Examining the role of education in economic development in Nepal.

• In Event: Developments and challenges in economics and finance of education: Evidence from LMICs and high-income countries

Proposal

The Nepalese Ministry of Education, Science, and Technology recognizes the inextricable function that education plays in economic development and diversification. However, despite considerable longitudinal investment targeted at bolstering public education systems, low learning levels have chronically persisted (MoEST, 2021). Predictably, return-to-schooling (ROS) estimates for Nepal are relatively low at primary (2%), lower-secondary (2%), and tertiary levels (8%), exhibiting a drastic uptick at the upper-secondary level (16%) (Dunusinghe, 2021). At a macro-level, the impact of public education expenditure on economic growth over a 28-year period was found to be negative (Gautam, 2022). However, such econometric measures, while informative and which are just a handful in case of Nepal, do not fully capture the nuanced and multifaceted impact of education on a society's overall development, given that education generates a variety of indirect externalities which are difficult to capture in quantitative models; often manifesting over the course of generations and/or through a variety of mediating variables (Brewer and McEwan, 2010).

This study aims to fill this gap through a more humanistic approach to measuring the impact of education on national development. Leveraging a mixed methods research design consisting of analysis of quantitative data for trends over time, observations of schools and classrooms, and qualitative inquiry via talking to people and hearing their stories, we hope to build a comprehensive picture of educational trends in Nepal and their association with intra-country development. Through this project we strive to better inform the efforts of state authorities and international organizations working to enhance sustainable development within Nepal, while concurrently creating space and guidance for further impact analyses.



For quantitative analysis, the data comes from several sources including ASER Nepal (recently available), the most recent Nepal Demographic and Health Survey, and other established data from Nepal's Bureau of Statistics. For example, we also utilize the most recent version of data from Nepal's Bureau of Statistics, the National Labor Force Survey (NLFS) for the 2017-2018 cycle; a national representative household survey characterized by a two-stage stratified sampling design. For qualitative analysis, like the quantitative approach, the target group for the qualitative approach will also extend beyond higher education, including stakeholders at all levels to lay a wider net, capturing as many ideas, insights, and thoughts as possible. Targeted stakeholders include educational leaders, teachers, and community leaders (local, regional, and national). To obtain perceptions on the relationship between education and economic development, we use various elements of qualitative modes of enquiry, such as interviews, focus groups and field observations.

The preliminary findings from both quantitative and qualitative analysis suggest that education plays an important role in the development of the nation. However, governance of education to provide quality and equitable education is the key. Findings also highlight the important role of supervision and monitoring in public schools, having good education policies, promotion and prioritization of technical education catering to the skill sets needed in the labor market, and policies and initiatives for reversing the brain drain.

Author

• Amrit Thapa, University of Pennsylvania