Early Childhood Development Drives Economic Growth and Benefits Native Communities

Early childhood development (ECD) investments are rarely considered an important part of economic development, yet they are deeply interconnected. When children have a healthy start in life, they are more likely to become the scholars, innovators, and entrepreneurs that drive economic development in their communities. ECD investments can reduce downstream costs to government and increase tax revenue without increasing tax rates. This important return on investment (ROI) approach to investments in ECD is uniquely augmented in Native communities.

The first few months and years are a sensitive period for child development ; therefore, supporting families during pregnancy, birth and the first few years of a child's life can have long-lasting effects. Decades-long studies of ECD programs have demonstrated investment returns over $7 returned for every dollar invested (PDF), particularly when reaching disadvantaged families. These studies show that high-quality early care and education programs or home visiting programs for families with an expectant mother or young child can reduce remedial education costs, increase high school graduation rates, and as adults reduce crime, increase earnings and tax revenue.

Research also demonstrates that effects can persist into the next generation. For example, researchers found that parents who attended a certain preschool in Michigan decades prior, raised children with higher levels of education and employment and lower crime rates compared with the children of parents who did not attend.

Another key research finding is that although children and their families gain directly from ECD programs, a large portion of the economic benefits are realized by society at large. Unfortunately, ECD programs have all too often been underfunded, especially considering that their benefits broadly spill over to the public . Therefore, government and philanthropy have an opportunity to invest in ECD and make these benefits available for society, primarily by serving vulnerable populations.

In Native communities, ECD investments play a key role in supporting child development, families and economic development. Federal, state and tribal government funding support a variety of early care and education and maternal and child health programs. Native communities instill their values, culture, language and traditional teachings into these important programs.  

The Administration for Native Americans(ANA) provides grants to Native communities to support an array of projects focused on ECD programs. Most of these include Native language and traditional cultural practices, which are protective factors for Native families that help heal historical trauma and promote resiliency. Learning a Native language as a young child can foster brain development and the values expressed through a Native language can support children as they face challenges.  

Some ECD programs braid several government funding streams together, such as Winnebago Educare at the Winnebago Tribe of Nebraska, which receives Head Start funding, child care subsidies and funding from tribal government and philanthropy. In Montana, the Salish Kootenai College hosts the Early Learning Center which provides care and education for children ages 6 weeks to 6-years-old, a valuable resource for parents furthering their education.

Several Native communities use Family Spirit , a culturally tailored home visiting program delivered by community-based health educators. Research shows that this approach reduces maternal depression and substance use, and for children reduces early behavior problems and risk of substance use over the life course.

Meanwhile, the White Earth Child Care Program  in Minnesota administers state subsidies and scholarships for families to pay for early care and education. Most providers on the White Earth Reservation are rated 3- or 4-star in the state's 4-star childcare quality rating and improvement system.

To achieve a high ROI, funders need to invest in the training and compensation of early educators, home visitors and other ECD professionals. The quality of interactions and relationships between these professionals and children and their families is a key determinant of positive outcomes. However, within early care and education, wages are often low and turnover is relatively high .

In addition to investments in ECD, the well-being of Native families requires investments in housing, workforce and health. Funders should draw inspiration from the successful results regarding both the sustaining of Native cultural values and the long-term economic benefits of quality ECD. Thus, when charting pathways to economic development, investing in young children and their families is a fundamental starting point.

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