Investment Case for Children in FBiH

Highlights

Extensive research shows that the early years of a child’s life really matter. A vast body
of evidence has emerged in recent years arguing that investments in early childhood
have the greatest return of any human capital intervention. Longitudinal studies from a wide range of case studies show that children who participate in quality early childhood programmes experience multiple benefits, including improved test scores and graduation rates, decreased social exclusion and multi-dimensional poverty, crime and delinquency rates, and improved long-term income.1 Importantly, investment in early childhood devel- opment (ECD) can drive progress within the Sustainable Development Goals (SDGs) and be central to meet basic child rights enshrined in the Convention on the Rights of the Child (CRC).

In the Federation of Bosnia and Herzegovina (FBiH) the importance of ECD cannot be understated. FBiH is faced with an ageing and shrinking population, which presents a con- certed threat to the entity’s economic and social development.2 In 2020, around 116,000 children below the age of seven lived in FBiH, a figure set to rapidly decline to around 84,000 by 2050.3 They must be the focus of urgent policy and investment attention. ECD

is particularly important given this demographic context. With fewer children and limited resources, FBiH must cultivate a skilled, productive young work force in order to sustain and improve economic and social conditions. Over the past fifteen years, progress has been made towards a conducive policy environment for ECD. This includes the Framework Law on Preschool Education and Upbringing (2007), the Strategic Plan for Improving Early Growth and Development of Children in the Federation of Bosnia and Herzegovina (2020- 2025), and the Law on Support to Families with Children (2022).

However, there are clear untapped opportunities to invest in FBiH’s younger generations.

The conditions needed for the FBiH’s young children to survive, thrive, and meet their
full potential are not in place. Building a conducive environment for ECD has been hin- dered by the institutional structures in Bosnia and Herzegovina which make alignment across administrative units and sectors particularly difficult. These arrangements have lead to prolonged decision-making and prevented consistent implementation of poli- cies, financing and service delivery. Budget allocations for children in social sectors are either insufficient or challenging to monitor, and even in the case of adequate funding, the outcomes for children are below targets. Inadequate and poor-quality investments have created a situation where young children and their families do not have universal access to the quality health, education, and social protection services that they need. Significant inequities in outcome between groups of young children also persist, with Roma children, children with disabilities (CwD), children from rural or low-income backgrounds, and migrant/refugee children all facing additional challenges.