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Financing: Public and Private Funding

The source and level of funds for financing the education sector can have varied implications on the results of education plan implementation. This topic provides in-depth analysis of the financing and budgeting of education including public and private funding.

Abstracts

Al-Samarrai, Samer. 2003. Financing Primary Education for All: Public Expenditure and Education Outcomes in Africa. Brighton, Institute of Development Studies, University of Sussex.

This report presents the main findings of a research project that explored the relationship between public education spending and education outcomes at the primary school level in developing countries. The report explores this relationship from a cross-country perspective before concentrating on three African case studies – Botswana, Malawi and Uganda. These case studies provide important insights into how universal primary education has been achieved from a financing perspective and practical lessons for other African countries attempting to achieve primary education for all. The research finds that the link between resources and education outcomes are weak and that the achievement of the MDGs and EFA targets will require more than just increases in expenditure on primary education. This is not meant to imply that increased resources are unnecessary, merely that they are unlikely to be sufficient for achieving the education goals. The composition of resources and institutions that govern the use of these resources plays a central role in translating resources into better schooling outcomes. The report demonstrates that improving the public expenditure management system is also important in strengthening the link between public spending and education outcomes. Furthermore, the report has shown that recent successes in improving access to primary education have predominantly been a demand-side phenomenon and improvements in education outcomes will only be sustainable if demand-side constraints to primary schooling are tackled. A stronger focus on these aspects of education systems will be required if the MDGs in education are to be achieved. (Abstract in the Repo


 

 

Bouapao, Lytou., Sengchandavong, Ouam. and Sihavong, Siphandone. 2000. Educational Financing and Budgeting in Lao PDR. Paris, IIEP.

This study was prepared within the IIEP research project on capacity building in financial management and budgetary procedures for education in three developing South-East Asian countries (Cambodia, Laos and Vietnam). It provides an in-depth description of financial management and budgetary procedure for education as well as a detailed analysis of major problems, recent developments and new issues in this area. Laos, formerly one of the centrally planned economies, was previously considered “dormant” because of its limited interaction with the outside world. The chronic underfunding of the Lao education system has been responsible for high drop-out and repetition rates, and low enrolments at post-primary levels. The large disparities in the allocation of resources between provinces and between different levels of education in terms of unit cost remain a serious problem. The recent transition to a market economy and, since 1997, the devastating impact of the Asian financial crisis have encouraged the Lao government to practice budget cuts, to improve financial discipline and transparency, and to review its policies and practices in educational finance and budgeting. The increasing role of foreign donors, more rational budgetary procedures within a medium-term perspective and mechanisms of cost-sharing and financial diversification are some of the major challenges addressed in this book. (From the back cover) 

 


 

Boyle, Siobhan., Brock, Andy., Mace, John. and Sibbons, Mo. 2002. Reaching the Poor: The ‘Costs’ of Sending Children to School - a Six Country Comparative Study - Synthesis Report. London, DFID.

This comparative research study focuses on the main barriers to education for the poorest households in Bangladesh, Nepal, Sri Lanka, Kenya, Uganda and Zambia. Although the study set out primarily to look at the burden of education costs on the poorest households very rich data on other barriers to education (e.g. physical access, quality of education, vulnerability/poverty, and health,) have been gathered and are discussed. The study looks at what motivates parents to send their children to school (and keep them there) through their perceptions of the quality and value of education. Illuminating views concerning the barriers, the quality and value of education from out of school children and children in school are also presented. (Abstract in the publication)

 


 

Bray, Mark. 1999. The Private Costs of Public Schooling: Household and Community Financing of Primary Education in Cambodia. Paris, IIEP.

In many countries, schools are classified in official data as simply public or private. This may be misleading. While at first sight the boundaries between public and private might seem obvious, close inspection may reveal them to be blurred. Cambodia is one country in which this is the case. This book resents data from a detailed survey of government and non-government expenditures in Cambodia. The survey showed that household and communities meet over half the total cost of government-sponsored primary education. Very few countries have data of the type presented here, and the book analyzes its subject in the context of comparative literature. The observations of the book are therefore of considerable relevance to analysts in other countries as well as to policy-makers and planners in Cambodia. (From the back cover)

 


 

Bray, Mark. 1998. Financing Education in Developing Asia: Themes, Tensions, and Policies. International Journal of Educational Research 29, pp. 627-642.

