World Bank Urges Investment in Education and Health to Tackle Poverty and Boost Longevity
World Bank Urges Investment in Education and Health to Tackle Poverty and Boost Longevity
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A new World Bank report highlights the critical role of education and health financing in improving life expectancy and economic prosperity, especially in low-income countries. Released on July 26, 2025, the report titled Health, Education, and Economic Prosperity 2025 outlines how better education and strengthened health systems are essential to reducing poverty and supporting sustainable development.
According to the report, each additional year of schooling can raise individual earnings by up to 10% and reduce the likelihood of extreme poverty by 15%. Education also promotes healthier behaviors, such as seeking prenatal care and practicing preventive health measures, which contribute to lower maternal and child mortality rates. For instance, the report notes that women with secondary education are significantly more likely to access maternal health services.
Education has been a major driver of global poverty reduction over the past decade. The global extreme poverty rate fell from 9.2% in 2017 to 8.5% in 2024, with nearly half the reduction in countries like India and Nigeria attributed to improved education. In Sub-Saharan Africa, expanded access to quality education could lift 50 million people out of poverty by 2030.
Despite these gains, the report warns that underfunded health systems in low-income countries threaten continued progress. On average, these countries spend just $34 per capita on healthcare—far below the $3,000 spent in high-income nations. This financing gap has left 2 billion people without access to essential services. Out-of-pocket health expenses have pushed around 150 million people into poverty, with countries like Nigeria seeing households shoulder up to 70% of health costs.
The rising burden of non-communicable diseases and climate-related health risks further strain limited resources. Yet, low-income countries allocate only a small fraction of health budgets to chronic disease prevention and treatment.
To close these gaps, the World Bank calls for innovative revenue collection strategies. These include progressive taxation, digital tax systems, and reallocating inefficient subsidies. It also recommends stronger public-private partnerships and better alignment of international aid with national priorities.
The report concludes by emphasizing the interdependence of education and health in driving long-term economic growth. It calls for bold policy reforms and increased investment to build resilient systems that can meet growing health and education demands, especially in the world’s poorest regions.
