By The South Asia Editorial Desk
Based on research by researchers from Hannam University (South Korea), Taylor’s University (Malaysia), and University of Debrecen (Hungary).
Every year, South Asian governments pour billions of dollars into healthcare and education, hoping to improve lives, boost economic growth, and secure a brighter future. But a new study raises an essential question: Is that money going where it will do the most good?
The answer, according to a detailed analysis spanning over three decades of government spending data from Bangladesh, India, and Pakistan, is mixed and deeply revealing. Published recently on the academic repository arXiv, the study suggests that while education spending typically brings steady, long-term gains, healthcare spending often fails to deliver expected results under current practices.
The researchers – a multinational team from universities in South Korea, Malaysia, Hungary, and Bangladesh – looked carefully at how these countries’ investments in education and healthcare affected their Human Development Index (HDI). HDI, a metric created by the United Nations, measures how countries perform in education, health, and income – providing a snapshot of a nation’s overall quality of life.
What makes this study especially significant is its depth and method. Using statistical techniques that measure effects over multiple years, the researchers tracked not just immediate results but also delayed outcomes of public spending.
In Bangladesh, their findings showed that consistent spending on education significantly boosted HDI scores over time. While the benefits weren’t immediate, the data clearly indicated sustained improvement. Health spending, however, did not show clear evidence of enhancing human development in the short run – at times, it even appeared slightly negative. The researchers suggest this could reflect inefficiencies in the allocation and management of healthcare funds.
The story was similar in Pakistan, where investments in education also showed measurable benefits, particularly in the longer term. However, as in Bangladesh, the effectiveness of healthcare spending appeared inconsistent, suggesting that money alone isn’t solving the problems in the health sector.
India’s results were notably different and more complex. Despite massive investments in both education and healthcare, the research found no strong short-term correlation between these expenditures and improvements in HDI. The authors indicated this might be due to inefficiencies, poor resource allocation, or slow implementation processes diluting the impacts of increased spending.
Importantly, the researchers emphasize they are not advocating for cuts to healthcare budgets. Instead, the study highlights that simply spending more is not enough – especially in healthcare. Governments must ensure that the funds allocated are effectively reaching citizens through better management, careful monitoring, and targeted investments.
The implications for policymakers are clear. While investments in education appear more consistently beneficial, the healthcare sector urgently requires reform to address inefficiencies that undermine potential gains. Preventative health initiatives, improving rural healthcare access, and reducing bureaucratic hurdles could substantially improve how health budgets translate into real-life benefits.
In education, investments need continued consistency and smarter targeting. This might mean focusing resources on teacher training, improving school infrastructure, and ensuring more equitable access to quality education – especially in underserved areas.
Ultimately, the study underscores a crucial lesson for South Asian policymakers: smarter spending matters as much as, if not more than, larger budgets. Effective governance, transparency, and thoughtful planning are critical to converting financial investments into tangible improvements in people’s lives.
With South Asia facing multiple challenges – from recovering from COVID-19 disruptions to tackling poverty and unemployment – this research comes at a crucial moment. It offers a timely, data-driven reminder: real development isn’t merely about how much money governments invest, but how wisely they spend every dollar.
Source: Mamun, T. G., Abdur, R. M., Hassan, M. S., Amin, M. B., & Oláh, J. (2025). Public Sector Efficiency in Delivering Social Services and Its Impact on Human Development: A Comparative Study of Healthcare and Education Spending in India, Pakistan, and Bangladesh. ArXiv. https://arxiv.org/abs/2503.12178