Even as the demand on public resources to support education grows, governments face compelling alternative demands to address issues of pollution, disease, and infrastructure development. The resulting search for new sources of revenues and new efficiencies in education will force difficult trade-offs over the next decade. (Abstract in the paper) 

 


 

Bray, Mark. 1996a. Counting the Full Costs: Parental and Community Financing of Education in East Asia. Washington, DC, World Bank

This study highlights the need for much more detailed attention to the cost of schooling incurred by parents and communities. In some societies these costs are greater than even the costs to governments. Quite apart from overt forms of privatization, the growth of household resourcing of public education has been a hidden form of privatization of enormous influence. This study presents empirical findings, and primarily focuses on nine East Asian countries -Cambodia, China, Indonesia, Lao People's Democratic Republic, Mongolia, Myanmar, the Philippines, Thailand, and Vietnam -although clear parallels can be drawn with experiences in some other parts of the world. While patterns are far from uniform, one striking feature from this study is that costs to households have increased in long-standing capitalist countries as well as in former socialist countries. The scale of the increase varies widely, but it is significant that in these countries there is an increase at all. The study concludes that governments seeking to achieve universal primary education and expanded enrollments in secondary education must consider the costs and benefits at the household level. Their resulting policies must focus not only on supply but also on demand for education. Included in demand will be complex considerations of the quality and the price of education. When assessing the cost side of the equation, policy analysts must count the full cost -not only to governments, but also to parents and communities- and not only the monetary costs of donated labor, materials, and land. (Abstract in the World Bank website)

 


 

Bray, Mark. 1996b. Decentralization of Education: Community Financing. Washington, DC, World Bank.

This study focuses on ways in which community financing can support formal and primary education in the wake of decentralization. The report considers not only monetary financing, but community contributions of materials, labor, expertise, and land as well. An examination of the volume, nature, and mechanics of community financing in a range of settings is followed by a discussion of policy issues facing governments, specific strategies from various countries, and the importance of monitoring and evaluation. Country case studies and best practices are provided. (Abstract in the World Bank website)

 


 

Bray, Mark. and Seng, Bunly. 2005. Balancing the Books - Household Financing of Basic Education in Cambodia. Hong Kong, Comparative Education Research Centre, The University of Hong Kong/Human Development Unit, East Asia & Pacific Region, The World Bank. (CERC Monograph Series No. 4)

In this study, issues are discussed first in general and then with specific reference to Cambodia. Household costs of schooling arise in all settings, but have been especially prominent in Cambodia because successive governments have found themselves short of resources, and unable to meet all needs. The Cambodian deficit has been more extreme than in most other countries, but has been the focus of far-reaching policy reforms which have had an impressive impact. The study is a sequel to a publication written by Bray (1999) entitled "The Private Costs of Public Schooling: Household and Community Financing of Primary Education in Cambodia". That book showed that in the late 1990s, households and communities in Cambodia were meeting an estimated 59 per cent of the total resources for primary schooling, even in the public system of education. The present work builds on the 1999 book in two ways. First, it updates analysis in the primary school sector, presenting information on changes over time. It does this by examining precisely the same sample of selected schools and their communities. Second, the study supplements data on primary schooling, with data on lower secondary schooling, which permits identification of the increasing burdens on households at higher levels of the system. The title of the study refers to basic education. In Cambodia, as elsewhere, basic education is an umbrella term which encompasses primary plus lower secondary education. The study begins by identifying themes and issues in a comparative framework, followed by presentation of the Cambodian social, economic and educational context. The next section turns to the explanation of methods through which data were collected for this study. The study then documents household costs, comparing patterns in primary and lower secondary schooling, noting differences in urban, rural and remote areas. These findings are followed by a section on opportunity costs, to then focus on incomes received at the school level from the government, and from other sources, which then permits comparison of the balance between household, and government financing. Finally, the study presents policy implications, and recommendations.

