HUMAN RESOURCE DEVELOPMENT AND ECONOMIC …

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PHREEBackground Paper Series

DocumentNo. PHREE/92/57

HUMAN RESOURCEDEVELOPMENTAND ECONOMICGROWTH: GHANAIN THE NEXTTWO DECADES

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By Elizabeth M. King

Paul Glewwe

Wim Alberts

Hi1C'hG-F1CIlE G',f'Y

RePort Nc. i10 '9-"9? H Ty p: ( EC

KING, !T.LiZ/' X

'9 / / 'iARE

DATF>: F= 199?I :e9u

Educationand EmploymentDivision Populationand Human ResourcesDepartment

The World Bank

June 30, 1992

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wTheheart of the whole processof industrializatioannd economic developmenits intellectuali;t consistsIntheacquisitionandapplication of a corpusof knowledgeconcerningtechniquet,hatis,waysof doing things." (DavidLandes,1980) 0... health and strength, physical,mental,and moral ... are the basis of Ineustriawl ealth;whileconverseltyhechiefimportanceofmateriawl ealth lies in the fact that when wiselyused, it increasesthe healthand strength,physical,mental,and moral, of the humanrace." (Alfred Marshall1, 890)

Theauthorswishto thankDavidBerk,NicholasBennettA, jayChhibberC, hadLeechorP, atience Stephensa, ndothermembersof theGhanaAcceleratedGrowthStudyteamfor theircommentson earlier drafts;andJosephineWoofortheprojectionsofenrollmentasndcosts. Errorsarethesoleresponsibility of the authors. MariaFelixand SelinaKhanprovidedexcellenst ecretariasl upport.

Abbtract

Humanresourcesarea country'swealth.A longstandingcommitmentto educationand healthhasbeenkeyto economicgrowthanddevelopmenItncountriesworldwidea, ndit Is inthisfield that Ghanawill needto makethe biggeststridesto *catchup" If it is to breakintothe leagueof fastgrowingeconomiesW. hilehumancapitadl oesnotguaranteefastgrowth,evenwiththebestofpolicies, Ghanacannotachievetherapidgrowthseenelsewherei itdoesnotinvestmoreinbroad-basedhuman capital.

The papersummarizesomelessonsfromthe experienceosf the newlyindustrializing countries(NICs)of EastAsiaregardingthecontributionof investmentisn humancapitatlo accelerated and sustainableconomicgrowth. It reviewsGhana'spastperformancein educationand health,and discussesthe resourcesandpoliciesrequiredfor achievingfurtherprogressin the nexttwo decades. Onemajorconclusionis thatGhanawill haveto continueto givethe highestpriorityto makingfurther investmentisnbothbasiceducationandprimaryhealth.WhencomparedwiththeNiCsatthetimethose countriesstartedonthe pathof rapidgrowth,Ghanalagsbehindmostinthesebasicindicators.Without the solidfoundationof universalliteracyandnumeracyandan efficienpt rimaryhealthcaresystemto buildon, morecostlyinvestmentisnhighereducationandtertiarycarearelikelyto bebothwastefual nd inequitableT. hepaperconcludeswitha remindetrhatbroaderpoliciesrelatedto populationgrowthand to the efficiencyof the labormarketarealsoimportanftor successfuhl umanresourceinvestments.

Tableof Contents

TheContributionof HumanResourcetso Developmen.t....

An IntemationaPl erspectiv.e1 Education'sEffecton WorkerProductivitay nd Growthin Ghana.

HealthandNutritionStatus,Productivitya,ndGrowthin Ghana.

HurnanResourcesDevelopmenInt Ghana.11

Education.11 Heatlt and Nutrition.18

Lookingto 2010: GoalsandPoliciesfor HumanResourceDevelopmen.t24

Education.25 Healthand Nutrition.39

An EnablingPolicyEnvironmen..t....................

References

Boxes Box. Box2 .34

Box3.

Tables

Tablel .

Table2 .9

Table3 ................

Table4.12

Table5 .13

Table6 .15

Table7 .20

Table8 .21

Table9 .22

Table10....

Table 1.

Table12.32

Table13.33

Table14.36

Table15.37

Table16.42

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Table18.44

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45 50 5 46 4 10

26 28

43

Figures

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AppendixFigure1 ...........

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