The Relationship Among Education Economy And Employment

Published Date: 02 Nov 2017

This chapter is based on a desk review which underscores the indispensable relationship among education, economic growth and employment. This relationship is sometimes intriguing and challenging but can never be ignored since the three are intertwined. The basic arguments are meant to provoke thinking and debate especially among students who aspire to understand the thinking of both an educationist and economist when examining the three phenomenons. The review shows a positive and statistically significant relationship between education and economic growth and then employment level and economic growth. These relationships especially in developing countries sometimes tend to have negative correlation. This chapter further argues that employability is a product of curriculum. For countries to train valuable human resources needed for different sectors of its economy, higher education curriculum need to be brought in tandem with the country’s developmental needs. There must be a linkage between higher education and industry.

Key Words: Education, Economic Growth, Employment and Curriculum

Education and Economic Growth

It is true that emerging markets like China, India, South Africa and most of Latin America and to some extent Zambia continue to grow in importance to the world economy; however, the academic literature especially for smaller economies in this area is highly fragmented and in some cases unavailable, but mostly lies in the finance and economic fields (Morote, 2009). Some Education economists have shown that increasing the educational attainment of the population can help to increase the economic growth; however, this relationship is not always direct. There are some key variables, such as employment, that can affect this relationship (Ibid, 2009). The arguments are presented later in this chapter. Most commentators and researchers argue strongly that there are two very basic reasons for expecting to find some link between education and economic growth (Steven and Weale, 2003). First of all, at the most general level it is intuitively plausible that living standards have risen so much over the last millennium and in particular since 1800 because of education (Carnoy, 1995; Steven and Weale, 2003). Secondly, at a more specific level, a wide range of econometric studies indicates that the incomes individuals can command depend on their level of education (Carnoy, 1995).

The goal of achieving full employment among other macroeconomic goals is vital in many developing nations where unemployment and underemployment has been a major cause and consequence of widespread poverty (World Bank, 2010). However, in spite of the very high-sounding electioneering promises of subsequent political leaders and governments in many poor nations of the world, the achievement of impressive growth and decent employment remains a mirage. High rate of unemployment, unimpressive economic growth rates and poverty remain the hallmark of most of the challenges of the populace (Sodipe & Ogunrinola, 2011). Most countries are now attempting to use education as the key to unlocking great potentials to the country and individuals. The human capital theory is arguably the best weapon that developing countries have used to justify government investments in its man power (Woodhall, 1995).

Woodhall (1995) opines "the concept of human capital refers to the fact that human beings invest in themselves, by means of education, training or other activities which raises their future income by increasing their life time earnings" p.24. Here, we have to be alive to the fact that economists use the term ‘investments’ to refer to the expenditure on assets which will produce income in the future, and contrast investment expenditure with consumption, which produces immediate satisfaction or benefits but does not create future income (Mankiw, 2010). Assets which will generate income in the future are called capital. For a long time economists analyst limited their definition of investment and capital to physical capital such as machines, equipment or building which would generate income in the future by creating productive capacity (Woodhall, 1995). However, Adam Smith a classical economist was the first to argue that education helped to increase the productive capacity of workers in the same way of purchase of a new machine, or other forms of physical capital (Ibid, 1997). Henceforth, an analogy was drawn between investment in physical capital and investment in human capital. Investment in Human capital has both social and private returns at different segregated levels of education.

There are several studies that have been conducted worldwide to calculate the rates of return of investment in education for different sectors, such as primary, secondary and tertiary. Psacharoupoulos and Patrinos (2004) give a good summary of the results of studies done in 98 countries over the period 1960-1999 that have been conducted on a comparable basis. Some of the results are summarized below in figure 1.