 


 

Davlatov, Ismail D. and Mulloev, Sharif M. 2000. Educational Financing and Budgeting in Tajikistan. Paris, IIEP.

The study was prepared within the IIEP project on capacity building in budgetary procedures for education in Central Asia and Mongolia. It provides an in-depth description and analysis of financial management and budgetary procedures for education in Tajikistan, one of the former centrally planned economies of the ex-Soviet Union. The case of Tajikistan is particular and exceptional even for the group of newly independent countries. In addition to the difficulties of the transition period similar for all former centrally planned economies (hyper-inflation, underfunding of education, exodus of teachers from the profession, budget cuts and delays in actual payment), the education system in this country faces the consequences of the devastating civil war (schools destroyed, refugees returning, retraining of former combatants). Only radical and swift actions focused on cost reduction and diversification could help under these circumstances, although the implementation capacities are still weak, The measures considered by the country to improve educational finance were unusual by regional standards, for example: to reduce the cycle of compulsory education from nine to seven years, to liberalize financial autonomy of schools, to introduce tuition and user fees in primary and secondary education, and to gradually make all higher education institution s totally self-financing. (From the back cover)

 


 

Kitaev, Igor. (ed.). 1996. Educational Finance in Central Asia and Mongolia. Paris, IIEP. (no e-copy)

For the newly-independent countries of Central Asia and Mongolia the heavy burden of educational expenditure – often exceeding a quarter of the total government budget in these countries – became as from 1991 a heritage of the social demand-driven educational policies in the former Soviet Union. The conflict between the ambitious educational reforms and their expense to governments became evident with the transition from the centrally-planned to market economies and related funding constraints. The supply and expansion of free public education had to be adjusted to the drastically changed and diversified demand. As seen in numerous examples, hasty impromptu policy decisions did not always correspond to the new decentralized context of education management, and blindly adopting foreign experiences sometimes confused the locally-based quest fro alternative patters of educational finance, whilst taking into account existing situations, the challenge of realities and the complex situation in educational funding urgently demands a thorough review of recent national experiences and dialogue between the key actors involved. This book presents a report of the international meeting on Educational finance in Central Asia and Mongolia (Almaty, September 1995), including the summary of plenary discussions, working groups, presentations of national reports and an overview of relevant literature on the subject. The meeting brought together top-level representatives of ministries of education of Central Asia and Mongolia, and experts from various international organizations and donor community. (From the back cover)

 


 

Kousherbaev, Krymbek., Aryn, Erlan., Ereshaev, Bauyirjan., Kuchukowa, Nurilya., Satova, Raushan., Usenova, Gauhar., Magenova, Kulyanda., Rahinjanova, Nagjan., and Sultanova, Bahyita. 2001. Educational Financing and Budgeting in Kazakhstan. Paris, IIEP.

This publication was prepared within the IIEP project on capacity building in budgetary procedures for education in Central Asia and Mongolia. It provides an in-depth description and analysis of financial management and budgetary procedures for education in Kazakhstan, one of the centrally-planned economies of the former Soviet Union. The case of Kazakhstan is characterized by radical and bold policies to drastically revamp its educational financing and budgeting. In the 1990s, the country made an impressive reversal from state-dominated, centralized education to a market-oriented, privatized system. Because of the financial constraints of the transition period and policies of cost-reduction, many kindergartens, small-scale schools and vocational and technical institutions were either streamlined or closed. The policy to privatize higher education was widely applied so that only a few public institutions will continue to exist in the future. Cost-sharing and income-generation in education became a fact of life but still need supportive legislation. Kazakhstan was the first country in Central Asia to co-operate with the Asian Development Bank and other donor agencies. It was also the first country from the former Soviet Union to launch a student loans scheme in higher education and introduce a unified national testing at the end of secondary studies. (From the back cover)

 


 

Laporte, Bruno. and Ringold, Dena. 1997. Trends in Education Access and Financing During the Transition in Central and Eastern Europe. Washington, DC, World Bank.

