The Role of Skill Development and Higher Education in Economic Growth

For shaping the future of state, government is promoting skill development centers and higher education centers. Some major expansion has been done by state government in the field of higher education. Engineering colleges have become the prime center for nurturing talent. Top engineering colleges are busy in producing talented engineers year after year.

Role of Higher Education: Higher education plays a key role in the development of any country, state or region. The chance of economic growth of any state is as good as the pool of their skilled people. No plan of economic development can succeed without skilled people, as economic development depends a lot on the quality of resources they have.

When it comes to higher education shaping the economic development in any state, engineers play a key role. Since infrastructure development is a key thing for economic boost of the state; hence, engineers become vital as they play key role in the construction of roads, bridges, hospitals, schools, railway tracks and many other things.

Higher education also helps in shaping the future of people as skilled people not only get good employment opportunities they also create employment for other as well. Skill development program has helped people to become self-reliant and financially independent.

Roles of Higher Education Institutions: Role of educational institution has changed a lot over the years, unlike the earlier years where most colleges and universities focused on traditional courses, nowadays these higher education institutions offer different programs which not only help them develop certain skill sets but also these programs are designed according to the need of corporate sector, the aim is to groom youngsters in such a way that they become industry ready.

For years Indian educational system was considered as a system which could only produces clerks and it has changed a lot. Nowadays engineering and management has become the preferred choice of the youngsters. Higher education institutions also focusing in developing more entrepreneurs these days in this way they help state government to resolve the issue of unemployment. Skilled people create their own employment rather than someone who holds a degree and wait for someone else to provide him or herself employment.

The number of educational institutions is growing every year with private institutions and universities making their impact as well. With growing demand of quality engineers and management graduates number of institution and universities has started mushrooming. One needs to be very careful while selecting from engineering colleges.

Higher Education as Service Trade Exporter In South Africa

Introduction

Whilst it is recognized that South Africa is still in a process of transition regarding higher education to address the imbalances of the past, it should also be emphasized that Institutions of Higher Education in large are still underplaying the importance of higher education as commercialized commodity in the global world. This resulted in a low commercial higher education presence in the global world, a limited capability to attract quality students from foreign countries and a national oriented education approach. Even the school law that will soon be introduced in South Africa to address the imbalances of the past may have a negative effect of institutions of higher education to play a significant role in the commercialized educational world. The proposed new law emphasized adherence to the principles of equitability, rectification and representativeness above competence in the appointment of teachers. This may undermine the quality of education firstly, in schools and later in institutions of higher education in South Africa.

This is in sharp contrast with international trends signaling that the international higher education market is becoming more competitive as education competes as export and import commodity. Figures available indicate that higher education export represents on average around 6.6% of total student enrollments in 2000. This figure can still not be matched b South African Institutions 5 years later. In countries like Switzerland, Australia and Austria these figures were above 11% in 2000 making these countries the highest internationalized higher education countries in the world. Similarly, educational services in Australia, New Zealand and the United States of America respectively represent the third, fourth and fifth largest service export sectors. This clearly provides evidence that these countries realize the significance of higher education to transfer intellectual capital and enhance the economic competitiveness of nations.

Interventions required

It is important that Institutions of Higher Education in South Africa position themselves as nodes in an increasingly seamless knowledge base in the global world, which could have a greater interface with the knowledge-driven global economy. Therefore, Institutions of higher education in South Africa should given even more attention to integrate with influential international institutions that will enable them to internationalize higher education.

Currently, internationalization of higher education in South Africa happens more by incident rather than through thoroughly planned and organized approaches. If institutions of higher education in South Africa intend to consider higher education as a commercial trade commodity, serious emphasis should be place upon:

· Introducing purposeful policies and strategies that clearly indicate the road forward with regard to internationalization intentions and the specific areas that would need priority attention. However, this should not be developed as separate internationalization strategies, but should e seen as a natural element of the overall strategy of the institute.

· Implementing induction and course programmes that will attract quality foreign students to the institutions.

