Investment Case for Children in Republika Srpska

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 development (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 Republika Srpska (RS) the importance of ECD cannot be understated. RS is faced with an ageing and shrinking population, which presents a concerted threat to the entity’s economic and social development.2 The total population has been declining every year since 2002, and, as of 2021, only 13% of the population of RS is below the age of 15.3 This demographic situa- tion is the result of both low birth rates and high rates of emigration. In 2020, around 56,250 children between 0 and 6 years of age lived in RS, a figure set to decline to around 40,676 by 2050.4 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, RS must cultivate a skilled, productive young work force in order to sustain and improve eco- nomic and social conditions.

Over the past fifteen years, progress has been made towards a conducive policy environ- ment for the ECD ecosystem. This includes the Framework Law on Preschool Education
and Upbringing (2007), the RS Law on Social Protection (2011), the RS Education Strategy 2022-2030, and the RS Early Childhood Development Programme 2022–2028. However, there are clear untapped opportunities to invest in RS’s younger generations. The conditions needed for the RS’s young children to survive, thrive, and meet their full potential are not in place. Young children in RS are exposed to poverty, deprivation, and toxic stress; health and nutrition outcomes for children are poor, and opportunities for early learning, despite major improvements, are being stifled across RS.

Expenditure in the social sectors (health, education, social protection) have been inadequate to meet needs. Social sector budgets are centralized at RS entity level and are managed by the RS Ministry of Health and Social Welfare, the RS Ministry of Education and Culture, and the RS Public Fund for Child Protection. However, municipal and city financing represent the main funding source of ECEC and Social Welfare Centres’ budgets, while the Health Insurance Fund of Republika Srpska finances the contributory health system. Expenditures in social sectors, and those targeting children in particular, are often insufficient. Even in the case of adequate funding, the outcomes for children are below targets. Further, these figures hide significant inequities in outcome between groups of young children, with Roma children, children with disabilities (CwD), children from rural or low-income backgrounds, and migrant/ refugee children all facing additional challenges.