“There is only one thing in the long run more expensive than education: no education.” It has been clear that John F. Kennedy was right about this not only since the COVID-19 pandemic, during which reading ability in lower secondary education fell by an average of 10% worldwide and math performance by as much as 15%. Even before that, education was already in a poor state and progress towards achieving SDG 4 was far too slow. According to UN estimates, 84 million children and young people will not be attending school in 2030 and around 300 million pupils will not have basic literacy and numeracy skills unless additional measures are taken. Education is seen as a lever for sustainable development; accelerating progress in education could act as a catalyst for achieving all SDGs.
Only those who can read and write, use computers, acquire new knowledge and deal with new technologies will find their way in the world of the 21st century. This applies to industrialised countries, where digitalisation affects almost all areas of life. But it also applies to developing countries. There is significant potential there in the use of new technologies, for example in the renewable energy sector or in agriculture. The global energy transition alone requires millions of qualified workers. Education also helps people to find work, set up companies and run them successfully. Those with an education can earn an income and are less likely to fall into poverty. However, the benefits of education go far beyond the economic aspect: education allows people to take better care of their own health, strengthens women's rights and enables social participation, making it a cornerstone of functioning democracies.
In many countries, however, there is a lack of infrastructure and other prerequisites that make high-quality education possible in the first place: school buildings are in poor condition or missing altogether, (vocational) schools are inadequately equipped and teachers have not undergone qualified training. In many cases, the teaching content is outdated or not geared towards the actual needs of the economy. KfW is committed to remedying these shortcomings.
The promotion of quality education is a key area of German development cooperation. In 2023 alone, KfW has made a good EUR 447 million in new commitments that are expected to contribute to achieving SDG 4.
The financing agreements signed in 2023 through financial cooperation are expected to provide over 617,000 primary and secondary school pupils with new or improved educational measures. It is also expected that the commitments made will enable over 54,000 people to complete a vocational training programme. KfW thus emphasises its view that education is invaluable in every situation and an important lever for sustainable development.
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