Figure 1: Rates of return of investment in Education

Region

Social

Private

Primary

Secondary

Higher

Primary

Secondary

Higher

Asia

16.2

11.1

11.0

20.0

15.8

18.2

Europe/Middle

East/North Africa

15.6

9.7

9.9

13.8

13.6

18.8

Latin America

17.4

12.9

12.3

26.6

17.0

19.5

OCED

8.5

9.4

8.5

13.4

11.3

11.6

Sub-Saharan Africa

25.4

18.4

11.3

37.6

24.6

27.8

World

18.9

13.1

10.8

17.0

17.0

19.0

Source: Psacharoupoulos and Patrinos (2004: 114)

Clearly, the table above shows that firstly, the private rate of return is higher than the social rate of return for all areas and all levels of education. On average for the world the private rate of return for primary education is 7.7 percentage points higher than the social rate of return and the corresponding figure for secondary schooling is 3.9 percentage points. On average the private rate of return for higher education is no less than 8.2 percentage points higher than the social rate of return. The rates of return in developing countries are normally higher for all levels of education than the rates in developed countries. When one looks at the sub-Saharan Africa region (which Zambia forms part of) it is clear that these rates of return are the highest of all regions in the world for all levels of education. Especially the private rate of return on higher education is very high. This is a clear motivation to continuously invest in education for both governments and individuals. Governments mostly argue that education can trigger the much needed development.

Individuals in Zambia, South Africa and world over, are willing to take more years of schooling partly because they can earn more and get better jobs, on average, with more schooling. For many, more schooling can also be a source of social mobility (Cipollone, 1995). Similarly, countries are interested in raising the average level of schooling in their population, in part, because they think that doing so will improve productivity, raise the quality of jobs in the economy, and increase economic growth (Economic Returns to Investment in Education, 2002). The linkage between education and economic growth in some of the early work on the economics of education was based on the assumption that a major effect of more education is that an improved labour force has an increased capacity to produce. Because better-educated workers are more literate and numerate, they should be easier to train. It should be easier for them to learn more complex tasks (Hicks, 1995). It was further assumed that they had better work habits, particularly related to awareness of time and dependability. But some questions pose and still challenging up to date: How does education increases productivity? How important is it? What ways it is important? All these have no definite answers.

A shortage of educated people may limit economic growth, but at the same time it is unclear that a more educated labour force will increase economic growth. Accordingly, It is also unclear what kind of education contributes most to growth—general schooling, technical formal training, or on-the-job training and what level of education contributes most to growth, could it be primary, secondary, or higher education (Hicks, 1995). For instance when the World Bank recommended restructuring in Zambian Education system in the late 80s and 90s they recommended that Basic education had higher returns than higher education. Higher education was neglected as most donors concentrated on basic education provisions. Recent research has shown that higher education has a more direct link to economic development (Masaiti, 2012)

One of the clues in support of the conclusion that education does contribute to growth is that countries with higher levels of economic growth have labour forces with higher levels of formal schooling (Carnoy, 1995). This has been the cases of fast growing economies such as China, South Korea, Brazil and Malaysia who have invested massively in education especially at tertiary level. Economic growth direct proportional to educational attainments especially quality education (education linked to industry). In Zambia and probably most of Africa, it might be difficult to relate education to industry (Masaiti, 2012). Beyond such a macroeconomic approach to the relation between education and economic growth, the new growth theories assert that developing nations have a better chance of catching up with more advanced economies when they have a stock of labour with the necessary skills to develop new technologies themselves which can easily be used to adopt and use foreign technology (Carnoy, 1995). In such models, more education in the labour force increases output in two ways: education adds skills to labour, increasing the capacity of labour to produce more output; and it increases the worker’s capacity to innovate (learn new ways of using existing technology and creating new technology) in ways that increase his or her own productivity and the productivity of other workers (Ibid, 1995).

Romer (1990) firstly emphasizes the human capital aspect of education (that is, that education improves the quality of labour as a factor of production and permits technological development); the and second places human capital at the core of economic growth and asserts that the externalities generated by human capital are the source of self-sustaining economic growth (that human capital not only produces higher productivity for more educated workers but for most other labour as well). This model further sees innovation and ‘learning-by-doing’ as endogenous to the production process, with the increases in productivity being a self generating process inside firms and economies (Lucas 1988). Such learning by doing and innovation as part of the work process are facilitated in firms and societies that foster greater participation and decision making by workers, since these are the firms and societies in which more educated workers have the greatest opportunities to express their creative capacity (Spenner, 1997).

