Funding Education for Results: Responding to the Learning Crisis
May 2022
53%
In low- and middle-income countries
of children could not read and understand a simple text by age 10
(Learning Poverty)
AT LEAST 70%
Post COVID
Key messages
01
02
03
Global education spending is stagnant and insufficient
Results Based Financing can help improve efficiency and effectiveness (when well-designed and under the right conditions)
There is a need (and space) to increase efficiency and effectiveness in spending
01
Global education spending is stagnant and insufficient – especially in the wake of COVID-19
In a context of an amplified learning crisis, total spending on education in LICs and MICs has remained stagnant since 2018
Governments and households are the main funding source
Relative importance of government spending is higher in rich countries. Share of household expenditures is higher in poor countries
In low-income countries:
Distribution of total education spending in 2019-2020
Most governments have not increased the priority of education in their spending…
Share of education in total government expenditure (%)
Changes in the share of education in total government expenditure (2014-2015 and 2019-2020)
Share of education in total government expenditure (%)
Government spending as a percentage of GDP has been mostly constant except for a gradual increase in LICs since the mid 2010s
Government education spending as % of GDP by income group
Disparities in public expenditures per capita across countries are vast
$7,787 USD
Upper Income
$1,079 USD
Upper-Middle Income
$318 USD
Lower-Middle Income
$53 USD
Low Income
Spending per capita in high-income countries is 146 times higher than in low-income countries and 25 times higher than in lower middle-income countries
Total public education spending per capita (constant 2020 US$ dollars)
With the onset of the pandemic, public education spending per capita fell in MICs
02
There is a need (and space) to increase efficiency and effectiveness in spending
Expenditure in education is correlated with learning… but there is space for improving spending effectiveness
Efficiency and effectiveness challenges of public education spending
| Learners | Teachers | Teaching Learning Materials | Schools | Management |
Planning | Inadequate data to ensure needs are met | Teacher forecast systems not operational. Distorted teacher deployment | Book forecast system not functional | No construction plan to guide allocations | Design of school grant formula is inequitable |
Budgeting | Resources are not allocated evenly and transparently | Payroll not linked to the personnel/HR database | Not allocated to schools most in need | No asset registers to inform funding for maintenance | School budget preparation is not participatory |
Execution | School meal procurement is untimely Untimely disbursement of CCT | Payroll controls are not functional causing leakage | Textbooks not arriving on time to schools | Procurement delays – projects not completed | Funds for schools do not arrive in full and on time |
Reporting | School committee not involved in monitoring | Payroll is not consolidated . Ghost teachers. No report on absenteeism | Schools do not report on access to books | Reports not sent preventing remedial action | Schools do not report on the use of funds |
Evaluation | Inadequate records to enable verification | Audit on payroll integrity not published. | No investigation into lost materials | Tender docs not included in audit process | School expenditures are not audited |
Budget Cycle Stage
Policy reforms to enhance efficacy and efficiency of education spending
Approximately one-third of spending is ineffective
Results based financing
School network rationalization
Increased meritocracy
Technology to increase efficiency
Better quality of public procurement
Impact and process evaluations
Curriculum consolidation
03
Results Based Financing can help improve efficiency and effectiveness (when well-designed and under the right conditions)
Results based financing schemes can be particularly relevant as education financing becomes more constrained…
Program that provides rewards to individuals, institutions, local governments, etc. after agreed-upon results are achieved and verified.
What?
Why it matters?
16
Design of effective results-based financing schemes is challenging
The end �
The end
Thank you!