Education has emerged as an essential component of the transition to a market economy in Central and Eastern Europe. Although the countries of the region inherited broadly accessible education systems, the legacies of central planning have constrained the systems from fully adjusting to market economies. This study examines empirical trends in access to and financing of education in nine Central and East European countries by drawing on the findings of a World Bank project that examined the social risks facing people and the policy responses taken by governments since 1989. Chapters address access and participation, the labor market, financing, and staff in the education sector. (Abstract in the World Bank website)

 


 

Lewin, Keith. and Caillods, Francoise. 2001. Financing Secondary Education in Developing Countries: Strategies for Sustainable Growth. Paris, UNESCO/IIEP.

In 1990, at the World Conference on Education for All in Jomtien, and again in April 2000 in Dakar, most developing countries reaffirmed their commitment to providing their school-age children with universal access to a first cycle of education. Little attention has been paid to the consequences of enrolment expansion at primary level on future educational demand above that level. Yet the number of children who graduate from primary education is expanding rapidly and putting pressure on governments to open up educational opportunities at higher levels. With present cost structures, however, a number of countries will find expansion of secondary education unsustainable. This book explores the problems and issues that surround secondary school financing. It outlines the rational for expanding secondary education and investigates under what conditions it might be possible to do so at sustainable levels of cost. It carries out the analysis for different groups of countries, using data derived from the UNESCO database. It then analyzes the issue on the basis of case studies in Asia, Latin America and Africa. It concludes with a discussion of the policy options that offer prospects of improved access at sustainable levels of cost without unacceptable deterioration in quality. (From the back cover) 

 


 

Nanzaddorj, Buluut. 2001. Educational Financing and Budgeting in Mongolia. Paris, IIEP.

The publication was prepared within the IIEP project on capacity building in budgetary procedures for education in Central Asia and Mongolia. It provides an in-depth description and analysis of financial management and budgetary procedures for education in Mongolia, one of the former centrally-planned economies. The case of Mongolia is intriguing. Being one of the low-income countries, it has to embark on seeping market reforms to accelerate the transitional period. Elimination of state subsidies, introduction of cost-sharing (tuition fees), cost-recovery (student loans in higher education), financial diversification (income-generation at institutional level), radical privatization, including experiments with educational vouchers, have all contributed to making the Mongolian experience an exceptional one. Its co-operation with the Asian Development Bank also made it a “testing ground” for reforms later introduced in Central Asian counties of the former Soviet Union. (From the back cover)

 


 

Nguyen, Ba Can., Vu, Van Long., Phan, Thanh Tam. and Nguyen, Thi Sinh. 2001. Educational Financing and Budgeting in Viet Nam. Paris, IIEP.

This report was prepared within the framework of IIEP’s research project on comparative analysis of three South-East Asian countries: Viet Nam, Cambodia and Lao PDR. Viet Nam, a former centrally-planned economy, began market reforms earlier than other countries in the region and has been used by the Asian Development Bank as a ‘role model’ for others. However, a well-established bureaucracy and regional disparities have impeded the improvements in the overall performance and financial management of education. The budget preparation process is not linked to the actual expenditure made by each province. The planning of the budget is very meticulous and labour-intensive but the actual allocation of funds is oversimplified, i.e. through allocation norms, adjusted to provincial specifics. These and many other problems mean that despite the changes in educational management already underway, many challenges remain to be met in the coming years. This book should be of interest to all planners and policy-makers dealing with a similar process of transition. (From the back cover)

 


 

OECD. 2002. Decentralisation and the Financing of Educational Facilities. Paris, OECD.

Who finances educational facilities? What are the criteria used and how are they applied? Each country has its own system; however, the general trends are towards diversification of funding sources and decentralisation of responsibility. This publication examines the links between decentralisation and new means of financing. Although local control can guarantee greater effectiveness and responsiveness to local needs, central government remains responsible for ensuring access to equity and equality of educational opportunity. The greatest challenge in education funding consists of achieving compatibility between these objectives and technological development. (Abstract in the OECD website)

 


 

OECD. 2001. Economics and Finance of Lifelong Learning. Paris, OECD.