The relationship between earnings and schooling has been widely studied at both theoretical and empirical levels world over. This relation is very simple to state: more educated people enjoy a higher level of earnings than people with a lower level of education (Cipollone, 1997; Knight & Sabort, 1990). However, it is also true that people with the same level of education do have different earnings depending on their race, gender, ethnicity, ability, and social background (Cipollone, 1997). This characteristic earning structure seems to hold regardless of the level development of the economy and institutional setting, for instance, educated people in Zambia will earn more just like their British counterparts (Ibid, 1997). The frequent observation that individuals with more education have higher earnings is another indication that education contributes to growth. The education higher earnings connection reflects a microeconomic approach to the relation between education and economic growth. Greater earnings for the more educated represent higher productivity hence, an increase in educated labour in the economy is associated with increased economic output and higher growth rates (Economic Returns to Investment in Education, 2002). This has received its fair share of criticism. There are instances where higher earnings for the more educated may merely represent a political reward that elites give their members a payoff for being part of the dominant social class-more common in Sub Saharan Africa. But it is difficult to sustain an economic system for very long if those who actually produce more are not rewarded for their higher productivity, and if those who simply have political power get all the rewards. One of the reasons that socialist systems in Eastern Europe were unable to sustain economic growth was almost certainly due in part to an unwillingness to reward individuals economically on the basis of their productivity and, instead, to reward the politically powerful with economic privilege (Knight & Sabort, 1990).

In commenting about education, globalization and the knowledge economy in the Britain, Diamond (2008) in common with other developed economies, Britain advocated the creation of a high-skilled, high-waged economy by upgrading the education and skills of its workforce. The creation of world-class skills was assumed to be a route to economic prosperity, reduced income inequalities and social cohesion. The emphasis of this policy prescriptions rested on the idea of a knowledge economy where innovative ideas and technical expertise hold the key to the new global competitive challenge. While Britain’s workforce could no longer rely on low skilled manufacturing jobs to provide a living wage, as these jobs migrated to low-cost economies in Eastern Europe and Asia (Diamond, 2008). He further argued that Britain was well placed to become a ‘magnet’ economy, supplying the global economy with high skilled, high waged workers. The OECD recently acknowledged that emerging economies including China and India were moving up the value chain to compete with Western companies for high-tech products and Research and Development (R&D) investment (Ibid, 2008). Diamond is making a case to concentrate on education that will make its graduates prepared for high skilled jobs. In other word Britain should compete with other high industrialized countries in production of World class skills.

Gordon (2007) challenged developing countries on the nature of education they should offer so that they become valuable for economic growth. Formal educational institutions are being asked to re-think the way they undertake education and training. Issues, such as the ‘massification’ of education, skills gap/mismatch and continuous or lifelong learning have received national attention by governments in most developing countries, including the Caribbean (Ibid, 2007). They have also been discussed at various educational conferences hosted by international bodies such as UNESCO (1995 & 1998) and the World Bank (1995). Educational institutions are being asked to imbue their ‘educational outcomes’ (graduates) with different kinds of skills. Such skills are considered a necessity in what is now commonly referred to as a ‘Knowledge-Based Economy’ (KBE) or ‘New Economy’. This refers to the increasing use of knowledge and other technical skills in the various production processes (Gordon, 2007).

In order to understand the contribution of Education to economic growth, education economist use the process of ‘growth accounting’ in which they look at the output (Q) which is assumed to be a function of stock of capital (K), the labour force (L) and level of technical progress (A). This implies that Q=f (K, L,A). Then different differentials are worked out to deduce the derivative of A (Hicks, 1997). Another approach which attempts to measure the impact of education on productivity consists of recasting education as an investment in human capital. This approach is called ‘returns on human capital’ (Ibid, 1997). The last but not least approach is using ‘cross national comparison’ which also supports the idea of human capital development and education as an important element in explaining variation in growth rates and levels of per capita income (Carnoy, 1995).

What then are theoretical assumptions behind the link of Education and Economy? Fidel (2007) argues the relationship between economic growth and education has been one of the central threads of economic analysis. Both Adam Smith in the 18th century and Alfred Marshall in the 19th century, two important figures for the economics profession, addressed the question of how individual investments in "education" influence the wealth of nations. Throughout the 20th century, as Krueger and Lindahl (2001) point out in their survey of these issues, modern professional economists have been attempting to develop empirical estimates of the relation­ship between education and economic growth. Some of the most famous names in late 20th century economics made their reputations studying the question of individual returns to investment in education (Fidel, 2007). Jacob Mincer (1974), Gary Becker (1964) and a long list of researchers inspired by their work have produced hundreds of books and papers in justification and critique of the two variables.

