The Economic Case for EdTech in Emerging Markets
In many emerging economies, the education system remains one of the most under-leveraged tools for economic growth. Outdated infrastructure, resource limitations, and inequitable access continue to constrain student outcomes. This creates long-term implications for labor productivity, innovation, and national development.
In the Caribbean and similar developing regions, these challenges are further compounded by a digital divide that has excluded vulnerable populations from accessing quality education. These challenges were explored in great detail in a previous presentation on Shaping the Future: Digital Transformation in Latin America and the Caribbean. Against this backdrop, education technology (EdTech) is no longer just an optional tool, but rather, it is a strategic investment in the human capital of tomorrow.
Education Gaps – A Barrier to Growth
The learning crisis is well-documented and according to the World Bank estimates, learning poverty, defined as the inability to read and understand a simple text by age 10, stands at over 50% in low- and middle-income countries. In parts of the Caribbean, teacher shortages, curriculum rigidity, and limited access to digital tools widen this gap, particularly for rural and marginalized students.
This isn’t merely an education issue. These early deficits directly impact workforce readiness, contribute to youth unemployment, and hinder economic mobility. Countries that fail to close these learning gaps face a future of skills mismatches, low productivity, and economic stagnation.
A clear example of this is youth unemployment and education gaps in Jamaica. A 2023 IDB report highlighted that while Jamaica’s education enrollment is relatively high, nearly 70% of youth aged 15–24 are not adequately prepared for the labor market, due to weak foundational skills and limited exposure to technology in school. This has contributed to youth unemployment rates above 20%, despite job openings in logistics, digital services, and tourism.
Why EdTech Matters Now
EdTech is not a silver bullet, but when implemented thoughtfully, it offers several key advantages that traditional systems cannot scale alone:
- Access– Digital platforms can reach students in remote or underserved communities, bypassing traditional infrastructure constraints.
- Personalization– Adaptive learning tools can tailor instruction to individual student needs, accelerating progress and retention.
- Data-Driven Insights– Real-time tracking of student performance allows for more targeted interventions at the classroom, school, and policy levels.
- Efficiency– Automation of administrative functions reduces the burden on educators, freeing them to focus more on instruction and mentorship.
Platforms like SmartTerm, which have been deployed in schools across the region, are already helping institutions streamline school management while improving parent-teacher engagement and access to learning content, demonstrating that with the right infrastructure, even the most remote or resource-constrained schools can become part of a globally connected learning ecosystem.
The Long-Term Return on Investment
From an economic standpoint, investing in EdTech yields high returns over the long term. When students acquire foundational literacy, numeracy, and digital skills, they are more likely to transition into productive employment or entrepreneurship. As the global economy increasingly demands skills in STEM, critical thinking, and technology, countries that invest in modernizing their education systems will be better positioned to compete. For example, Estonia has become a global leader in digital education by integrating coding and digital literacy from an early age, contributing to its strong tech-driven economy. Similarly, Singapore consistently ranks among the top in global education indices due to its continuous investment in teacher training, curriculum innovation, and technology integration. Even in Latin America, Uruguay’s Plan Ceibal provided each student with a laptop and internet access, significantly reducing the digital divide and improving digital skills across its youth population.
In the Caribbean, which faces a persistent brain drain, building a digitally literate workforce not only improves local economic competitiveness but also creates opportunities for remote work, innovation ecosystems, and economic diversification.
Policy and Financing Considerations
To maximize the benefits of EdTech, governments and development partners must prioritize several key areas:
- Policy Integration- National education strategies should embed digital transformation as a core pillar, not an add-on.
- Public-Private Partnerships – Collaborations with EdTech firms, telecom providers, and content creators can reduce costs and accelerate rollout.
- Teacher Training – Educators must be empowered to use digital tools effectively through ongoing training and support.
- Equity First – Special attention must be paid to gender inclusion, rural access, and culturally relevant content to avoid deepening existing inequalities.
Financing can come from a mix of sources, including government budgets, donor funding (e.g., IDB, World Bank, USAID), and results-based financing models. The goal should be sustainability, ensuring systems can continue without overreliance on donor subsidies.
Challenges Ahead, But Not Insurmountable
Yes, barriers exist, limited infrastructure, inconsistent electricity, low internet penetration, and resistance to change. But these are solvable. In fact, many of these challenges mirror those faced during the rollout of mobile banking, which has now become a lifeline for millions in developing economies.
The Caribbean has a unique opportunity to leapfrog traditional limitations by investing smartly and collaboratively in digital education infrastructure and innovation. St. Vincent and the Grenadines are leading the way as they have implemented a national roll-out of the SmartTerm Education Management Tool. In this context, it would be wise to partner with a company that has already built regional credibility and is making significant headway. SmartTerm, the leading EdTech company in the Caribbean, is doing just that, delivering scalable, cloud-based solutions that modernize school management, enhance classroom engagement, and expand digital access for thousands of students and educators across the region.
EdTech is Economic Policy
The case for EdTech in emerging markets is not just a matter of improving classroom experiences, it is a matter of economic urgency. Every child without access to quality education represents untapped potential and a missed opportunity for national development.
As a development practitioner, I believe now is the time for our region to treat education technology not as a luxury, but as a strategic lever for growth. It’s time to shift the narrative, because closing the learning gap is not only the right thing to do, it’s the smartest economic policy decision we can make.