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20<br />

countries is that estimates exclude about 15% of total<br />

aid to education, which is not assigned to any particular<br />

country. Much of this corresponds to disbursements by<br />

the Global Partnership for Education (GPE), a growing<br />

source of funding for education in low income countries.<br />

Donors’ contributions to the GPE are subsumed within<br />

their aid reporting to the CRS, <strong>and</strong> GPE disbursements<br />

are estimated through GPE records, not CRS records.<br />

Donors differ in how they report to the GPE: some report<br />

aid as going to recipient countries, others as aid through<br />

the World Bank as the implementing agency, <strong>and</strong> others<br />

through undisclosed channels, of which some are<br />

specified by region or country.<br />

The GPE disbursed US$524 million in 2014, of which<br />

two-thirds, or US$349 million, was directed at low<br />

income countries (GPE, 2015). For example, Australia<br />

appears to have disbursed only US$7 million in aid to<br />

basic education to low income countries in 2012–2014.<br />

However, it also disbursed US$88 million on average per<br />

year to the GPE over that period, of which two-thirds<br />

was likely to have gone to low income countries (GPE,<br />

2016). Omitting this growing financing flow risks biasing<br />

conclusions about aid targeting. Hence, it is important<br />

for the CRS to include the GPE as a reporting entity.<br />

Monitoring other trends in aid to education<br />

When figures for official development assistance (ODA)<br />

are reported, the impression is often given that aid is<br />

a single transfer of resources to developing countries.<br />

In practice, it is diverse, using a range of forms, modes,<br />

instruments <strong>and</strong> channels. One trend worth monitoring<br />

relates to types of aid: loans are growing in relation to<br />

grants. Another involves aid channels, namely the extent<br />

to which aid passes through governments.<br />

Type of aid: grants <strong>and</strong> loans. Grants made up 83% of total<br />

aid to education in 2014, a larger share than that of all aid<br />

across sectors (74%). Low income countries receive<br />

84% of their total aid, as well as their total aid to<br />

education, in the form of grants, with the largest<br />

recipients being Ethiopia, Mozambique <strong>and</strong> Nepal<br />

(Figure 20.10). By contrast, lower middle income<br />

countries traditionally receive a larger proportion of<br />

their education aid in the form of loans.<br />

Between 2007 <strong>and</strong> 2014, within total ODA flows<br />

from OECD-DAC members, loans increased by<br />

122% while grants grew by 21%. It will be important to<br />

FIGURE 20.9:<br />

There are differences in the focus on low income countries across<br />

donors <strong>and</strong> over time<br />

Ratio of donor share of total aid to education to low income countries over donor<br />

share of total aid to education to all countries, top ten donors, 2002–2004,<br />

2008–2010 <strong>and</strong> 2012–2014<br />

Donor share of total aid to education to low income countries/<br />

Donors share of total aid to education<br />

2.5<br />

2.0<br />

1.5<br />

1.0<br />

0.5<br />

0.0<br />

Canada<br />

2002–2004 2008–2010 2012–2014<br />

In the period 2012–2014, the United Kingdom accounted<br />

for 17% of total aid to education to low income countries<br />

<strong>and</strong> 10% of total aid to education<br />

United Kingdom<br />

World Bank<br />

United States<br />

Other<br />

Japan<br />

EU institutions<br />

France<br />

Germany<br />

Netherl<strong>and</strong>s<br />

Australia<br />

track loan agreements per country <strong>and</strong> lender, including<br />

by non-OECD donors, to monitor implications of this<br />

trend. There is a risk that increasing borrowing could<br />

begin to crowd out spending on education <strong>and</strong> other<br />

social sectors.<br />

Channels of aid: through or bypassing government. In low<br />

income, fragile <strong>and</strong> conflict-affected countries, donors<br />

often bypass government aid disbursement systems,<br />

partly as a result of concerns over capacity. Out of<br />

total aid, 66% was delivered through government in<br />

lower middle income countries in 2014, compared with<br />

52% in low income countries, where NGOs, civil society<br />

organizations <strong>and</strong> multilateral agencies are a more<br />

common delivery channel (36%).<br />

More priority to low<br />

income countries<br />

Less priority to low<br />

income countries<br />

Note: The top ten donors are defined on the basis of their total aid to education disbursements<br />

in 2002–2014.<br />

Source: GEM Report team analysis based on information in the OECD CRS database.<br />

2016 • GLOBAL EDUCATION MONITORING REPORT 355

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