Financing Education / pdf - Unesco

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PROGRESS IN FINANCING EDUCATION FOR ALL Contribution of external aid to EFA since Dakar Swaziland) while some poor countries receive relatively low amounts (Burundi, Nigeria). These simple comparisons suggest that the allocation of aid to basic education is not strongly related to the share of out-of-school children in the school-age population or to the level of income per capita. A recent study of the behaviour of some individual donors concluded that while IDA and the United Kingdom tend to allocate their aid to basic education based on education needs and poverty, others – including France, Germany, the United States and the European Commission – are more likely to be influenced by strategic and political factors (Caillaud, 2007). Allocations are also likely to be influenced by considerations of a recipient country’s absorptive capacity. Turning to the individual recipient countries, in 2004 and 2005 four South and West Asian countries (Afghanistan, Bangladesh, India and Pakistan) received 17% of all aid to education while five sub-Saharan African countries (Burkina Faso, Mozambique, Senegal, Uganda and the United Republic of Tanzania) received 10% of the total (see annex, Aid Table 4, for more details). The predominance of South and West Asian countries in aid to basic education is even more striking (Table 4.9). All four of the largest recipients are in this region, with India alone receiving 11% of all aid to basic education in 2004–2005, a similar share to that received in 1999–2000. Afghanistan, Bangladesh and Pakistan increased their share of total aid to basic education substantially. In sub-Saharan Africa, however, several countries The allocation of aid to basic education is not strongly related to the share of out-of-school children Table 4.9: Changes in aid to basic education in the main recipient countries (commitments), 1999—2005 India Bangladesh Pakistan Afghanistan Mozambique Iraq Zambia Burkina Faso Yemen Nepal Viet Nam Uganda U. R. Tanzania Indonesia Bolivia Ghana Nicaragua Senegal Philippines Malawi Papua New Guinea Morocco Turkey Low income countries Of which least developed countries All developing countries Total aid to basic education (constant 2005 US$ millions) 1999–2000 annual average 2004–2005 annual average Annual change 1999–2005 (%) 1999–2000 annual average Share in total aid to basic education (%) 2004–2005 annual average Change 1999–2005 (percentage points) Basic education as a share of total aid to education (%) 1999–2000 annual average 2004–2005 annual average Change 1999–2005 (percentage points) 284 482 8 10.3 11.0 0.7 63.7 86.4 22.7 79 398 26 2.9 9.1 6.2 61.3 64.5 3.2 9 169 52 0.3 3.9 3.6 34.7 61.4 26.7 2 162 93 0.1 3.7 3.6 22.0 76.0 54.0 81 129 7 2.9 2.9 0.0 53.9 64.9 11.0 1 126 114 0.0 2.9 2.9 7.6 80.1 72.5 90 116 4 3.3 2.7 -0.6 67.0 77.6 10.6 35 111 18 1.3 2.5 1.2 52.7 70.8 18.1 48 110 12 1.7 2.5 0.8 75.3 93.2 17.9 47 100 12 1.7 2.3 0.6 83.0 91.9 8.9 35 95 15 1.3 2.2 0.9 18.7 36.7 18.0 89 95 1 3.2 2.2 -1.0 60.4 58.4 -2.0 41 87 11 1.5 2.0 0.5 51.0 37.1 -13.9 121 78 -6 4.4 1.8 -2.6 40.3 39.6 -0.7 29 72 14 1.1 1.6 0.5 73.3 68.6 -4.7 86 70 -3 3.1 1.6 -1.5 72.2 47.4 -24.8 60 51 -2 2.2 1.2 -1.0 81.2 60.5 -20.7 75 44 -7 2.7 1.0 -1.7 53.9 22.9 -31.0 63 44 -5 2.3 1.0 -1.3 35.7 63.8 28.1 94 36 -13 3.4 0.8 -2.6 69.0 53.6 -15.4 48 31 -6 1.7 0.7 -1.0 52.5 74.6 22.1 62 21 -14 2.2 0.5 -1.8 24.4 7.8 -16.6 81 19 -19 2.9 0.4 -2.5 37.8 14.2 -23.6 1 770 3 147 9 64.2 72.0 7.8 51.1 59.1 8.0 1 054 2 067 10 38.2 47.3 9.1 52.0 59.0 7.0 2 756 4 373 7 100.0 100.0 – 40.0 46.0 6.0 Note: Countries listed were among the 15 main recipients in 1999–2000 and/or in 2004–2005. Source: OECD-DAC (2007a). 159
