Underinvestment in education costs trillions of dollars worldwide each year, according to UNESCO

In a report, experts from the UN Educational, Scientific and Cultural Organization put the global cost of school dropouts and educational gaps at $10 trillion by 2030.

The lack of investment in education, which generates dropouts and educational deficiencies, costs trillions of dollars worldwide each year, points out a UNESCO study published Monday June 17. In their report, entitled “The price of inaction: the private, social and fiscal costs of children and young people who do not learn”experts from the UN Organization for Education, Science and Culture have estimated the global cost of dropping out of school and educational gaps at $10,000 billion for the year 2030. A figure “dizzy”, which exceeds the combined GDP of France and Japan, observes the Director General of UNESCO, Audrey Azoulay.

She points to the “vicious circle” of “underinvestment in quality education”. “People with less education have fewer skills. Under-skilled workers earn less. People with lower incomes pay less taxes, which means governments have fewer resources to invest in education systems that are accessible to all “she unfolds.

Some 250 million children will not go to school worldwide in 2023, according to UNESCO, and “About 70% of children in middle- and low-income countries cannot understand simple written text by the age of 10”, according to Audrey Azoulay. According to the report, the skills gap reaches 94% in sub-Saharan Africa, 88% in South Asia and West Asia, 74% in Arab countries, or even 64% in Latin America and the Caribbean.

By reducing the number of young people out of school or insufficiently trained by 10%, global GDP would grow by 1 to 2% per year, UNESCO experts also conclude in this study. “Education is a strategic investment, one of the best for individuals, economies and societies in general”, says Audrey Azoulay. Beyond financial considerations, education has an impact on early pregnancies, which increase by 69% among less educated young girls, underlines UNESCO.