Investing in Early Childhood Development: The Potential Benefits and Costs Savings Karin A. L. Hyde, Consultant, WGECD Parallel Session C-4 ADEA 2006 Biennial Meeting

Background and Context  Part of a continuing effort by WGECD to build the case for greater investment in ECD in Africa  Building a rationale for the expansion of ECD  Objective was to review the evidence for the benefits of ECD and how these could contribute to cost savings in education and other sectors

Research Methodology  Literature review  Used evaluations, impact assessments from many countries  The main conclusions were drawn from studies that were either experimental or quasi- experimental  Other studies were used for illustrative purposes  Limitations—location of studies; missing information about the most appropriate service delivery model

Benefits of ECD—Who  Appropriately-designed ECD programming has positive effects on: – The children who participate (at the time of their attendance and into adulthood) – The parents of participating children – The communities they live in – The economy – Their own children

Benefits of ECD—How  Education—attainment, performance, reduced repetition  Health—less likely to smoke, take drugs and more likely to be involved with friends and family  Social adjustment—less likely to have children out of marriage, more stable marriages  Economic productivity—higher incomes for parents, children and children of children

Benefits of ECD—Why  Positive impacts are sustained  Significant contribution to school effectiveness  Indirect impact on economic productivity, participation and poverty reduction, etc.

Cost Savings and Economic Payoffs  Savings – Reduced repetition – Reduced morbidity and mortality – Lower tendency to require welfare payments  Payoffs – Increased participation in labour market and higher tax revenues – Greater impact on most deprived groups

Message for Ministers  Investing in ECD will stimulate progress towards the MDGs  There are many options for the financing of investment in ECD  Stakeholders can be brought together to support pre-primary, as has been done successfully with primary school in many countries.  Focus public spending on the most disadvantaged children  The major partners should be parents and communities