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Department of Educational Foundations, Sultan Hassanal Bolkiah Institute of Education, Universiti Brunei Darussalam, Bandar
Seri Begawan 2028, Brunei
Abstract
In the Seventh National Development Plan 19962000, the government of Brunei Darussalam has stressed the need
to diversify the economy in an attempt to render the country less dependent on oil and gas revenues. Technicalvocational education (TVE) is part of the governments human capital approach to manpower development and is
thought to be essential to achieving economic diversification as well as a means to engage more Brunei citizens in the
development process. However, judging from recent information divulged by the government, the investment in TVE
has yielded low returns. Many Bruneians reject employment in the private and commercial sectors of the economy
thus raising questions about the long term viability of government policy. The paper examines the relationship between
Bruneis rentier economy and Malay-Islamic values as plausible explanations for the limited success of TVE. The
paper concludes by recommending policy options in the education and economic sectors that could conceivably enhance
the role of TVE during this period of economic transition. 2000 Elsevier Science Ltd. All rights reserved.
Keywords: International education; Educational policy; Development; Economics of education; Technical-vocational education; Culture and education
1. Introduction
Two questions guide this paper. First, why do
so many citizens in oil-rich Brunei trained in technical-vocational education (TVE) reject employment in the industrial and private sectors of the
economy? and second, what can be done about
it? As a small state (2226 sq. miles), Brunei is a
Malay-Islamic Monarchy located in northwest
Borneo. It shares the island with the much larger
Malaysian states of Sarawak and Sabah. Occupy-
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public sector. The result has been uneven development and limited state capacity to diversify the
economic base.
According to Middleton et al. (1993), whether
technical-vocational education can be an effective
means of increasing a countrys productivity and
economic growth is conditioned by that countrys
economic context. The rate and nature of economic
change conditions the patterns of employment and
skills needs in the society and thus determines the
incentives to individuals, employers, and society to
invest in skill development. In addition to those
who take an economistic approach, there are those
who argue that the cultural and political context
of TVE is equally relevant for the achievement of
development goals (Thomas, 1997; Brown and
Lauder, 1996).
Opening up a discussion around educational
issues in the context of a rentier economy is the
main objective of this paper. A second purpose is
to demonstrate how Brunei culture/values intersect
with the economy to produce a rentier mentality
that is not altogether congruent with TVE or education generally. The paper concludes with a discussion of policy options aimed at enhancing the
viability of TVE as Brunei struggles to diversify
its economy.
2. TVE in Brunei
The link between human resource development
and economic diversification in Brunei was first
highlighted in the Sixth National Development
Plan 19911995. High priority was placed on the
need to refine and expand TVE in tandem with the
skill/training requirements of the industrial and
commercial sectors that were still in a relatively
undeveloped state. During this period, the Department of Technical and Vocational Education was
formed within the Ministry of Education
(Williams, 1993, pp. 12).
Today, TVE comprises two types of institutions vocational schools (3) and technical colleges (4). Vocational schools are intended to train
young adults for employment, including apprenticeship training. They offer a comprehensive range
of programmes in a modularized format in such
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3. Rentier economics
Examining the nature of the rentier economy
may enhance an understanding of the ambiguous
status of TVE in Brunei. The rentier state concept,
or the notion that states based upon external
sources of income are substantially different from
states based on domestic taxation, was first proposed with reference to Middle East countries such
as Iran (Mahdavy, 1970) and Libya (Mabro, 1969;
First, 1974), although the concept itself can be
found in early Marxist and neo-classical economic
theory. Other useful sources include the work of
Mahdavy (1970), Beblawi (1987) and Franz (1990)
and more recently, Shafer (1994), Noreng (1997)
and Amuzegar (1996) have added considerably to
our understanding of rentier economies.
With reference to Brunei, Colclough (1985)
claims that as recipients of substantial foreign
rents, the economy is extroverted in the sense that
the key industry export of oil and gas effectively dominates and retards potential production
in other sectors of the local economy. In fact, the
historically poor performance of the small manufacturing and industrial sectors in Brunei suggests
that these sectors have contributed little to the GNP
since independence in 1984 (Economist, 1997). In
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way in which the rentier economy influences public policy and bureaucratic decision-making. Karl
(1997) suggests that the steady influx of petro dollars hinders the search for independence from oil
rents and contributes to a rentier mentality. Hence
the covariance of weak states with oil rents which
tend to transform social and political structures in
such a way that formidable barriers to change are
created. These barriers lock countries into the
initial choice of a rentier development path. They
effectively distort the public sector by expanding
jurisdiction and undermining authority precisely
when the challenges facing the state require it to
be the most cohesive. When the international price
of oil and gas declines, as it has recently, petro
states are particularly vulnerable due to the inexperience of the bureaucracy in planning, organizing
and implementing policies in other sectors. Also,
when oil revenues fall, sometimes the states
extraction costs rise dramatically because the authorities find it difficult to exploit new revenue
sources with the efficacy required to offset lost revenues (Noreng, 1997).
In regard to educational planning, it is puzzling
why decision-makers in Brunei find the human
capital paradigm so captivating when it would
appear to be unrelated to the countrys economic
well being. Perhaps one reason is the Brunei
governments admiration of the performance of the
near-by Singaporean economy and the way TVE
has been socially engineered to meet the demands
of industry (Lim, 1995; Soon and Stoever, 1996).
