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1
Recent Developments in Financing for Education in Low-Income
Countries: Implications for Girls and Women
Bob Prouty
EFA FTI Secretariat
CIES Gender Symposium
March 18, 2008
Outline
• Trends for coordination of financial support to education sector plans– Gender implications
• Trends in domestic financing for education in low-income countries– Gender implications
• Trends in external financing for education in low-income countries
• World Bank trends as a precursor?– Gender implications
• Trends in girls’ enrollment
The FTI Compact
Low-income countries:Low-income countries: • Prepare sound national education plans • Allocate adequate share of the national budget to
education
Donors:Donors: • Mobilize additional resources• Make aid more predictable
Goal:Goal: • Accelerated progress toward universal learning
Gender Implications of FTI Processes
• Opportunity to ensure gender lens applied to preparation of ed sector plans by national governments
• Opportunity to ensure consistent approach and support by donor partners
• Risk that non-primary sub-sectors will receive less
Domestic Financing Trends
• GMR 2008 reports a mixed picture
• Sub-Saharan Africa, Central Asia performing well
• 9 of 14 LICs with >1% increase in share of GNP for education are FTI-endorsed
FTI Countries pay most of the education bill themselves
Typically, in FTI countries 70 to 80%70 to 80% of education costs are financed domesticallyfinanced domestically
Domestic Funding
Bilaterals
Multilaterals
FTI Catalytic Fund
External Aid
Yemen
Tajikistan
Senegal
Sao Tome & Principe
Moldova
Nicaragua
Lesotho
Kyrgyz Rep.
Guyana
Guinea
Gambia
Ethiopia
Cameroon
Cambodia
Albania
-2,0
-1,5
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
3,0
-6,0 -4,0 -2,0 0,0 2,0 4,0 6,0 8,0 10,0
PCR annual increase 2000-2005 (percentage points)
Relationship between Education Expenditure and Primary Completion in FTI Countries
Gender Implications of Domestic Financing Trends
• Sustainability– If it is to be sustainable over time, it will need
to be included in government budgets and supported through domestic resources
• Effectiveness– Increased financing, coupled with solid
policies, leads to more girls completing school
0
1
2
3
4
5
6
7
1999
2000
2001
2002
2003
2004
2005
2006
2002
2003
2004
2005
2006
Commitments Disbursements
US
$ b
illi
on
s (c
on
stan
t 20
06)
Total
Basic
Secondary
External Financing for Education in Low Income Countries
Education Aid Flows in Low Income Countries
3.3 3.5
1.9
5.6
6.5
1.9
0.9
3.0
4.1
1.6
0.9 1.0
0.3
0.4
0
1
2
3
4
5
6
7
1999 2000 2001 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006
Commitments Disbursements
US
$ b
illi
on
s (c
on
stan
t 20
06)
Total
Basic
Secondary
Girls’ Education Lending, IDA
0.000% 0.005% 0.010% 0.015% 0.020%
Norway
Netherlands
Ireland
United Kingdom
Canada
New Zealand
Sweden
Denmark
Belgium
France
Luxembourg
Australia
P ortugal
J apan
United States
Germany
Spain
Switzerland
Italy
Austria
Greece
Finland
2002
2005
ODA to Basic Education in Low-Income Countries as a Percentage of GNI
Austria
IDA
UnitedStates
UnitedKingdom
EC
Japan
Netherlands
Canada
France
Norw ay
Germany
Sw eden
Ireland
Australia
Denmark
Spain
Belgium
Italy
Portugal
New Zealand
Luxembourg
Sw itzerland
Greece
0%
20%
40%
60%
80%
100%
0% 10% 20% 30% 40% 50%
Share of education in sector-allocable ODA
Sh
are
of b
asi
c e
du
catio
n in
ed
uca
tion
OD
A
Share of Education and Basic Education in ODA Disbursements from DAC Countries to Low-Income Countries in 2005
Leveraging policy change?
• FTI countries show increased hours of increased hours of schoolingschooling
• FTI countries lower repetition rateslower repetition rates much faster than others, with high PCR gains
• FTI countries that have abolished user abolished user feesfees see faster PCR gains
Source: FTI Annual Report 2007Source: FTI Annual Report 2007
A Shift in IDA Financing—Primary as % of Total Education Credits
• 1990-94 42
• 1995-99 45
• 2000-2004 46
• 2005-2007 29
Emerging Trends: IDA CreditsSecondary vs. Primary
• 1990-94 23 %
• 1995-99 19 %
• 2000-04 19 %
• 2005-07 57 %
Gender Issues Linked to External Financing Trends
• How to ensure predictable financing • How to protect financing for primary • How to ensure shift toward secondary
gives due attention to gender issues• How to finance marginalized populations• How to increase financing, and spread it
more evenly among donors• How to leverage positive change on
gender issues
Girls’ Access Trends--Primary
• 1990-94 from 77% GER to 78%
• 1995-99 from 78% GER to 80%
• 2000-05 from 81% GER to 99%
Male and Female GER—Upper Secondary
Benin Burkina Faso
Guinea Ethiopia Mozambique Mauritania Djibouti Yemen
Girls 14 5 14 11 3 19 13 25
Boys 27 9 27 20 5 22 21 55