ABSTRACT
This chapter introduces early year's educators, academics, students and practitioners to the insights offered by economists in the area of early childhood education and skills development nationally and internationally. It summarizes the theory underpinning the economic rationale for high-quality well-delivered early education, providing some evidence regarding potential economic returns. Human capital theory is a useful unifying framework that embraces the complexity of early childhood policy. The chapter then goes on to unpack the argument regarding how investments in quality early childhood education can improve health outcomes, boost future earnings and strengthen an economy. It also discusses some potential sources of funds that theoretically may support long-term investment in development. The most promising, and potentially easiest strategy to negotiate is philanthropic funding. The lack of mandatory reporting makes it impossible to give accurate data, but Philanthropy Australia estimates that there are approximately 5,000 foundations in Australia giving between AUD $0.5 billion to $1 billion annually.