Theoretical underpinnings of Education and Economy

Morote (2009) observes the interrelation between education and economic development has been discussed since ancient Greece. Adam Smith (1776, 1976) and the classical economists put emphasis on the importance of investment in human skills. Early attempts to measure the contribution of education to economic development were based either on the growth accounting approach underpinnings or on the rate of return to human capital approach (Ibid, 2009).

It was not however, until late in the twentieth century that most academics undertook formal and scientific analysis of this relationship (Morote, 2009). Several research studies have investigated the relationship between economic growth and education such as Psaharoupolous, 1988; Pencavel, 1993; De Meulmester and Rochet, 1995; Jorgenson and Fraumeni, 1998 to mention but a few. Their starting point was always to question the root of the ‘economic growth itself’. The pioneer theorists hypothesized that economic development was depended on the increase of capital and the labour factor in the productive processes. A fundamental reason for economic growth was found to be the increase of productivity in the identified factors of production. Whereas researchers such as Pencavel (1993) affirmed the existence of correlations across countries between economic growth rates and schooling enrolment rates of different segmentation. This included enrolment in tertiary education. De Meulmester and Rochet (1995), using more sophisticated econometric techniques, found that this relationship between education and economy is not always a direct one.

Many education economists consider Psacharopoulos’ data and research as having been considered a starting point by several researchers as indicated in Table 1.

Table 2:Percent of the Economic Growth Rate (by Country) Explained by Education

Country

Growth Rate

Explained

(Until 1970s)

Country

Growth Rate

Explained

(Until 1970s)

Europe

North America

Belgium

14

Canada

25

Denmark

4

United States

15

United Kingdom

12

Germany

2

Latin America

Asia

Argentina

16.5

Japan

3.3

Brazil

3.3

Malaysia

14.7

Chile

4.5

South Korea

15.9

Colombia

4.1

Ecuador

4.9

Africa

Honduras

6.5

Ghana

23.2

Peru

2.5

Kenya

12.4

Mexico

0.8

Nigeria

16.0

Venezuela

2.4

Source: Psacharopoulos (1988), pp. 893-921.

From results in Table 2, it can be concluded that education is one of the factors that explain economic growth, but the explanation varies depending upon the level of development of a country. For instance, in the table above, except for the United States’ case, there seems to be an inverse relationship between per capita production and education. In other words, there is an inverse relationship between education and economic growth. The higher the economic level of the country, the smaller the contribution of education to economic development (No wonder some researchers are always sceptical of the relationship).

Teichler (1999) argues that the question of the connections between higher education and the labor market are again among the key issues of debate whenever challenges for innovation in higher education are at stake. World Bank (1994) cited the tensions between higher education and employment as one of the key elements of the higher education crisis related to mismatch of supply and demand of graduates and lack of contact with to the market. The Organisation for Economic Co-operation and Development (OECD) supports this assertion, and attempted to address the transition from higher education to employment in one of its largest projects in the early 1990s. Further, The United Nations Educational Scientific, and Cultural Organization’s (UNESCO) World Conference on Higher Education argued that the demands of the labor market are changing dramatically. Indeed, the patterns of employment are also changing. College courses which once met national needs are now irrelevant since are no longer responsive the current needs.

It now appears, education and especially higher education is being challenged to reconsider its fundamental objectives. There is need to strike a balance between supply and demand of graduates, between responding to the demands directly expressed by the employment structure (system) and influencing the labor market and further between its relationship with business and industry, and government. Most definitively, there will be need for an adjustment between relevant tertiary education policies and the ever changing employment sector. What have been challenged in the underpinnings are government policies toward unemployment. Unemployment can be discussed by the match between supply and demand of graduates to the market; and the level of the economy and economic policies toward unemployment and education (Carnoy, 1995). Clearly, there are three important stakeholders in this scenario: the higher education institutions, the private economic sector (business and industry) and governments. These actors interrelate and affect important variables which include: education, employment and economic growth as illustrated in Figure 3.

Figure 1: Higher education, economic growth and employment.

