CARE has a neat video on the huge impact of educating girls: “It’s called the girl effect”. Indeed it could be an investment with one of the largest returns — for both the individual and their society.
Larry Summers found that on average wages increase by more than 10% to 20% for each additional year of schooling (with the returns being especially high in Africa and South Asia, where literacy is lower: go here). He calculated that there was a much higher return to society from investing in the human capital of girls than in such ‘hard’ infrastructure as electric power plants. And then there are the positive effects on infant mortality, maternal mortality, and the position of women in their societies. Summers did his calculations back in the early 1990s, and subsequent research has continued to confirm the substantial benefits of girls’ education.
For further work in this area go to the BWPI working paper series. Farhad Hossain and Tonya Knight discuss the use of micro-credit for education in Bangladesh in ‘Financing the Poor: Can microcredit make a difference?’. The Grameen bank provides education loans (as well as scholarships for its clients). Increased female education has contributed to improving their social status over the last three decades: this is evident in the number of women who now have jobs in banking and other service sectors in Bangladesh.