1. Education in Southern Africa (Data Envelopment Analysis) Team BIA 650 – Spring 2013 Minxiang TuProfessor Edward Stohr Sindhu Thomas Shan Lin

2. Introduction Education is the most powerful weapon you can use to change the world. - Nelson Mandela Stakeholders

3. Definition of HDI HDI (Human Development Index) - used to compare countries development - Uses factors like education, health and standard of living to measure - Different from the GDP which is based on economic factors

4. Problem Statement To measure the impact of education on HDI in Southern Africa Identify criteria that makes education the frontier for some countries Analyze challenges specific to Southern Africa

5. Education Statistics 141,000,000 people in East Africa live on less than $2US/day. Typical family has 6 children. Cost of education remains the largest obstacle: $750 full board, $30 uniform/shoes, $30 school supplies.

6. Data

7. Data – HDI for Madagascar Source: UNDP

8. Data – Education Statistics Madagascar Education IndicatorValueMean Public expenditure on education (% of GDP) (%)3.25.78 Primary school teachers trained to teach (%)90.488.78 Primary school dropout rates (% of primary school cohort) 65.433.38 Expected Years of Schooling (of children) (years)10.410.52 Adult literacy rate, both sexes (% aged 15 and above)64.577.84 Mean years of schooling (of adults) (years)5.25.81 Education index0.490.51 Combined gross enrolment in education (both sexes) (%) 6765.08 Source: UNDP

9. Data

10. UNDP ranking DMUHDI Efficiency Score Education Index DEA ranking 80Mauritius0.7401 0.659 1 119Botswana0.6340.9180.6938 121South Africa0.6290.9650.5585 128Namibia0.60810.7059 141Swaziland0.53610.5781 151Madagascar0.4830.9650.4975 152Tanzania0.4760.8350.45412 158Lesotho0.46110.5071 163Zambia0.44810.4801 170Malawi0.4180.8730.41010 185Mozambique0.3270.9430.2227 186 Democratic Republic of Congo 0.3040.8580.35611

11. CountriesCountry Education indexEduIndex Adult literacy rate, both sexes (% aged 15 and above)Literacy Total populationTotalPop GNI per capitaGNIcapita Public expenditure on education (% of GDP) (%)PEE Life expectancy at birthLifeExp Expected Years of Schooling (of children) (years)EYS Mean years of schooling (of adults) (years)MYS Primary school teachers trained to teach (%)Teachers Combined gross enrolment in education (both sexes) (%) GE Primary school net enrolment ratioPER Secondary school enrolment ratioSSER Primary school dropout rates (% of primary school cohort) PSD

12. Correlation coefficients matrixMean and Variance Education index Mean years of schooling: 0.97318 Expected years of schooling: 0.78983 Literacy rate Education Index: 0.83113 Mean years of school: 0.66122 Expected years of school: 0.79385 GNI per capita: 0.42528 Public expenditure on education: 0.56892

14. Cluster analysis Classify these countries into 3 clusters based on all their variables. Madagascar Malawi Mozambique Zambia Cluster 1 Botswana Democratic Republic of Congo Lesotho Mauritius Namibia Swaziland Cluster 2 South Africa United Republic of Tanzania Cluster 3 20714 14901 23391 13089 2007 9927 2171 3460 2283 1186 50133 44841 Total population In these countries To check the cluster result

15. Result of regression Equation: Literacy rate =44.706305 (Intercept) - 0.005027 GNICapita + 1.693154 PEE - 0.466289LifeExp + 8.324159 EYS + 2.257147 MYS + 0.541225 Teachers -1.545461GE + 0.639738 SSER - 1.126080PSD

16. Conclusion Education is a key part in increasing literacy rate and hence GNI School enrollment rates are high, but drop out rates are higher Cluster analysis is useful because the countries have varying parameters Directly funding education could increase HDI of the target country