2 0 8 0 CHAPTER 4 <strong>Education</strong> for All Global Monitoring Report France was the largest contributor to the education sector during 2004–2005, committing US$1.5 billion a year have seen their share decrease by about two percentage points. This is the case for Ghana, Malawi and Senegal. A positive trend in relation to achievement of the EFA goals is that the share of basic education in total aid to education in each of the top ten recipient countries has increased, averaging 76% in 2004–2005. In these countries, the increase in aid to basic education has resulted more from a higher priority given to this level than from the global increase of aid to education. The data presented so far do not show the major year-on-year variations that occur in aid commitments. For instance, very large commitments for basic education were made to several of the ten largest recipients in 2004, including to some of the world’s most populous countries. Bangladesh, for one, received commitments of US$700 million for basic education in 2004 and India received US$950 million (see annex, Aid Table 4). This pattern was not repeated in 2005. Changing donor strategies for education Donor strategies for education in general, and for basic education, vary. As was highlighted in Table 4.8, for all donors combined, the priority given to education remained mostly stable over 1999–2005. However, individual donors behaved differently, as Table 4.10 shows. Among multilateral donors, IDA and the European Commission have been the largest contributors to education. IDA’s commitments amounted to an average of US$1.4 billion annually in 2004 and 2005, which was 72% above the level in 1999. The reason was more an increased level of total IDA aid than a higher priority for education. European Commission contributions averaged US$0.8 billion annually in 2004 and 2005. This was equal to only 8% of all sector grants, a lower share than almost all other multilateral and bilateral donors, and represented a decrease in the share compared to 1999. The importance accorded to education within total aid varies among bilateral donors. France was the largest contributor to the education sector during 2004–2005, committing US$1.5 billion a year, which was 40% of its total aid to sectors. The next largest donors were Japan, at US$1 billion, and the United States, with US$670 million. These levels of aid represent a relatively small share of their total aid. Japan allocates only 12% of its sector aid to education (up from just 5% in 1999), and the United States less than 4%. The distribution of aid across levels of education is also crucial. Aid to basic education is divided into early childhood education, primary education and basic life skills for youths and adults, including literacy. As previous Reports have pointed out, within basic education, pre-primary education receives low levels of aid. In 2004, nineteen of the twenty-two donors responding to a request for information reported allocating to pre-primary less than 10% of the amount they made available for the primary level, and a majority allocated less than 2% (UNESCO, 2006a). As a share of total aid to education, the majority allocated less than 0.5%. Data on aid to literacy programmes are also difficult to collect, but it is clear that most donors have given them very little priority (UNESCO, 2005a). On average, multilateral donors allocated 53% of their total aid to education to the basic level in 2004–2005, compared with 43% for the bilateral donors. However, the bilateral share did represent an eight percentage point increase compared with 1999–2000. These averages hide wide variations. IDA allocated 61% of its education aid to basic education and the European Commission 46% in 2004–2005. The Fast Track Initiative Catalytic Fund allocated all of its aid to basic education. Donors had committed a total of US$570 million to the fund by 2006 and pledged to commit a further US$360 million by the end of 2007. As of the end of June 2007, US$130 million had been disbursed to eighteen countries. Bilateral donors differ widely in how they view basic education. Canada, Denmark, Finland, Ireland, the Netherlands, New Zealand, Norway, the United Kingdom and the United States clearly make basic education a top priority and allocate more than half of their education aid to it. Other donors allocate less than one-third of total education aid to basic education. This group includes France, Germany and Japan – countries that subsidize large numbers of foreign students in their universities and therefore allocate a large part of their education aid to the post-secondary level (Figure 4.13). Finally, among some of the largest contributors to education, there was a dramatic reduction in aid to basic education in 2005. The United Kingdom and IDA, in particular, decreased commitments for aid to basic education by 70% and 80%, respectively (see annex, Aid Table 2). The donors that reduced 160
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