Economic Sector

Higher Education

Institutions

Government

Employment

Higher

Education

Enrolments

Economic Growth

Figure 1: Economic Growth, Employment and Higher Education.

Figure 1 shows an illustration that most of the higher education enrollment is affected by the incentives to attend college by the governments, higher education institutions and business and industry. In the same way, economic growth and employment is affected by the interaction of the three variables. Employment is an influential factor. For instance, Maski and Wise (1972) in their analysis of almost 23,000 seniors from the national longitudinal study of the high school classes of the USA in 1972 found that students are very responsive to tuition, scholarship and alternative employment opportunities in deciding which college to attend. Salaries given by industry are also highly related. This sensitivity to the issue of monetary considerations is crucial: Willis and Rosen (1979) estimated that a 10 % increase in starting salaries induced almost a 20 % increase in college enrollments. In general, college enrollments respond to the pecuniary net returns from investing in tertiary education. We now further attempt to examine in detail the relationship between economic growth and employment.

The Relation between Economic Growth and Employment

Generally studies (Kapos, 2005 and Dopke, 2001) have shown that between economic growth and employment there is a positive and strong relationship, implying that economic growth generates new jobs, but of different intensity from one period to another and from one country to another. This clearly reflects the different response of the labour market to the economic growth process. Schmid (2008) posits that, the economic growth (GDP growth -aggregate production) should be treated as reaction to the aggregate demand growth, and can be achieved in different ways. This could be through quantity of inputs (labour force, capital, etc) when they increases and then it is easier to talk about extensive growth, or the productivity of production factors increasing (intensive growth), or a combination of the two possibilities (Ibid, 2008). Combining employment (the extensive side of economic growth) with labour productivity (the intensive side of economic growth) has been and will remain one of the most difficult problems of economic growth (Ibid, 2008). The relationship of inverse proportionality, which is set between productivity and employment in the economic activity, has the most different shapes, expressing the character of economic growth. In developing economies like Zambia, the relationship is even more troubling in that the bureaucratic political system often announces economic growth which does not translate in job creation.

In general, it appears research carried out on the effect of the economic growth process on employment starts from the hypothesis which tests a direct relationship between employment and economic growth, but of different intensity from one period to another and from one country to another. For example, the positive relationship between economic growth and employment is highlighted by the EU specialists (E. C., 1993) who showed that, at the European Community level, employment intensity suffered profound changes in the last 15-20 years, having had growth tendencies, under the conditions of a decrease in the employment threshold. In supporting this, Mourre (2004) offered estimative data on employment elasticities in the Euro area and the United States, covering the periods 1986 to 1990 and 1997 to 2000, he considered that employment elasticity in the Euro area increased from 0.4 to 0.6, whereas it fell from 0.6 to 0.4, in the US, between the first and second analysed periods. The author also researched on job intensity of growth in different economic sectors and noticed that the Euro-area’s market-related service sector exhibited very high employment elasticity between 1997 and 2001, which likely contributed to the rise in the region’s overall employment elasticity. Earlier on, Walterskirchen (1999) showed that there was a very close relationship between GDP growth and employment in EU, in the 1988-1998 period, under the conditions in which employment elasticity, compared to GDP growth, was of 0.8. As already alluded to, this relationship of economic growth and employment is still challenging to most researchers in education and economics. For instance, Akan (2008) observes that when the relationship between economic growth and employment is evaluated, the contribution of economic growth to employment in many countries is slower and some cases very difficult to quantify it. The contribution of economic growth to solution of employment-unemployment problems has been relative delicate is not misleading

The desire to expand decent and productive employment is at the heart of any nations’ macroeconomic policies geared towards poverty reduction (Akan, 2008; World Bank, 2010). In spite of its importance, the implementation of policies on employment creation in many developing nations like Zambia and South Africa just to mention but a few, has not yielded much impact as there is a wide gap between the jobs available and the number of job seekers actively seeking work in most of these nations. In these developing nations, not only is the level of decent jobs diminishing, the challenges of globalisation and economic liberalisation has brought about new realities having uncertain implications for employment creation in many developing nations (Ogunrinola and Osabuohien, 2010). The high rate of labour force growth especially the low and dwindling rate of formal sector job growth has made the labour market in developing nations to exhibit some peculiar characteristics (Ibid, 2010).

