This paper argues that an important ingredient missing in the set of 'secon
d-generation' reforms that has been advocated for Africa is the development
of human capital in the public sector Over the past three decades, the sto
ck of human capital in tie public sector, which was comparatively lower tha
n that of other developing countries to begin with, has been seriously erod
ed by increasingly compressed government wages and a general flight of huma
n capital from many of the countries ill the continent, leading to low qual
ity of governance. The paper develops a simple theoretical framework to dis
cuss these issues and the continent's experience with foreign technical ass
istance in supplementing the low level of domestic human capital.