Cost-benefit analysis in educational planning

The purpose of cost-benefit analysis is to provide a guide for rational resources allocation by assessing the future benefits of an investment against the costs incurred in the present. For educational planners, this type of analysis is made difficult by the non-economic costs and benefits in education and also by the extensive time-lag that exists between educational investments and realized benefits. In developing countries where resources are limited and investment demands are great, cost-benefit analysis provides a useful framework for comparing returns from educational investments with those from other types of investments.