It is well known that Singapore has been highly
successful over the years in marshalling and
deploying human resources in ways that support
economic policy (Morris and Sweeting, 1997).
Based on their analysis of the Singapore experience, Ashton and Green (1996) employ the term
developmental state model to describe a model
of skill formation in which the states political and
economic goals are used as a basis for the definition of a nations skill needs. The needs of
employers or individuals are basically left out of
their model. Training policy is then directed at
ensuring the requisite human resources are in place
to achieve these goals.
It would appear that policy makers in Brunei
have borrowed the developmental state model
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5. Brunei culture
The role assigned to education, training and
technology in any society will vary according not
only to cultural norms, but also to particular stages
of economic development (Bhala, 1998). While
analysts generally agree that education is a necessary but not a sufficient condition for economic
growth, they are less certain about the specific role
culture plays in this whole process (Ashton and
Green, 1996; Tilak, 1994).
An examination of Brunei culture is necessary
to gauge the probable impact local norms and
values will have on TVE. Brunei is an amalgam
of Islamic and Malay civilizations. Due to its small
size, relationships tend to be multiplex in the
sense that social roles and responsibilities intersect
and serve many interests simultaneously. Anthropologists inform us that standards of judgement
tend to depend on who people are rather than what
they do in contrast to larger states where social
roles are more likely to be universalistic
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formance requirements rather than for demonstrating operational mastery of skills deemed economically and socially useful.
To return to the economy, Colclough (1985) predicted that compared to the high-tech extractive oil
and gas industry, Bruneis social base would
remain undeveloped; agriculture and other domestic industries would remain stagnant or decline.
Typical of enclave economies, effective linkages
between the oil sector and other economic sectors
have not developed in Brunei despite government
efforts to the contrary. Colclough (1985) argued
that the rentier economy is in fact an inversion of
the development process in so far as it creates a
need for a service sector almost exclusively as the
employer of numerous civil servants, technicians
and technocrats. Devlin and Jewson (1995) and
others (Karl, 1997; Shafer, 1994) have noted similar patterns in other petro states. Thus the rentier
economy appears to be a plausible source for the
indifferent attitude directed toward manual and
semi-professional occupations.
Thanks to oil wealth, the Brunei economy did
not pass through early and late industrialization
phases as was the case with many of its neighbouring countries (Bhala, 1998). Rapid structural
change took place in the postwar period transforming the country from an agrarian to service
sector society in a very short period of time (Franz,
1990, pp. 129131). Thus while in 1947 more than
50% of the population was employed in the primary sector, by 1971 this figure had declined to
just over 10%. Today it is even less (SNDP, 1996).
During the aforementioned period, the service sector grew from around 30%, while the secondary
sector remained the same (Gunn, 1993, p. 117).
The rapid shift from agrarian to service sector
society, and the ability of the state to purchase
immigrant labour to build up and modernize the
country, meant that it was not essential to educate
and train Bruneians beyond minimal, socially
acceptable levels.
Therefore, within a stable economic and political
environment, there has been no pressing economic
need for the education and training system to
develop the capacity to shift gears or rapidly
respond to global forces. In the absence of
regional/global competition, firms have not con-
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policy, a paradox the government has found difficult to resolve. The paper concludes by recommending three interrelated policy changes that
will hopefully lead to a closer correspondence
between public policy and TVE in the near future.
One strategy which the government is pursuing but not quickly enough is to encourage
more foreign investment in the private sector and
speed up efforts to privatize the economy. Privatization and direct foreign investment could conceivably generate more local competition resulting in
well-remunerated technical jobs.
Opening up the private sector would help to
undermine traditional scientific management practices which impede firm productivity. Research
indicates that most Brunei firms are small and conservatively managed; managers monopolize and
control every step of the production process
(Siewee, 1993; Thambipillai, 1992). In this
environment, workers tend to defer to managers
and owners thus reinforcing high power distance
and low individualism, traits that are inimical to
worker productivity.
If firms wish to compete internationally, they
will have to reconsider their definitions of worker
productivity. Worker participation schemes and the
simultaneous adoption of merit and performance as
criteria for hiring, recruitment and promotion must
take precedence over ascriptive hiring criteria.
Continuing discrimination against ethnic Chinese
and indigenous peoples will only slow down the
pace of change and in the long run will work
against economic diversification.
Evidence from the Middle East suggests that for
those countries that have experienced some success
in diversifying their economies, breaking out of the
pattern is as much a political as an economic problem (Noreng, 1997, p. 205). It requires change in
power structures and decision-making. The
absence of representative political institutions
complicates the accommodation of social and generational change and the redistribution of income.
Unfortunately, the Brunei political elite has shown
little willingness to explore alternative modes of
257
of unproductive activities, leading to poor development outcomes. Understanding the rentier economy is thus critical to our understanding the incongruity of poor development with huge investments
in education in Brunei and other rentier states. Yet
it is also important to comprehend the underlying
political and institutional processes that set off
economic laws and market forces in the first place
and that subsequently form strong barriers to
necessary readjustments in the economy.
Just as all narrowly economic activity is embedded in a web of social institutions, customs and
beliefs, minerals too derive their economic significance from the social and political relations arising
from their utilization. The point this paper has
stressed is that the fate of Brunei and its educational institutions must be understood in a context in which the rentier economy shapes institutions and, in turn, is shaped by them.
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