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Chapter 2. Progress towards the EFA goals - Unesco

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PROGRESS TOWARDS THE <strong>EFA</strong> GOALS<br />

Estimating <strong>the</strong> cost of achieving Education for All<br />

Estimating <strong>the</strong> financing gap —<br />

and measures to close it<br />

The cost of achieving <strong>the</strong> internationally agreed<br />

Education for All <strong>goals</strong> has to be assessed against<br />

<strong>the</strong> financing available. National budgets are <strong>the</strong><br />

primary source of education financing. As <strong>the</strong><br />

Expanded Commentary on <strong>the</strong> Dakar Framework<br />

for Action recognized, developing countries will<br />

have to do far more to make resources available<br />

by ‘increasing <strong>the</strong> share of national income and<br />

budgets allocated to education and, within that,<br />

to basic education’ (para. 46). Over and above<br />

<strong>the</strong>se broad commitments, action is needed to<br />

streng<strong>the</strong>n <strong>the</strong> efficiency and equity of education<br />

spending, and to curb <strong>the</strong> diversion of resources<br />

associated with corruption.<br />

Most of <strong>the</strong> countries covered in <strong>the</strong> costing<br />

analysis have <strong>the</strong> capacity to increase domestic<br />

spending on basic education. Increased<br />

government revenue, stronger budget commitment<br />

and redistribution within <strong>the</strong> education budget all<br />

have a role to play. But even with a stronger<br />

domestic effort, many countries will be unable to<br />

finance all <strong>the</strong> investment required. The analysis<br />

for this Report estimates <strong>the</strong> Education for All<br />

financing gap as <strong>the</strong> difference between <strong>the</strong> total<br />

investment requirement indicated by <strong>the</strong> costing<br />

exercise and <strong>the</strong> domestic financing capacity of<br />

governments making a ‘best effort’ to channel<br />

resources to education.<br />

National governments can raise a substantial<br />

share of <strong>the</strong> additional resources needed<br />

Alongside national income, <strong>the</strong> domestic resource<br />

envelope available for public financing of <strong>the</strong><br />

Education for All <strong>goals</strong> is ultimately determined<br />

by three factors. The first is <strong>the</strong> share of national<br />

income collected as government revenue. That<br />

share rises on average with <strong>the</strong> level of per capita<br />

income, albeit with large variations by country that<br />

reflect policies on taxation, <strong>the</strong> level of natural<br />

resource exports and o<strong>the</strong>r national characteristics.<br />

The second factor is <strong>the</strong> proportion of revenue<br />

directed into <strong>the</strong> overall education budget. The third<br />

is <strong>the</strong> share of <strong>the</strong> education budget allocated to<br />

basic education. The proportion of national income<br />

directed <strong>towards</strong> basic education provides a<br />

summary overview of <strong>the</strong> level of public basic<br />

education financing.<br />

Figure <strong>2.</strong>47 presents <strong>the</strong> country-by-country<br />

picture. It shows <strong>the</strong> gap between current levels<br />

of spending on basic education and <strong>the</strong> levels<br />

Figure <strong>2.</strong>47: Current national spending falls short of <strong>the</strong> levels needed to achieve<br />

basic education <strong>goals</strong><br />

Current and required spending on basic education as a share of GDP<br />

Nor<strong>the</strong>rn Sudan<br />

Papua New Guinea<br />

Yemen<br />

Kyrgyzstan<br />

Tajikistan<br />

Mauritania<br />

Lao PDR<br />

Myanmar<br />

Sou<strong>the</strong>rn Sudan<br />

Pakistan<br />

Cambodia<br />

Kenya<br />

Nepal<br />

Ghana<br />

Bangladesh<br />

Haiti<br />

Côte d’Ivoire<br />

Senegal<br />

Low income country average<br />

Benin<br />

Nigeria<br />

Zambia<br />

Guinea<br />

Togo<br />

Madagascar<br />

U. R. Tanzania<br />

Rwanda<br />

Afghanistan<br />

Gambia<br />

Sierra Leone<br />

Mali<br />

Niger<br />

Mozambique<br />

Uganda<br />

Chad<br />

Eritrea<br />

Burkina Faso<br />

Ethiopia<br />

C. A. R.<br />

Zimbabwe<br />

Liberia<br />

Somalia<br />

Guinea-Bissau<br />

D. R. Congo<br />

Malawi<br />

Burundi<br />

0 2 4 6 8 10 12 14 16 18 20<br />

Basic education spending as % of GDP<br />

required to achieve <strong>the</strong> <strong>goals</strong> set in this Report’s<br />

costing exercise. On average, <strong>the</strong> forty-six countries<br />

need to increase public spending on basic<br />

education by <strong>2.</strong>5% of GDP to meet Education for All<br />

<strong>goals</strong>. 63 However, <strong>the</strong>re are very large variations<br />

around this average.<br />

To what extent can low-income countries<br />

increase spending on basic education from<br />

<strong>the</strong>ir own resources? Any attempt to address<br />

that question is highly sensitive to assumptions<br />

2007 estimated spending<br />

on basic education<br />

Estimated additional<br />

spending required for<br />

basic education in 2015<br />

Notes: Spending in 2007 is an estimate of domestic spending on education and excludes grants.<br />

Nor<strong>the</strong>rn and sou<strong>the</strong>rn Sudan are included separately in <strong>the</strong> costing study because of <strong>the</strong>ir separate<br />

education systems (see Box <strong>2.</strong>27). Excludes Uzbekistan and Viet Nam which are projected not to require<br />

additional spending on basic education.<br />

Source: EPDC and UNESCO (2009).<br />

63. This is an average<br />

figure weighted by <strong>the</strong> size<br />

of low-income countries<br />

in terms of <strong>the</strong>ir GDP.<br />

127

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