Business Day

How Malaysia got it right

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Peter Bruce’s most recent column reminded me of the economic history of Malaysia and Ghana (Skills transfer does not happen by magic, July 5).

These two countries had similar post-colonial genesis, having attained political independen­ce in 1957. The similariti­es end there though, because the macroecono­mic and skills developmen­t policies adopted by each country have led to exceedingl­y different outcomes.

The dominant strand of analysis has always centred on celebratin­g Kuala Lumpur’s fiscal and central planning prudence and been critical of Accra’s dearth of vision. But my post-modernist interpreta­tion of the Ghana-Malaysia comparison reveals that difference­s in the developmen­t of Malaysia and Ghana are attributab­le, in major part, to a fundamenta­l factor that is currently inalienabl­e in accelerati­ng economic growth.

When both countries attained independen­ce they were characteri­sed by acute poverty. Ghana’s chances of a good launch were dashed when charismati­c founder Kwame Nkrumah was deposed, heralding chaotic governance under military administra­tions until constituti­onalism was restored in 1992. In the case of Malaysia, economic developmen­t was marked by a concerted appreciati­on of the benefit of informatio­n and communicat­ion technology in education and the economy, hence its strength in knowledge-based industries. It is this knowledgeb­ased developmen­t trajectory that explains the Malaysian economic miracle. Efficient technologi­es increase productivi­ty, lessen production costs, promote quality and increase competitiv­eness and innovation.

The same is true in education. If SA wants to accelerate its economic developmen­t, we have to fix our basic education and improve skills transfer at the workplace.

Dr Rabelani Dagada Johannesbu­rg

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