· Supporting academics to participate in conferences as well as in reputable academic journals to publish research results.

· Ensuring that all course offerings meet international accepted criteria as defined by the leading institutions of higher education in the developed world.

· Creating conducive learning environments equipped with the latest learning technologies.

Internationalization requires that institutions of higher education in South Africa should emphasize a somewhat loosening of the relationship with Government to create new transformational bodies to address the imbalances of the past, but also to broaden this mission to play a more active role in regional economic development. This can be achieved by establishing strong horizontal links with other universities research institutions and industry in the Southern African Development Community. If this can be achieved, the activities of institutions of higher education will no longer be isolated from the marketplace and its outputs could become merchandise products as well. Loosening the relationship with government will not only provide for more freedom to autonomously decide what educational and research outputs to create, but will also increase the pressure on institutions of higher education to perform better as they take up the responsibility to raise funds for projects and salaries.

It is imperative that higher education in South Africa can no longer take the disposition that placed research and development in contrast to one another. Rather, it should take the stand that the outputs of institutions should have a strong:

· Social development and application in which the simultaneous promotion and integration of education, scientific research and production occurs;

· Science and Technology Financial Management Support System in place in order to create a safe and secure research environment for academics; and

· Set of ” Key State Laboratories” where research and education of strategic importance to the development and well-being of the country can be carried out.

Conclusion

South Africa institutions of higher education currently rated only among the top 40 of the world’s host countries. An urgent need exist to rethink and reformulate the educational thinking models of institutions of higher education in South Africa. Because of the changing political situation accompanied by a changing global economy, many traditional ways in which institutions of higher education were previously governed will change. Unless institutions of higher education in South Africa succeed to internationalize successfully, huge opportunities to earn foreign currencies using higher education as a trade commodity will be lost.

Commercialisation of Higher Education in South Africa

Introduction and Literature Review

South African education policies place priority on addressing historical education imbalances, but should also be sensitive to the demands of an ever-increasing global knowledge-driven environment. The educational system cannot be dominated by the needs of the domestic educational system of South Africa ignoring the trends exerted by the global world (OEDC Annual Report, 2004:44). Higher education in South Africa should realize that they operate and function in a knowledge-driven global environment in which both domestic and foreign students demand access to the best quality education at the best reputable institutions of higher education in the world.

In this regard, most definitions of internationalization of higher education include the following: “Internationalisation is a process that prepares the community for successful participation in an increasingly interdependent world … The process infuse all facets of the post-secondary education system, fostering global understanding and developing skills for effective living and working in a diverse world” (Francis, 1993 cited by Patrick, 1997).

The position of higher education in South Africa should be evaluated considering the re-integration of South Africa into the global community. South Africa was rapidly re-integrated into the world community by obtaining almost immediate membership of influential international organisations after 1994. Kishun (1998:59) indicated that South Africa became a member of among others the following international institutions: United Nations; Organisation of African Unity; Commonwealth; International Olympic Committee; Federation of International Football Associations; and Lome Convention. Integration of influential international institutions is a necessary but not sufficient pre-condition for internationalization of higher education. Sustainable internationalization should be closely aligned to the emerging global trends and events in the education sector.

An analysis of the basis on which internationalization of higher education occurs is needed as well as the benefits of the internationalization process. This research is conducted against this background.

Problem Statement

Whilst South Africa is in a process of transition regarding higher education to address the imbalances of the past, the question arises whether the South African educational sector is able to compete in the global economy which regard knowledge as a commercialised commodity.

Methodology

A sample size of 781 respondents from six institutions of higher education in South Africa was selected. Senior students were randomly selected using the convenience sampling technique. A semi-structured questionnaire was developed to measure the perceived competitive profile of institutions of higher education in South Africa. The questionnaire constitutes five measuring foci, namely:

· Section A: Institutional information regarding the location where the respondent is enrolled.

· Section B: Biographical information in terms of gender, type of student and country of origin.

· Section C: Decision criteria used to select an institution of higher education.

