The relationship between economic freedom and quality education is clear. Nations that uphold free-market principles and implement free-market policies achieve greater success in equipping their citizens with the knowledge and skills needed to thrive. 

Mauritius, the African country with the highest economic freedom (as measured by the Fraser Institute’s Economic Freedom of the World (EFW) Index), exemplifies how these principles can lead to a robust education system. 

In contrast, South Africa’s heavily centralised system continues to fail its students, hampered by inefficiency, mismanagement, and the influence of the South African Democratic Teachers’ Union (SADTU), along with policies like the new Basic Education Laws Amendment (BELA) Act. The consequences of this failure are stark: South Africa faces a youth unemployment rate exceeding 60%, one of the highest in the world, while Mauritius, with its market-aligned education system, maintains a youth unemployment rate of under 20%. This contrast underscores the need for reforms that equip students with practical skills and align education with economic needs.

Economic Freedom and Education: A proven connection

Globally, countries such as Singapore, Switzerland, and Hong Kong rank highly in both economic freedom and educational excellence. Their education systems perform well in international assessments, offering rigorous academic standards and preparing students for competitive global markets. Similarly, Mauritius—ranked 17th globally for economic freedom—has developed an education system that equips its youth with the tools to succeed.

Mauritius’s education policies reflect its embrace of free-market principles, enabling the country to produce job-ready graduates who meet the demands of its economy. Competition between public and private schools fosters innovation and encourages high standards. The government collaborates with private institutions to ensure broad access to education while maintaining efficiency and quality. Technical and vocational training programmes are well integrated into the system, ensuring that students develop practical skills aligned with the needs of the economy.

In South Africa – ranked 81st in the 2024 EFW rankings – the education system remains plagued by inefficiency. Despite significant government spending, literacy rates and mathematics proficiency are catastrophic, and many if not most students leave school ill-equipped for employment. Centralised control, which will be increased by the BELA Act, further entrenches inefficiencies, removing critical decision-making powers from school governing bodies. Instead of empowering schools to address their unique challenges, this policy strengthens bureaucratic control, undermining the accountability and responsiveness required by a modern education system.

SADTU’s role in South Africa’s poor education system

SADTU’s influence over the education system has exacerbated many of its problems. The union claims to advocate for teachers’ rights, but its actions undermine accountability and prevent performance improvements. SADTU’s resistance to measures such as teacher performance assessments and school autonomy has hampered efforts to raise education standards. Its complete dominance reinforces the centralised control that policies like the BELA Act seek to entrench, further stifling the competition and transparency needed to improve schooling.

Mauritius’s approach stands in stark contrast. There, accountability and competition are central to the education system, resulting in schools that operate efficiently and effectively. The country’s private and public sectors collaborate to address educational challenges, creating an environment where students are better prepared for the future.

Lessons for South Africa

To improve its education system, South Africa can draw lessons from nations like Mauritius. Several steps are crucial:

  1. Introduce Choice and Competition: Empower parents through a voucher system that allows them to choose the best schools for their children. This would encourage schools to compete, raising standards.
  2. Involve the Private Sector: By reducing regulatory barriers, South Africa can encourage the growth of low-cost private schools and innovative educational models. This would expand opportunities for students and relieve pressure on underperforming public schools.
  3. Decentralise Management: Schools need greater control over their operations to make decisions that meet the needs of their communities. The BELA Act is a great step backwards, entrenching centralisation and removing decision-making power from school governing boards. Reversing this trend is going to be essential to improving South Africa’s education system.
  4. Skills Development: Allow private enterprises and educational institutions to collaborate on vocational training programmes tailored to market demands. Reducing government control and allowing businesses to take the lead in aligning training with market needs would help address the gap between schooling and employment.

Conclusion

Mauritius demonstrates how economic freedom can help create a thriving education system. As the African country with the most economic freedom, it has successfully embraced policies that prioritise competition, innovation, and accountability. These principles have enabled the development of schools that prepare students for both economic and personal success.

By contrast South Africa is hindered by a centralised system, the influence of SADTU, and policies like the BELA Act, which entrench inefficiency and bureaucracy. By implementing school choice, reducing bureaucratic control, and fostering private-sector involvement, South Africa can create an education system that equips its youth with practical skills to allow them to quickly become productive members of society.

[Photo: Port Louis, Mauritius/Wikimedia Commons]

The views of the writer are not necessarily the views of the Daily Friend or the IRR.

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contributor

Eustace Davie is a Director and Board member of the Free Market Foundation, and author of Unchain the Child: Abolish Compulsory Schooling Laws