The Contributions of Health, Education, and Income to Human Development in Ethiopia (1993-2003).

 

 

Mutasim Ahmed Abdelmawla Mohamed *

 

 

Abstract

 

The human development index (HDI) is based on three indicators: longevity, as measured by life expectancy at birth; educational attainment, as measured by a combination of adult literacy (two-thirds weight) and the combined first-, second-and third level gross enrollment ratio (one-third weight); and standard of living, as measured by real GDP per capita in dollar adjusted according to purchasing power parity (Human Development Report,1998).

    

Like many other African countries, Ethiopia is characterized by low human development. As captured from UNDP Reports, the human development index (HDI) does not reach (0.40). Thus, it is of paramount importance to shed the light on this issue. Furthermore, the importance of the study stems from the importance of human development in realizing economic development and welfare for the society.

 

This study attempts to examine, from an empirical point of view, the contributions of longevity (health), educational attainment, and decent standard of living to human development in Ethiopia over the period (1993-2003). In addition to that OLS growth rate of human development index will be computed.

 

The secondary data employed in the study are collected from official sources namely, Human Development Reports of the UNDP, besides Ethiopian publications.

 

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* Assistant Professor, Department of Economics, Faculty of Economics and Rural Development, Gezira University, Box 20, Medani, Sudan.

      E -mail:Abdelmawla2004@hotmail.com

 

1. INTRODUCTION:

 

Human development is defined as the development of the people for the people by the people. Development of the people means investing in human capabilities, whether in education or health or skills, so that they can work productively and creatively. Development for the people means ensuring that the economic growth they generate is distributed widely and fairly while development by the people means giving everyone a chance to participate. The most efficient form of participation through the market is access to productive and remunerative employment. So, the main objective of human development strategies must be to generate productive employment (Human Development Report,1993). El Tayeb (2003) argues that human development as a concept is easier to comprehend than to define or conceptualize. Generally, it is a process striving at the perpetual enhancement of the material and immaterial living conditions of the broad population base while sustaining or improving the environmental quality. It is thus a multi-dimensional process to which every human endeavor relates in one way or another, to this or that extent.

 

The human development index (HDI) is based on three indicators: longevity, as measured by life expectancy at birth; educational attainment, as measured by a combination of adult literacy (two-thirds weight) and the combined first-, second-and third level gross enrollment ratio (one-third weight); and standard of living, as measured by real GDP per capita in dollar adjusted according to purchasing power parity (Human Development Report,1998). It is clear from the above illustration that human development cares for social infrastructure represented in education and health (longevity).

 

Like many other African countries, Ethiopia is characterized by low human development. As captured from UNDP Reports, the human development index (HDI) does not reach (0.40). Thus, it is of paramount importance to shed the light on this issue. Furthermore, the importance of the study stems from the importance of human development in realizing economic development and welfare for the society.

 

This study attempts to examine, from an empirical point of view, the contributions of longevity (health), educational attainment, and decent standard of living to human development in Ethiopia over the period (1993-2003). In addition to that, disparities in human development between men and women will be discussed. No dount, inequities in the distribution of resources and the availability of economic and social opportunities among women due to gender biases and discrimination, decrease the prospects of socio-economical development.

 

The secondary data employed in the study are collected from official sources namely, Human Development Reports of the UNDP, besides Ethiopian publications.

 

The remainder of the paper is organized as follows: section (2) reviews the literature on human development indicators in Ethiopia, while section (3) illustrates the statistical methodology and data used in the study. Section (4) discusses the empirical results and policy implications of the findings. Finally, some concluding remarks are given in section (5).

 

 

2. HUMAN DEVELOPMENT INDICATORS IN ETHIOPIA:

 

 

For several decades, economists attempted at quantifying the vital role of human capital in determining the pace and structure of modern economic growth with special attention to education, productive skills, and health (Denison, 1967); Welsh (1970), Schultz (1975), and Schultz (1994).

 

Historical data from all regions along the second half of the twentieth century revealed evident improvements in educational and health attainment. Regardless, it is widely believed that the provision of such services is very poor in LDCs in general and specially in Africa (World Bank, 1997); African Development Report (1998), Jerome (1999) and Schultz (1994). In the following paragraphs we shed the light on education and health sectors in Ethiopia.

 

Realizing the positive role that education plays in the development of a society and reducing poverty, the Ethiopian government has adopted a new Education and Training Policy (ETP) in 1994. The document outlined the mission and goals of the new education system of Ethiopia to achieve the present and future national economic and social development goals. The policy focuses on increasing access to educational opportunities with enhanced equity, quality and relevance. This was the basis for the multi-year Educational Sector Development Program (ESDP) that stared in 1997/98 with the long-term goal of achieving universal primary education by the year 2015. The second phase of this program, ESDP II, was designed to span for three years covering the period 2002/03 to 2004/05.