Learning is an essential basis for progress in the 'knowledge society'; it is critical for economic growth and social welfare. OECD Member countries have committed themselves to making lifelong learning a reality for all. But the resources required to meet that goal are potentially large and countries differ in their capacity to generate them. Can OECD Member countries rise to this challenge? This report seeks to provide some answers by identifying and examining the economic and financial issues that arise in implementing the goal, and the strategies that the public and private sectors are pursuing to achieve it. It deals with issues such as individual learning accounts, recognition of non-formal learning, and measures to raise rates of return to lifelong learning. The report is intended to provide a basis for continued in-depth discussion by public authorities and the social partners. It aims to inspire future actions that ensure that lifelong learning serves as a sustainable and equitable strategy for human development. The report draws on analyses, findings, and lessons from the OECD's earlier work and the proceedings of the international conference on "Lifelong Learning as an Affordable Investment" (Ottawa, December 2000). (Abstract in the OECD website)

 


 

Palomba, Geremia. and Vodopivec, Milan. 2001. Financing Efficiency, and Equity in Albanian Education. Washington, DC, World Bank.

The aim of this report is to examine the real and financial resources devoted to education in Albania. It documents their use and allocation, along with investigating the fiscal effects of various policy recommendations. This report details the structural changes that influence participation in, and access to, education, and the affect equity in educational spending. (Abstract in the World Bank website)

 


 

Patrinos, Harry Anthony. 2007. Demand-side financing in education. Paris/Brussels, IIEP/IAE. (Education Policy Series Vol.7)

In an attempt to improve the delivery of basic services and the equity with which public funds are disbursed, some governments are experimenting with new ways of channelling public funds. One such mechanism is demand-side financing, whereby public funds are channelled directly to individuals or to institutions based on the characteristics of users (e.g., income). In the last few years, some important demand-side financing initiatives in education have been implemented in a number of countries. Demand-side financing includes a range of interventions. The focus is on putting the resources in the hands of those who demand education and not those who supply it. The goal is to bring down the barriers that prevent children from continuing their education. In most cases, demand-side programmes are associated with increased school attendance rates and lower school dropout rates. The study highlights that a variety of demand-side financing mechanisms exist. Although demand-side financing increases costs, the benefits are high. ([Abstract in the eldis website] 

 


 

Patrinos, Harry Anthony. 2002. A Review of Demand-Side Financing Initiatives in Education (preliminary and incomplete). 

In the last few years, some very important demand-side financing initiatives in education have been implemented in a number of countries, including Progresa in Mexico and Bolsa Escola in Brazil, resulting in a number of evaluation reports. There has been considerable attention devoted to demand-side financing in the literature and the popular press. Approaches that allocate financial incentives to families in order for their families to attend school and programs that channel public funds for education through the beneficiary and their family are seen by many as more efficient uses of resources and far more effective at improving education outcomes than most supply-side interventions. The available evidence on the impact of - and/or experience implementing - demand-side financing interventions are reviewed. It is tentatively concluded that demand-side financing programs have improved educational indicators and outcomes. In most cases, they led to higher school attendance rates and lower school dropout rates. Evaluation results indicate that these programs have led to significant reduction in both school dropout and repetition rates. (Abstract in the paper)

 


 

Patrinos, Harry Anthony. and Ariasingam, David Lakshmana. 1997. Decentralization of Education: Demand-Side Financing. Washington, DC, World Bank.

Demand-side financing is a pragmatic choice for introducing needed reforms according to the resources available, the local situation, and particular needs. This paper reviews World Bank education projects that became active in 1993-96 and that included demand-side financing components such as stipends, community financing, targeted bursaries, vouchers, student loans, community grants, and public assistance to private schools. (Abstract in the World Bank website)

 


 

Peano, Serge. (ed.). 1999. Financing and Financial Management of Education: Pan-African Seminar, Dakar, Senegal, 12 to 14 October 1997. Paris, IIEP.