First is the widening of the informal sector where many who would have remained in open unemployment take up low-wage jobs or even self-employment while still hoping to pick up formal sector job when available. Second, the unemployed in the labour market in poor nations do not enjoy any form of unemployment insurance or any social benefit from the government. Third, the reported unemployment rates in official documents are usually very low due to high rate of disguised employment and underemployment in the informal sector. Fourth, self-employment, part-time employment, and unpaid employment in family enterprises have a disproportionate share in total employment (Ogunrinola and Osabuohien, 2010 p. 3).

Several empirical studies have been carried out to examine the nature and character of employment, Ogunrinola (1991) examined the issue of employment and earnings of the urban informal sector of Ibadan in Nigeria. The study found that the urban informal sector of Ibadan has contributed significantly to employment creation, skill development and entrepreneurial development. For instance, about 90% of the entrepreneurs were trained under the apprenticeship systems who were also involved in capacity development of others. Onwioduokit (2006) closely examined the link between unemployment and several macroeconomic variables in Nigeria and concluded that ‘the shift in the composition of unemployment in Nigeria since 2000 is very instructive as it has brought to the fore the inadequacies of the theories towards explaining the unemployment phenomenon in the country.

A number of empirical studies have been conducted in several different nations assessing the level of growth rate of the economic activity of the nation and employment generation. Swane and Vistrand (2006) examined the GDP versus employment growth relationship in Sweden. Using the employment-population ratio as a measure of the extent of employment generation, the investigation found a significant and positive relationship between GDP and employment growth. This finding supports the strand of theory suggesting that the positive relationship between GDP and employment is normal and that any observed jobless growth could just be a temporary deviation. The researchers made useful suggestion for further research on the causal relationship between employment and GDP. Yogo (2008) strongly argued that the employment issue in sub-Saharan Africa is mostly a matter of quality rather than quantity. He opines that, the reason for the observed weak employment performances could not be found in labour market rigidities; but that the observed increase of working poor could be explained by the weakness of economic growth over time. Walterskirchen (1999) examined the link between economic growth and the labour market which focused on employment and unemployment in the European Union. He found relationship between GDP growth and change in unemployment is divided into two components which were: changes in employment and unemployment rates governed by economic factors as well as those governed by demographic influences and labour market policies. He actively relied on time series analysis for individual EU country, while for all the countries he employed the use of panel data. The main finding of the study showed a strong positive correlation between GDP growth and change in the level of employment.

Sawtelle (2007) study estimated and compared elasticities in each of fourteen industry sectors of the US with respect to changes in real GDP during the ten year period of 1991-2001. The study further estimated that for each industry sector and the aggregate economy two models of employment determination. One of the models related employment to real GDP while the other related employment to several other macroeconomic variables affecting employment together with the real GDP. Since the demand for labour is a derived demand, the expansion of real GDP for instance generates increased derived demand for workers. The findings of Sawtelle (2007) are in line with those of Pandalino and Vivarelli (1997). Generally, studies have employed econometric research to estimate the elasticity of employment with respect to real GDP as well as to examine gender differences in employment cyclically.

We now explain why the higher education curriculum is crucial for economic growth and employability

Economy Growth and Employability as curriculum process

Employability refers to a person's capability of gaining initial employment, maintaining employment, and obtaining new employment if required (Hillage and Pollard, 1998). In simple terms, employability is about being capable of getting and keeping fulfilling work. More comprehensively, employability is the capability to move self-sufficiently within the labour market to realise potential through sustainable employment (Hind and Moss, 2011). For individuals, employability depends on the knowledge, skills and abilities they possess, the way they use those assets and present them to employers, and the context (e.g. personal circumstances and labour market environment) within which they seek work (Ibid, 2011).