 

According to (MOFED, 2002), the assessment of ESDP1 is as follows: In 2000/01 the pre-school children enrollment and number of kindergarten increased by 9.6% and 15.6% from previous year, respectively. However, the coverage of pre-primary education is still low and hence only 2% of the children between the ages of 4 and 6 were enrolled in 2000/01. Coverage of primary education as measured by enrollment in grades 1-8, showed a rapid expansion during the first four years of the implementation of ESDP I. The enrollment in primary grades increased from 4,468,294 in 1996/97 to 7,401,473 in 2000/2001, (in the fourth year of the implementation of ESDPI) against a target of 7 million students for the end of the ESDP I period. This constitutes annual rate of growth of 13.4% in enrollment during the four-year period under review.

 

The gender gap has narrowed in terms of both apparent and net intake rates in the four-year period under review. The impact of the gender gap in apparent and net intake rates is visible in the gross enrollment rates in first cycle primary level. The gender gap of 30.2 percentage points in favor of boys in 1996/1997 in GER for first cycle primary was brought down to 25.1 percentage points in 2000/2001. However, the gender gap for the whole primary (1-8) has remained constant at approximately 20 percentage points through out the four-year period of implementation of ESDP I. This gap is likely to show a declining trend in the future, once the impact of the narrowing of gender gap in apparent and net intakes move to higher grades of the primary schools. On the other hand, the urban rural disparity in primary enrollment has shown a declining trend. While the urban primary enrollment grew at an annual compounded rate of 7.7%, the annual growth in rural enrollment was 16.5%, more than double that of the growth rate for the urban areas of the country. Both student teacher and student-section ratios for primary grades (1-8) have increased over the four years between 1996/97 and 2000/2001.

 

The student teacher ratio increased from 42 at the beginning of the five-year period to 60 at the end of the four-year period under review – a 42% increase. During the same period, the student-section ratio increased from 57.2 to 70.0, overall increase of 22.4%. This figure shows that the pupil-section ratio is above the standard set (60), which again indicates shortage of classrooms. Attempts to reform the curricula in primary grades, in accordance with the goals of the Education and Training Policy began even before the advent of the ESDP I and continued during the ESDP implementation period. The emphasis of the curriculum reform was to design and develop learning materials that shall improve the problem-solving capacity of the students and to make them more productive members of the community who respect the human rights and democratic values 

 

The repetition rate for overall primary (1-8) schools has declined slightly. From a high of 11.9 % in 1996/97, overall repetition in primary grades has been brought down to 9.1% in 1999/2000. This declining trend in repetition rate is more pronounced in grade 1. From 16.7% in 1996/97, the repetition rate for grade 1 has declined to 10.6% in 1999/2000- approximately 57% reduction in three years. Primary 1-8 dropout rate increased from 15.7% in 1996/97 to 17.8% in 1999/2000, while grade 1 dropout rate decreased from 29.4% to 27.9% for the same period. However, what is important to note is that the dropout rates remain high especially for grade 1. One child, in every four, who enters grade 1, leaves the school before completing the grade

 

Regarding secondary education, a total of 55 new secondary schools were built during the first four years of the implementation of the ESDP I. The total number of senior secondary schools (9-12) went up from 369 in 1996/1997 to 424 in 2000/01, a 15% increase in four years or annual compounded rate of 3.5%. Total enrollment in senior secondary schools (9-12) increased from 426,495 in 1996/97 to 736,174 in 2000/01, a 72% overall increase in four years. This amounts to an annual compounded rate of 14.6%. This rate of growth is identical for both boys and girls. The gross enrollment rate (GER) for senior secondary, which stood at 8.4% in1996/1997, increased to 12.9% in 2000/2001, an over all increase of 4.5 percentage points. Gross enrollment rate for girls went up from 7% to 10.9% during the same period – at a slightly reduced rate than that of the boys. This has resulted in widening the gender gap between the boys and girls for GER. The gender gap increased from 2.9 percentage points in 1996/1997 to 3.9 percentage points in 2000/2001, in favor of boys.

 

The major bottleneck for secondary education remains availability of qualified teachers. Out of the total number (14,029), only 5127 or 36.9% of the teachers teaching in secondary schools in 2000/01 had a qualification equivalent to first degree or above. In 2000/2001, there were 13 government and 10 non-government Technical and Vocational Education and Training (TVET) Institutions in the country enrolling a total of 4561 students. Government run TVETs enrolled 2631 students while 1930 students were enrolled in non-government run TVETs. Of the total number of students enrolled, approximately 17% were females. Besides, there were 25 skill development centers functioning in the four regions. A total of 8156 trainees were enrolled in these centers, out of which 2486 (30.4%) were females.

