Under the KBAD, young men/women from each village/ward would be given an opportunity to go for higher education and acquire a degree / diploma / post-higher secondary certificate in marketable (within and outside the country) knowledge and skills. Such educated/trained persons would be expected to make efforts to pull up their family, neighbors and the village community through access to knowledge for economic and social development. The achievement of the individual will also have a demonstration effect in the village and act as an eye opener to other young people in the village. This can also bring hopes and dreams to the impoverished village community. The young men or women should have the minimum qualification (HSC, i.e. 12 years of formal education) or equivalent to gain entry to a university level institution.
Financing would be a barrier to realization of the Knowledge Based Area Development concept. It is expected that the family of the individual would bear the cost of such education/training. However, the prevailing economic situation may not permit most families to bear the cost. The introduction of an Educational Financing Scheme can partially alleviate this problem. The GOB or/and NGOs should consider developing and operating such an Educational Financing Scheme. Eventually an Educational Bank (Shikkha Bank) may be established to facilitate access of the middle class and poor to market-oriented higher education for social mobility and as a step towards realizing the vision of Knowledge Based Area Development approach. In this process, it may be possible to break away from the poverty cycle for many. The Education Bank could be the conduit to finance such persons on easy terms but on a repayable basis. This would be a radical approach to break the poverty cycle but this might also work as a catalyst as well as a role model.
The Education Bank can also finance educational institutions on easy terms for institution building but on repayable basis and also finance higher education and training of teachers. The capital for Education Bank can be mobilized through grants and loans from development organizations, share subscription from individuals with expectation of modest return on capital, and philanthropic orientation. Development of human capital of the society would be the intrinsic return to donors, while financial return at a modest rate would be an additional return to subscribers. The Education Bank is to be operated on business principles but targeted to investment in education, skill development and institution building activities relating to the same. The Education Bank can take the form of an educational cooperative.