Educational Finance in Thailand - UNESCO Bangkok
Educational Finance in Thailand - UNESCO Bangkok
Educational Finance in Thailand - UNESCO Bangkok
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F<strong>in</strong>al Report, Volume II/3 Anthony. Cresswell: <strong>Educational</strong> <strong>F<strong>in</strong>ance</strong> <strong>UNESCO</strong>-PROAP TA 2996-THA<br />
Education Management and <strong>F<strong>in</strong>ance</strong> Study July 1999<br />
2.2.1. Adequacy of allocations to the education sector<br />
2.2.1.1. Education as a share of GDP<br />
a. The level of overall spend<strong>in</strong>g on education has been a relatively high<br />
proportion of the Government budget and of the overall level of economic<br />
activity as measured by the Gross Domestic Product (GDP). The pattern for<br />
the education share of the Government budget over the past 20 years is shown<br />
<strong>in</strong> Figure 9 below. Some substantial fluctuations <strong>in</strong> the education share of the<br />
budget are evident <strong>in</strong> this record. There appear to be three dist<strong>in</strong>ctive periods<br />
over this time span. The 1978-85 period shows a very stable percentage at<br />
roughly 20%. The period 1985-1990 shows a drop <strong>in</strong> the education share,<br />
down to less than 17 per cent <strong>in</strong> 1989. From 1991 to 1996 the share returns to<br />
a fairly stable 20 per cent for six years. This is followed by a sharp upturn <strong>in</strong><br />
1997 and 1998. Over this time span <strong>Thailand</strong>’s education share of the national<br />
budget has been equal to or above other Asian countries. But these<br />
fluctuations are large enough to require further attention.<br />
Figure 9 - Education as a per cent of the national budget, 1978-97<br />
Trends <strong>in</strong> the Thai Education Budget and GDP<br />
% of GDP<br />
4.5%<br />
4.0%<br />
3.5%<br />
3.0%<br />
2.5%<br />
2.0%<br />
1.5%<br />
1.0%<br />
0.5%<br />
0.0%<br />
30.0%<br />
25.0%<br />
20.0%<br />
15.0%<br />
10.0%<br />
5.0%<br />
0.0%<br />
% Change <strong>in</strong> GDP<br />
1978<br />
1980<br />
1982<br />
1984<br />
1986<br />
1988<br />
1990<br />
1992<br />
1994<br />
1996<br />
Ed. Budget as % GDP<br />
% Change <strong>in</strong> GDP<br />
b. When the share of education as a proportion of GDP is exam<strong>in</strong>ed over the same time<br />
period, possible causes for the shifts <strong>in</strong> the education share are evident. In Figure 10<br />
(below) education expenditures as a per cent of GDP are plotted along with changes <strong>in</strong><br />
the GDP. When viewed on the same plot, the two time series show clear counter-cyclical<br />
changes; when one goes up, the other goes down. One way to <strong>in</strong>terpret this pattern is that<br />
education represents such a large and important proportion of the budget, <strong>in</strong>volv<strong>in</strong>g so<br />
many people and <strong>in</strong>stitutions, that it can be changed only slowly. Therefore <strong>in</strong> time of<br />
slow<strong>in</strong>g economic growth, say 1980-85, the overall Government budget may shr<strong>in</strong>k, but<br />
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