 

The higher education sector witnessed rapid expansion during the four years between 1996/1997 and 2000/2001. Four new universities were established through amalgamating and elevating the status of the regional colleges and institutions. Five new private higher education institutions were accredited. To meet the manpower requirements of the economy, new professional training programs were started in education, engineering, health and business. Through the opening or expansion of higher education institutions, the enrollment in higher education institutions increased from 42,132 in 1996/97 to 87,431 in 2000/01, about 107.5% increase. Female enrollment as a percentage of the total has also increased from 20.2% in 1996/97 to 21.4% in 2000/01.

 

Ethiopia is known to have one of the lowest health statuses in the world. This is mainly due to backward socioeconomic development resulting in widespread poverty, low standard of living, poor environmental conditions and inadequate health services. Realizing this state of affairs, the Federal Democratic Republic of Ethiopia, embarked on a rapid economic development and a multi-pronged poverty reduction programmes. In line with this strategy, it took a number of measures in the health sector including the design of an appropriate sectoral policy, strategy and a twenty-year rolling health development programme. In response to the prevailing and newly emerging health problems as well as in recognition of the weaknesses of the existing health delivery system, the first phase of Health Sector Development Programme (HSDP I) was launched in 1998. It was developed in the context of a strong government commitment to democracy and decentralization, and was designed explicitly to respond to the health care needs of the rural population who constitute 85% of the total population. The sectoral programme demonstrates the priority that the Government accords to health, and backed by a firm commitment to allocate the necessary internal and external resources to facilitate HSDP implementation. On the other hand, the government launched the HSDP 1I to cover the period 2002/03 – 2004/05. The overall goal of HSDPII is similar to HSDPI and aims at improving the health status of the Ethiopian population. Important additions to the HSDP II are its re-focus on attacking poverty related diseases and the development and implementation of a “Health Extension Package” aimed at effective prevention and control of communicable diseases with active community participation. (MOFED, 2002).

 

Currently, 80% of the human population and 90% of livestock rely on some form of traditional healthcare systems. The government with the support the World Bank is implementing Health Sector Development Program aiming to increase primary health care access from 45 to 55-60%. Therefore, a large segment of the rural population will still remain without access to modern medicine and will continue to depend on medicinal plants and traditional healthcare practices. Medicinal plants are, however coming under threat in the country due to agricultural expansion, deforestation, overgrazing, drought, fire and over harvesting. Also the traditional healthcare knowledge is not being disseminated and is likely to be lost due to lack of preservation and documentation. In view of the importance of these resources, a project has been formulated to initiate support for conservation, management and sustainable utilization of medicinal plants for human and livestock healthcare in Ethiopia. The project’s specific objectives include strengthening institutional capacity to conserve both medicinal plants and the associated knowledge, promote safe utilization of medicinal plants, establishing national database for documenting information on medicinal plants and supporting in-situ conservation and management in the Bale Mountains National park area. The financial support of the project comes from the GEF and the World Bank. The government has also launched a national project on HIV/AIDS prevention with financial assistance from the World Bank on credit basis. A national technical committee led by the president has been formed to minimize the spread of the disease among the productive force of the country including women. In this line approximately 10-12 thousand high school students/youths are organized in anti-aids and mini-media clubs to create and/or raise awareness about the transmission and prevention of HIV/AIDs, which has became a development barrier (Zewdu, 2002).

 

The following health indicators are compiled from Human Development Report (2005).

 

Table (1)

Commitment to Health: Resources, Access and Services for Ethiopia

Indicator

Percentage (%)

Public health expenditure (% of GDP), 2002

2.6

Private health expenditure (% of GDP), 2002

3.1

Health expenditure per capita  (% of GDP), 2002

21

One- year- olds fully immunized against tuberculosis (%), 2003

76

One- year- olds fully immunized against measles (%), 2003

52

Births attended by skilled health personnel (%), 1995-2003

6

Physicians (per 100000 people) 1990-2004

3

Contraceptive prevalence rate (%), 1995-2003

8

 Source: Human Development Report (2005).

 

 3. STATISTICAL METHODOLOGY AND DATA:

 

As pointed out earlier, the ultimate objective of the present paper is to to examine, from anempirical point of view, the contributions of longevity (health), educational attainment, and decent standard of living to human development in Ethiopia over the period (1993-2003). Annual time series data were compiled from on human development reports for this purpose. Furthermore, these data are used to estimate the time trend of human development index. The trend estimate is based on the standard inverse semilogarithmic (log – lin) trend equation in the natural logarith (for detailed steps, see Onyenwaku and Ezeh, 1987, Mahran 2000, and Abdelmawla 2005).

