What could cognitive capital mean for China's children?

Abstract

Cognitive capital is an emerging paradigm that captures the criticality of investing in children whilst neural proliferation and development of brain architecture are at their peak. Distinct from financial capital, cognitive capital represents investment in future human potential from interventions in nutrition, health, education, child protection, and social welfare systems that optimize brain development. The return on investment is significant given the plasticity of the developing brain in response to positive stimuli. Investment in brain development results in improved health and well-being, educational outcomes, skills, employment, and quality of life. The inverse is also true. Negative stimuli lead to depreciating cognitive capital, poorer mental and physical health and educational outcomes, and decreased life chances. Cognitive capital could be an organizing framework for China's next phase of development to ensure the building of a prosperous society. Through significant commitment from the government, China has seen remarkable improvements in under-five mortality, literacy rates, access to basic education, life expectancy, and gross domestic product in the past few decades as the result of an expansion of publicly funded social services. Yet, inequities remain within and across communities and regions. In 2015, China had a country ranking of 97 for gross national income per capita, highlighting remaining challenges across the whole population. Cognitive capital relies on a package of forward-looking policies that lead to equitable, efficient, and effective use of existing and future resources. This is consistent with the United Nations Convention on the Rights of the Child. Investments in interventions that maximize optimal brain development in children, realize children's rights, and contribute to future economic growth, defined as "cognitive capital," represent a significant opportunity for improving children's lives, nation-building, and future economic growth in China.

Keywords: China; cognitive capital; early childhood development; public finance.