CHAPTER 6 History versus Expectations


he formation of human capital in the majority population of South Africa promises the alleviation of poverty and equitable economic growth. With the burden of its apartheid legacy, the country faces enormous challenges in transforming itself into an equitable society. Given the political difficulty of redistributing assets from the historically advan- taged minority to the disadvantaged majority, the formation of human capi- tal in the latter group can be a long-term solution to these challenges, as it builds new assets the poor can own and direct. However, the transformation of a society through the broad-based formation of human capital, especially among Africans, requires a relatively long time span.


T


This monograph delivers two basic messages. First, though education is at the center of human capital formation, the dynamic aspects of human capital formation in individuals call for a wider perspective. Part 2 demon- strated that human capital formation is dynamic in the sense that it starts in early childhood—even before childbirth. Malnutrition during early childhood owing to poverty reduces achievements at the schooling stage. Policy inter- ventions aimed at enhancing healthy child growth (such as the current child support grants) are needed to guarantee the outcomes expected from the government’s effort to develop public school education. In South Africa the HIV/AIDS epidemic adversely affects schooling progress among adolescents, increasing their entry into the labor markets. Therefore, it is important to support households that are vulnerable to adverse shocks and protect chil- dren from the negative impacts of such shocks.


Second, as Part 1 showed, access to opportunities is still unequal across different segments of the society. Given the historical path the country has taken, it is important to guarantee equal opportunities for the formation of human capital to the African majority. In particular, relaxing financial con- straints in formerly African schools and households is an urgent priority. Chapter 1 posed two questions regarding returns to schooling in South Africa: Why do returns to schooling differ across population groups? And why


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