By

Professor Abubakar A Rasheed, mni, OFR Vice-Chancellor, Bayero University, Kano

At

2014 TETFund Strategic Planning Workshop

Tuesday, September 16, 2014

Protocol

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Introduction … Appreciation to TETFund for the Workshop

Workshop important for appraising the past & analysing the future

This year’s workshop different from previous ones: At the time when all strikes by academic staff are over

Govt. has made highest commitment to higher (HE) education, arising from Needs Assessment Recommendations

HE landscape changing as response to need to expand access to education

Nigeria needs intervention in HE now more than ever –knowledge main driver of economic growth; Nigeria looking up to us for direction

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… Introduction Appreciation to organizers for allowing modification of topic to

TETFund and Nigeria’s Transition to Knowledge Economy Aim: To establish connection between TETFund’s activities and

Nigeria’s move towards knowledge-driven economy i.e., Relationship between investment in higher education and

the production of well-educated workforce. 60% of developing world workers are knowledge workers, with

remarkable contribution to GDP; Appreciation of connection between HE and economic success

has led to rethink of TEIs and lifelong learning in devd countries, with universities regaining position as drivers of change

To establish connection between TETFund intervention , HEIs & k-economy, I will appraise areas &nature of TETFundinterventions; and the impact they ought to make in HEIs

To start with overview of changing roles of HEIs K-economy to be treated evolutionarily & revolutionarily To conclude with some recommendations for policy fine-tuning

for catalyzing TETFund-induced k-economy for Nigeria.

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K-Economy and Development Cascading effects of genetic, digital & knowledge

revolutions being felt globally,

Knowledge recognized as main driver of productivity and economic growth

Powell and Snellman: KE is the “production and services based on knowledge-intensive activities that contribute to an accelerated pace of technical and scientific advance, as well as rapid obsolescence. The key component of a knowledge economy is a greater reliance on intellectual capabilities than on physical inputs or natural resources”

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…K-Economy and Development Studies established strong correlation between KE and

all aspects of development.

World Bank compared Korea with Ghana over 50 years.

Same baseline per capita GDP of $2,000 in 1999

Korea’s grew to $13,000 by 2004, Ghana’s unchanged

30% of difference due to growth in labour and capital in Korea; 70% to TFP, or knowledge accumulation in Korea

World Bank Institute also showed quadratic correlation between a country’s KEI score and its current economic performance

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K-Economy and DevelopmentGDP Growth in South Korea and Ghana over 50 Years

Source: World Bank Institute (2007:4)17 September 2014 7

… K-Economy and DevelopmentK-Economy and Current Economic Development

Source: World Bank Institute (2007:33)17 September 2014 8

Tertiary Education and K-Economy

4 Pillars of K-Economy (World Bank, K4D programme):

1. An economic and institutional regime

2. An educated and skilled population

3. An efficient innovation system

4. A dynamic information infrastructure

Measures/indices of KE

Three key variables used for each pillar

Knowledge Index (KI): Average of a country’s normalized scores in three pillars (excluding No. 4)

Knowledge Economy Indicators (KEI): Measures the performance of a country on all four pillars

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Knowledge Indexes (WB, K4D)

Source: http://www.worldbank.org/kam

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KEI for Nigeria and Some Countries

Overview of the new medical complex

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Country World

Rank

KEI Economic

Incentive

Innovation Education ICT

Recent 1995 Recent 1995 Recent 1995 Recent 1995 Recent 1995

Ireland 11 8.86 8.95 9.26 9.19 9.11 9.06 8.87 9.02 8.21 8.53

USA 12 8.77 9.53 8.41 9.30 9.46 9.55 8.70 9.44 8.51 9.84

UK 14 8.76 9.09 9.20 9.38 9.12 9.40 7.27 8.44 9.45 9.13

Singapo

re

23 8.26 8.40 9.66 9.62 9.49 9.05 5.09 5.94 8.78 9.00

S Korea 29 7.97 8.16 5.93 6.93 8.80 8.22 9.09 9.13 8.05 8.34

Malaysi

a

48 6.10 6.26 5.67 7.16 6.91 6.28 5.22 4.62 6.61 6.98

Russian 55 5.78 5.67 2.23 2.60 6.93 5.64 6.79 7.84 7.16 6.60

Brazil 60 5.58 5.08 4.17 4.83 6.31 5.98 5.61 3.35 6.24 6.17

South

Afr

67 5.21 6.05 5.49 3.74 6.89 7.26 4.87 6.33 3.58 6.89

China 84 4.37 3.99 3.79 3.46 5.99 4.07 3.93 3.68 3.79 4.77

Algeria 96 3.79 3.50 2.33 1.85 3.54 3.41 5.27 3.88 4.04 4.87

Egypt 97 3.78 4.68 4.50 4.14 4.11 5.08 3.37 4.64 3.12 4.87

Indones

ia

107 3.11 3.68 3.47 4.08 3.24 2.38 3.20 3.07 2.52 5.20

India 109 3.06 3.57 3.57 3.57 4.50 3.70 2.26 2.51 1.90 4.50

Ghana 112 2.72 3.12 4.05 3.27 2.24 2.60 2.68 2.43 1.93 4.18

Nigeria 118 2.20 2.53 1.26 1.22 2.56 2.67 1.62 2.06 3.35 4.18

Camero

on

132 1.69 2.48 1.21 1.05 2.61 2.92 1.39 1.78 1.56 4.18

Nigeria’s Performance in Key KEI Parameters

Nigeria has very low scores in most of the parameters used to compute KEI Gross Tertiary Enrolment = 1.5/10

