The graduate unemployment problem has many dimensions. It has had its roots in some aspects of the educational reforms introduced to the country since the early 1950’s. At the beginning of this period the medium of instruction in the primary classes, i e. up to standard five was in the mother tongue of the pupil.
A start had also been made at that time in instructing students in their mother tongue in post primary classes as well. This gradual process of introducing the national languages as the medium of instruction up to university level was complete by the early 1960’s.
The switch over of the medium of instruction to national languages may have had its plus points. However the rigid and inward looking policy pursued by successive governments gave no choice to the students to select a medium of instruction they preferred.
Thus the medium of instruction based on ethnicity blunted the competitive edge of most students and made them less attractive in the employment market here and abroad. Even the private sector in this country preferred workers proficient in English. Consequently, both graduates and non graduates not proficient in English were compelled to seek employment in the state sector which as a matter of rule conducted all business communications in the national languages.
Therefore even if the graduate unemployment problem was not entirely due to education reforms instituted, it did certainly aggravate the problem. The establishment of several new universities with student enrolment predominantly in the Arts stream with lectures in national languages further aggravated the problem.
Expansion of the state sector
Secondly, the expansion of the state sector from the late 1950’s onwards through nationalization of private ventures had a debilitating effect on a once vibrant private sector hindering its expansion and ability to create employment. During the period from 1956 onwards state owned enterprises and undertakings consisting of public corporations statutory boards, state aided institutions and local government authorities have grown in size and complexity. The nationalization of transport and the policy of import substitution during this period (1960’s) led to an increase in the public corporation form of management. Government acquisitions and nationalization of plantation industries in the 1970’s substantially expanded the public sector.
The then Finance Minister, the late Dr. N.M.Perera in his Budget Speech of 1970 stated that the state should adopt a socialist oriented approach to the development and regulation of industry. In more precise terms he emphasized that this would mean that heavy basic and essential industry shall be under state management, if not under direct state ownership. This period was also characterized as the golden age of trade unionism.
There was an upsurge in trade union activities with strikes and work stoppages often encouraged by the government itself. Some of the strikes initiated were politically motivated which also led to a deterioration of worker discipline. Consequently there was a substantial drop in labour productivity and profitability. Curiously though, it was the state sector that suffered most in terms of labour productivity and profitability of ventures. This coupled with ineffective and inefficient management of state enterprises, nepotism, corruption and redundant staff made these state ventures white elephants and economically not viable.
Consequently in his subsequent presentation of 1971 to Parliament, the Finance Minister observed that although investment in public corporations has increased substantially in the last decade the returns to government had been far from satisfactory. The performance of these corporations profit-wise, has been disappointing which not only severely limited the investment programme of the government but also compelled the government to borrow funds at high rates of interest to keep them in operation. The state sector therefore which was hopefully designed to boost the economy and to increase the rate of economic growth and generate employment as the principal employer in the country not only failed to create employment but was also to become a liability on the tax payer due to recurrent losses of state ventures.
Commenting on unemployment in the country the then Finance Minister (1971) stated that there were two reasons for it. The primary cause he asserted was the low rate of economic growth. The secondary cause was attributed to the adherence to a conventional system of education which according to him needed to be reformed in the context of planned economic growth. After four decades the same old education system still remains intact but ironically politicians still speak of the need for educational reforms with no worthwhile follow up action.
Economic liberalisation, rejuvenation of the private sector
The change of government in 1977 brought about a complete turnaround of the economy. It changed the inward looking economic policies which had prevailed since the 1950’s to that of an outward looking economic strategy and declared the private sector as the engine of economic growth. The open economic policy coupled with the opening of free trade zones for export processing industries were intended to liberalize the economy.
This was followed by the divesting of some of the public enterprises, seemingly on an ad-hoc basis and apparently on terms which were much disadvantageous to the state.
The new strategy introduced after 1977 envisaged development in terms of several lead projects. These comprised the accelerated Mahaweli Development project including land settlement and power generation; urban development and housing development in addition to the liberalization of trade and promoting private sector industrial development. These projects which were primarily foreign funded were able to stimulate the economy and increase the rate of economic growth and reduce the general rate of unemployment in the period 1977-87 but did not have much of an impact on graduate unemployment. This period did not witness any educational reform either although it was a much talked about subject.
The government’s macro- economic policy of promoting the private sector as the engine of economic growth continued unabated up to the turn of the century and beyond despite a change of regimes and lasted up to the commencement of the present government. The liberal economic policy pursued for several decades had its positive aspects as well. In terms of Central Bank Annual Reports the unemployment rate declined to 8.4%, in 2003 and subsequently to 7.7% in 2005. It was 6% in 2007 and 5.2% in 2008. However employment in the public sector continued to decline and in 2003 alone recorded a decrease of about 18,200. The reports also stated that unemployment continued to be high among youth with higher education. It also asserted that this is a clear indication of the necessity for urgent reforms in education and training.
Policy shift towards a mixed economy
Since the advent of the Rajapaksa regime it would seem that government policy is drifting towards a mixed economic strategy and an attempt is being made to put in place mechanisms to enhance productivity, accountability, and improved governance particularly in the state sector. While the unemployment rate has continued to decline, graduate unemployment remains high.
The discussion so far clearly demonstrates the lop sided macro- economic strategies pursued by successive governments alternatively emphasizing either state control of economic activities or the private sector as the instrument of economic growth. Although all alternative governments stressed the need for educational reforms no meaningful measures were taken to bring about any changes. The only milestone in the field of university education was the establishment of several new universities in the late 1950’s which turned out mainly Arts graduates when there was unemployment among Arts graduates even at that time.
Conclusion
It would hence be seen that successive governments have adopted a straight jacket approach to educational policy formulation and implementation which deprived generations of students the right to independently choose the media of study at primary, secondry and tertiary levels of education. Likewise an overwhelming majority of students who competitively obtained the available limited university places were compelled to follow lectures in the Arts stream in the national media as the only available option. Successive governments were fully aware that Arts graduates, proficient only in the national media had no chance of obtaining employment here or abroad except in the public sector of Sri Lanka.
However they continued to invest in the system. Some of our brilliant civil servants of a bygone era were arts graduates. They indeed had wider communication abilities. Further they excelled in their respective vocations because they were absorbed into an efficient system which shaped them well in their careers. The objective of a university is not to train students for a job. Universities generally impart theories and concepts which broaden the outlook of students enabling them to use their imagination and foresight in the problem solving process. The graduate unemployment problem therefore is the making of the successive governments inclusive of the present government who should well and truly take full responsibility. It is therefore a moral obligation of the government to provide employment to the unemployed graduates who had been victims of the circumstances.
Besides any government has a socio-political responsibility to ensure that unemployment is restricted to a bare minimum. This is because the government has overall command of the macro-economic variables in a country and is expected to take prudent measures to achieve economic growth by efficient management of the economic parameters. This is why democratically elected governments the world over make it a social responsibility to provide economic support for the unemployed until they find employment.
(The writer is the former Head of the Department of Town and Country Planning, University of Moratuwa, Director of Post Graduate Studies and Senior Professor of Town and Country Planning. Presently he is an Independent Consultant to several UN and other agencies engaged in multi-disciplinary research studies).
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