most African countries have reached a critical point, where demographic pressures necessitate a rapid transformation in their economies. These countries must transition from a subsistence-based,...

most African countries have reached a critical point, where demographic pressures necessitate a rapid transformation in their economies. These countries must transition from a subsistence-based, largely informal economy into a modern and dynamic one, where skill formation takes precedent in public policy. Repeated surveys suggest that a lack of skill remains one of the most important constraints that firms face in order to remain competitive and dynamic. Current trends show that most African countries have weak post-secondary and higher education institutions. The unemployment rate among the educated, and particularly the well-educated youth, is very high in most urban areas. This situation undermines the argument in favor of increasing the supply of higher education, as it could be contended that the supply of educated workers already outpaces demand. However, the intention of reform is not simply to increase the supply of people with higher education, but to carefully tailor their training to meet the specific demands of the private sector.

in most developing countries the majority of people who complete secondary or tertiary education come from families already in the top 20% wealth bracket, it may be that more secondary or tertiary education could lead to even greater inequality, particularly in the short term. in the very long term, intuition and evidence seem to suggest that higher education can help reduce inequality, if labor markets remain stable and economic growth continues uninterrupted.

If governments do not expand opportunities to people from poor families to rise out of poverty through educational

means, then existing inequality could widen even further.