Unfortunately, what the authorities say and what they do are not necessarily the same. For example, despite all the lofty promises of reforming policies and taking initiatives to turn the population into valued human resources, two of the most vital sectors - education and health - continue to be ignored in the national budget.
The best international practices suggest that a country should spend six per cent of its Gross Domestic Product (GDP) or 20 per cent of its annual budget on education. The Dakar Declaration, in which Bangladesh is also a signatory, supports this guideline.
Even the government's own 8th five-year plan, from fiscal 2020-21 to fiscal 2024-25, put much emphasis on human resource development and recommends 16.5 per cent of Annual Development Programme (ADP) allocation for education and 11.1 per cent for health sector in fiscal year 2024-25. But, according to a recent news report, the education and technology sector will jointly get an ADP allocation of Tk 315.28 billion (12 per cent) and the health sector will get nearly Tk 206.82 billion (7.80 per cent of the ADP) in the upcoming budget. Way short of what it ought to be.
Overall, as the report informs - quoting a finance ministry source - the education sector would receive Tk 1 trillion and the health sector Tk 420 billion in the next budget. The funds encompass both operational and developmental expenses.
Budgetary allocations for the education and health sectors may appear to be increasing year-on-year, but in proportion to GDP, the allocation for education is only two per cent and just one per cent for health. Putting it into a global perspective, the World Bank says Bangladesh is one of the 10 countries that spend the least on education in proportion to GDP. Only a handful of countries like Bermuda, Haiti, Mauritania, Cambodia, Laos, Monaco, Papua New Guinea, Somalia, and South Sudan allocate a smaller share of their GDP to education.
Bangladesh's average two per cent of GDP allocation for education is far lower than many regional neighbours such as Bhutan (6.6 per cent), Nepal (5.2 per ent) and India (2.7 per cent).
Moreover, Local Government Departments, the Department of Road Transport and Highways, and the Department of Power receive a bigger slice of ADP allocation than the health and education sectors. While the necessity of developing roads and highways and increasing power generation is undeniable, merely establishing infrastructure will not suffice. There is no alternative to increasing the allocation in the education and health sectors to ensure the availability of human resources necessary for their smooth operation.
Worse still, a large chunk of the education budget is not directly linked to education but goes to non-developmental sectors like salaries and maintenance costs for teachers, officials, and staff. While ADP allocations should ideally focus on both infrastructure and human resource development, it appears that the construction of buildings is receiving far more priority than the qualitative improvement of education and services.
As a result of chronic insufficient investment in quality education, primary healthcare, and skills development, the country is facing an acute human capital crisis. For example, Bangladesh needs to hire foreign engineers and technical experts for the construction of mega projects like the Padma Bridge and Metro Rail. However, no decisive action is yet visible to develop the technical expertise within the country who could lead such projects in the future.
The lack of skilled manpower is also evident in the fact that, while a large number of educated youths are not finding jobs, many local businesses are hiring foreign nationals who take home about six billion dollars annually, equivalent to a quarter of the country's expatriate income. Furthermore, according to a recent report by the International Organization for Migration (IOM), Bangladeshi expatriate workers earn significantly less than their Indian counterparts due to a skill gap.
The lack of investment in these two sectors also means that out-of-pocket education and healthcare expenditures in Bangladesh are significantly higher compared to neighboring countries like India, Bhutan, the Maldives, and Pakistan. This high expenditure is closely linked to an increase in poverty and widening social and economic disparities.
It is imperative, therefore, for the government to review its priorities and set allocation accordingly to enrich the country's pool of skilled manpower. Analysts suggest that aiming for 20 per cent of the annual budget for education may be too ambitious for now. However, the government could start with 14 per cent next fiscal year and increase the allocation by, say, one per cent each year. At the same time, it's equally important to improve the government's capacity to implement development projects effectively.
Advanced economies worldwide are known and respected for their optimal investment in human resource development. They understand that a skilled and educated population is the cornerstone of sustained economic growth. If Bangladesh truly wants to graduate to a proper middle-income economy, there is no alternative to developing human capital.
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