2 0 S O U T H E R N A F R I C A N iii) Adult Literacy Rate D E V E L O P M E N T C O M M U N I T Y vii) Employment and Productivity Indicators Indicators of educational status such as adult literacy Employment levels and labour productivity trends in rate, and enrolment ratios at various levels are also the region are generally low. Although it is difficult to characterised by wide variations among Member quantify the employment levels due to lack of data, States. Although SADC recorded the lowest adult available information indicates that there has been a illiteracy rate of 27 percent as compared to other general decline in formal sector employment in the regions in Africa, some Member States such as Angola majority of Member States. and Mozambique, still have rates above 50 percent. In The low employment levels in the region are largely due addition, only six Member States have adult literacy to a combination of factors leading to low levels of rates in the range of 80 percent. The region is still faced economic growth. These include distortions in factor with a challenge of eradicating one of the basic prices and the short-term negative effects of structural components of human poverty; namely, adult illiteracy. adjustment programmes. The use of capital-intensive techniques of production in some sectors of the econ- iv) Primary and Secondary Enrolment Rates The majority of Member States have net enrolment omy that have the potential for employment generation rates at the primary level below the range of 80 - 100 has further aggravated the unemployment problem. As percent. This situation has implications for the a consequence, a large proportion of the growing attainment of universal access to education in the labour force is absorbed in the informal sector, which region. At the secondary level, only four Member currently is characterised by low levels of incomes and States have net enrolment rates in the range of 80 - underemployment. The youth and women are the most 90 percent. affected by unemployment and underemployment. With regard to productivity, available figures show that v) Tertiary Enrolment Rates In spite of significant investments made by the region labour productivity during the mid 90s increased by an in tertiary education, it has not fully exploited this average of 1.3 percent per annum in the SADC region. potential in respect of the provision of high level The net effect of high levels of unemployment and low education. Currently, tertiary enrolment rates are levels of productivity is an increase in levels of poverty. below 50 percent in most Member States. This state These above-mentioned employment and productivity of affairs has serious implications for the region in trends have serious implications for the efficient terms of its competitiveness given the critical role utilisation of the region's human resources and the that high level skills play in the knowledge-based overall competitiveness in the global economy and global economy. market. There is urgent need for SADC to promote productivity as a strategy for sustainable regional vi) Unit Costs of Education (Efficiency Levels) competitiveness and for socio-economic development. Although it is not possible to provide a comprehensive picture on the unit costs of education in the low levels of efficiency in the provision of education. 2.5 CHALLENGES AND OPPORTUNITIES FOR SOCIAL AND HUMAN DEVELOPMENT The unit costs of education relative to GDP per capita Although the SADC region has generally improved its are higher in SADC compared to other regions in the human capabilities over the last decade, there are a developing world. This is a consequence of high repe- number of major challenges that should be addressed, tition/dropout rates and higher overhead expenses. including those in the following key areas: SADC due to lack of up-to date data, available information show that the region is characterised by There is, therefore, need for improving the efficiency in education spending in the region so that scarce public resources are allocated where the returns are 2.5.1 Education and Training higher and for the benefit of the majority of the • population The negative impact of the HIV and AIDS pandemic on the education and training sector;