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№ 2019/2

Economy under the conditions of modern transformations

NAZUKOVA Nataliia Mykolaiivna1

1Institute for Economics and Forecasting, NAS of Ukraine

Investing in early childhood development in the context of reforming educational funding in Ukraine

Economy and forecasting 2019; 2:66-84https://doi.org/10.15407/econforecast2019.02.066


The world community agrees on the conceptualizing nature of early childhood development. This was formulated in the Incheon Declaration and in the 2030 Agenda for Sustainable Development. The most significant part of the early development concept is the pre-primary education, which covers early childhood educational development and pre-school programs. Society's investments in early childhood development are highly profitable as resources spent are much less than the return from them: according to some estimates, $1 spent on pre-primary education can gain from $4 to $17 of social return.
At the same time, financial resources, that countries can spent on education, are limited, especially after the latest financial crisis. In Ukraine, the situation is worsened by the domestic socio-economic crisis of 2013–2014. The article aims at grounding the ways of pre-primary education financing in Ukraine in the context of the implementation of early childhood development concept. The author assesses financial support for childcare, early childhood education and pre-school education programs in different countries. The comparative analysis showed a low level of financing and a negative trend in Ukraine, in particular compared with the neighboring EU-countries such as Poland, Slovakia, Hungary and Romania. This indicates a low financial viability of providing quality pre-school education services in Ukraine. If the trend remains, Ukraine will lag behind the average indicators of social returns from pre-school education, especially in comparison with developed economies.
The author substantiates the expediency of applying in Ukraine the measures aimed at supporting licensed private pre-school education institutions, in particular, simplifying the procedures for starting pre-school educational activities, state participation in financing licensed private pre-school institutions and applying innovative schemes for financing pre-school education based on public-private partnership.

Keywords: public funding of education, early childhood development investment, productive public spending, public support for families with children

JEL: E620, H520, I220, I280

Article in English (pp. 66 - 84) DownloadDownloads :204