EDUCATION FOR DEVELOPMENT:AN ANALYSIS OF INVESTMENT CHOICES. George Psacharopoulos, Maureen Woodhall Physical Description: Book - 337p. ISBN Number: 0-19-520478-6 Published October 1, 1985 by World Bank; Oxford University Press US

1. EDUCATION FOR
DEVELOPMENT:
AN ANALYSIS OF
INVESTMENT
CHOICES
Book Review
George Psacharopoulos, Maureen Woodhall
Physical Description: Book - 337p.
ISBN Number: 0-19-520478-6
Published October 1, 1985
by World Bank; Oxford University Press US
Mohamad Adriyanto – Twitter @adriyanto

2. Book Description
 This book analyzes the policy issues facing educational
planners, administrators and policy makers in developing
countries in choosing between alternative strategies of
educational investment.
 It draws on the World Bank's twenty years of experience in
education sector analysis and research to discuss both
theoretical and practical problems of analyzing investment
choices.
 No comparable work exists which deals solely with the
problems of analyzing education investment in developing
countries.
 While written for those involved in policy formulation and
planning, it does not assume a high degree of technical

3. Book Description
 The topics covered include:
the contribution of education to economic and
human development,
criteria for investment,
cost-benefit analysis,
demand for educated manpower finance,
internal efficiency and quality,
equity considerations, and
the links between investment in education and
investment in other sectors.

4. Review
 "The strength of the book lies...in its provision of a
comprehensive, excellently documented review of the
relevant research and policy-oriented literature....A well-
organized, authoritative volume that will serve well the
needs of teachers, students, educational administrators,
and policymakers. It is likely to be consulted frequently by
all of these, as well as by scholars, with profit."--Economic
Development and Cultural Change
 "An important resource for those government officials and
researchers who are confronted with meeting present and
future educational demand."--Journal of Developing Areas

5. Review
 "A unique book....In ten substantive chapters it deals
competently with a range of materials that make a well-
rounded presentation of the contemporary theory of human
capital....No one concerned with the problems of schools
can remain uninterested in the book."--Contemporary
Sociology
 "A useful reference document for a wide range of issues in
educational planning."--Economics of Education Review
 "The book is already becoming standard reading in many
universities, and is likely to attract widespread interest in
international agencies, planning units and Ministries of
Education."--International Journal of Educational
Development

6. Main Ideas
 The purpose of this book is to show, through
research and experience, how economic
analysis of investment choices may help
determine investment priorities for education
and help in the identification and preparation
of education projects.
 Issues covered:
Assessing the need for investment in education
Evaluating its contribution to economic
development
Choosing between alternative investment

7. Main Ideas
 World Bank experience has not yielded ready-made
solutions to the complex problems of choosing the
most efficient and productive types of educational
investment.
 The best solutions to many problems depend in some
degree on a country’s economic and social conditions,
physical and human endowments, and political
priorities.
 The economic techniques that have been offered as
guides to education investment decisions, all have a
part to play in making the choice, but none is sufficient
by itself.
 World Bank recognized that unless political and social
factors are taken into account, educational investment

8. Main Ideas
 In determining the balance between investment in
human capital and investment in physical capital and
infrastructure, policymakers must consider two
important questions:
Does education contribute to economic growth?
How does the contribution of education to economic
development compare with the contribution of physical
capital?
 Research showed that spending on education should
be regarded as productive investment, rather the pure
consumption.
 Educational investment must be evaluated in terms of
opportunity cost and the relationship between costs
and expected benefits.

9. Problems & Techniques
 Typical problems:
The level of education likely to offer the highest return
The right balance between technical and general
education
The combinations of inputs and technologies likely to
produce the greatest output of skills and knowledge
and be most effective in preparing people for
employment.
 Economic techniques mostly used:
Cost-benefit analysis
Manpower analysis and forecasting
Cost effectiveness analysis.