Education is a positive externality spend by any government (amidst public health, innovation, culture, urban life). Positive externalities are the fingerprints of governance that thinks in generations rather than elections. indication of long term seed sowing by any government. There is perhaps no immediate gain but a long term generational impact.
"Globally, annual spending on education is estimated at roughly US$5 trillion to over US$7 trillion, depending on whether the data includes only public expenditure or incorporates private,EdTech, and training costs. High-income countries account for approximately 64-65% of this spending, while low-income countries receive less than 0.5%, despite similar school-age populations"
- Of all money spent on education, just 0.5% is spent in low income countries.
For comparison-- Global defence spending hit a record high of approximately US$2.7 trillion in 2024, marking the tenth consecutive year of increased expenditure.
One of the reasons to justify government intervention in the market for education, is that education generates positive externalities.21 This essentially means that investing in education yields both private and social returns.
- Education systems around the world vary widely in structure, teaching methodologies, and assessment practices.
- Most countries organize education into primary, secondary, and tertiary levels, but the ages and duration of each level differ.