In order to achieve the required competent level of education which will translate into labour or employees who will add value to the economy, there is need to have a well crafted curriculum. The curriculum should not be static but rather reviewed, revised and in some cases overhauled to meet the ever changing education and economic dynamics. Yorke (2003) argues that it is a mistake to assume that provision of experience, whether within higher education or without, is a sufficient condition for enhanced employability. To have work experience, say, does not, of itself, ensure that the student develops (further) the various prerequisites (cognitive, social, practical, etc.) for success in employment (Ibid, 2003). The same argument applies to whole curricula. The curricular process may facilitate the development of prerequisites appropriate to employment, but does not guarantee it. Hence it is inappropriate to assume that students are highly employable on the basis of curricular provision alone: it may be a good harbinger but it is not an assurance of employability, he argues. Employability derives from the ways in which the student learns from his or her experiences (Yorke, 2003). One very important factor that needs to be critically considered at this point is the Higher Education curriculum. Mulenga (2011:15) defined a curriculum as "all the selected, organized, integrative, innovative and evaluative educational experiences that are provided to the learner which can lead to the acquisition of desirable knowledge, skills, values and attitudes which can be best utilized for life in a changing society". The key words here are "best utilization for life in a changing society’.

At this time of rapid technological and social change, the curriculum of institutions of higher learning should be driven less by internal customs and more by external awareness. Higher education curriculum developers should track labour markets rigorously and respond to market changes quickly though the programmes that they offer. Institutions of higher learning should also focus on outcomes like employment patterns and regional economic competitiveness and not only on outputs like students’ enrolment growth and completion of educational programs. Sparks and Waits (2011) explained that governments and business leaders have to recognize that the production of college and university degrees and diplomas is not enough; instead these credentials must match the needs of the marketplace. Thus, higher education scholars, curriculum developers and policymakers should begin to move beyond having students to getting more "degrees" to asking "Degrees for what Job?" Kim and Kim (2000) reported that most economies in the world are facing gale-like market forces of rapid globalization, accelerating innovation and relentless competition. Thus if higher education is truly going to help drive economic growth, students’ academic success should be tied to the needs of the marketplace and not only to ensure that students get certificates but to also design their curriculum according to the needs of the society. Thus questions that would beg answers are that;

How do we know that the type of higher education that students are pursing is the one that they will be able to use in new jobs?

Are we producing degrees that provide the greatest chance to yielding the most benefit-for individuals, industry and the economy?

The answer to these questions lies in the curriculum development process that various institutions of higher learning follow. Given the longstanding independence and autonomy of higher education programmes the academic freedom that colleges and universities may enjoy, there is a danger in higher institutions of learning to provide a curriculum to learners that is alienated from the realities of the economic market. However principles of curriculum development provide a safe road map that can help curriculum developers in higher education to design relevant curriculum. Print (1993) recommended that the first step in curriculum development of any level of education is situational analysis. Situational analysis is a process of examining the factors that exist in the environment where the curriculum will be implemented. Thus if an institution of higher learning was to design a curriculum for medical doctors for instance, situational analysis would demand that the curriculum developer first analyses the knowledge, skills, attitudes, activities and values that a prospective medical doctor will need in order to work effectively in the contemporary and wider society. This analysis will then be the basis for the determination of programme objectives, selection and sequencing of content, learning activities and evaluation procedures. In this way higher education is likely to design more responsive curricular.

In the indigenous African society for instance Bishop (1985) explained that the purpose of education was clear. Functionalism was the main principle of education in which the African society regarded education as a means to an end and not as an end itself. Education was generally for an immediate induction into the society and a preparation for adulthood. It combined physical training with character building and manual activity with intellectual training. The curriculum was relevant to the needs of the society. Unemployment, if it existed at all, was minimal and very few young men roamed the villages and towns. However, the skills that workers must have to thrive in the 21st century economy are different from the skills that workers had to have in the past. To participate in the 21st century knowledge-based economy, students must increasingly be comfortable with critical thinking and problem solving, communication, collaboration, and creativity and innovation which is related to the needs and challenges that the labour market needs.

Even though it is essential for one to get a good job for living and education, after everything that has been spent on it, should help one in the process. However, higher education should also be viewed in the context of its role in advancement of human civilization. Human civilization is supported by research. Where is research without higher education? When we talk about research, we are not just referring to engineering and science but liberal arts and other disciplines affecting socio-political advances in our society. By cutting off research in higher education, we are going to stop human civilization from advancing to the next level. Thus, research skills should be an integral part of the higher education curriculum so that institutions of higher learning should not only offer routine programmes but give solutions to societal challenges through research conducted by staff and students. In this way higher education becomes the birth place of new ideas which might lead to economic growth.

Implications from the Reviews

Conclusion