This publication sets forth the conclusions of the Pan-African Seminar on the financing and financial management of educational systems in Africa, which was organized in October 1997 in Dakar, Senegal, by the IIEP, in co-operation with the working group on ‘Finance and Education’ of the Association of Educational Development in Africa (ADEA) and the Council for the Development of Social Science Research in Africa (CODESRIA). The Seminar examined educational financing policies and budgetary management practices, based on research done in several sub-Saharan African countries. In this context, the study makes an in-depth analysis of the financing and financial management of education in the countries involved. In particular, it explores the impact of decentralization, financing in the private sector, educational costs, finance-related IT systems, and the comparative analysis of budgetary procedures. The working group’s conclusions on the Seminar’s key themes provide a pertinent contribution to the current debate on the reform of financing and budgetary management systems in sub-Saharan Africa. (From the back cover)

 


 

Penrose, Perran. 1998. Cost Sharing in Education – Public Finance, School and Household Perspectives – Education, Research Paper No. 27. London, DFID.

This monograph is concerned with how children in poor countries can gain access to good quality education. The basic thesis of the paper is that financial barriers are the main reason for the failure of many countries to provide education to their children. Financial barriers are of two sorts. First, the cost to parents and children is often too high, particularly when economies are in trouble. Second, public finances are in most cases inadequate: however, the financial management of education systems is frequently neither efficient nor effective, so that the state's resources derived from taxes in many cases cannot finance basic learning inputs which they would otherwise be able to do if those resources were managed better. (Introduction in the publication)

 


 

Penrose, Perran. 1993. Planning and financing sustainable education systems in Sub-Saharan Africa – Education, Research Paper No. 07. London, DFID.

The first part of this paper sets out briefly some of the basic issues facing education policy makers in Africa, including the introduction of school fees and the private provision of schools. There has been insufficient attention paid to how policy advice is implemented, and that one of the weakest link in the chain of policy implementation is the relation between planning and budgeting, including how budgets are made. There has been a tendency to put broad educational policy objectives on the one hand and the economic planning and management of resources on the other into two separate compartments, so that while there is no shortage of analysis of what needs to be done, the means of achieving given objectives are often unspecified. The second part of the paper is concerned with approaches to strengthening and/or reforming the planning and budgeting for education in African countries. These involve the full or partial replacement of annual incremental planning and budgeting systems with approaches which may be more appropriate to current problems. It is suggested that many attempts to undertake necessary reforms have not succeeded because they have been limited to interventions in the education sector ministries without reference to government budgeting and administration systems as a whole. Reforms should also take full account of the need to strengthen a potentially beneficial relationship between the state and the private sector. With these improvements better use can be made of external assistance which has not always served those countries which benefit from it as well as it might have. The objective of the changes suggested in this paper is to enable countries to use their limited resources better and avoid stop-go educational development policies in order to achieve the capability of providing an education service which is both sustainable and affordable. In this respect governments have a crucial role to play in the process of change, even if in some aspects the 'market' will succeed where government planning has failed. (A shortened version of Summary in the publication)

 


 

Pheng, Duy., Sovonn, Hang. and Soly, Yos. 2001. Educational Financing and Budgeting in Cambodia. Paris, IIEP.

This report was prepared as part of the IIEP project on comparative analysis of budgetary procedures for education in three low-income developing countries of South-East Asia: Lao PDR, Cambodia and Vietnam. These neighbouring countries share many similar concerns in the area of educational finance and budgeting as all three are evolving from a centrally-planned type of economy to a market-based economy. This report provides a detailed description of the challenges faced by educational finance and budgeting in Cambodia. Until recently, financing took the form of emergency budgets, and was limited to government planning expenditure for teacher salaries and examination costs. There has also been a lack of coordination between the provinces and the central Ministry of Education, Youth and Sports at the stage of budget preparation. Parents and communities have had to cover all operational and maintenance costs of running the schools. The nightmarish past of the country makes it a unique case for any comparative analysis. Cambodia has a wealth of human resources, the potential of which has yet to be harnessed, hence the acute demand for educational development and its financing. (From the back cover) 

 


 

Rysalieva, Symbat Dj. and Ibraeva, Gulmira A. 1999. Educational Financing and Budgeting in Kyrgyzstan. Paris, IIEP.

