Financing Education / pdf - Unesco

More documents

Recommendations

Info

PROGRESS IN FINANCING EDUCATION FOR ALL Contribution of external aid to EFA since Dakar Table 4.10: Aid commitments to education and to basic education by donor, 2004—2005 average and change since 1999 Total aid to education Total aid to education as % of total sector ODA Total aid to basic education Basic education as % of total aid to education 2004–2005 annual average (constant 2005 US$ millions) Annual change 1999–2005 (%) 2004–2005 annual average Change since 1999–2000 (percentage points) 2004–2005 annual average (constant 2005 US$ millions) Annual change 1999–2005 (%) 2004–2005 annual average Change since 1999–2000 (percentage points) DAC Bilateral donors Australia Austria Belgium Canada Denmark Finland France Germany Greece Ireland Italy Japan Luxembourg Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom United States TOTAL DAC bilateral Multilateral donors AfDF AsDF EC FTI IDA IDB Special Fund UNICEF TOTAL multilaterals 127 -10.0 12.1 -9.1 57 -1.7 44.5 18.3 89 -5.2 39.6 5.3 4 -4.7 4.5 0.1 155 9.6 19.6 -0.3 35 15.0 22.7 5.7 223 15.3 14.4 2.3 173 23.9 77.6 27.1 137 12.0 9.8 2.6 82 11.7 59.9 -1.0 66 16.6 15.9 0.8 40 23.0 61.3 16.9 1 537 -0.1 39.6 -1.9 279 -3.9 18.1 -4.7 760 -1.5 16.9 -5.7 146 3.4 19.2 4.8 30 … 21.4 … 4 … 13.8 … 61 23.4 18.5 -8.4 38 27.7 62.6 11.6 86 8.3 19.6 7.9 39 17.2 45.8 17.3 1 047 12.5 11.9 6.7 281 4.7 26.8 -14.5 26 … 23.4 … 12 … 46.1 … 570 13.1 20.4 2.4 375 13.4 65.8 1.0 58 … 35.0 … 31 … 53.6 … 186 5.2 14.0 0.4 117 5.5 62.7 1.1 60 8.9 29.4 13.0 8 -1.6 13.9 -11.6 155 -6.0 18.7 -2.5 59 -2.4 37.9 7.7 129 11.1 8.7 0.4 66 6.8 51.0 -13.8 35 -4.2 4.8 -2.6 16 -3.4 45.0 2.2 646 6.8 15.8 5.0 540 9.1 83.6 10.0 672 11.2 3.8 -1.1 563 19.4 83.8 29.0 6 812 4.7 12.9 -0.7 2 944 8.4 43.2 8.3 141 11.3 9.9 -1.0 55 3.1 39.4 -22.8 308 16.3 21.6 11.1 78 44.3 25.3 18.4 762 1.2 9.3 -1.5 351 -4.1 46.0 -17.6 44 … 100.0 … 44 … 100.0 … 1 355 9.5 15.1 2.5 822 12.5 60.7 9.1 35 36.6 8.6 7.0 15 32.5 41.6 -8.4 64 15.0 14.4 -1.9 63 14.8 98.8 -1.2 2 709 7.7 12.1 1.1 1 428 7.1 52.7 -1.8 Bangladesh and India received three-quarters of the United Kingdom’s aid to basic education and half of IDA’s in 2004 TOTAL all donors 9 520 5.5 12.7 -0.1 4 373 8.0 45.9 6.0 Notes: AfDF = African Development Fund; AsDF = Asian Development Fund; EC = European Commission; FTI = Fast Track Initiative Catalytic Fund; IDA = International Development Association; IDB = Inter-American Development Bank (Special Fund). Source: OECD-DAC (2007c). aid the most in 2005 are also those that concentrated their distribution in 2004. For instance, Bangladesh and India received three-quarters of the United Kingdom’s aid to basic education and half of IDA’s in 2004. Other donors spread their aid more widely. France, the United States and the European Commission each have a core group of countries to which they allocate aid to basic education almost every year, spreading the rest over several countries. The behaviour of a few donors in delivering large amounts of aid to a few countries in 2004 partly explains the large drop in 2005. To round off this discussion of aid to education, two additional sources of external financial flows are discussed. The first is non-concessional loans made for education by the World Bank. Though not treated as aid, these loans are substantial, roughly equal to the amount of IDA credits for education, and they have been particularly important sources 161
0 0 8 CHAPTER 4 2 <strong>Education</strong> for All Global Monitoring Report Figure 4.13: Breakdown of aid commitments to education by level, 2004 and 2005 average France IDA Japan Germany United States EC United Kingdom Netherlands AsDF Canada Norway Spain Basic Belgium Australia Secondary Denmark Sweden Post-secondary AfDF Austria Unspecified UNICEF Finland Portugal Ireland New Zealand FTI Italy IDB Spec. Fund Greece Switzerland Luxembourg 0.0 0.5 1.0 1.5 Constant 2005 US$ billions Notes: Only direct aid to education is broken down by level. AfDF = African Development Fund; AsDF = Asian Development Fund; EC = European Commission; FTI = Fast Track Initiative Catalytic Fund; IDA = International Development Association; IDB = Inter-American Development Bank (Special Fund). Source: OECD-DAC (2007c). 