Investing in Young Children

Abstract

This paper summarizes why investment in human capital formation through early child development is worthwhile. It reviews lessons learned from programs and projects in operation, and examines how such projects can be designed under various conditions. Early child development programs promote the physiological and intellectual development of young children, helping to ready them for further schooling and a productive role in society. Cumulative research indicates that most rapid mental growth occurs during infancy and early childhood and that on the whole the early years are critical in the formation and development of intelligence, personality, and social behavior. Scientific research indicates that, given the decisive influence of children's early stimulation on physical, psychological, and social development, primary school and even kindergarten programs (for children 4 to 5 years old) can prove to be too late to counteract some physical, neurological, psychological, and social factors closely associated with early deprivation and lack of adequate stimulation. In addition to the scientific, human rights, economic, and changing social and demographic arguments in favor of early childhood development, investing in such projects combines efficiency and equity, and cuts across traditional human resource subsectors. Investments in such programs can help modify the effects of development deprivation. Evidence from the developed and developing world indicates that some interventions can: a) increase the efficiency of primary and secondary education; b) contribute to future productivity and income; and c) reduce costs of health and other public services. Indirect benefits from early childhood interventions can include reduction of gender inequities, increased female participation in the labor force, and increased community development efforts.

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