By Ify Onyekwere
According to reports from the United Nations Children’s Fund (UNICEF), about 385 million children worldwide lived in extreme poverty in 2019, with sub-Saharan Africa accounting for more than half of these children. While child poverty is a human rights issue, it also has significant implications for economic development at the national and global levels. Child poverty is still an important global issue affecting millions worldwide; however, investing in children’s well-being can result to economic growth and poverty reduction.
Child poverty and economic development have a two-way relationship. They are intertwined in a complex and dynamic relationship. On the one hand, poverty can inhibit economic development by reducing human capital, productivity, and innovation. When children grow in poverty, they are more likely to experience malnutrition, poor health, and limited access to education, which can affect their cognitive and physical development and future economic potential. Children in poverty are also more likely to drop out of school, limiting their ability to acquire the skills and know-how essential to compete in the global economy.
On the other hand, economic development can also affect child poverty. Economic growth can create jobs, increase incomes, and improve access to essential services such as healthcare and education, which can help lift families out of poverty. However, economic growth is only sometimes inclusive, and it can exacerbate inequalities, leading to increased child poverty and social exclusion.
Child poverty can have significant adverse effects on economic development. In low-income countries, child poverty is associated with low levels of human capital, poor health outcomes, and limited economic growth. According to the World Bank, children who experience poverty are more likely to have poor health, little education, and reduced economic opportunities, which can perpetuate the cycle of poverty across generations.
In sub-Saharan Africa, for example, the poverty rate for children under 18 is around 50%, compared to 41% for the overall population. Poverty among children is associated with malnutrition, poor health, and limited access to education, which can have long-term effects on economic development. Children in poverty are more likely to suffer from stunted growth, which can affect their cognitive development, leading to lower academic achievement and reduced economic potential.
In high-income countries, child poverty can also have high economic costs. According to a report by the Organisation for Economic Co-operation and Development (OECD), child poverty costs the UK economy around £29 billion per year or around 1.3% of GDP. The costs of child poverty include lower educational achievement, reduced workforce productivity, and increased healthcare costs.
In an interview with Samirah Bello, a development expert, she pointed out that reducing child poverty around the globe will require a comprehensive and sustained effort from the government, civil society, and the private sector. She says, “By addressing the root causes of poverty, investing in education and healthcare, creating economic opportunities, and strengthening social safety nets, we can work towards a future where all children have the opportunity to thrive.”
Samirah also noted that curbing child poverty requires a multi-faceted approach that addresses the root causes of poverty and then implements social protection programs, promoting inclusive economic growth, improving access to education and healthcare, combating gender inequality, and encouraging international cooperation towards a future where all children have the opportunity to grow.
A report by UNICEF says every dollar invested in early childhood education can yield up to $17 in economic benefits over a child’s lifetime. Early childhood education can improve cognitive development, leading to higher academic achievement and increased economic potential. Investing in maternal and child health can also have significant economic benefits, as healthier children are more likely to succeed in school and become productive workforce members.