This study was prepared within the IIEP project on capacity building in budgetary procedures for education in Ventral Asia and Mongolia. It provides an in-depth description and analysis of financial management and budgetary procedures for education in Kyrgyzstan, one of the former centrally-planned economies of the ex-Soviet Union. The case of Kyrgyzstan is interesting for practitioners and researchers due to its policy of accelerated transition to a market economy, with associated hardships for educational finance and budgeting. The country was obliged to make all possible efforts to pass through the difficulties and constraints of the transition period as quickly as possible in order to sustain the previous level of educational development an standards, and to achieve rapid transformation of the mechanisms of educational finance. This case study provides examples of application of “programme-budgeting” techniques in education, global ceilings to replace the obsolete norms for budget estimates, measures for strict control over expenditure, fiscal discipline, cost-reduction, cost-sharing and income-generation, as well as private education development. (From the back cover)

 


 

Saavedra, Jorge. 2002. Education Financing in Developing Countries: Level and Sources of Funds. Washington, DC, World Bank Institute. (Prepared for the WBI Core Course Strategic Choice for Education Reform)

The main purpose of this background paper is to offer an introduction, tailored to education officials and policymakers in developing countries, to the analysis of education financing. Specifically, the paper explores the level and sources of education finance, understood as instruments for education reform and the bettering of education. The paper provides conceptual and analytical tools and, when appropriate, some discussion of policy options for the more informed discussion of education finance policy reform issues. The international comparative data presented throughout the paper serves as the factual matter by which to introduce tools and ground education policy discussions. This background paper is not intended to be prescriptive or to provide ready-made answers to complex educational challenges. There are no simple recipes. Plus, national and local conditions place practical constraints to desirable policies. Identifying and implementing education finance policy reform is the responsibility of national and local educational authorities as well as society, and reforms need to be owned by key stakeholders. Reforms should also be tailored to specific national and local conditions, as well as directed to meet nationally and locally owned goals. Concrete finance policy decisions also need to be supported by expert analyses of reliable national and local data, using adequate analytical tools. (Excerpts from the main text)

 


 

Tan, Jee-Peng. and Mingat, Alain. 1994. Education in Asia: A Comparative Study of Cost and Financing. Washington, DC, World Bank.

This study tries to document the progress of education in Asian countries. It is motivated by a desire to take stock of current conditions as well as an interest in exploring options for the sector’s future development. Asia offers a particularly rich context for study because countries have such different education outcomes and sectoral policies. The comparative data give countries in the region a fresh perspective for examining their progress and policies in education in relation to their neighbors. And lessons of wider interest emerge to inform current debate about appropriate policies for education development. The focus of the study is on education costs and financing because these aspects of the education system reveal how resources are deployed in the sector. More important, because education costs and financing are key areas of government intervention, an assessment of priorities for future sectoral development must begin by examining current choices in these areas. (Introduction in the publication)

 


 

Uribe, Claudia., Murnane, Richard J., Willett, John B. and Somers, Marie-Andrée. 2005. Expanding school enrollment by subsidizing private schools: lessons from Bogotá. Massachusetts, National Bureau of Economic Research. (Working Paper 11670)

Many countries use tax revenues to subsidise private schools. Whether these policies meet social objectives depends, in part, on the relative quality of education provided by the two types of schools. This study uses data on elementary school students and their teachers in Bogotá, Colombia to examine difference in resource mixes and differences in the relative effectiveness of public and private schools. The authors find that, on average, the schools in the two sectors are equally effective. However, they produce education using very different resource combinations. Moreover, there are large differences in the effectiveness of schools in both sectors, especially in the private sector. The results of the analysis shed light on the quantity-quality tradeoff that governments in many developing countries face in deciding how to use scarce educational resources. (Abstract in the publication)

 


 

