Education First: Unlocking Sustainable Development through Strategic Investment
When a seed is planted in the soil, it takes time—often a long wait—before it bears fruit. Education is much the same.
Its outcomes are not immediate, yet its roots run deep into the very foundation of a nation’s existence. Education is not merely literacy; it is the basis of human dignity, a pathway to economic emancipation, and the most powerful instrument of social transformation.
The responsibility of the state is not limited to governance alone; it must also create the conditions in which the potential of its citizens can flourish.
The clearest reflection of that responsibility is found in how a nation prioritizes education in its annual budget. Yet, budget after budget, the education sector appears to occupy a position that suggests the state is prioritizing short-term expenditure restraint over long-term investment in the future.
Nobel laureate economist Amartya Sen once argued that development is not just about GDP growth; it is about the expansion of human capabilities. And those capabilities are nurtured through education.
An educated society not only produces more but also possesses the capacity to bring about just and meaningful transformation across all layers of society. It is from this understanding that developed nations invest heavily in education—not merely as a policy choice, but as a reflection of their national philosophy. Unfortunately, in Bangladesh, this philosophy has yet to be fully translated into state practice.
History bears witness that nations which prioritize education ultimately become resilient and formidable. After World War II, Japan, reduced to ruins, rose within a few decades to become the world’s second-largest economy—driven largely by its unwavering investment in education. South Korea, once a largely agrarian economy and in many respects behind Bangladesh in the 1960s, now stands at the forefront of global technology and culture.
The driving force behind this transformation was sustained state investment in education, with the country now allocating around 5.1 percent of its GDP to the sector. The spirit of Bangladesh’s Liberation War envisioned a society that would be educated, aware, and equitable. Against that aspiration, the present reality remains disappointing.
Bangladesh’s greatest asset is its population. If properly skilled, this vast workforce can become a “demographic dividend”—a unique opportunity that many aging nations no longer possess. But to harness this potential, fundamental reforms in technical and vocational education are essential.
Currently, only about 17.2 percent of students are enrolled in technical education, significantly lower than in neighbouring India.
Meanwhile, the unemployment rate among educated youth stands at around 47 percent. This is not merely an economic concern; it is a direct reflection of structural weaknesses within the education system.
When education fails to align with labour market demands, and when universities turn into certificate-producing institutions rather than centres of research and innovation, simply increasing allocations will not yield desired outcomes. Therefore, alongside increased funding, structural reform is equally imperative—particularly in the context of Bangladesh.
In the global labor market, Bangladeshi workers are often employed as low-skilled labourers and receive comparatively lower wages. In contrast, the Philippines—once economically comparable to Bangladesh—now exports skilled professionals such as nurses, engineers, and technicians, earning substantial foreign currency. The driving force behind this transformation has been investment in education.
Bangladesh can achieve similar progress, but it requires moving beyond symbolic budget allocations and treating education as a strategic investment. Transitioning from a remittance-dependent economy to a knowledge- and skills-based economy is the only sustainable path forward.
To remain competitive globally, comparisons with education spending in developed countries—though uncomfortable—are necessary. Finland invests around 6.8 percent of its GDP in education and is consistently ranked among the best education systems in the world. Malaysia spends about 4.4 percent, and India around 3.5 percent. UNESCO has long recommended allocating 4 to 6 percent of GDP, or 15 to 20 percent of the national budget, to education. And Bangladesh? Only about 1.72 percent of GDP.
According to various international reports, Bangladesh ranks around 155th out of approximately 160 countries in terms of education spending relative to GDP. This disparity reflects not just a difference in numbers, but a difference in philosophy. Finland believes every child is inherently capable, and it is the state’s responsibility to nurture that potential. In Bangladesh, education is still largely perceived as an individual responsibility rather than a national priority.
In the proposed 2025–26 fiscal budget, around 12.1 percent of total expenditure has been allocated to education, a slight increase from the previous year.
The Secondary and Higher Education Division has been allocated approximately BDT 47,563 crore, marking a 7.83 percent increase. However, allocations for education within the Annual Development Programme (ADP) have been reduced.
This decision has raised concerns among research institutions such as the Centre for Policy Dialogue. Economists have clearly warned that reducing ADP allocations for education, health, and agriculture is troubling.
The authorities argue that this reduction aims to ensure corruption-free implementation and focus on quality improvement. While this rationale may hold some merit, it raises a fundamental question: how can development proceed without adequate funding? Instead of cutting allocations, strengthening oversight and accountability mechanisms would be a more effective approach to curbing corruption.
Another critical reality is that over 1.4 million students enrolled in more than 19,000 Qawmi madrasas remain largely outside the scope of mainstream budget allocations.
Although the Dawra-e-Hadith degree has received official recognition, there is still no effective pathway for employment for this large group of students. Without integrating them into the broader national education framework, social divisions may deepen over time. According to World Bank research, every dollar invested in primary education can yield up to ten dollars in long-term economic returns.
Viewed from this perspective, underinvestment in education is equivalent to borrowing against the future.
As the next budget approaches, education must be viewed through a transformative lens. A clear roadmap is needed to allocate at least 3 percent of GDP to education, with a target of reaching 4 percent within five years. Increasing allocations alone is not enough; transparency in spending must also be ensured.
A concrete target should be set to raise enrollment in technical education to 30 percent by 2030. Investment in research must be expanded, as universities need to evolve into hubs of knowledge production to support a technology-driven future.
Greater emphasis should also be placed on teacher training, improving the quality of primary education, and ensuring infrastructure in remote areas.
In the context of a changing Bangladesh, the current government has a historic opportunity. The vision of a developed nation will only become reality when investment in education is elevated to a true national priority.
The returns on education may not be visible in the immediate fiscal cycle. However, the Bangladesh of the next decade—its prosperity, equity, and self-reliance—will be shaped by the decisions made in today’s budget. Recognizing education not as an expense but as an investment is the essential transformation needed to unlock sustainable development.
(The writer is a Columnist & MPhil Researcher, University of Rajshahi,
and Teacher of Gazipur Cantonment Public School and
College. Email: sultanmh17@gmail.com)
