Human resource development and Africa's economic growth: Perspectives for policy planning in Kenya

Rapid economic growth and improving living standards have benefited almost all regions of the world since the industrial revolution. Africa stands out as one regional exception. While several factors have been associated with poor economic performance of the African region in the international community, the main focus of this research was to explore the role that human capital should play in improving the regions economic productivity. The study identifies the link between human resource development produced by formal schooling and economic growth, measured in per capita terms. The hypothesis that per capita growth through labor productivity is a determinant of human resource development through education was confirmed. Also confirmed was the hypothesis that human resource development is a determinant of per capita growth. The hypothesis that physical capital contributes to economic growth was also confirmed. However, this study rejected the hypothesis that physical capital investment contributes to human resource development. Lagged investment in physical capital was however accepted as a determinant of human resource development produced by formal schooling.; Public expenditure in education therefore presents especially important link in determining the strength of the relationship between human resource development and economic growth. A dynamic perspective on the relationship between human capital and economic growth is explored on the case of economic priorities and education in Kenya. Areas of policy concern are discussed, ranging from demand, supply, relevance, and efficiency of human capital formation through schooling. Unemployment and underdevelopment puts Kenya at crossroads in terms of the economic and educational policies pursued by the government. Key conclusions are that the productivity resulting from investment in education is of prime importance to per capita growth of Africa. However, expanded human capital must be accompanied by equal expansion of employment opportunities resulting from increased investment in physical capital. This way education enjoys the equilibrium of being a consumption and an investment at the same time. Governments of African nations must also take the advantage of the endogenous growth spillover currently generated by the knowledge saturated industrial economies, and avoid “stop-go” educational and economic policies.