Dr. Livingston Smith
By Professor L. Smith, Acting President. UCCI
According to the World Bank’s 2020 Human Capital Index, on average, a child born in the Caribbean can expect to attain only 55% of their full productive potential. But given the varying levels of development among Caribbean countries, this figure is best taken more as a regional average. There are, obviously, substantial differences in education quality, health outcomes, and social investment, meaning that the human capital gap is larger in some countries and smaller in others.
Nonetheless, this means that in the Caribbean context, the average child will grow up to be only a little more than half as productive as they could be if they had enjoyed optimal health, schooling, and learning outcomes. This is an important point to emphasize because the “new wealth” of nations is increasingly measured by the skills, knowledge, and capacities of their people, not so much by natural resources or physical capital. This highlights the fact that human capital, that is education, health, and innovation, is now the primary driver of economic growth, competitiveness, and resilience in a globalized world in the thrust of the Fourth Industrial Revolution defined by rapid technological convergence that is transforming how we live, work, and interact globally.
As the global economy is increasingly driven by technology, innovation, and services, underdeveloped human capital limits productivity, economic competitiveness, and the ability to respond effectively to challenges such as climate change, public health crises as COVID and economic and natural shocks such as hurricanes.
The economic impact is slower economic growth and reduced competitiveness in the global economy. The emphasis of these societies is on education at all levels- early childhood, primary, secondary, post-secondary non-tertiary, tertiary or higher education, and adult continuing and professional education. Each country does this in-line with their resources. And they are correct in doing this as each of the various levels are obviously important and feed into each other. However, tertiary education is a cornerstone of national development because it builds the skilled workforce, innovation capacity, and leadership needed to drive economic growth and social progress.
By tertiary education we mean universities, colleges and vocational and technical education that award qualifications above the secondary school level. Universities and colleges produce professionals such as teachers, engineers, health workers and entrepreneurs who directly influence productivity, governance, and the delivery of essential services. Beyond workforce preparation, higher education institutions generate research that informs evidence-based policy, fosters technological advancement, and strengthens resilience against challenges such as climate change, public health crises, and economic shocks.
While Caribbean universities are doing important work and producing research, the overall investment in university-led research and development is quite low, as is the number of patents or innovations produced locally. This means the region more often adopts high-end technology than originates it. To shift that balance, there must be substantially greater investment in research capacity, incentives for innovation such as patent and intellectual property support, institutional support for university-industry linkages, and accepted metrics to track progress. This all calls for more investment in higher education.
Various World Bank studies outline how tertiary education fosters growth, reduces poverty, and boosts shared prosperity, describe returns on investment and show how graduates tend to have higher earning power and productivity. UNESCO’S “What you Need to Know About Higher Education” agues its role in social change, economic, technology and employment contexts, especially for developing countries.
Writing specifically about the Caribbean, the World Bank in an opinion piece entitled “An Investment in Education Can Fuel the Caribbean’s Growth” explains how investing more in education generally, including tertiary education helps build resilient, productive societies in that region. It is linked to innovation, social mobility.
But, speaking generally, there are several barriers to access and equity in higher education across the Caribbean, with socioeconomic status remaining the most persistent and entrenched obstacle. Students from low-income households must overcome the direct financial burden of tuition, fees, transportation, and living expenses. These costs that can feel insurmountable for families already struggling to meet basic needs. These students also tend to come from pre-university systems that are themselves uneven: rural schools often lack qualified teachers, adequate infrastructure, and broad subject offerings. Students from wealthier families may supplement their education with private tutoring or enrichment activities. This inequality in preparation compounds the gap in higher education access.
Moreover, financial aid systems across the region frequently lean toward merit-based scholarships rather than need-based support. This operates to the advantage of students who already enjoy stronger educational foundations. In practice, this approach often deepens existing social and economic stratification, leaving the most disadvantaged students with the least opportunity to pursue tertiary studies and further reinforcing cycles of inequality. We continue this conversation in the next article.
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