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 />
<strong>in</strong>stitutions. This will require development of new assessment and support<br />
capacities which are not described <strong>in</strong> full detail <strong>in</strong> this report, But they are seen as<br />
a necessary component of an efficient and effective educational system. The<br />
budget for this program could be built from the exist<strong>in</strong>g Quality Improvement<br />
program and additional funds for the development of a national-level assessment<br />
and quality assurance capacity. S<strong>in</strong>ce a variety of assessment and evaluation<br />
activities are already underway <strong>in</strong> various components of the government, some<br />
consolidation of these activities <strong>in</strong>to a s<strong>in</strong>gle responsible agency (perhaps as part<br />
of the ONEC), would be desirable.<br />
e. The fourth role is <strong>in</strong> part a new one for the Government. There is already a<br />
Quality Improvement program <strong>in</strong> the budget structure. However, these funds are<br />
used <strong>in</strong> a mix of support of research and <strong>in</strong>novation, and for enhancements of<br />
exist<strong>in</strong>g programs and operations. The emphasis of this program should be shifted<br />
to emphasize research and <strong>in</strong>novation. The funds should be allocated on a<br />
competitive basis for projects and research activities that have high potential to<br />
improve the overall quality of the educational system.<br />
f. The fifth role is a recast<strong>in</strong>g of the capital <strong>in</strong>vestment portions of the educational<br />
budget. The responsibility for <strong>in</strong>frastructure development and ma<strong>in</strong>tenance should<br />
be shared by the national and lower levels of the system. The national level<br />
responsibility should extend to a mix of major <strong>in</strong>frastructure projects with national<br />
importance (such as network<strong>in</strong>g <strong>in</strong>frastructure for schools), and support for local<br />
and prov<strong>in</strong>cial <strong>in</strong>vestment. Local and prov<strong>in</strong>cial capital projects should be shifted<br />
from the current budget appropriations framework and be f<strong>in</strong>anced out of<br />
borrow<strong>in</strong>g from the private sector. The legal authority and local revenue-rais<strong>in</strong>g<br />
capacity for borrow<strong>in</strong>g should be enacted for the prov<strong>in</strong>cial, and if possible lower<br />
levels of adm<strong>in</strong>istration. Similar authority has already been provided higher<br />
education <strong>in</strong>stitutions and appears to be work<strong>in</strong>g effectively. The national<br />
government should provide assistance to the less wealthy local authorities <strong>in</strong> the<br />
form of subsidies for debt service <strong>in</strong>dexed to local wealth. The details and rational<br />
for this shift <strong>in</strong> capital expenditure are presented <strong>in</strong> section 3.2.2.4 below.<br />
3.2.1 The basic educational support program<br />
a. The allocation of government resources to basic education <strong>in</strong> this new system<br />
would be based on concept of shared responsibility for provid<strong>in</strong>g f<strong>in</strong>ancial support<br />
for the schools. This responsibility is to be shared among the central government,<br />
the prov<strong>in</strong>cial government, the local or school government, and the parents. Each<br />
would have the responsibility to provide f<strong>in</strong>ancial support for the schools, under<br />
different mechanisms. There would be two mechanisms for the central<br />
government. One would be to provide a basic subsidy to all children enrolled <strong>in</strong><br />
basic education. The second would be through an educational equity subsidy to<br />
the lower wealth prov<strong>in</strong>ces to supplement the funds available for school support<br />
(the mechanism for this subsidy is described on p. 98 below). Prov<strong>in</strong>cial support<br />
would consist of the allocation of the equity subsidy among schools enroll<strong>in</strong>g<br />
disadvantaged students, and provision of additional subsidies from prov<strong>in</strong>cial<br />
revenues. The local government mechanism would be through locally raised<br />
revenue from various taxes and other sources. The level of parent support would<br />
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