13. The increase may be overstated to the extent that the definition of poverty-reducing expenditure can become more comprehensive within a country over time. It may also vary from one country to another. of finance for education in Latin America and the Caribbean (Box 4.3). The second additional source is countries outside the twenty-two OECD-DAC members, and private foundations. Sixteen non- DAC countries report aid activities to the DAC Secretariat. Of these, only the Czech Republic, the Republic of Korea and Turkey report aid for education. Most goes for scholarships in tertiary education, with very little for basic education. Other sources of aid for education are the Islamic Development Bank and the Gulf Cooperation Council. At a meeting of bilateral and multilateral donors in November 2006, these two institutions pledged US$109 million for education in Yemen, out of a total of US$307 million pledged (Government of Yemen, 2007). China has recently emerged as a potential source of external finance for African countries. However, the focus of the US$5 billion China-Africa Development Fund is on natural resources, infrastructure, large-scale agriculture, manufacturing and industrial parks. Few, if any, of the funds are likely to be directed to basic education. In addition to governments, some private foundations are becoming active in basic education in developing countries. In May 2007, the Soros Foundation pledged US$5 million for Liberia if a matching pledge could be found, and the Gates and Hewlett Foundations have committed US$60 million over three years for programmes aimed at improving learning achievements in lowincome countries. The largest initiative reported so far is the US$10 billion endowment of a foundation to raise educational standards and literacy in the Middle East, announced by the ruler of Dubai at the World Economic Forum in Jordan in June 2007 (The Guardian, 2007). Debt relief moves up the list of priorities The Dakar Framework for Action argued that higher priority should be given to debt relief linked to expenditure on poverty reduction programmes having a strong commitment to basic education. While the recent debt relief programmes have benefited only a subset of the world’s low-income countries, for those that have benefited the programmes have been among the most effective international initiatives to increase government resources. The introduction of the Enhanced HIPC Initiative for debt relief in 1999, which expanded the previous programme begun in 1996, required countries to prepare and implement a poverty reduction strategy as a condition for qualification. Thirty countries have since qualified for relief – twentyfive in sub-Saharan Africa, four in Central America and the Caribbean, and one in South America – and a further ten are eligible. All are least developed countries. On average, the ratio of debt service to GDP in these countries fell from 3.6% to 2.2% between 1999 and 2005, and the ratio of debt service to government revenue fell from 23.5% to 11.7%, allowing governments to increase expenditure on domestic programmes (IDA/IMF, 2006). Part of the HIPC process is monitoring spending on poverty-reducing measures. Across the thirty countries, expenditure on such activities, in which education is always central, increased on average between 1999 and 2005 from 6.4% to 8.5% of GDP and from 40.9% to 46.1% of total government expenditure. 13 The absolute increase in poverty-reducing expenditure was far larger than the decline in debt service payments. This suggests that governments have used not only funds freed by debt relief for their poverty reduction programmes, but also other resources. 162
Page 1 and 2: Education for All Global Monitoring
Page 3 and 4: 0 0 2 8 CHAPTER 4 Education for All
Page 5 and 6: 8 0 CHAPTER 4 2 0 Education for All
Page 7 and 8: 0 0 8 CHAPTER 4 2 Education for All
Page 21 and 22: 0 8 0 CHAPTER 4 2 Education for All
Page 23: 2 0 8 0 CHAPTER 4 Education for All
Page 31 and 32: 2 0 Education for All Global Monito
Page 35 and 36: 2 0 Education for All Global Monito

Financing Education / pdf - Unesco

Create successful ePaper yourself

Delete template?

Save as template?