Dean of the Faculty of Economics and Econometrics of the University of Amsterdam, Jacques van der Gaag also makes a strong case for the economic benefits of ECD initiatives speaking to its intrinsic link with human development.6 His analysis suggests — that certain critical pathways link ECD to human development.7 The 'education pathway' is straightforward and abundantly documented by scientific evidence. Like education, the health pathway from ECD to human development is clear, although surprisingly, most of the studies linking health to economic growth are recent, and additional research is needed to understand more fully the economic impact of ECD on health. Van der Gaag finds the recently acquired empirical evidence on other socio-economic benefits of ECD equally convincing; longitudinal studies point at the indirect economic effects such as improved self-esteem, social competence, motivation, and reduced criminal behaviour. Founding President and Fellow of the Canadian Institute for Advanced Research, Fraser Mustard provides a comprehensive review of specific studies analyzing the links between ECD and human development, particularly regarding improvements in public health and reduction in violent behaviour.8

Today's business leaders see that ECD initiatives are crucial for economic competitiveness, and a worthwhile investment. A December 2005 poll of business leaders in the United States shows that more than 80 per cent agree that public funding of voluntary pre-kindergarten programs for all children would improve America's workforce. The influential magazine The Economist put forward a parallel argument in a 1998 article. According to the magazine, the principle of free education for school-age children is already entrenched throughout the Western world, and that there would be nothing politically or economically controversial about extending it further down the age range.9 Canada's business elites also advocate enhancement of ECD. They are taking important steps in supporting ECD by lobbying federal, provincial and municipal governments for more action, as well as providing leadership and initiating corporate/business action. The work of RBC Financial Group Foundation in supporting ECD constitutes an important and promising example.10

According to Mustard, ECD initiatives will influence the quality of our society in 20 to 25 years: “Failure to act now could mean a failure to raise the quality of our population, weakening our future competitiveness in a globalized economy characterized by exponential growth in knowledge and technology.”11 In Mustard's view, investing effectively in ECD initiatives will cost more money than Canada currently spends.12 An important point raised by Mustard is that, countries that have put such programs in place at least partially finance them.13 He argues that Canada has not yet put in place an effective policy framework: “A number of our provincial governments now have ministries concerned with child development, but they have yet to become mainstream in the same sense as ministries of education and health.”14

The Government of Ontario is currently in the process of developing Best Start, a long-term ECD strategy that will be implemented in the next ten years.15 As part of this umbrella strategy, Ontario Early Years Centres offer learning and literacy programs for parents and their children.16 In May 2005, the province signed an agreement with the federal government to fund 25,000 new licensed child care spaces by 2007–08 in Ontario. Regrettably, the new federal government has terminated this agreement, taking away $1.4 billion intended for child care spaces and fee subsidies for working families. Without sustained federal support, the Ontario Government is unlikely to move aggressively with its Best Start strategy.17

Because most of the benefits of ECD initiatives such as family literacy programs are longer term while the costs of mounting such programs are more immediate, political systems tend to be biased against making such investments.18 “But any business that operated in this way would likely fail to succeed. A similarly dim prospect may be in store for a country that fails to take advantage of such solid investment opportunities.”19 In the US, policy makers have recently displayed negative attitudes toward certain family literacy programs partially because of the complex and costly nature of the performance evaluations of such programs. Such evaluations must include longitudinal studies on the progress of all family participants for effective and accurate measurement.20