Paul Bundick
Project Director‚
AED Center for International Training

This question implies that “the social” and “the economic” are two separate spheres of activity. Clearly this is not the case. Like all facets of society‚ the economy is social through and through. Economic growth requires effective institutions. Social institutions and their development underlie the entire process of business growth and‚ therefore‚ job creation.

The term “social development” is often used to mean education. Of course‚ an educated workforce is essential to economic progress. However‚ as practiced‚ education often prepares people for jobs that do not exist. Investment in education decoupled from private sector development will not deliver positive economic change. The two must go hand-in- hand.

Yet‚ I believe education may‚ at times‚ spark entrepreneurial activity. Education allows people to see things in a new light. Innovation can lead to successful entrepreneurship‚ which creates jobs. So in this sense‚ “social” investment may lower unemployment over time‚ if supported by effective informal and formal social institutions.

 

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