Utilising education as a catalyst for sustainable development

Illustration: TBS

Though education is the core pillar of competitiveness and innovation, it is also burgeoning as a business sector. Traditional schools, online courses, private tutoring, vocational training, language instruction, skills development, and educational products—all are generating revenue.

In Bangladesh, the high demand for education has fueled the growth of private educational institutions. With improved facilities, resources, and effective use of technology, these institutions are better equipped to benefit their students.

However, instead of promoting innovation, diversity, or addressing special needs, many are primarily focusing on enrollment numbers and revenue growth, while neglecting investment in infrastructure and quality improvements. 

As the government struggles to meet educational demand, the private sector has stepped in to provide quality education. Yet, if the rising cost of education excludes low-income students, it will only deepen social inequality. Moreover, the use of outdated and unfocused curricula is a matter of concern, as these hinder effective teaching and learning.

Whether education is viewed as a business or a public service depends on the perspectives and priorities of individuals or institutions. A balanced approach—where private investment earns profits while upholding public responsibility—can ensure inclusive and high-quality education for all. 

The education sector began with a commitment to serve humanity by developing a skilled and productive workforce and improving lives. In Bangladesh, the first private university was proposed in 1992 as a means to save valuable foreign currency. Over time, however, business-oriented attitudes appear to have increasingly penetrated educational institutions.

However, education is not a short-term investment; it takes time before its impact becomes visible. Charity-driven models may offer immediate relief, but overreliance on donations and grants can undermine sustainability and stifle innovation. Instead, the concept of social entrepreneurship offers a path toward long-term, sustainable development. 

Business activities grounded in social change can help prepare our youth for the future. Business goals and objectives need to be redefined when corporate values begin to influence the very foundations of society. Capitalism has driven global trade and benefited humanity, but its gains are not equitably distributed. Social business addresses poverty—through access to resources, employment, and similar means—and tackles social and environmental challenges, such as achieving sustainability. 

This approach challenges the conventional profit-driven model by prioritising reinvestment and focusing on social impact, including inclusion and empowerment.

In his book 'Creating a world without poverty', Nobel Laureate Prof Yunus defines social business as a model aimed at solving social or environmental problems while increasing social impact.

In this model, reinvestment is directed toward priority sectors like health, housing, nutrition, education, and the environment. Welfare-driven motivation underpins such investments, and success is measured by their impact on people and the environment. 

Operating at the interface of the public and private sectors, this model functions through the sale of goods and services and is rarely supported by grants. The coexistence of business and social responsibility gives capitalism a broader, nobler, and more fulfilling purpose. While the model has spread globally and benefited many, it has yet to eliminate poverty-related social issues.

There are types of businesses that solely target social goals. Another type generates profit but is owned by marginalised communities who indirectly benefit—for example, a group of farmers building irrigation infrastructure. 

Microcredit is not the only form of social business. Initiatives such as Danone Yogurt, Grameen Eye Hospital, BASF's mosquito net project, and Colive's sourcing of products from post-conflict regions exemplify social businesses that not only address social and environmental issues but also create economic opportunities for the poor and underserved—helping achieve the Sustainable Development Goals (SDGs). These ventures attract investors eager to bring positive change to society.

For decades, social enterprises and initiatives aimed at social and environmental objectives have served as effective tools for improving quality of life and making the world more livable. Fundamentally, social business is a method that helps build a sustainable society by addressing urgent and significant social, environmental, and economic challenges. 

While social enterprises and social businesses share many similarities, the latter is a distinct entity and a specific subset of the former. A social initiative may rely on grants or donations from the public or government, but a social business does not—though the disadvantaged still benefit from its success. For example, collateral-free microcredit enables the poor to participate in the open market and move toward self-reliance.

Education prepares individuals to participate in economic activities, accelerates economic growth, and alleviates poverty. Educated individuals possess the entrepreneurial skills to create jobs and diversify production, thereby laying the foundation for a resilient and adaptive economy. 

According to UNESCO, every dollar invested in education can generate 10 to 15 dollars in economic returns. Investment in education boosts productivity, skills, and quality. Yet, Bangladesh remains relatively frugal in its budget allocation for education. 

Countries that have heavily invested in education now lead in science, knowledge, and technology, enabling them to adapt to rapid social, technological, and economic changes. In a youth-majority country like Bangladesh, education offers hope for the next generation.

The unemployment rate among US graduates is significantly lower than the national average. With more job opportunities comes the prospect of higher income. Greater participation in the workforce increases production and growth, reduces poverty, and lessens social inequality. 

An educated society fosters ethical business and responsible resource use, driving innovation and global competitiveness. It prepares people for labor market changes and supports sustainable development, boosting economic stability and social dynamism.

Education reduces inequality, promotes peace, and lowers conflict risk—doubling school attendance can halve conflict, says UNESCO. It builds trust, empathy, civic participation, and critical skills, leading to lower crime rates and less violence against women. More education also decreases child marriage and maternal mortality, while expanding economic and social opportunities.

Higher education levels lead to better health by improving public health awareness, healthcare access, and healthy habits. Education boosts child survival, maternal health, vaccination, nutrition, and hygiene. Educated individuals understand preventive care, reducing chronic disease risks and living longer. It also promotes tolerance and unity, helping bridge divides and foster dialogue in diverse societies like Bangladesh.

In Bangladesh, facing social and economic challenges, education improves livelihoods and builds a prosperous future. It boosts self-awareness, decision-making, and confidence, especially empowering women in employment and personal growth. Education raises climate change awareness, enhancing resilience and promoting eco-friendly practices. By applying this knowledge, people support sustainable development through innovation and technology.

Education is a key driver of individual and economic opportunities, yet funding often falls short. Closely tied to development and national security, education investment must align with women's empowerment, security, and peace-building. As Kofi Annan said, "Education is, quite simply, peace-building by another name," making it essential to national security and foreign policy.

Education is a vital social sector influencing all others. Treating it as a social business will boost investment and build a smarter future. While top global universities raise endowments with donor tax benefits, private universities in Bangladesh have rarely done so. Returning VAT from universities as innovation grants could support research and scholarships for future generations.

Sketch: TBS

Dr Mohammed Mahbubur Rahman is the Pro-Vice-Chancellor at Ahsanullah University of Engineering and Technology. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.