 

In the next section we report the empirical results and policy implications of the findings.

 

4. THE EMPIRICAL RESULTS:

 

Using the data on human development indices (available on request from the author), the average contributions of longevity (health), educational attainment, and decent standard of living to human development in Ethiopia over the period (1993-2003) are calculated as shown in table (2) below.

 

Table (2): The Contributions of Human Development Indicators in Ethiopia (1993-2003).

Indicator

Average Share (%)

Health

35.95

Educational Attainment

34.37

Decent Standard of Living

29.68

Total

100.00

 

HDI in Ethiopia is very low which is estimated at (0.32) on average for the period (1993-2003). From table (2) we observe that The average contribution of longevity (health), education, and decent standard of living (income) for the same period are estimated at 35.95%, 34.37 %, and 29.68%, respectively. The low contribution of income may be attributed to backward socioeconomic development indicators resulting in the decrease in real per capita income in Ehiopia, widespread poverty and  high unemployment rate. On the other hand, the inequality in the distribution of income has increased poverty rates. The results shown in table (2) also indicate that the improvement in the conditions of the natives during (1993-2003) was mainly due to the increase in the contributions of health and education. This signifies the importance of investing in human capital, which in turn will lead to increase in per capita income. Besides, improving the standard of living through income and food supplements and poverty eradication strategies are highly important.

 

By applying (OLS) technique to the data for the variable of our interest, we estimated the trend equation for the human development index in Ethiopia over the period (1993-2003). The estimation results are given below, where the figure between brackets is the t-ratio of the estimated trend coefficient.

 

Table 3: Estimated Exponential Function for Human Development in Ethiopia (1993-2003).

Variable

Constant a

Trend Coefficient b

R2

D.W.

Growth (%)

HDI

-1.29

0.025

(3.07)

0.57

 1.58

1.03

 

  Source: Own Calculations.

 

From the estimation results above we observe that HDI in Ethiopia exhibited a positive trend over the period (1993-2003). Furthermore, the trend is statistically significant at 1% level. After solving the auto-correlation problem for the estimated eguation, the Durbin – Watson statistic indicates the absence of serial correlation problem at 1% level.

 

HDI grows at 1.03% per annum, which is very low. Thus, allocating more resources to improve social infrastructure namely health, extension, education, …etc will impact positively on human development and poverty reducing.

 

5. CONCLUDING REMARKS:

 

This paper examined the contributions of longevity (health), educational attainment, and decent standard of living to human development in Ethiopia over the period (1993-2003). In particular, the study focused on calculating the average shares of these indicators besides computing the least squares growth rates of human development index. The secondary data employed in the paper were collected from Human Development Reports. The empirical results of the study reveal that HDI in Ethiopia is very low which is estimated at (0.32) on average for the period under study. The average contributions of health, education, and decent standard of living are estimated at 35.95%, 34.37 %, and 29.68%, respectively. HDI grows at 1.03% annually.The study recommends allocating more resources to invest in human capital, which in turn will lead to increase in per capita income. Besides, improving the standard of living through income and food supplements and poverty eradication strategies are highly important.

 

REFERENCES:

 

Abdelmawla, M. A. (2005): “Gender Gap in Human Development and its Impact on Economic Growth: The Case of Sudan (1990-2003). OSSREA 16th Gender Issues Competition, Addis Ababa, Ethiopia.

 

Human Development Reports, various issues.

 

Mahran, H. A. (2000): “Food Security and Food Productivity in Sudan, 1970- 1995”. African Development Review, Vol. 12 No.2.

 

Onyenwaku, C. E. and Ezeh, N. O. (1987): “Trends in Production, Area, and Productivity in Nigeria”, National Roots Crops Research Institute, Umuolik, Nigeria.

 

Schultz, T.P. (1994) “ Human Capital Investment in Women and Men: Micro and Macro Evidence of Economic Returns”. Occasional Papers No (44). International Center for Economic Growth. San Francisco, California, U.S.A.

 

Schultz, T.W. (1975): “ The Ability To Deal With Disequilibria”, Journal of Economic Literature 13: 827-46

 

Zewdu, M.(2002):" Sustainable Development in Ethiopia”. Report of Assessment of Activities and Issues relevant to the review process of the Earth Summit 2002 in Ethiopia.

 

Ministry of Finance and Economic Development, Ethiopia (MOFED, 2002) :

“Sustainable Development and Poverty Reduction Program”. Addis Ababa, Ethiopia.