Working Paper Series: Special Edition of 2016 to 2018 Interns

5.0 Conclusion and Policy Considerations The limitations of application of the models and interpretative caveats noted in throughout the analysis, necessitate a measured approach when inferring policy implications. However not withstanding those limitations, some policy recommendations can be put forward. First, given the declining role of primary education in growth, policy should serve to maintain current levels of access while focusing on improving efficiency and quality. Current and future governments should focus on post-primary education including secondary and tertiary levels. Second, with labour force attainment levels of 35.6 per cent and 18.5 per cent respectively, policies that widen access to these levels are desirable. Efforts should not only target those below the working age, but ought to provide opportunities for the economically active population to enhance their qualifications and skills since there appears to be either an unwillingness or inability of large portions of the workforce to do so by re-entering the formal education system. Unfortunately, thus far the economy of St Vincent and the Grenadines appears unable to adequately accommodate the influx of graduates. The labour market has been unable to employ the growing numbers of persons with higher qualifications and training, which has resulted in underemployment, unemployment, instances of brain-drain, and depressed wage rates caused by an over-supply of more educated workers relative to the skill intensity of the economy. These factors contribute to lower than expected growth returns to education. This does not negate the need to improve human capital development, but rather, emphasises that there is considerable scope for policy geared at stimulating and increasing the size of the private sector to reduce the burden of the state as being the employer of last resort. The aim is to cultivate greater demand for educated labour while increasing the skill intensity of the economy, which may increase average wages. Additionally, the lack of capital and technological advancement demonstrated throughout has limited the possible returns to a more educated labour force. Consequently, the government should implement policies that allow both itself and the private sector to accumulate and use more technologically advanced forms of capital in a bid to enhance augmentation with an increasingly skilled labour force. Climate change resilience should be made central to this objective given the major losses of infrastructure to natural disaster over the period.

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