· Section D: Four competitive dimensions of higher education institutions, including strategic competitiveness, institutional competitiveness, product competitiveness, and tactical competitiveness.

· Section E: Open-ended questions, aimed to identify the reasons why respondents choose a specific institution of higher education, their opinion on the institution’s competitive reputation, and the factors that may influence the international competitiveness of the particular institution.

The data was transformed into two opposite categories, namely those who agreed with the statements and those who disagreed, enabling the researchers to derive a hypothesized agreement-disagreement distribution. Those who neither agreed nor disagreed were allocated to the disagreement group set giving and expected disagreement response set of 57% (p=0.57) and an agreement response set of 43% (q=0.43). The Binomial test was employed to determine whether the observed distribution correspond with the hypothesized distribution using a significance test level of 0.05. Furthermore, the level of agreement or disagreement with the selected competitive statements and the extend of agreements between the respondents from the different institutions on the various statements were determined by executing four statistical procedures, namely: ANOVA to compare the means of respondents from the different institutions; determining how much of the perception variation could be accounted for by the influence of the different institutions of higher education; determining the averages for each strategic dimension to obtain an indication of the level of agreement with the competitive statements; and determining the standard deviations to obtain an indication of the extend to which consensus exists within the sample.

Findings

With regard to the strategic competitiveness of South African institutions of higher education to engage in a seamless network the respondents were of the opinion that South African institutions of higher education give low priority to attract foreign students, are not well known for attracting foreign students, are not actively involved in exchange programmes of students and lecturers, and do not have active engagements or agreements with other tertiary institutions, businesses and communities.

On the issue of institutional competitiveness, the majority of respondents were of the opinion that institutions of higher education in South Africa have the ability to attract quality students, does not have an international student culture, offers qualifications that are internationally accepted, can claim international reputability on post-graduate level, offers competitive tuition fees, deliver research outputs that are internationally recognized, and are not easily accessible.

In terms of product competitiveness the majority of respondents indicated that institutions of higher education in South Africa have active orientation programmes to familiarise foreign and domestic students with the institutions, provide safe and secure learning environments, provide leading information technology for academic growth and excellence, do not easily adapt to the needs and wants of students, and provide convenient service packages to students.

With regard to tactical competitiveness institutions of higher education in South Africa have the ability to compile a diploma or degree offering that meets or exceeds international standards in terms of offering subject content of international standard, having internationally acclaimed staff, aggressively marketing its qualifications internationally, claiming international acceptable through-put, and having acceptable grant and loan schemes accessible to students.

Conclusion and Recommendations

The majority of respondents are in agreement that institutions of higher education in South Africa are able to compete internationally on the four competitive dimensions (strategic, institutional, tactical and product). Internationalisation requires that institutions of higher education in South Africa should emphasise a somewhat loosening of the relationship with Government, despite the paradoxical need to create new transformational bodies to address the imbalances of the past. Internationalisation of higher education implies that internationalised institutions operate on new super ordinate levels which has its own legal, administrative and revenue-raising powers.

In terms of strategic direction institutions of higher education might consider at least one of the following internationalization approaches:

· “Would-be internationalization”: Applies to academics and institutions wanting to be involved in internationalization but facing problems in being considered on equal terms.

· “Life or death internationalization”: Countries, their academics and institutions, which view internationalization cooperation as indispensable for their status and role in the global world.

· “Two areas”: Academics and institutions have the option of striving for either more national or more international status and orientation. The academic field in which one is operating often determines this.

· “Internationalisation by import”: Countries and institutions that treat internationalization only as coming from outside, by hosting foreign students and publishing research. It should not represent a separate strategy towards internationalisation.

References

Kishun, R. 1998. Internationalization in South Africa. In The globalization of Higher Education. Scott, P. ed. Buckingham: Open University Press.

OECD Annual Report. 2004. Education. p.41-45.

Patrick, K. 1997. CSDF project full report: Internationalising the University. Melbourne: RMIT.

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