The link between financial inclusion and human development is examined here. Using cross-country data, the behavior of variables that try to capture these concepts is examined and preliminary evidence of a positive association is offered. However, because establishing a causal relationship with macro-data is difficult, a thorough review of the literature on the impact of financial inclusion, focusing on micro-studies that can better address identification is conducted. The literature generally distinguishes between different dimensions of financial inclusion: access to credit, access to bank branches, and access to saving instruments (i.e., accounts). Despite promising results from a first wave of studies, the impact of expanding access to credit seems limited at best, with little evidence of transformative effects on human development outcomes. While there is more promising evidence on the impact of expanding access to bank branches and formal saving instruments, studies show that some interventions such as one-time account opening subsidies are unlikely to have a sizable impact on social and economic outcomes. Instead well-designed interventions catering to individuals’ specific needs in different contexts seem to be required to realize the full potential of formal financial services to enrich human lives.
Maria Soledad Martinez Peria and Mu Yang Shin
Thanks to the concerted effort of the international community to promote basic education, driven by the Education for All (EFA) goals and Millennium Development Goals (MDGs), indices of education in Africa have improved dramatically since the 1990s. Although the access to schooling has improved, there are still issues of quality related to teachers, facilities, teaching and learning materials, and relevance of educational contents. Recently, under the Sustainable Development Goals (SDGs), the focuses of educational policies of African countries have been diversified, to concentrate not only on quantitative and qualitative improvement of basic education, but also on secondary, tertiary, and technical and vocational education and training (TVET). One of the problems which critics point out is that, regardless of the massive expansion of basic education, learning outcomes of school leavers in Africa have not improved. It has also been remarked that school enrolment has not directly led to poverty-reduction or decent employment. Another side-effect of the expansion of basic education has been an increased dependency on aid. So, although there is a constant demand for higher and more education among the general public, aid-dependent expansion of the system is unsustainable. Before colonization by European powers, many groups in Africa had a tradition of oral transmission of knowledge, although there were some significant exceptions of societies which had formal educational institutions. With or without formal institutions, African traditional societies had their own mechanisms of transmitting knowledge across generations. However, Europeans overwrote such existing modes of education by introducing Western school systems. With the paternalistic conviction of their civilizing mission, they refined traditional cultures and practices which could be maintained and taught in school, while replacing other “barbarous superstitions” with teaching of European subjects. Resistance to such impositions of European education eventually led to nationalism, which accompanied the desire to find a uniquely African epistemology and teaching method. At the same time, the mechanism of recruiting African white-collar workers through schooling, which started during the colonial period, planted a strong hope for social advancement through gaining school certificates deeply in the mind of African people.
Educational psychology in Africa has a rich and colorful history. In sub-Saharan Africa educational psychology, as both a profession and a scientific field, is particularly vibrant. The emergence of educational psychology in sub-Saharan Africa shows how the science and the profession has pirouetted in ways that could support mental health and learning in African contexts in innovative ways. While emanating within Western cultures, educational psychology has been adapted and, perhaps, been deeply enriched in the African context. After the initial establishment of educational psychology in sub-Saharan Africa, three broad eras of theoretical development are evident: (a) the era of ecosystems and community, (b) the era of inclusion, and (c) the era of strength-based and positive approaches. During the era of ecosystems and community, emergent theories challenged the dominance of the individualist paradigms in educational psychology and provided broadened conceptualizations of the factors that impact mental health and effective learning. The role of communities was also given prominence. During the era of inclusion, the medical model was challenged as the primary foundation for legitimizing educational psychological assessments and interventions. Educational psychologists moved toward rights-based approaches that championed the rights of vulnerable populations and the creation of inclusive learning environments. The inclusion of children with disabilities influenced policy development in multiple sub-Saharan countries and expanded the dialogues on how best to support learning for all children. During the era of strength-based and positive approaches, theoretical and pragmatic approaches that forefront strengths, capacities, and possibilities started to develop. This era signified yet another departure from previous hegemonic paradigms in that educational psychology moved beyond the individual level, toward more systemic approaches, but then also used approaches that focused more on strengths and the mobilization of resources within these systems to address challenges and to optimize educational psychological support. These eras in the development of educational psychology in sub-Saharan Africa created optimal opportunities to respond to the United Nation’s Sustainable Development Goals (SDGs). In terms of SDGs, educational psychology responds primarily to Global Goal 3 (health and well-being) and Global Goal 4 (quality education). At the same time it supports the Global Goals of no poverty (1), gender equality (5), decent work and economic growth (8), reduced inequalities (10), sustainable cities and communities (11), and building partnerships for the goals (17).
Development cooperation is one of the traditional policy domains of the European Union (EU). Over the years it advanced from an instrument used in colonial times to one of modern partnership, although European self-interest remains a driving force. Jointly, the EU and its member states are the largest development donor in the world and also provide sizable market access and investment to developing countries. Their overall performance record has been assessed fairly positively by internal and external parties, although many possible improvements have been identified. The various enlargements of the EU traceably supported a widening of the geographic and substantive scope of EU development policies and practice. In addition, EU development cooperation was reinforced by the fact that it gradually received a firmer basis in the constituent EU treaties. The “European Consensus on Development” document, as revised in 2017, laid out the main direction of and emphases in EU development cooperation until the year 2030. The European Consensus prescribed a rights-based approach, and squarely placed the United Nations “Agenda 2030” and the Sustainable Development Goals (SDGs) contained in it, as the main framework and objectives for EU development cooperation. A wide range of actors is involved in EU development cooperation, in part because this is an area of shared competence among the EU member states that pursue their own national policies as well as those specified by the EU. Thus, EU actors such as the European Commission, Council, and Parliament feature in this policy field along with EU member states and individual or collective developing country actors. The most prominent example of this is the African, Caribbean, and Pacific (ACP) Group of States, which consists of 79 countries. Civil society organizations, including non-governmental development organizations, both from the North and the South, also seek to influence or otherwise engage with the policies and practices of EU development cooperation. While EU development cooperation is an established policy field, it is also still very much a work in progress, and major challenges lay ahead for action in the period up to 2030, the year in which the SDGs are to be realized. These major challenges include funding, strengthening the EU’s political clout in the world by using development cooperation more strategically for forging and influencing global decision-making on relevant topics, renewing and innovating the relations between the EU and ACP countries, handling the consequences of Brexit, and improving on the delivery of EU development cooperation.