Royalty Payments almost 0/10

Rule of Law almost 0/10

Regulatory Quality almost 0/10

Highest score is in Internet users (7.5/10)

KEI score dropped from 2.53 in 1995 to 2.20 in 2004!

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Nigeria’s Performance in Key KEI Parameters

Source: http://www.worldbank.org/kam

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Tertiary Education and K-Economy

TEIs have important roles to play in K-economy creation

They cannot do it alone, but can assist in each of the four pillars

Roles more pronounced in 2nd and 3rd pillars

Analysis of parameters show they are closely related to education

Education landscape of Korea changed during the period of its transformation, from 1970 to 2003, enrolments in …

Middle school increased from 38% to 90%

High school increased from 20% to 88%

University increased from 6% to 60%

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Tertiary Education and K-EconomySchool Enrolment in South Korea (1970 to 2003)

Source: World Bank Institute (2007:45)

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K-Economy and Education Economic growth today determined by country’s

investment in education, particular R&D

Comparative advantages among nations come less and less from abundant natural resources or cheap labour and increasingly from technical innovations and the comparative use of knowledge – or from a combination of the two, as is illustrated by the success story of Bangalore, the capital of the India software industry (World Bank, p.8).

Society not defined by natural resources, but by ideas

Nordstrom & Ridderstrale: In 1998, Norway had $17 billion case in their old foundation, the dividend of 30 years of oil production in the North Sea. However, it is not as huge as the market valuation of amazon.com, the Internet bookstore started in 1995 valued at $23 billion in 1999. Yahoo is worth $34.5 billion, (p.114).

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K-Economy and Education Nordstrom & Ridderstrale: The new champions will be the IWCs – Idea

Generators Without Capital and the losers will be known as CWIs –Capitalists Without Ideas (Talent Makes Capital Dance”, p.239.

Enriquez (Winston Churchill’s Prediction): Rich countries no longer need great deposits of gold or diamonds… or an abundance of land… or millions of people… They need to educate their population. They need smart and entrepreneurial people, no more no less… They need a government that provides economic and political stability. In the past centuries, when economic development was dependent on agricultural production or on massive industrialization, having a lot of natural resources and a lot of land was an advantage… Today it is a disadvantage.

Enriquez: Many scholars have focused on corruption and mismanagement. But this is only part of the story. Natural resources provide a temptation to exploit them first, accumulate capital, and then educate people. But this logic is non-functional in a global economy where we produce more for less.

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TETFund: Lifeline for HEIs in Nigeria TETFund established, initially as ETF, by Act No. 7 of 1993,

as amended in 1998 and 2011

Mandate: To rehabilitate, restore and consolidate education and educational infrastructure through funding interventions and effective project management

Act imposes 2% Education Tax on assessable profits of registered companies, collected by FIRS

Tax collected administered by the Fund and deployed to all benefitting public (Federal and State) institutions

Allocations defined by the Act

Fund also monitors collection of Education Tax by FIRS and project execution by beneficiaries

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TETFund: Lifeline for HEIs in NigeriaCore Areas of Intervention by TEFTund:

Provision of infrastructure and improvement of facilities;

Capacity building: Postgraduate staff development and conference attendance;

Library systems development;

Research Grants and Academic Journals Publication support;

Equipment procurement and maintenance;

Information and communication technology;

Higher education book development;

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TETFund: Lifeline for HEIs in Nigeria Fund addresses any imbalance in enrolment mix between HEIs

Fund also addresses other needs which are critical and essential for improving quality and maintaining standards

Intervention funds can only be used for infrastructure for teaching & learning, provision of learning resources, staff training, and research funding

Interventions made based on equality-of-institution and equality-of-state criteria. Monies allocated equally among institutions in each tier

States treated as equals, irrespective of No of institutions

Fund does not award contracts. Benefiting institutions prioritize areas of needs within core areas defined by the Fund and follow defined procedures for fund release.

TETFund a huge success. Giant strides made, and continued to be made is all areas of intervention.

Projects dotted in all states in over 300 institutions.

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Conclusion My Argument: Nigeria needs to pay more attention to

the provision of quality and relevant education to its citizens.

Nigeria can fully join the developed world if it educates its population well and create a knowledge-based economy.

We cannot continue to depend on natural resources

This is where TETFund’s interventions aimed at turning around our HEIs, and building a K-economy and K-society.

As critical stakeholders, all VCs, Provosts, and Rectors must resolve to support Nigeria’s transition to a knowledge-based economy.

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Thank you very much

for your attention

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