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When mentioning economic fundamentals in need for growth, education level and skilled workforce is an elaborate set for explaining economic prospect. It is interesting to note that education stock in Asia in 1960 is similar to their African counterpart in 1985 and surprisingly African countries have devoted considerable amount of resources (in terms of % of budget) in education since the 1990s (Roemer 1994). While government had been investing in education, Africa shortage of skilled labour is very real and remains as impediment to their growth. But there is some justification for this, first the high birth rate arising from the lack of family planning program is one factor that contributes not only to high infant mortality rate because of poor nutrition but it also offsetting the effort in providing quality and more skilled workforce. In other words, the high birth rate is deteriorating the real amount of resources putting in education. In such, education provided remains grossly at primary level with 78% of population attended primary school while only 33% attended secondary school as in 1997 (Worldbank 1998). Such shortage of skilled labour is translated to the incapacity to develop economy in a sustainable basis as such minimal level of education does not equip the workforce to engage in technical and professional occupations, primary graduates will only remain in primary sector which the economy basis could not be diversified and this also contribute to the child labour problem.

Nonetheless, even natural resources rich African countries were to utilize their export earnings more decently, they are still likely to suffer from Dutch Disease because of real exchange rate appreciation that would feedback to their export performance. Tanzania and Zaire were examples in the 1980 to 1990 when rising oil revenues suffered their currencies from overvaluation.

Despite there has been enthusiasm among African governments to invest in manufacturing, many have been turned down because of their foreign exchange shortages.
While cultural issues and initial endowment might have been disadvantageous to African countries, Asian countries were by no means started out from the top end, instead their diverse ethnic composition in Southeast Asia and resource-poor Northeast Asia depicted a similar situation as Africa, yet, a institutionalised government and regional integration, outward-oriented trade policies and prudent monetary policies are compelling factors to explain Asia’s success and in the meantime given the declining economic growth in Africa, helped in explaining the economic divergence between Asia and Africa.

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