s Standard of Living (GNI per Capita)
5. Conclusions
- ○
- First of all, Namibia’s tertiary education system’s most influential factors impacting the nation’s economic development have been identified (RQ1). The development of these preselected educational and economic factors has been elaborated through quantitative statistical data analysis.
- ○
- This enabled the researchers to outline and monitor these factors since Namibia’s national independence—30 years ago (RQ2).
- ○
- Participants of Namibia’s tertiary education system and the nation’s labor market have been interviewed using qualitative interviews—about their perception of preselected factors, including the factors’ interaction (RQ3). Respondents’ subjective assessments supplemented the previously gathered quantitative data and enabled answering the research’s fundamental interaction.
- ○
- The formulation of long-term goals within the nation’s NDP’s and its Vision 2030 are prosperous first steps that would need to be accompanied by a scientific evaluation process improving the implementation process.
- ○
- Furthermore, the authors suggest continuing combating against predominant corruption. For instance, this would enable adequate allocation of educational expenditures or make Namibia’s tertiary education more affordable for all ethnicities and social classes.
Author Contributions
Funding
Conflicts of Interest
Appendix A. Interview Guideline
- (1)
- Due to the anonymization of this interview and the following transcription process, could you please tell me your Gender and Age:
- (2)
- Just general information from your side:
- -
- What is your educational background, and what do you currently do for a living?
- (3)
- I would like to start with some questions about education in general.
- -
- What personal importance does education have for you?
- -
- What importance does education have in different ethnicities and social classes? Are there any differences visible? If so, which ones?
- (4)
- Now I would like to ask you a few questions about the tertiary education system in Namibia:
- -
- What kind of challenges/problems does the Namibian tertiary education system have to face currently?
- ○
- Costs
- ○
- Distribution of HEI
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- Lecturer/Student ratio
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- Qualification of lecturers
- ○
- Infrastructure
- ○
- Innovation
- -
- In your opinion, what are the roots of these challenges/problems?
- -
- What do you think are the consequences of your mentioned challenges/problems from above?
- ○
- On population
- ○
- On the economy
- ○
- On the education system itself
- -
- According to a scale from 0–10 (10 represents highest), how would you rate the Namibian tertiary education system’s quality/educational input in 2020?
- -
- What actions do you think are necessary to improve Namibia’s tertiary education system?
- (5)
- Personal tertiary education—Challenges, everyday life, and opportunities of a student
- -
- (Back then,) what is/was your motivation to study or to choose this field of study?
- ○
- Job
- ○
- Future
- ○
- Abroad
- ○
- Monetary
- -
- In terms of your personal experience: Do you experience any barriers/challenges that are connected to your studies?
- (6)
- Gender aspect/inequalities
- -
- What do you think is the trend in male/female student enrollment?
- -
- Do you experience a difference in the way lecturers (or maybe you personally) treat students of different sexes?
- ○
- Preference/discrimination of gender
- -
- Do you experience a difference in the dropout rate of men and women?
- ○
- No idea
- ○
- More women
- ○
- More men
- -
- Do you think that the graduation rate of men or women is higher?
- ○
- No idea
- ○
- More women
- ○
- More men
- (7)
- Job prospects after graduation
- -
- Graduation year: Do/Did you think you will find a suitable job after your higher education degree?
- -
- Namibian data show an increasing trend in the unemployment of people with advanced education since 2012! What do you think is the background of this trend?
- (8)
- Impact on the economy. Before concluding, I would like to ask a few more questions regarding Namibia’s economy.
- -
- How would you interpret the development of the Namibian economy in the last 30 years? Please answer by using one of the four possibilities:
Very good/pretty good/pretty bad/very bad—again, there is no wrong answer!- ○
- Very good: What do you think causes this ‘very well’ economic development?
- ○
- Pretty good—very bad: What actions do you think are needed for improved economic development?
- -
- Do you think there is an impact of Namibia’s tertiary education system on its economic development?
- -
- Based on international studies, there has been particular influential educational factor been highlighted. I will now tell you these five educational factors and would like you to rate each of them on a scale from 1–10 (10 highest impacts), regarding its influence on Namibia’s economic development:
- ○
- Governmental Expenditures on tertiary education (1–10)
- ○
- Amount of Registration fees at HEI’s (1–10)
- ○
- The enrollment rate in tertiary education programs (1–10)
- ○
- Share of population with completed tertiary education (1–10)
- ○
- The unemployment rate of citizens with completed advanced education (1–10)
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HDI Value | HDI Rank | Life Expectancy at Birth | Expected Years of Schooling | Mean Years of Schooling | GNI per Capita (2011 PPP US $) | |
---|---|---|---|---|---|---|
Namibia | 0.645 | 130 | 63.4 | 12.6 | 6.9 | 9683 |
Botswana | 0.728 | 94 | 69.3 | 12.7 | 9.3 | 15,951 |
South Africa | 0.705 | 113 | 63.9 | 13.7 | 10.2 | 11,756 |
Sub-Saharan Africa | 0.541 | - | 61.2 | 10.0 | 5.7 | 3443 |
Medium HDI | 0.634 | - | 69.3 | 11.7 | 6.4 | 6240 |
CATEGORIES | FACTORS |
---|---|
ACCESSIBILITY | Tertiary Gross Enrollment Ratio |
Higher Education Enrollment by Region | |
Registration Fees for Undergraduate Tertiary Education Programs | |
Population Share with completed Tertiary Education | |
HIGHER EDUCATION QUALITY | Human Development Index |
Qualification of Academic Staff | |
Global Ranking of Namibia’s Universities | |
GOVERNMENTAL EXPENDITURES— UNEMPLOYMENT | Governmental Expenditures on Tertiary Education |
Unemployment Rate of Advanced Educated Citizens |
Respondents | Gender | Age | Highest Education | Occupation |
---|---|---|---|---|
Respondent 1 | Male | 30 | Master’s in Dietetics | Dietician & Coach |
Respondent 2 | Female | 30 | Master’s in Gender Development Studies + Master’s in Philosophy in Sexual and Reproductive Rights in Africa | Project Manager |
Respondent 3 | Male | 31 | Master’s in Business Administration | Master’s Student + Business Consultant, part-time lecturer |
Respondent 4 | Female | 47 | Master’s in Management Studies | PhD Student + Lecturer at University |
Respondent 5 | Female | 22 | Honor’s in Education | Master’s Student + German Teacher |
Respondent 6 | Male | 50 | PhD in Economics | Professor at University |
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Jellenz, M.; Bobek, V.; Horvat, T. Impact of Education on Sustainable Economic Development in Emerging Markets—The Case of Namibia’s Tertiary Education System and its Economy. Sustainability 2020, 12, 8814. https://doi.org/10.3390/su12218814
Jellenz M, Bobek V, Horvat T. Impact of Education on Sustainable Economic Development in Emerging Markets—The Case of Namibia’s Tertiary Education System and its Economy. Sustainability. 2020; 12(21):8814. https://doi.org/10.3390/su12218814
Chicago/Turabian StyleJellenz, Moritz, Vito Bobek, and Tatjana Horvat. 2020. "Impact of Education on Sustainable Economic Development in Emerging Markets—The Case of Namibia’s Tertiary Education System and its Economy" Sustainability 12, no. 21: 8814. https://doi.org/10.3390/su12218814