Woodhall, Maureen. 1996. Financing Education in the Caribbean Countries. Paris, IIEP. (no e-copy)

Sixty-five participants, mainly permanent secretaries from Ministries of Education and Finance from 14 countries, participated in the International Seminar on Financing Education in the Caribbean, organized by the International Institute for Educational Planning (IIEP) and the University of the West Indies (UWI) in Kingston, Jamaica, 26-28 January, 1994. Also present were representatives of various financial institutions, regional organizations, regional universities and co-operation agencies, such as UNDP and the British Development Division in the Caribbean. These countries are largely economically dependent on specialized activities such as tourism or financial services and are suffering the consequences of the recession in North America and Europe. On the education front, if primary education is universal or nearly so, secondary education still has to be expanded. All the countries are currently questioning mechanisms to finance education, especially higher education, where the size of populations poses management problems due to the small number of students. Cost sharing in secondary and higher education and the ways to implement it is the main issue discussed during this seminar. (From the back cover)

 


 

World Bank. 2006. Mongolia - Public Financing of Education in Mongolia: Equity and Efficiency Implications (Report No.: 36979-MN). Washington, DC, World Bank.

This report combines an institutional review of the education sector with the empirical results of extensive qualitative and quantitative data collection efforts to examine the structure of education funding and the actual distribution of resources across schools in Mongolia. The report examines three main questions in education finance, each covered in one chapter: To what extent is the variation in the magnitude and composition of school budgets across regions and schools explained by the funding formula? How do resources flow through the education system during the different stages of the budget process? What comprises teacher salaries and how are current incentives designed and implemented in practice? (Abstract in the World Bank website)

 


 

World Bank. 1997. Vietnam: Education Financing. Washington, DC, World Bank.

Vietnam's educational record is impressive: 91 percent of children between the ages of 5 and 10 are enrolled in school, and 88 percent of the country’s working-age population is literate. However, emerging market forces within Vietnam, as well as examples and competition from its economically vibrant neighbors, raise important new challenges for the country’s education and training (E&T) system. The government of Vietnam has set ambitious targets for increasing enrollments in E&T institutions, but one question remains unanswered: What policies are required to ensure that an expanded E&T system will give its graduates the knowledge, skills, and attitudes demanded by private sector employers and critical to the smooth functioning of a leaner public sector in the future. This study attempts to answer the question and thereby assist education policymakers in Vietnam in making equitable and efficient choices. The report is divided into six chapters. The first two chapters set the general context for a consideration of E&T costs and financing in Vietnam and explain how the system is presently organized and managed. The third and fourth chapters assess the current financing system, including the state budget and other sources of public funding, and calculate the cost per student-year and the cost per graduate at each level. Chapter 5 examines the social rates of return and the cost burdens for different groups within the country. The final chapter looks ahead to the next decade and draws lessons from other countries. (Abstract in the World Bank website)

 


 

Ziyaev, Muzafar K., Rakhmonov, Ahadjon. and Sultanov, Murtazo S. 2000. Educational Financing and Budgeting in Uzbekistan. Paris, IIEP.

The study was prepared within the IIEP project on capacity building in budgetary procedures for education in Central Asia and Mongolia. It provides an in-depth description and analysis of financial management and budgetary procedures for education in Uzbekistan, one of the former centrally planned economies of the ex-Soviet Union. The Uzbek approach is different from other newly independent countries of the former Soviet Union. The country chose a policy of maintaining the advantages of the former system of education while introducing relevant reforms and innovations. Its features are stability, continuity, self-reliance and a thorough and conscientious examination of a variety of options for decision-making. Unlike other transition countries of the region which experienced certain difficulties in the financing of education, Uzbekistan elaborated prudently its major reform of the education system. Launched in 1997, the Presidential Programme for education development and staff training is unique for the post-Soviet zone because it extends the compulsory cycle of education up to 12 years, enhances the quality of curriculum according to Western standards, and upgrades obsolete institutions to the level of professional colleges and academic lyceums. Other remarkable changes are the introduction of textbook fees and income-generation at school level through entrepreneurial activities. (From the back cover)

 


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