Economic Cost of Failure to Educate Girls

There is no tool for development more effective than the education of girls and women. No other policy is as likely to raise economic productivity, lower infant and maternal mortality, improve nutrition, promote health -- including the prevention of HIV/AIDS -- and increase the chances of education for the next generation. Let us invest in women and girls.
Kofi Annan, former UN Secretary General

Failure to offer girls the same educational opportunities as boys costs developing countries over $92 billion each year in lost economic growth, according to research by Plan.

'Paying the Price: The economic cost of failing to educate girls' reveals that gender gaps in secondary school achievement in 65 developing and former Eastern Bloc countries cause them to miss out on annual growth of approximately US$92 billion.

This is only slightly less than the total US$103 billion spent annually by the industrialised nations on overseas development aid. 

Countries in South Asia and West Africa have the worst record on educating girls to secondary level. India alone misses out on potential economic growth worth around US$33 billion each year. 26 countries in sub-Saharan Africa fail to educate girls to the same standard as boys. By contrast, just 2 countries in Latin America, fail to do so.

Heavy cost

Ian Wishart, CEO of Plan in Australia, said: "Education is a real investment which reaps real rewards not just for the individual child but for society as a whole. Failure to educate girls to the same standard as their brothers has been rightly criticised as unjust and damaging to girls.

"Our analysis reveals for the first time the heavy economic cost of this failure to developing countries. It is a missed opportunity they can ill-afford.”

The startling figures are the result of an analysis of UN and World Bank statistics by Plan. A recent World Bank study found that failure to provide girls with secondary education reduces economic growth by an average of 0.3 percentage points for every one per cent of girls out of school. Plan’s findings are based on this research.

Plan is committed to promoting the rights of all children in the developing world, including their right to a high quality education. Last year, Plan built or rehabilitated 7,533 schools, provided training for 80,799 teachers and worked with thousands of communities to promote girls’ education.

In September, Plan will release the third in its series of nine reports in the Because I am a Girl series. This comprehensive report will look at the impact economic inequality on girls in developing countries.   

Download the report: http://www.plan.org.au/ourwork/about/research/paying_the_price