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Overview

The World Bank Group is the largest financier of education in the developing world, working in 85 countries and committed to helping them reach SDG4: access to inclusive and equitable quality education and lifelong learning opportunities for all by 2030.

Education is a foundational infrastructure for job creation, and good jobs are the surest way out of poverty. A powerful driver of development, education is one of the strongest instruments for reducing poverty and improving health, gender equality, peace, and stability. It delivers large, consistent returns in terms of income, and is the most important factor to ensure equity and inclusion.

For individuals, education promotes employment, earnings, health, and poverty reduction. Globally, there is a 10% increase in hourly earnings for every extra year of schooling. For societies, it drives long-term economic growth, spurs innovation, strengthens institutions, and fosters social cohesion. 

Developing countries have made tremendous progress in getting children into the classroom and more children worldwide are now in school. But learning is not guaranteed, as the 2018 World Development Report (WDR) stressed.

Making smart and effective investments in people’s education is critical for developing the human capital that will equip young people with skills to help them find jobs. At the core of this strategy is the need to tackle the learning crisis, and help youth acquire the advanced cognitive, socioemotional, technical and digital skills they need to succeed in today’s world. 

However, learning is in crisis.

Over 250 million children are currently out of school. Learning outcomes are also alarmingly low: seven in 10 children in low- and middle-income countries cannot read or understand a simple paragraph by the age of 10. In sub-Saharan Africa, the figure is even more concerning—nine in 10 children lack basic reading comprehension, a challenge that looms large as the region’s youth population is expected to grow by 40 percent by 2050. Between January 2022 and June 2024, over 400 million students faced school closures due to extreme weather events.

Investments in education are also inadequate. Low-income countries devote a meager $55 per year per student, while public debt is crowding out spending on domestic social services.

The effects of the covid-pandemic have further compounded the learning crisis. The staggering effects of school closures reach beyond learning. This generation of children could lose a combined total of US$21 trillion in lifetime earnings in present value or the equivalent of 17% of today’s global GDP – a sharp rise from the 2021 estimate of a US$17 trillion loss. Moreover, skills gaps and mismatches are deepening challenges for youth in a dynamic job market. Nearly a quarter of young people from age 18 to 24 globally are not in employment, education, or training—and 35% on average in Southern and Northern Africa and Southern Asia.

High-quality early childhood development investments in basic numeracy and literacy, and socio-emotional skills provide the best possible start in life. These skills are critical, helping today’s children become tomorrow’s productive workers. These skills will also enable workers to reskill or upskill later in life. If a child cannot read with comprehension by age 10, they are unlikely to become fluent readers. They will fail to thrive later in school and will be unable to power their careers and economies once they leave school.

As these children mature into adults, equipping them with transferrable and relevant skills can improve the quality of labor and better match it to the demands of a changing world. Carefully designed specialist, technical, or vocational programs can advance skills development. But success depends on how programs match labor demand and the base skills of participants. Successful skilling programs involve revising and updating curricula based on employers’ needs, a mix of in-class instruction and on-the-job experience, and placement services that match students with employers.

Beyond youth, lifelong learning enables workers to maintain productivity over their lifetime. Expanding training in fast-growing sectors—such as healthcare, where AI-powered tools are reshaping workforce needs—helps workers adapt to evolving labor markets.

The World Bank is committed to working with countries to build education systems that support quality learning at all levels, and so that everyone, everywhere, has the opportunity to learn. We are leveraging our technical, knowledge, and financial partnerships to support countries to develop the foundational skills of students—literacy, numeracy, and socio-emotional skills—to create a sustainable pathway from classrooms to careers. The World Bank is the largest financier of education with a $26.5 billion education portfolio in 85 countries, improving educational opportunities for 305 million students, including 146 million women and girls. We know that investing in education pays off in the long run—for individuals over their entire lives and for entire societies.

Last Updated: Apr 22, 2025

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